A

PROJECT

ON

“COMPRATIVE STUDY OF GENERAL INSURANCE

COMPANY ORIENTIAL INSURANCE WITH NEW INDIA
ASSURANCE COMPANY INDIA”

In the partial fulfillment of the award of the degree of

BACHELOR OF COMMERCE (B.COM

VOCATIONAL) INSURANCE

2009-2011

Under the Guidance

Submitted by
Dr. Sanjeev Sharma UDITA DWIVEDI
Professor
 ST. JOHN’S COLLEGE, AGRA

P RE F AC E

The field of insurance has taken a giant leap at the threshold of twentieth
century. Insurance have become an integral part of life of man all over the
globe. The proverb ‘Need is the mother of invention’ is proving equally
correct in case of insurance.

Insurance have already had a considerable impact on many aspects of our

society. This project on “GENERAL INSURANCE AND ORIENAL
ASSURANCE” deals with the automation of various activities done in
insurance like how the insurance companies doing there business and what
is the feature of life insurance.
 STUDENT’S DECLARATION

I hereby declare that the Project Report conducted

“Comparative study of general insurance company

oriental insurance with new India assurance company

India” Under the guidance of Dr. Sanjeev Sharma

Submitted in partial fulfillment of the requirements

for the St. John’s College Agra is my original work

and the same has not been submitted for the award

of any other Degree/diploma.

UDITA DWIVEDI
 ACKNO WLEDGEMENT

We are hearty grateful to Mr. ………………………….sir (director). They

have always been an invaluable source of inspiration had work, sincerity and

dedication.

It gives me immense pleasure in submitting this project on “Comparative

study of general insurance company oriental insurance with new India

assurance company India” I have developed this project in partial

fulfillment of B.Com from St. John’s College, Agra I would like to express

my sincere ineptness to my Project Guide Dr. Sanjeev Sharma for his

constant guidance and valuable support during the project work.

Encouragement and excellent guidance in the successful completion of the

project work. And of course nothing could have come true without the

support of my family, friends and all the classmates for their constant
encouragement and useful tips through out my project. I will always grateful

to them.

UDITA DWIVEDI

CONTENT
 Acknowledgement

 Certificate

 Preface

 Declaration

 Introduction of GIC

 PROFILE (A,B)

 WORKING OF ORIENTAL INSURANCE

 WORKING OF NEW INDIA ASSURANCE COMPANY

LTD.

 DATA ANALAYSIS

 COPARISON

 RESULTS
  CONCLUSION

 SUGGESTS

 LIMITATION OF STUDY

 BIBILOGRAPHY

INTRODUCTION

General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was

formed by the Central Government in November 1972. With effect from 1

January 1973 the erstwhile 107 Indian and foreign insurers which were

operating in the country prior to nationalization, were grouped into four

operating companies, namely, (i) National Insurance Company Limited; (ii)

New India Assurance Company Limited; (iii) Oriental Insurance Company

Limited; and (iv) United India Insurance Company Limited. (However, with

effect from Dec'2000, these subsidiaries have been de-linked from the parent

company and made as independent insurance companies). All the above four
 subsidiaries of GIC operate all over the country competing with one another

and underwriting various classes of general insurance business except for

aviation insurance of national airlines and crop insurance which is handled

by the GIC.

Besides the domestic market, the industry is presently operating in 17

countries directly through branches or agencies and in 14 countries through

subsidiary and associate companies.

LIFE INSURANCE COMPANIES

• Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that

brings together two large forces - Max India Limited, a multi-business

corporate, together with New York Life International, a global expert in life

insurance. With their various Products and Riders, there are more than 400

product combinations to choose from. They have a national presence with a

network of 57 offices in 37 cities across India.

• ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, a premier financial powerhouse and prudential plc, a leading

 international financial services group headquartered in the United Kingdom.

ICICI Prudential was amongst the first private sector insurance companies to

begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). The company has a network of

about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent

tie-ups.

• Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between

Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc.

• Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla

Group and Sun Life financial Services of Canada.

 Tata AIG Life Insurance Company Ltd.

 SBI Life Insurance Company Limited

 ING Vysya Life Insurance Company Private Limited

 Allianz Bajaj Life Insurance Company Ltd.

