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This is to certify that ___________________________________


Of B.Com (Banking and Insurance) Semester V (academic year

2015-2016) has successfully completed the project on

______________________________________________________under the

Guidance of Miss. __________________________________________.

_________________ ___________________

(Project Guide) (Course Co-ordinator)

___________________ ___________________

(External Examiner) (Principal)

Place: _____________

Date: ___________

I, __________________________________________________

Student of B.Com (Banking and Insurance) Semester V academic

Year 2015-16 hereby declare that, I have completed the project on


The information presented in this project is true and original

To the best of my knowledge.



Roll No.: 26

Place: _____________

Date: _____________

I would like to thank the University of Mumbai, for introducing Banking

and Insurance course, thereby giving its students a platform to abreast with
changing business scenario, with the help of theory as a base and practical as a

I would also like to thank our Principal DR.VIJAY DABOLKAR for her
constant support to the students.

Last but not the least; I would like to thank my parents for giving the best
education and for their support and contribution without which this project would
not have been possible.




About the project

The project deals with comparative analysis of different insurance products

offered by insurance companies.

Purpose of the project

The main purpose of the project is to do comparative analysis of different

insurance products, check the awareness level and perception of insurance by the
The project would also help in understanding preference of people regarding
private and public insurance companies. The main objective of the research is

Making comparative analysis between:-

1 . H D F C E R G O w i t h TATA A I G .
2. HDFC ERGO with Star Health Insurance
3. HDFC ERGO with National Health Plan
4. HDFC ERGO With Reliance

Finding out the features and benefits of these plans

To find out the awareness level of insurance in Kolkata

To determine customer preference towards private insurance companies and

Public insurance companies.

Marketing of different insurance products.

1.3: Scope of the project

The entry of foreign MNCs and the conductive business environment fostered by
the government, it is no wonder that the re-entry of private insurance has marked a
second coming for the sector. In just five years, the sector has undergone a
makeover, offering more choice, better services, quicker settlement, tighter
regulation and greater awareness s the environment become more and
more competitive and services and products become alike, creating
a differentiation is becoming extremely tough. Thus, the main objective of
my project was to find out the preference of people regarding insurance companies,
which would help curvy employees to market their product. The study then goes on
to evaluate and analyze the findings so as to present a clear picture of recent trends
in the Insurance sector.


Insurance defined.Insurance is a provision for the distribution of risks;

that is to say, it is a financial provision against loss from unavoidable disasters.
The protection which it affords takes the form of a guaranty to indemnify the
insured if certain specified losses occur. The principle of insurance, so far as the
under-taking of the obligation is concerned, is that for the payment of a certain sum
the guaranty will be given to reimburse the insured. The insurer, in accepting risks,
so distributes them that the sum total of all the amounts paid for this
insurance protection will be sufficient to meet the losses that occur.

Insurance, then, indicates divided responsibility. This principle is introduced in

most stores where a division is made between the sales clerk and the cashier's
department, the arrangement dividing the risk of loss. The insurance principle
is similarly applied in many other cases of divided responsibility. As a
business, however, insurance is usually recognized as some form of securing
promise of indemnity by the payment of a premium and the
fulfil ment of certain other stipulations.
Early instances of insurance.Forms of insurance were known to the
Romans and to some extent were practiced among the Collegial. In certain
respects these bodies resembled our benefit societies. For example, they provided
for burial and also made some form of provision for promotion among the
soldiers in their organizations. In reality, then, they were based on the
insurance principle since they accepted from their members a certain stipulated
sum and in return agreed to perform certain services. Demosthenes describes
marine loans made to the ancient Greeks; we also have record that insurance
existed among the Chinese 2500 years ago. In none of these early instances,
however, did insurance reach anything like large proportions. In fact, so far as we
know, it entirely disappeared, many centuries passing before there was a revival. It
is true that certain laws among the Romans governing annuities necessitated a
mortality table, but it was, however, for this sole purpose and apparently not in any
sense an insurance matter.

Present for ms of insurance.The business of insurance are divided int

ofour main branches: marine insurance, fire insurance, life insurance and
casualty insurance. The first three state the form of disaster against which
insurance is provided. The fourthoriginally accident insuranceincludes all
forms not embraced in the other three. An idea of the variety of events against
which insurance is offered.

Marine insurance antedates every other form, its history dating back over
seven centuries. It appears to have been practiced in the Mediterranean, and at least
one old policy has come down from the thirteenth century, proving that marine
insurance was an established practice among the commercial countries of that
time. A broad gap exists between that period and the continuous history
running back now some four hundred years, but since that time insurance
has been an established business among those engaged in maritime adventures.

Fire insurance, the second oldest form to become permanently established, dates
from the great London fire of 1666.Life insurance followed a little later,
although not until 1760 was a company founded on a modern basis.
Casualty insurance owes its origin to the application of steam to railway travel; its
more common name of accident insurance was due to the fact that the first events
to be insured against were those of accidents to the person on a railway
journey. It originated in England in the first half of the nineteenth century.

The theory of probabilities. all forms of insurance has a fundamental basis

in the theory of probabilities. This theory deals with those events which
seemingly do not lend themselves to affixed law but which in reality occur with
such approximate regularity that a definite law may be deduced from a sufficient
number of these uncertain events, the law being that these events will occur with
sufficient regularity over a period of time so that conclusions may safely
be drawn from them.

The possibilities contained in the theory of probabilities were first brought to light
by the famous solution of a gaming problem. Two noblemen, engaged in a
game of cards called the Game of Points, were obliged to cease play before
the game could be finished. Being unwilling to separate with each retaining his
own stakes, they asked Pascal, the eminent Frenchman, to suggest how the
stakes should be divided. The stakes amounted to $64, each having contributed$32,
and it was necessary for one of the players to make three points before he would be
entitled to the stakes. At the time they appealed to Pascal, one player had two
points to his credit and the other player had one. Pascal submitted the following
solution: "Suppose," he said, "that you had played another hand. One of two things
would necessarily happen : either the player who has two points would gain one,
and, having three points to his credit, would claim the stakes; or the player with
one point to his credit would win another so that he would have two points to his
credit, the same as his opponent. If this latter should happen, each would have
retained his individual stake. The chances of winning I consider equal, and as
it is evident that the player with two points cannot, if he plays another hand,
lose his original stake of $32, the other 832 should be divided into two parts and
the player who has one point to his credit retain $16 and the player with two points
receive $16, or the whole stake be divided into proportions of 48 and 16.

Pascal submitted two other suggestive solutions to clinch his theory, but they
need not be discussed here. Gambling at that time was prevalent in the
courts, and nothing pleased the gamblers more than to be shown ways whereby
their games could be decided although not played to a conclusion. Great
intellectual interest was aroused in the theory of probabilities, and out of this
condition the business of insurance in its modern aspect originated. At this point it
should be said that insurance, although often compared with gambling
possibly because of these early associationsis entirely different from it in
principle. Gambling is an attempt to increase, ones means by a venture not
based on any known factors; that is, it is purely and simply a chance.
Insurance, on the other hand, takes into consideration all the factors that enter into
the problem and that may affect the hazard insured against, or the factors that may,
if guarded against, prevent the contingency from happening.