 Metlife India Insurance Company Pvt. Ltd.

 AMP SANMAR Assurance Company Ltd.

  Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURANCE

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and

Sundaram Finance Limited started its operations from March 2001. The

company is Head Quartered at Chennai, and has two Regional Offices, one

at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture

between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a

reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd,

2001 to conduct General Insurance business (including Health Insurance

business) in India. The Company has an authorized and paid up capital of Rs

110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz,

AG, Germany.
3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture

between ICICI Bank Limited and the US-based $ 26 billion Fairfax

Financial Holdings Limited. ICICI Bank is India's second largest bank,

while Fairfax Financial Holdings is a diversified financial corporate engaged

in general insurance, reinsurance, insurance claims management and

investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings

Limited, is one of Canada's oldest property and casualty insurers. ICICI

Lombard General Insurance Company received regulatory approvals to

commence general insurance business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a

joint venture of the Murugappa Group & Mitsui Sumitomo.

Chola-MS commenced operations in October 2002 and has issued more than

1.4 lakh policies in its first calendar year of operations. The company has a

pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi,

Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh,

Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company,

formed from the Tata Group and American International Group, Inc. (AIG).

Tata AIG combines the strength and integrity of the Tata Group with AIG's

international expertise and financial strength. The Tata Group holds 74 per

cent stake in the two insurance ventures while AIG holds the balance 26 per

cent stake.

Tata AIG General Insurance Company, which started its operations in India

on January 22, 2001, offers the complete range of insurance for automobile,

home, personal accident, travel, energy, marine, property and casualty, as

well as several specialized financial lines.

6. Reliance General Insurance Company Limited.

7. IFFCO Tokio General Insurance Co. Ltd

8. Export Credit Guarantee Corporation Ltd.

9. HDFC-Chubb General Insurance Co. Ltd.

STRENGHS

Financial Expertise
As a joint venture of leading financial services groups, hdfc standard life has
the financial expertise required to manage your long-term investments safely
and efficiently.
Range of Solutions

We have a range of individual and group solutions, which can be easily

customised to specific needs. Our group solutions have been designed to
offer you complete flexibility combined with a low charging structure.

Track Record so far

Our gross premium income, for the year ending March 31, 2008 stood at Rs.
4,859 crores and new business premium income stood at Rs. 2,685 crores.

The company has covered over 9,59,000 lives year ending March 31, 2008.

Products of HDFC standard life insurance

 Indivisual

 Group

 Social

Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of
needs. Keeping this in mind, we have a varied range of Products that you
can choose from to suit all your needs. These will help secure your future as
well as the future of your family.

Protection Plans
You can protect your family against the loss of your income or the burden of
a loan in the event of your unfortunate demise, disability or sickness. These
plans offer valuable peace of mind at a small price.
Our Protection range includes our Term Assurance Plan & Loan Cover
Term Assurance Plan.

Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long
term investment needs. We provide you with attractive long term returns
through regular bonuses.

Pension Plans
Our Pension Plans help you secure your financial independence even after
retirement.
Our Pension range includes our Personal Pension Plan, Unit Linked Pension,
Unit Linked Pension Plus

Savings Plans
Our Savings Plans offer you flexible options to build savings for your future
needs such as buying a dream home or fulfilling your children immediate
and future needs.
Our Savings range includes Endowment Assurance Plan, Unit Linked
Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II,
Money Back,

Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked
Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.
Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most innovative
employee benefit solutions to their employees. We offer different products
for different needs of employers ranging from term insurance plans for pure
protection to voluntary plans such as superannuation and leave encashment.

We now offer the following group products to our esteemed corporate

clients:

• Group Term Insurance

• Group Variable Term Insurance

• Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses

with Gratuity, Defined Benefit or Defined Contribution Superannuation or
Leave Encashment schemes of your company

Also suitable for other employee benefit schemes such as salary saving
schemes and wealth management schemes

Social Product

Development insurance plan

Development Insurance plan is an insurance plan which provides life cover

to members of a Development Agency for a term of one year. On the death
of any member of the group insured during the year of cover, a lump sum is
paid to those member beneficiaries to help meet some of the immediate
financial needs following their loss.