Logic of insurance
It is a system by which the losses suffered by a few are spread over many, exposed
to similar risks. Insurance is a protection against financial loss arising on the
happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the amount premiums collected
from the insuring public and the Insurance Companies act as trustees to the

Need of insurance

Insurance is desired to safeguard oneself and one's family against possible losses
on account of risks and perils. It provides financial compensation for the losses
suffered due to the happening of any unforeseen events. By taking life insurance a
person can have peace of mind and need not worry about the financial
consequences in case of any untimely death. Certain Insurance contracts are also
made compulsory by legislation. For example, Motor Vehicles Act 1988 stipulates
that a person driving a vehicle in a public place should hold a valid insurance
policy covering Act" risks. Another example of compulsory insurance pertains the
Environmental Protection Act, wherein a person using or to carrying hazardous
substances (as defined in the Act) must hold a valid public liability (Act) policy.

About Insurance Industry

"Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premiums, to pay the other
party called insured a fixed amount of money on the happening of a certain
event."Insurance is a protection against financial loss arising on the happening of
an unexpected event. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring public
and the Insurance Companies act as trustees to the amount collected. For Example,
in a Life Policy, by paying a premium to the Insurer, the family of the insured
person receives a fixed compensation on the death of the insured. Similarly, in car
insurance, in the event of the car meeting with an accident, the insured receives
the compensation to the extent of damage. It is a system by which the losses
suffered by a few are spread over many, exposed to similar risks.

Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life
and general insurance in India is still a nascent sector with huge potential for
various global players with the life insurance premiums accounting to 2.5% of
the country's GDP while general insurance premiums to 0.65% of India's GDP. The
Insurance sector in India has gone through a number of phases and changes,
particularly in the recent years when the Govt. of India in 1999 opened up the
insurance sector by allowing private companies to solicit insurance and also
allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as
a booming market with every other global insurance company wanting to have
a lion's share. Currently, the largest life insurance company in India is still owned
by the government.

History of Insurance in India

Insurance in India has its history dating back till 1818, when Oriental Life
Insurance Company was started by Europeans in Kolkata to cater to the needs
of European community. Pre-independent era in India saw discrimination among
the life of foreigners and Indians with higher premiums being charged for the latter.
It was only in the year 1870, Bombay Mutual Life Assurance Society, the first
Indian insurance company covered Indian lives at normal rates. At the dawn of the
twentieth century, insurance companies started mushrooming up. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed
to regulate the insurance business. The Life Insurance Companies Act, 1912
made it necessary that the premium rate tables and periodical valuations of
companies should be certified by an actuary. However, the disparage still existed as
discrimination between Indian and foreign companies. The oldest existing
insurance company in India is National Insurance Company Ltd, which
was founded in1906 and is doing business even today. The Insurance industry
earlier consisted of only two state insurers: Life Insurers i.e. Life Insurance
Corporation of India (LIC) and General Insurers i.e. General Insurance
Corporation of India (GIC). GIC had four subsidiary companies. With effect from
December 2000, these subsidiaries have been de-linked from parent company
and made as independent insurance companies: Oriental Insurance Company
Limited, New India Assurance Company Limited, National Insurance Company
Limited and United India Insurance Company Limited.

Life insurance

Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a designated beneficiary a sum of money
upon the occurrence of the insured individuals or individuals' death or other event,
such as terminal illness or critical illness. In return, the policy owner agrees to pay
a stipulated amount called a premium at regular intervals or in lump sums. There
may be designs in some countries where bills and death expenses plus catering for
after funeral expenses should be included in Policy Premium. In the United States,
the predominant form simply specifies a lump sum to be paid on the insured's

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January
1956,that life insurance in India was completely nationalized, through a
Government ordinance; the Life Insurance Corporation Act, 1956 effective
from 1.9.1956 was enacted in the same year to, inter-alia, form LIFE
INSURANCE CORPORATION after nationalization of the 245 companies into
one entity. There were 245 insurance companies of both Indian and foreign origin
in 1956. Nationalization was accomplished by the govt. acquisition of
the management of the companies. The Life Insurance Corporation of India was
created on 1 September, 1956, as a result and has grown to be the largest insurance
company in India as of 2006.

General Insurance

General insurance or non-life insurance policies, including automobile and

homeowners policies, provide payments depending on the loss from a. Particular
financial event. General insurance typically comprises any insurance that is not
determined to be life insurance. It is called property and casualty insurance in the
U.S. and Non-Life Insurance in Continental European the UK, General insurance
is broadly divided into three areas: personal lines, commercial lines and London
market. The London market insures large commercial risks such as supermarkets,
football players and other very specific risks. It consists of a number of insurers,
reinsurers, [P&I Clubs], brokers and other companies that are typically physically
located in the City of London. The Lloyd's of London is a big participant in this
market. The London Market also participates in personal lines and commercial
lines, domestic and foreign, through reinsurance. Commercial lines products are
usually designed for relatively small legal entities. These would include workers'
comp (employers liability), public liability, product liability, commercial fleet and
other general insurance products sold in a relatively standard fashion to many
organisations. There are many companies that supply comprehensive commercial
insurance packages for a wide range of different industries, including shops,
restaurants and hotels. Personal lines products are designed to be sold in
large quantities. This would include autos (private car), homeowners (household),
pet insurance, creditor insurance and others.

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to

nationalize the 100 odd general insurance companies and subsequently merging
them into four companies. All the companies were amalgamated into National
Insurance, New India Assurance, Oriental Insurance, and United India Insurance
which were headquartered in each of the four metropolitan cities.

Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance
sector. The Govt of India then introduced the Insurance Regulatory
and Development Authority Act in 1999, thereby de-regulating the insurance sector
and allowing private companies into the insurance. Further, foreign investment was
also allowed and capped at 26% holding in the Indian insurance companies. In
recent years many private players entered in the Insurance sector of India.
Companies with equal strength started competing in the Indian insurance market.
Currently, in India only 2 million people (0.2 % of total population of 1 billion),
are covered under Med claim, whereas in Developed nations like USA about 75 %
of the total population are covered under some Insurance scheme. With more and
more private players in the sector this scenario may Change at a rapid pace

Power, Duties and Functions Of the authority

The Authority has been entrusted with the duty to regulate, promote and ensure the
orderly growth of the insurance and re-insurance business in India. In furtherance
of this responsibility, it has been conferred with numerous powers and functions
which include prescribing regulations on the investment of funds by insurance
companies ,regulating maintenance of the margin of solvency, adjudication of
disputes between insurers and intermediaries, supervising the functioning of the
tariff advisory committee, specifying the percentage of premium income of the
insurer to finance schemes for promoting and regulating professional organizations
and specifying the percentage of Life & General Insurance business to be
undertaken by the insurer in the rural or social sector