Eligibility

• Members of the development agency and their spouses with:

• Minimum age at the start of the policy 18 years last birthday
• Maximum age at the start of policy 50 years last birthday
Employees of the Development Agency are not eligible to join the group.
The group to be covered is only eligible if it contains more than 500
members.

Premium Payments

The premium to be paid will be quoted per member in the group and will be
the same for all members of the group.

The premium can only be paid by the Development Agency as a single lump
sum that includes all premiums for the group to be covered. Cover will not
start until the premium and all the member information in our specified
format has been received

The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

Benefits

On the death of each member covered by the policy during the year of cover
a lump sum equal to the sum assured will be paid to their beneficiaries or
legal heirs. Where the death is as a result of an accident, an additional lump
sum will be paid equal to half the sum assured. There are no benefits paid at
the end of the year of cover and there is no surrender value available at any
time.

The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be
passing certain administrative tasks onto the Development Agency. By
passing on these tasks the premium charged can be lower. These tasks would
include:
• Submission of member data in a specified computer format
• Collection of premiums from group members
• Recording changes in the details of group members
• Disbursement of claim payments and the mortality rebate (if any) to
group members.

These tasks would be in addition to the usual duties of a policyholder such

as:
• Payment of premiums
• Reporting of claims
• Keeping policy holder information up to date
• Training and support will be available to give guidance on how to
complete the tasks appropriately.

Since these additional tasks will impose a burden on the Development

Agency, the Development Agency may charge a Rs. 10 administration fee to
their members.

Prohibition of rebates

Section 41 of the Insurance Act, 1938 states

No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed
in accordance with the published prospectus or tables of the insurer
If any person fails to comply with sub regulation (previous point) above, he
shall be liable to payment of a fine which may extend to rupees five
hundred.

PROFILE

GENERAL INSURANCE

With the opening up of the insurance industry to the private sector, the need

for a strong, independent and autonomous Insurance Regulatory Authority

was felt. As the enacting of legislation would have taken time, the then

Government constituted through a Government resolution an Interim

Insurance Regulatory Authority pending the enactment of a comprehensive

legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to

provide for the establishment of an Authority to protect the interests of

holders of insurance policies, to regulate, promote and ensure orderly growth

of the insurance industry and for matters connected therewith or incidental

thereto and further to amend the Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and the General insurance Business (Nationalization)

Act, 1972 to end the monopoly of the Life Insurance Corporation of India

(for life insurance business) and General Insurance Corporation and its

subsidiaries (for general insurance business). Definition and meaning:

1. INSURANCE:

Insurance is the means of managing risk and protection against financial loss

arising as a result of contingencies, which may or may not occur. In other

words, insurance is the act of providing assurance, against a possible loss, by

entering into a contract, with one who is willing to give assurance. Through

this contract the person willing to give assurance binds himself to make

good such loss, if it occurs.

2. GENERAL INSURANCE:

General insurance means managing risk against financial loss arising due to

fire, marine or miscellaneous events as a result of contingencies, which may

or may not occur. General Insurance means to “Cover the risk of the

financial loss from any natural calamities viz. Flood, Fire, Earthquake,

Burglary, etc.. i.e. the events which are beyond the control of the owner of

the goods for the things having insurable interest with the utmost good faith
by declaring the facts about the circumstances and the products by paying

the stipulated sum , a premium and not having a motive of making profit

from the insurance contract.”

Some of the General Rules:

1. Mis-description :

The insurance policy shall be void and all the premiums paid by

insured may be forfeited by the insurance company in the event of mis-

presentation or mis-declaration and/or non-disclosure of any material facts.

2. Reasonable care :

The insured shall take all reasonable steps to safeguard the property

insured against any loss or damage. Insured shall exercise reasonable care

that only competent employees are employed and shall take all reasonable

precautions to prevent all accidents and shall comply with all statuary or

other regulations

3. Fraud :

If any claim under the policy may be in any respect fraudulent or if

any fraudulent means or device are used by the insured or any one acting on

the insured’s behalf to obtain any benefit under the insurance policy, all the

benefits under the insurance policy may be forfeited.