Reinsurance is a means by which an insurance company can protect itself with
other insurance companies against the risk of losses. Individuals and corporations
obtain insurance policies to provide protection for various risks (hurricanes,
earthquakes, lawsuits, collisions, sickness and death, etc.). Reinsurers, in turn,
provide insurance to insurance companies. The company requesting the cover is
called the cadent and the reinsurer can be called the ceded, although the latter term
is not in common use. The main use of any insurer that might practice reinsurance
is to allow the company to assume greater individual risks than its size would
otherwise allow, and to protect a company against losses. Reinsurance allows an
insurance company to offer higher limits of protection to a policyholder than its
own assets would allow. For example, if the principal insurance company can write
only $10 million in limits on any given policy, it can reinsure (or cede) the amount
of the limits in excess of $10 million. Reinsurances highly refined uses in recent
years include applications where reinsurance was used as part of a carefully
planned hedge strategy

Different Insurance Companies

Insurance is an upcoming sector, in India the year 2000 was a landmark year for
life insurance industry, in this year the life insurance industry was liberalized after
more than fifty years. Insurance sector was once a monopoly, with LIC as the only
company, a public sector enterprise. But nowadays the market opened up and there
are many private players competing in the market. There are fifteen private life
insurance companies has entered the industry. After the entry of these private
players, the market share of LIC has been considerably reduced. In the last five
years the private players is able to expand the market (growing at 30% per annum)
and also has improved their market share to 18%. For the past five years private
players have launched many innovations in the industry in terms of products,
market channels and advertisement of products, agent training and customer
services etc.

The various life insurers entered India:-

Life Insurer in Public Sector

1. Life Insurance Corporation of India

Life Insurers in Private Sector

2. MetLife India Life Insurance

3. ICICI Prudential
4. Bajaj Allianz Life Insurance
5. Max New York Life Insurance
6. Sahara Life Insurance
7. TATA AIG Life Insurance
8. HDFC Standard Life
9. Birla Sun life
10. SBI Life Insurance
11. Kotak Life Insurance
12. Aviva Life Insurance
13. Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar
14. ING Vysya Life Insurance
15. Shriram Life Insurance
16. Bharti AXA Life Insurance Co Ltd
17. Future General Life Insurance Co Ltd
18. IDBI Fortis Life Insurance
19. AEGON Religare Life Insurance
20. DLF Pramerica Life Insurance
21. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

The various other general Insurance Companies are as


Non-Life Insurer in Public Sector

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited
3. National Insurance Company Li mited
4. United India Insurance Company Limited.

Non-Life Insurers in Private Sector

1. Bajaj Allianz General Insurance Co. Ltd.

2. ICICI Lombard General Insurance Co. Ltd.
3. IFFCOTokio General Insurance Co. Ltd.
4. Reliance General Insurance Co. Ltd.
5. RoyalSundaram Alliance Insurance Co. Ltd
6. Tata AIG General Insurance Co. Ltd.
7. Cholamandalam MS General Insurance Co. Ltd.
8. HDFC ERGO General Insurance Co. Ltd.
9. Export Credit Guarantee Corporation of India Ltd.
10. Agriculture Insurance Co. of India Ltd.
11. Apollo Munich Health Insurance Company Limited
12. FutureGenerali India Insurance Company Limited
13. UniversalSompo General Insurance Co. Ltd.
14. Shriram General Insurance Company Limited,
15. Bharti AXA General Insurance Company Limited
16. Raheja QBE General Insurance Company Limited,
17. SBI General Insurance Co. Ltd.



Changing face of Indian insurance industry

Indian life-insurance market is the target market of all the companies who
either want to extend or diversify their business. To tap the Indian market there has
been tie-ups between the major Indian companies with other International
insurance companies to start up their business. The government of India has set up
rules that no foreign insurance company can setup their business individually here
and they have to tie up with an Indian company and this foreign insurance
company can have an investment of only 24% of the total start-up investment.
Indian insurance industry can be featured by:
Low market penetration.
Ever growing middle class component in population.
Growth of customers interest with an increasing demand for better insurance
Application of information technology for business.
Rebate from government in the form of tax incentives to be insured. Today, the
Indian life insurance industry has a dozen private players, each of which are
making strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country.
Several of private insurers have introduced attractive products to meet the needs of
their target customers and in line with their business objectives

India: The Next Insurance Giant

Market Performance & Forecast: In 2000, Indian insurance market size was
$21.71 billion. Between 2000 and 2007, it had an increase of 120% and reached
$47.89 billion. Between 2000 and 2007, total premiums maintained an average
growth rate of 11.96%and the CAGR growth during this time frame has been
11.96%. It was one of the most consistent growth patterns we have noticed in any
other emerging economies in Asians well as Global markets.

Indian Insurance Market

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and
3rdlargest in terms of purchasing power parity. With factors like a stable 8-
9 percent annual growth, rising foreign exchange reserves, a booming capital
market and rapidly expanding FDI inflows, it is on the fulcrum of an
ever increasing growth curve. Insurance is one major sector which has been on
a continuous growth curve since the revival of Indian economy. Taking into
account the huge population and growing per capita income besides several other
driving factors, a huge opportunity is in store for the insurance companies in India.
According to the latest research findings, nearly 80%of Indian population is
without life insurance covering while health insurance and non-life insurance
continues to be below international standards. And this part of the populations also
subjected to weak social security and pension systems with hardly any old age
income security. As per our findings, insurance in India is primarily used as a
means to
Improve personal finances and for income tax planning; Indians have a tendency to
Invest in properties and gold followed by bank deposits. They selectively invest in
Shares also but the percentage is very small 4-5%. This in itself is an indicator
that growth potential for the insurance sector is immense. Its a business growing at
the rate of 15-20% per annum and presently is of the order of $47.9 billion. India is
a vast market for life insurance that is directly proportional to the growth
in premiums and an increase in life density. With the entry of private sector players
backed by foreign expertise, Indian insurance market has become more vibrant.
Competition in this market is increasing with companys continuous effort to
lure the customers with new product offerings. However, the market share of
private insurance companies remains very low -- in the 10-15% range. Even to this
day, Life Insurance Corporation (LIC) of India dominates Indian insurance
sector. The heavy hand of government still dominates the market, with price
controls, limits on ownership, and other restraints.

Major Driving Factors

Growing demand from semi-urban population

Entry of private players following the deregulation
Rising demand for retirement provision in the ageing population
The opening of the pension sector and the establishment of the new pension
Rising per capita incomes among the strong middle class, and spreading affluence
Growing consumer class and increase in spending & saving capacity
Public private partnerships infrastructure development
Dearth of innovative & buyer-friendly insurance products
Success of Auto insurance sector

Emerging Areas

Healthcare Insurance & Pension Plans

Mutual fund linked insurance products
Multiple Distribution Networks .i.e. Bank assurance the upward growth trend
started from 2000 was mainly due to economic policies adopted by the then Indian
government. This year saw initiation of an era of economic liberalization and
globalization in the Indian economy followed by several reforms and long-term
policies that created a perfect roadmap for the success of Indian financial markets.
On the basis of several macroeconomic factors like increase in literacy rate & per
capita income, decrease in death rate and unemployment, better tax rebates,
growing GDP etc., we estimate that the Indian insurance sector will grow
by $28.65 billion and reach $76.54 billion by 2011 with a CAGR (compounded
annual growth rate) of 12.44% and a growth of 59.82%.