4. Few basic principles of general insurance are :

1. Insurable interest

2. Utmost good faith

3. Subrogation

4. Contribution

5. Indemnity

5 Risks of loss not covered under general insurance are:

The loss or damage or liability or expenses whether direct or indirect

occasion by happening through or arising from any consequences of war,

invasion, act of foreign enemy, hostilities (whether war be declared or not),

civil war, rebellion revolution, civil commotion or loot or pillage in

connection therewith and loss or damage caused by depreciation or wear

and tear. However the risk of loss or damage by war can be insured by

payment of additional premium in some cases only.

 WORKING OF ORIENTAL ASSURANCE

The Oriental Insurance Company' Ltd. (OICL) is one of the leading

General Insurance companies in India and is a subsidiary of the General

Insurance Corporation (GIC) of India. It is one of the oldest Insurance

companies and was established in the year 1947. The Company transacts all

kinds of non-life insurance business ranging from insurance covers for very

big projects to small rural insurance covers. OICL has its Head office in

New Delhi, the capital of India. The Company has 21 Regional Offices, 311

Divisional Offices and 635 Branch offices in various cities of the country.

Reinsurance connections are spread all over the world. The Company

has a very high reputation in the Reinsurance market. OICL specializes in

devising special covers for large projects like Power Plants, Petro-chemical,

Steel Plants and chemical plants. It has a highly technically qualified and

competent team of professionals, to render the best customer service. The

Company has a dedicated project cell at the Head Office as well as major

cities of India. A special R & D team has been dedicated to bring out special

innovative covers like Stock-Brokers' Policies, Special Package Policies etc.

MISSION

o To develop general insurance business in the best interest of the

community.

o To provide financial security to individuals, trade and commerce by

offering insurance products and service of high quality at affordable

cost.

VALUES

o Highest priority to customer needs.

o High standards of public conduct.

o Transparency in operations.

COMMITMENTS TO THE CITIZENS

o In areas coming within competence of GIC respond to all

commercially viable general insurance requirements of the citizens,

not hitherto available within three months from the date on which

such a demand is received.

o In areas covered by tariff, appropriate proposals will be submitted to

the Tariff Advisory Committee with appropriate comments within two

months.

o Continue to provide customized insurance products for weaker

sections of the society at affordable price within six months of receipt

of a request for a specific type of cover.

o Prepare booklets on standard policy covers setting out essential

information and make such booklets readily available for purchase at

suitable places.

o Promote customer education in general insurance service by holding

workshops in important regional centers.

o Make available to a customer, on request to the policy issuing office,

the status of his claim and/or claim settlement details within 7

working days.

o Endeavor to set up a system of Ombudsman at four metropolitan cities

to conciliate disputes on personal line insurance claims

CORPORATE OBJECTIVES:

o To serve better the insurance needs of the entire community, keeping

CUSTOMER as the focus.

o To serve better the insurance needs of the entire community, keeping

CUSTOMER as the focus.

o To manage Business profitably, Manage funds judiciously and deploy

investible funds for optimum Yield.

o To manage Business profitably, Manage funds judiciously and deploy

investible funds for optimum Yield.

o To work towards minimization of losses and develop Risk

Management Technologies.

o To function as a strong and dynamic non-life insurer.

PRODUCTS:

The various products can be grouped under the following categories:

o Individuals/Family

o Marine

o Professionals

o Business/Office/Traders

o Engineering/Industry

o Agriculture/Sericulture/Poultry

o Animals/Birds

o Aviation

o Motor Vehicle – Private/Commercial

o Health-Mediclaim/Overseas Mediclaim/Personal Accident

 Documents requirement for various types of Claims

Different documents are required for settling different types of claims.