Valuing the invaluable

Both under insurance and over insurance can often be attributed to the lack of
proper understanding of the exact insurance needs for oneself and the family, and
the failure tosspot and cover all liabilities properly and adequately, or being over-
conservative in this regard.

Under Insurance
Under insurance, typically occurs when the existing financial liabilities and
insurance needs are fully taken care of. In the event of the untimely death of the
only (or the main earning) member of the family, his financial liabilities would
obviously fall on his dependents, leaving them in a state of financial distress that
could threaten their need of sustenance.

Over Insurance
Conversely, there are also instances where individuals indulge in life insurance
covers that far exceed in value than what is actually required. This is a classic case
of over insurance, which leads to an unnecessarily higher premium
payment, leaving you much poorer. It results in unnecessary expenditure that could
otherwise be wisely invested elsewhere. The need for an adequate insurance cover
is never static and keeps on varying with changes in the life stages and important
events of an individual. The table below provides an insight into the various life
stages and events when life insurance cover usually requires a revision.
About Organization

HDFC ERGO General Insurance Company Limited is a 74:26 joint venture

between HDFC Limited, Indias premiers Housing Finance Institution &
ERGO International AG, the primary insurance entity of Munich Re Group.

HDFC ERGO focuses on providing the Right Insurance Solution for all.
We offer our customers complete range of general insurance products ranging from
Motor, Health, Travel, Home and Personal Accident in the retail space and
customized products like Property, Marine and Liability Insurance in the corporate

It is our constant endeavour to i mprovise and cater to every need of

the modern day customer with superior customer support service. This helps us
give our customers a seamless and hassle-free experience.
HDFC ERGO has been expanding its presence across the country and is
today present across 46 cities with 52 branch offices with an employee
base of over 650 professionals. The company has a right balance of distribution
channel comprising of Dealerships, Brokers, Retail and Corporate Agents, Banc
assurance and Direct Sales Team.


ERGO Group AG came into being at the end of 1997 by the fusion of Victoria
Holding AG and Hamburg-Mannheimer AG; the latter evolved from Hamburg-
Mannheimer Versicherungs-AG, the life insurance company of Hamburg-

On December 1, 1997, the shareholders of Victoria Holding AG that was formerly

listed on the stock exchange approved the transfer of the whole property of their
companies to ERGO Group AG. Every nominal share of Victoria could be
exchanged for ten bearer shares of ERGO. Victoria Holding AG disappeared from
the stock exchange after the closure of the transaction on February 2, 1998; its
place in MDAX was taken by Ergo Group AG.

On April 1, 2001 the majority shareholder Mnchener Rck (today Munich Re)
announced an exchange offer to the shareholders of ERGO, in the framework of
which two shares of ERGO could be exchanged for one share of Mnchener Rck
plus cash payment of 18 Euros. After the offer had expired in July 2001, the shares
of ERGO left the MDAX due to the reduced free float.

ERGO Versicherungsgruppe AG was renamed "ERGO Group AG" in April 2016.



One single thing that takes us closer to our vision is our set of values -
(SEED) Sensitivity, Excellence, Ethics and Dynamism.


We will build our business on empathy and an inherent understanding of both our
internal and external customers needs.

we will always strive to offer innovative products and services and Endeavour to
set new benchmarks to do things better each time.
We will honor our commitments and be transparent in our dealings with all our

We will be pro-active with a "can do" approach.

To make our vision a reality, we are committed to sow the SEED of our values and
nurture it daily. Our ethical approach and high levels of integrity enable us to
'continue the tradition of trust' we have inherited from our parent company HDFC

We ensure that it reflects in every task we perform, every decision we take. It helps
us to work as a team towards creating and sustaining value for all our stakeholders,
namely Customers, Business Partners, Re-insurers, Share-holders and most
importantly, Employees.


HDFC ERGO General Insurance Company Limited has a multichannel distribution

network. Its products are also available online through its own website and
insurance aggregators. HDFC Ergo has a large network in India across 71 cities
and multiple branches in some cities. The company has a large basket of products
to meet the different insurance requirements of individuals and companies. HDFC
ERGO General Insurance Company has been expanding its presence across the
country and is today present across 71 cities with 78 branch offices with an
employee base of over 950 professionals.
The Indian Promoter: HDFC Ltd

The Housing Development Finance Corporation (HDFC), a pioneer in housing

finance in India, is known for its strong retail focus and service to the masses. It
has turned the concept of housing finance into a profitable, professionally
managed, world- class enterprise. It has assisted over 1.9million families to own
a home through loans over RS. 370 billion (Rs. 37000 Corers) this is
supported by its strong distribution network of over 125 offices across the
country serving customers in over 2400 cities/towns. It also has over 46000
deposit agents, with a deposit base of over RS. 85 billion (Rs. 8500 Corers) from
over 1.2 million depositors.
Over the years, HDFC has grown into a very strong brand, promoting various
companies to offer financial services like banking, mutual funds, life insurance,
stock market and real estate related services

The German Promoter: ERGO Insurance Group

With premium income amounting to 17,7bn, ERGO is one of the major

insurance groups in Europe. Worldwide, ERGO is represented in more than 30
countries and concentrates on Europe and Asia. In Europe, ERGO is no. 1 in the
health and legal expenses insurance segments, and in its home market of Germany
it is among the market leaders. 50,000 people work full-time for the Group, either
as salaried employees or as self-employed sales representatives.

ERGO offers a wide spectrum of different types of insurance and other

services, and, as are liable and fair partner, intends to be the permanent
no. 1 choice for all provision and insurance needs of its clients. 40 million
clients currently place their trust in the services, expertise and financial
strength provided by ERGO and its companies. In Germany, 20million
clients place their faith in the strong brands of D.A.S., DKV, ERV,
Hamburg- Mannheimer, KarstadtQuelle Insurance and Victoria.

ERGO in brief

1. Total premium income of 17.7 billion in 2008

2. European market leader in private health and legal expenses insurance
3. Invest ments totalling to over 100 billion
4. Shareholders funds amounting to around 3.7 billion
5. Over 31,000 salaried employees and 21,000 full-time representatives

The HDFC ERGO Difference

Business strategy aligned to clients' needs and trends in Indian and global
economy industry
Internationally experienced core team, majority with local background Fast,
decentralised decision making
Long-term commitment to market and clients


At HDFC ERGO we realise that you seek an insurer whom you can trust. HDFC
Limited is trusted name for over 32 years in the Indian market and ERGO AG has
over 110 years of global experience in financial services. Together we
are committed to provide you with time tested and trusted financial solutions that
provide you all the security you need for your investments.

Claims Philosophy

The HDFC ERGO team follows a service that aims at taking the anxiety out of
claims processing. We pride ourselves on a friendly and open approach. We
are focused towards providing you a hassle free and speedy claims processing. Our
claims philosophy is to:
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regularly against the global ERGO OPEX
(Operational Excellence) methodology sold over 1 million since inception.