The most commonly required ones are mentioned under each claims type

listed below. Your full cooperation to surveyor/Investigator appointed by the

Company would enable prompt settlement of claims.

o Claim due to Fire and/or Explosion.

o Claim due to Flood, Storm, Cyclone, Earthquake, and

Subsidence/Landslide.

o Claim due to Riot, Strike, Malicious Damage and Terrorism

(RSMDT).

o Marine Inland Transit Loss of cargo/machinery.

o Marine Loss of cargo/machinery for export'

o Marine Loss of cargo/machinery during Import

o Claim due to Electrical / Mechanical/ Electronic Breakdown/

mishandling/

o Impact damage to machine.

o Claim due to Burglary/Theft of Vehicle

o Accidental Death Claim

o Permanent Disability/Injury claim due to accident

o Temporary Total Disability (TTD) (Weekly compensation) claim due

to accident
o Mediclaim claim due to hospitalization (disease/accident)

o Claim due to Death of Cattle (Non-IRDP)/Permanent Total

Disablement. Damage claim to private Vehicle (Car/2Wheeler) due. to

accident

o Claim of Damage to Commercial Vehicle (Taxi/Bus/Lorry) due to

accident. Third Party (T.P.) Claim due to accident.

WORKING OF NEW INDIA ASSURANCE

COMPANY LTD.

II. The New India Assurance Company.

Established by Sir Dorab tata in 1919, New India’ was the first fully

Indian owned insurance company in India. There were nearly 150 insurance

firms in India – including ones from France, the UK and America. These

were operated through managing agencies in India largely held by Indian

business houses.New India is a leading global insurance group, with offices

and branches throughout India and various countries abroad. The company

services the Indian subcontinent with a network of 1,130 offices, comprising

26 Regional offices, 366 Divisional offices and 738 Branches. With

approximately 25,000 employees, New India has the largest number of

specialist and technically qualified personnel at all levels of management,

who are empowered to underwrite and settle claims of high magnitude New

India has historically been a frontrunner in several diverse fields of business

and industrial activity. New India are lead underwriters of India's Space

programn1e having insured several INSAT and other, satellites. New India

are pioneers in Engineering insurance, Financial risks insurance and are now

offering customized Risk Management solutions to our: corporate clients in

the Private and public Sectors in Power, Telecom, Petrochemicals, Steel and

Automobile industries New India's foreign operations started with the

establishment of an office in London in 1920. An international presence was

built up by New India as a direct writing Company in 23 countries spanning

5 continents. It increased its reach and capacity, for reinsurance facilities for

all classes of business. Starting way back in the 1920s, New India's UK

operations have now taken deep root. New India is party to one of the oldest

reinsurance treaties in the UK market. Through participation in Aviation and

Marine Hull underwriting, New India has, over a period of time,

strengthened its market presence. In 1980's with the establishment of a full-

fledged branch to underwrite UK Business, it has extended its UK

operations, authorized by the Department of Trade and industry

The New India commenced its Japan operations in 1950, and now:

operates through 8 branches. The Japanese operation covers 35% of the

Company’s overseas premium income.

 Since incorporation in the year 1906, National Insurance~ Company

has been carrying out general insurance business under private management

until 1972, the year of its nationalization. In the same year 22 foreign and 11

Indian Insurance Companies were amalgamated with National Insurance

Company Limited, as a subsidiary company of General Insurance

Corporation of India Headquartered in Calcutta it has an organizational

network of over 964 offices with around 20,077 trained workforces. The

company also has operations in Hong Kong and Nepal and ranks among the

top global business insurers. Later on in 2002, with the passage of Insurance

amendment Bill (2002), National Insurance Company has been delinked

from GlC and. has been functioning as an independent company Its product

range includes motor vehicle insurance; fire insurance on buildings and

other assets; various crime covers like burglary and theft of cash; machinery

breakdown cover for industrial equipment; transit damage cover for

imported or exported goods; as well as legal liability cover.

Professional indemnity and directors and officer’s liability covers are some

of the new covers. NICO General Insurance seeks to attract clients and

intermediaries and flexibility in claims settlements, and at the same time

ensuring that we do not erode shareholder value. The objective is to add

value to the shareholders' funds whilst ensuring customer satisfaction? The

strength of NGI is in its balance sheet. NICO General Insurance views the
future and its prospects as extremely bright, exciting and rewarding for staff,

clientele and shareholders alike.