Customer Orientation

At HDFC ERGO our guiding principles are customer service and client
satisfaction. All our efforts are directed towards understanding the culture, social
environment and individual insurance requirements - so that we can cater to all
your varied needs.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and
are supported by the necessary international expertise required to analyse and
assess them

Superior Technology

In order to ensure speedy and accurate processing of your needs, we have

established world class technology, with renowned insurance
software, which networks all our offices and intermediaries
Using the Web, policies can be issued from any office across the
country for retail products
Unique, user friendly software developed to make the process of issue of
policies and claims settlement simpler (e.g. online insurance of marine policy

Unique Forms of Risk Cover

Special PA cover for AmarnathYatris

Film insurance
Event management cover
Sports & Entertainment Insurance Package
Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:
Risk identification: Inspections
Risk analysis: Portfolio review and gap analysis
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactively


An all-inclusive health covers in the works at HDFC ERGO
By ShrutiVerma
Financial Chronicle

HDFC ERGO General Insurance is planning to offer a specialized health insurance

product that will cover maternity expenses, dental treatment, contact lenses,
glasses, hearing aids, non-allopathic treatment and domiciliary treatment. In a
standard health insurance product, such expenses are not covered and are treated as

HDFC ERGO General Insurance hopes to cover high-value customers with the
new product.
The company plans to offer these benefits as riders attached to a health
insurance product. The company has filed rider details with the
Insurance Regulatory and Develop-mint Authority (IrDA).

The company is working on the premium structure for the cover. Compared with
standard health insurance products, we propose to offer broader and more
responsive coverage designed specifically for high-value customers. The market
would soon get to see our composite health product with no limits. In addition
to the standard health cover, we would provide a host of riders such as hospital
cash, expenses for dental and glasses/hearing aids, said Ritesh Kumar, managing
director, HDFC ERGO General Insurance.

The company has filed for regulatory approval for add-on benefits. Since January
1, 2009, IrDA has allowed general insurance companies to offer tailor-made (add-
on) products to its customers and charge them for the extra benefits offered.
Introduction of the riders would be a follow up of the relaxation given by the
insurance regulator.

HDFC ERGO is looking to launch first-of-its-kind products to strengthen its

position in the market and to grow despite the economic slowdown. The
insurance industry follows the fortunes of the market.

The slowdown has definitely impacted the insurance industry. Given the low
insurance penetration in the country, there are still opportunities for growth. The
company plans to target untapped markets by increasing reach and adding product
lines in all segments. We have filed additional products that would be the first-of-
its-kind in the Indian Insurance market, said Kumar.

Insurers will cover you with whistle-blower policies
18 Mar 2009, 0318 hrs IST, Debjoy Sengupta, ET Bureau

KOLKATA : When Anil Mehrotra (name changed), a finance executive with an

MNC operating in India, lost his job for refusing to reimburse a sheaf of false bills
forwarded by his managing director, he could not muster enough courage to
draw the attention of the companys board.

He knew that could lead to a protracted legal tussle and he didnt have the
resources to sustain a legal battle with his erstwhile employer.

For the multitude of unsung heroes-turned-victims like Mehrotra, who remain

disillusioned, there may finally be a reason to rejoice.

Whistle-blower insurance has been making waves in the highest echelons of India
Inc in the aftermath of the Satyam scam. Also known as retaliation cover in
hardcore insurance circles, it is offered by some general insurers such as
HDFC Ergo and Tata AIG.

The retaliation cover will help a senior executive (independent directors included)
to blow the whistle against wrongdoings by any member of the apex management
team and ward off a legal backlash.
People seldom come to the rescue of an employee who blows the whistle. If
anything, he attracts retaliatory action from the management by way of lawsuits.

Whistle-blower insurance is an add-on cover that comes with the directors &
officials policy (D&O policy) of a company. It shields a director/company official
from legal hassles he/she may face for blowing the whistle.

Independent directors-turned-whistle-blowers will also be covered, says a top

HDFC Ergo executive.

Officials at HDFC Ergo are upbeat on the potential of whistle-blower insurance as

a redressal tool. Dwelling on the mechanics of its new cover, HDFC Ergo official
notes: Consider director A of a company, who makes an allegation against director
B, following which Director B sues him.

Once that happens, the whistle-blower cover gets activated and pays for legal
expenses of both directors. If Director B is declared guilty in court, he will have to
refund his portion of the expenses paid by the insurer.

While there have been no specific whistle-blower cover-related claims so far, an

HDFC Ergo official asserts that lately, there has been a surge in the number of
queries, especially after the Satyam fraud sent shockwaves across the corporate
spectrum. Tata AIG officials declined to comment on either its related product
or this genre of insurance.
However, the moot question is: Are adequate independent safeguards in place to
protect those who actually stand up against the bending of laws when it comes to
corporate ethics?

Or is it the moral responsibility of a company board and not a single person to

blow the whistle once irregularities committed by a fellow director or
senior management team member get detected? ET spoke toa stellar cast of
company directors and insurance hotshots to get to the core.

Deloitte &Touch Consulting India managing director Roopen Roy does not mince
words in his blog that more attention to issues like tolerance of dissent and
protection of whistle-blowing may actually reduce the incidence of fraud.

Tick-boxes and checklists often dont show up the malaise because meek
and spineless subordinates and external accomplices are deployed to cover the
tracks, he says.

Corporate heavyweights like BasudebSen, a former director on the boards of

several companies, remain sceptical. A whistle-blower cover can work only in
certain circumstances.

For instance, if the chairman of a company indulges in illegal activity about which
the MD gets a whiff, the board of directors may not get to know as the matter may
not be discussed at the board level. In that event, the whistle-blower policy can
only work if the MD actually blows the whistle, he points out.
A whistle-blower insurance cover may also be ineffective if a director gets a hint
of transgressions by fellow director in the same company and the matter is debated
at the board level. It is then for the board to decide to intervene or not, he adds.

Health Insurance & BAGIC

Health insurance like other forms of insurance is a form of collectivism by means

of which people collectively pool their risk, in this case the risk of incurring
medical expenses. It is sometimes used more broadly to include insurance covering
disability or long-term nursing or custodial care needs. It may be provided through
a government-sponsored social insurance program, or from private insurance
companies. It may be purchased on a group basis (e.g., by a firm to cover its
employees) or purchased by individual consumers. In each case, the covered
groups or individuals pay premiums or taxes to help protect themselves from high
or unexpected healthcare expenses. Similar benefits paying for medical expenses
may also be provided through social welfare programs funded by the government.

By estimating the overall risk of healthcare expenses, a routine finance structure

(such as monthly premium or annual tax) can be developed, ensuring that money is
available to pay for thehe0althcare benefits specified in the insurance agreement.
The benefit is administered by a central organization such as a government agency,
private business, or not-for-profit entity.

The worst nightmare that anyone can have is the one when a family member is
hospitalized. Today, when everything is uncertain nobody can be sure what will
happen. A seemingly small ailment can turn into major one. And what happens
when the earning member of your family is hospitalized. But with a policy from
HDFC ERGO you and your family can rest assured!

Health care costs are high and getting higher. Who will pay your bills if you have a
serious accident or major illness? Most of the times we are unprepared for these
difficult times, emotionally, as well as financially. HDFC ERGOs Health Guard
Policy, protect you and your family in case you need expensive medical care. It
also offers you cashless benefit &medical reimbursement for hospitalization

1. Cashless Facility at empanelled hosp.
2.10% reduction in claim amt if any other hospital.
3. Pre-hosp=60 days
4. Post-hosp=90 days
5. Ambulance charges=Rs 1000
6. Daycare facility
7. E-opinion rider for SI Rs 5lacs, Rs 7.5lacs, Rs 10lacs

1.5-55 yrs2.0-5yrs(if any parent)

Sum Insured
1.7.5lacs & 10lacs=5-40yrs2.50k to 5lacs=40-50yrs3.50k to 3lacs=50-55yrs

1.5%-25% NCB
2. Family Disc.=10%
3. Tax saving4.2 yrs waiting period for some disease
1. Pre-existing disease
2. Non-Allopathic treatment
3.30 days waiting period


It provides cash benefits for each and every completed day of hospitalization. Day
for this purpose shall be every completed (24 hours) of hospitalization. However,
period less than 24hours shall be considered as a day if it is a period of 12 hours
but includes 0300 hours. Can be taken with Health Guard or Critical Illness

1. Rs 500 to Rs 2500 per day
2. Paid for 30/60 days (irrespective of no. of confinements to hosp.)
3. Family stands insured
4. Benefit is doubled in case of ICU admission
5. Day care facility

1.25-60 yrs
2.3mnths-24yrs(with any parent)

Sum insured
1.Rs 500, Rs 1000
2.Rs 2000, Rs 2500

1. Rs 250-Rs 1600,Rs 300-RS 3k
2. Rs 600-Rs 4800,Rs 800-RS 5.8k

1. Family discount 10%
2. Tax saving

1. Pre-existing disease
2. Natural perils
3.30 days waiting period
4. Maternity expenses.


A Critical Illness plan means you can insure yourself against the risk of serious
illness in much the same way as you insure your car and your house. It will give
you the same security of knowing that a guaranteed cash sum will be paid if the
unexpected happens and you are diagnosed with a critical illness. The purpose of a
critical illness plan is to let you put aside a small regular amount now, as an
insurance against all this happening. The statistics speak for themselves and if you
become a part of them at least you will be sure that lack of money won't add to
your problems. HDFC ERGO, in its efforts to provide a customer centric solution
is offering an insurance policy to cover to some of these critical illnesses like

Coverage (10 sections)

1. Cancer
2. Coronary artery bypasses surgery
3. First heart attack
4. Kidney failure
5. Major organ transplant
6. Multiple sclerosis
7. Stroke
8. Aorta graft surgery
9. Paralysis
10. Primary pulmonary arterial hypertension

1.6-59 yrs
2.1lacs, 3lacs
3.5lacs, 10lacs

1.2k-3k, .6k-9k
2.1k-15k, 2k-30k
1. Lump sum amt to plan the treatment accordingly
2. Donor Expenses

1. Death within 30 days (after diagnosis of critical illness)
2. Maternity expenses
3.90 days waiting period
4. War or like expenses
5. HIV/AIDS infection.


Silver Health Plan offers you cashless benefit or medical reimbursement for
hospitalization expenses due to illness or accident and is specifically for people
aged between 46-75yrs which protects you and your spouse in case you need
expensive medical care.

1.3%pre & post hosp. expenses
2. Ambulance charges Rs 1000
3.3times limit of indemnity if renewed continuously.
4. Medical exp. if proposal is accepted.

1.46yr to 75 yrs
2. Age at entry=70yrs

Sum Insured
1.50000 To 3lacs

1. Rs 1995 to Rs 21006

1. Pre-existing disease covered after 2nd year with 50% coverage of SI
2. Cashless facility
3. NCB of 5% every claim free year
4. Family discount of 5%
5. Tax saving
6. Health check-up after 4 yrs

1. Non-Allopathic Medicine
2. Maternity expenses
3.90 days waiting period
4. All pre-existing diseases
5. HIV/AIDS infection

HDFC ERGO launches e-opinion rider, which will cover the expenses of 2nd
opinion e-consultation services for serious illness in India. The policy offers
unprecedented access to over 7000 physicians employed by the renowned hospitals
of the World Care Consortium. This innovative e-opinion rider gives you an
opportunity to obtain best of international expertise at a fraction of the cost. This is

1. Cancer
2. Heart Attack
3. Coronary Artery Disease
4. Stroke
5. Renal Failure
6. Sudden Blindness
7. Multiple Sclerosis
8. Coma
9. Paralysis
10. Major Burns
11. Major organ transplant
12. Neuro-degenerative disease
13. Pathology
14. Disease wanting 2nd opinion
15. Life threatening condition
16. Estimated cost>1lacs
1. Rs 476 & above (as per head)

1. Consultation with worlds best doctors
2. Opinion in just 7 days.

1. Pre-existing disease
2.90 days waiting period
3. Any sexually transmitted disease
4. Maternity expenses
5. Occupational disease
6. Accidental bodily injury


Life is full of uncertainties and unexpected events. Accidents can happen at home,
at work, even at play. The death or injury of a breadwinner can create serious
financial problems for any family. It is in situation like these, that you need to be
prepared. To help you soften the blow Bajaj Allianz offers the Personal Guard
cover. Our Personal Guard Policy offers these additional benefits.

1. Medical expenses
2. Hospital confinement allowance
3. Childrens Education Bonus
4. Death Benefit
5. PTD

1.3months to 65 yrs

1.0.45%o to 2%o

1. Medicalexp reimbursed up to 40% of claim amt
2. Rs1k/day for 30 days
3. CEBRs 5k (1 child) to Rs 10k (2children)

1. Suicide
2. Pre-existing disease
3. War, civil war
4. Motor rallies


Coverage (8 sections)
1. Health Guard
2. Hospital Cash
3. Critical Illness
4. Education Grant
5. Householders Content
6. Personal Guard
7. Travelling Baggage
8. Public Liability

1. All sections have separate discount slabs
2.4-5 sections-10%disc
3.6-8 sections-15%disc
4.2yrs policy-10%
5.3yrs policy-15%



HDFC ERGO Car Insurance Policy:

These HDFC Ergo car insurance plans enable you to safeguard yourself against
loss or damage to your car in situations like uncertain risk of accident, theft, fire,
earthquake, etc. and provide coverage for the liability that arises out of third party
property damage.

HDFC ERGO Private Car Insurance Policy:

The Private Car Insurance plan is a financial safeguard to protect the car against
damages, theft and natural disasters. It also includes a third party liability, which
covers claims by third party when the insured car damages another persons

HDFC ERGO Commercial Vehicle Insurance Policy:

This HDFC Ergo plan offers insurance to a wide range of commercial vehicles,
protecting businesses from financial loss due to accidents or damage to the
vehicles, and legal liability towards third parties for personal injury, death and
property damage in case of an accident involving the insured vehicle.

HDFC ERGO Third Party Liability Only Insurance Policy:

The third party liability insurance from HDFC Ergo covers legal liabilities arising
from injuries to or damages sustained by third parties from the insured vehicle. The
policy is available for both private and commercial vehicles

HDFC ERGO Two Wheeler Insurance Policy:

With so much happening around us on the roads, two-wheeler insurance should not
be seen as an additional expenditure, but as a necessity. Buying two-wheeler
insurance certainly helps you reduce your stress, if you find yourself in an
unwanted situation.

Purchasing two-wheeler insurance is mandatory by law and it also provides peace

of mind. HDFC ERGO offers two products two-wheeler comprehensive
insurance and two-wheeler liability only multiyear policy.

HDFC ERGO Home Insurance:

HDFC ERGO General Insurance Company Plans give you the benefit of affordable
coverage for your property and possessions against almost any eventuality.

The home insurance policy covers the superstructure as well as the belongings
inside the house for up to 5 years. It also covers against man-made or natural
disasters such as fire, lightning, explosion or implosion, floods, water inundation,
storms, riots, strikes, earthquakes as well as burglary, theft, larceny and terrorism.

HDFC ERGO Standard Fire and Special Perils Insurance:

This is a comprehensive home insurance policy protecting ones property and

possessions against almost any eventuality including risk due to fire, lightning,
explosion, flood, storm, riot, strike, terrorism, earthquake, etc.

HDFC ERGO Travel Insurance:

HDFC ERGO General Insurance Company's plans help you to explore and enjoy
new destinations without any worries.

It is a comprehensive and affordable travel insurance policy for business and

leisure travel offering benefits like cashless hospitalization, instant issue of policy
and 24x7 international helpline assistance without the need for any health check-
up. The plan covers medical expenses, trip cancellation charges, loss due to
damage or loss of luggage, flight accidents and other related expenses on trips
abroad. It comes in individual as well as family floater format. The family floater
plan by HDFC ERGO travel insurance covers the insured and his/her spouse, up to
the age of 60 years and a maximum of two children from ages of 3 months
onwards until the age of 21 years.

HDFC ERGO Student Travel Insurance:

Student Suraksha is a comprehensive, overseas student travel insurance policy

designed for Indian students (between the ages of 16 and 35 years) studying abroad
to ensure their financial security in case of emergencies.

HDFC ERGO Personal Accident:

A personal accident policy is strongly recommended to everyone not only to

protect their families in the event of a mishap like accidental death, but in addition
also to cover disablement, leading to loss of earning capacity, at competitive
premium rates. A personal accident cover is very effective in making you
financially independent and ensures that you have a dignified future, no matter
what happens.

Commercial Insurance:

HDFC ERGO General Insurance Company Limited offers a range of commercial

insurance solutions catering to the corporate and business market. Commercial
firms can choose from any of the policies as per their requirements.

Knowledge Series:
Specialty Insurance
Property & Misc Insurance
Casualty Insurance
Group Insurance
Rural Insurance:

HDFC ERGO General Insurance Company Limited also offers insurance solutions
for the rural customers including farmers, dairy owners and tradesmen.

Agriculture Insurance
Cattle Insurance

Comparative Analysis Health Insurance Products of HDFC
ERGO With Other Insurance Companies.


HDFC ERGO with Star Health Insurance

HDFC ERGO with National Insurance

HDFC ERGO with ICICI Lombard

HDFC ERGO with Reliance General

HDFC ERGO with Royal Sundaram

HDFC ERGO with CholaMandalam


HDFC ERGO with Star Health Insurance
HDFC ERGO with ICICI Lombard
HDFC ERGO with Royal Sundaram
HDFC ERGO with Reliance General
Market Survey

Shopkeepers Insurance


protects your shops against all risks

Unique Features
Comprehensive package by a single policy.
Uniform rate for money insurance
Single proposal form
Coverage for business interruption
Covers for damage to data media, software and cost of recovery of lost data

Single Proposal form
Complete coverage at lower premium
Simple documentation
Covers for unanticipated loss
All needs of the client get addressed in a single policy

All the insurance requirements are addressed by a single policy
Saving on costs
Less time spent in fulfilling procedural requirement
Smooth functioning of the business

Graphical Presentation of Survey we have presented below the findings and

analysis of the questionnaire addressed to the respondents to gauge the attitude and
perception of the people towards insurance. I conducted this survey in Matunga
market areas like M I Road, Vaishali Nagar, Malvinas Nagar
&MaheshwariPark.Thissurvey included 120 shops in all and the response of
overall survey is shown in graphs below
1. Your age? ( one box)
[1] < 30 years
[2] 3039years
[3] 4049years
[4] 50 and over years

2. Do you know about general insurance?

3. The question was asked to the respondents to know how many of the
respondents had a Shop insurance policy.
From the survey it was found out that 65% of the respondents had a life insurance
policy whereas35% of the respondents didnt had a Shop insurance policy

4. with which company?

The finding which came out from the survey was that 55.83% of the respondents
who have insurance cover bought life insurance from National Insurance Company
Ltd. National Insurance Companyis the most preferred brand in the insurance
industry because it is the only government company which offers insurance. People
prefer to buy insurance from National Insurance Company because of the security
being one of the prime factors. In the figure we can also see that nowadays people
mindset have changed towards insurance and are opting for private company for
insurance cover or policy.

5. From whose suggestion have the respondents taken a policy?

It was asked to gain an insight from the respondents that on whose suggestion they
opted for a life insurance cover or policy.

After the survey it was found that most of the respondents took policy or shop
insurance cover from the suggestions of their friends or family. And only 23
respondents took policy on the recommendation of the agents. Other sources like
banks, corporate tie-ups and etc. play a minute role in reaching out people for
insurance policies.
6. What is the insurance coverage?

7. Are you aware about following insurances?

8. Why do you think insurance must be done?

After the survey it was found that still major portion of customers go for public
insurance companies, but with the entry of more and more private companies the
scenario is changing rapidly, people with a need of more and better returns are
opting for private companies, and this can be justified by the increasing market
share of private companies in the Indian insurance sector.
There are various ways in which private companies are found much more lucrative
than public companies and the facts which support this statement are as follows:-
1. Versatility of products.
2. Efficient fund managers.
3. Better customer services.
4. More returns.
5. Regular follow up.
6. Quicker settlement.

Suggestions and recommendation

People are not aware of the Fire insurance. Most of them know only one
company which provides fire insurance i.eOriential. . So awareness campaign
should be run so that people are aware of different life insurance companies in

People should be educated about the different types of products or plans offered
by the General insurance companies. Most of them dont know much of the
different types of plan or products.

It was felt that most of the people took life for tax savings or just to cover up
their life, not as an investment avenue. General Insurance companies need to
advertise in such a manner that people start investing in General insurance like the
way they invest in the stock market

Now at the time of global turmoil insurance company had to hold on to the
Policyholders trust which might lead the company to the path of success

Insurance companies should try to adopt different strategies to market their

products or plan. Companies should not primarily focus on the agents for their
The rapid increase in competition and the never ending launches of new products
and services describe the insurance sector of today. This transformation has been to
attract a share of the financial market and to increase it over time; the companies
are coming out with strategies that are novel in nature. Tailor made schemes for
niche segments of the society are an attempt in this direction. However this is not
the end of road. They should strive for introducing new products and services and
at the same time updating the old ones.


Useful Financial insights are not easily available.

Due to time constraint sufficient research on all the investment tools is difficult.
The survey sample is not very large for analysis
Properly convincing people to invest in insurance products is challenging.
Due to recession there is liquidity crunch in the market.
There might have been tendencies among the respondents to amplify or filter their
responses under the testing conditions
The research is confined to Kolkata and does not necessarily shows a pattern
applicable to other parts of the country.



In terms of the provisions of Section 135 (1) of the Companies Act, 2013 (the Act),
every company having net worth of rupees five hundred crore or more, or turnover
of rupees one thousand crore or more or a net profit of rupees five crore or more
during any of the three preceding financial years shall constitute a Corporate Social
Responsibility Committee of the Board (CSR Committee) consisting of three or
more directors, out of which at least one director shall be an independent director.

The CSR Committee shall inter-alia formulate and recommend to the Board, a
Corporate Social Responsibility (CSR) Policy which shall indicate the activities to
be undertaken by the Company as specified in Schedule VII to the Act.


Corporate Social Responsibility (CSR) is a Companys sense of responsibility

towards the community and environment in which it operates. It is the continuing
Commitment by business to behave ethically and contribute to economic
Development of the society at large and building capacity for sustainable
livelihood. The Company believes that CSR is an integral part of the business.

The Company is committed to do its business in a socially responsible manner

taking into consideration the interest of all its stakeholders, namely Customers,
Business Partners, Re-insurers, Shareholders, Employees and the Society at large.
Whilst doing business the Company would actively ingrain SEED into its business

In terms of the provisions of Section 135(1) of the Act, the Board of Directors of
the Company has constituted a Corporate Social Responsibility (CSR) Committee
of Directors, comprising of six directors including two independent directors. The
CSR Committee has formulated this CSR Policy and the same was approved by the
Board. Subject to availability of CSR amount, the Company proposes to carry out
all or any of the following activities as specified in Schedule VII of the Act, as
amended from time to time:

Activities relating to:

(I) Eradicating hunger, poverty and malnutrition, promoting preventive health care
and sanitation including contribution to the Swatch Bharat Kosh set by the Central
Government for promotion of sanitation and making available safe drinking water.

(ii) Promoting education, including special education and employment enhancing

vocation skills especially among children, women, elderly and the differently baled
and livelihood enhancement projects.

(iii) Promoting gender equality, empowering women, setting up homes and hostels
for women and orphans, setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by
socially and economically backward groups.

(iv) Ensuring environmental sustainability, ecological balance, protection of flora

and fauna, animal welfare, agro forestry, conservation of natural resources and
maintaining quality of soil, air and water.
(v) Protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up public
libraries; promotion and development of traditional arts and handicrafts.

(vi) Measures for the benefit of armed forces veterans, war widows and their

(vii) Training to promote rural sports, nationally recognised sports, Paralympics

sports and Olympic sports.

(viii) Contribution to the Prime Ministers National Relief Fund or any other fund
set up by the central government for socio-economic development and relief and
welfare of the scheduled castes, the scheduled tribes, other backward classes,
minorities and women.

(ix) Contributions or funds provided to technology incubators located within

academic institutions which are approved by the Central Government.

(x) Rural development projects.

(xi) Slum area development

(xii) Such other activities as may be notified by appropriate authorities, from time
to time.


The Company shall undertake such of the CSR activities during each financial year
as recommended by the CSR Committee and approved by the Board. The details of
such activities shall be as specified in Annexure-1 to this Policy. The CSR
Subcommittee may suggest to the CSR Committee, the CSR activities that could
be undertaken by the Company and the projects / programs in respect thereof.

Annexure - 1

Broad areas of CSR activities proposed to be carried out by the Company during
financial year 2016-17


The Company may carry out CSR activities either on its own or through a
registered trust or society or company established by the Company or its
holding company under Section 8 of the Act or otherwise, as may be
approved by the CSR Committee.

Further, the Company may collaborate or pool its CSR resources with other
Companies to undertake CSR activities, as may be approved by the CSR
Committee from time to time; provided that the respective companies are in
a position to report separately on such projects or programs in accordance
with the CSR Norms.

The Company shall carry out CSR activities only in India.

The Company recognizes that CSR projects or activities that benefit only the
employees of the Company and / or their families shall not be considered
as CSR activity in terms of the CSR Norms.
The Company shall report the details of its CSR initiatives in the Directors
Report and in the website,, in the prescribed format.

The Company recognizes that surplus arising out of the CSR activity will
not be part of business profits of the Company.

Contribution of any amount directly or indirectly to any political party

under Section 182 of the Act, shall not be considered as CSR activity.


HDFC ERGO endeavors to spend in every financial year, at least 2% of its

average net profits made during the 3 immediately preceding financial years,
in pursuance of its Corporate Social Responsibility and subject to Section
135 of the Companies Act, 2013 and the Rules made there under.

The Board of Directors of the Company shall endeavor to spend the

available CSR amount for a particular financial year in accordance with the
CSR Policy of the Company. In case of inability of the Company to spend
the said amount in full during a particular financial year, the reason thereof
would be disclosed in the Report of the Board of Directors for that financial


CSR expenditure shall include all expenditure including contribution to corpus, for
projects or programs relating to CSR activities approved by the Board on the
recommendation of the CSR Committee, but does not include any expenditure on
an item not in conformity or not in line with activities which fall within the
purview of Schedule VII of the Act.



4th largest General Insurance Company in private sector and 3rd largest in

Gross Written Premium growth for the last 5 years is ~ 20% (CAGR).

Overall market share grew from 1.1% in 2008-09 to 3.7% in current year.

Largest player in personal accident lines in the industry.

IAAA rated by ICRA (an associate of Moody's Investors Service) indicating
highest claims paying ability.

ISO 9001:2008 certification for its Claim Services, Policy Issuance and
Customer Services.

Spread across 108 branches in 91 cities and a close knit family of 2000+

Company continues to be compliant on Solvency Ratio.

Servicing more than 5 million policies.


Insurance is one sector that witnessed continuous growth owing to the reforms in
2000.Theinsurance sector is likely to attain a size of Rs. 2, 00,000 cores
($51.2billion) in 2009-10. In life insurance, the business grew by 23.3% to Rs.
93,000 crore in 2008-09A well-functioning insurance market plays an important
role in economic development and financial stability of developing economies
such as Indias. First, it inculcates and encourages the habit of saving. Second, it
provides a safety net to rural and urban enterprise and productive individuals.

The General insurance market in India is on a growth path. In spite of this, the
country lags far behind the others in awareness about General insurance. The
challenge is to spread awareness about General insurance and it true benefits. The
industry has to convince people to park their hard earned money in long-term
insurance and not just look at it as a tax saving instrument.


The monthly fact sheet available from the company for studying the features of

Online information from the various websites namely:-