United India Insurance Company

United India Insurance is one of the four subsidiaries of the General

Insurance Company carrying on general insurance business with its head

office at Chennai. Later on in 2002, with the passage of Insurance

amendment Bill (2002), United India Insurance has been Del inked from

GIC and has been functioning as an independent company. UI spans the

country with a network of 1123 offices and manpower of Over 21,000

employees. The organizational structure comprises 22 regional offices, 327

divisional offices.., and 777 branch offices, supported by 21,505 employees.

ICRA has maintained the iAAA rating, indicating the claims paying ability

of United India Insurance (UII) to be of the highest order. The rating takes

into consideration the favorable prospects for the domestic general insurance

industry following the deregulation of the sector.

UII continues to be a dominant player in the Indian insurance

industry, with an overall market share of 25% and a leadership position in

the southern markets. UII is a Pioneer of Personal Insurance Products in

India who specializes in non-life insurance products including Medical and

Accident Insurance. It enjoys a market share of over 25 percent of the non-

life insurance sector in India.

PRIVATE COMPANIES

1. Bajaj Allianz General Insurance Company:

Allianz group was founded in 1890 and is one of the world's leading

insurance companies with over 100 year's experience in insurance and

related services. It is also the largest insurer in Europe. Allianz group has

multi-local structure and presence in over 70 countries. The key business

areas of Allianz group include General Insurance (property, engineering,

marine, motor, casualty and miscellaneous), Reinsurance, Risk

Management, Life & health insurance, Asset Management and Pension

Funds Management.

Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated

in 1945 as Bachraj Trading Corporation. Initially it started by assembling

two and three wheelers in collaboration with Piaggio of Italy. After the

expiry of the Agreement in 1971 the two and three wheelers acquired the

brand name of Bajaj. The strength of the company lies in its strong brand

image and ability to offer value for money products leveraging on its large-

scale operations.

The Joint Venture

Bajaj Allianz General Insurance a joint venture non-life company

promoted jointly by Bajaj Auto and German insurer- Allianz. Indian auto

major holds 74% while Allianz holds 26% in the Joint Venture, and has an

authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is the

CEO of the company. Bajaj Allianz General Insurance will leverage the

customer base and expertise of Bajaj Auto Ltd and Allianz.

Royal Sundaram General Insurance

Company Limited:

Sundaram Finance

Sundaram Finance Limited (SF) was established In 1954 with a paid-up

capital of Rs. 0.02 million, primarily to assist the development of Road

Transport Industry. SF has been providing financial assistance to road

transport operators for acquiring commercial vehicles under hire purchase

system. Emerging as the leader in the industry, SF has been staying at that

position for over four decades. SF diversified into equipment leasing in

1981.

Royal & Sun Alliance

Royal & Sun Alliance is one of the world's leading international

Insurance companies. The Sun was established in 1710 and is the oldest.
Insurance company in existence still trading under its original name. The

Alliance was founded in 1824 and the Royal in 1845.

The Group's international presence began to emerge in the 18th

century with business ventures in mainland Europe. Forays into the US and

Canadian markets followed in the 19th century, and in 1998, Royal & Sun

Alliance became the first UK insurance company to be granted a license to

operate in China.

The Joint Venture

The joint venture bringing together Royal & Sun Alliance Insurance

and Sundaram Finance Limited started its operations from March 2001. The

company is Head Quartered at Chennai, and has two Regional Offices, one

at Mumbai and another one at Delhi. The venture is aiming at Rs. 120

Crores in revenue during first year of its operations and is confident of

breaking even by fifth year.

ICICI

ICICI Ltd. was established in 1955 by the World Bank, the

Government of India and the Indian Industry, to promote industrial

development of India by .Providing project and corporate finance to Indian

industry. Since inception, ICICI has grown from a development bank to a

financial conglomerate and has become one of the largest public financial

institutions in India. ICICI has thus far financed all the major sectors of the

economy, covering 6,848 companies and 16,851 projects.

Lombard

Lombard Canada Ltd., is a leading insurance management company

responsible for providing insurance management services for all of the

Lombard group's commercial, personal, and specialized insurance

companies. Canadian owned and operated, Lombard Canada Ltd. has its
head office in Toronto and has annual sales in excess of$500 million and is a

wholly owned subsidiary of Fairfax Financial Holdings Limited (FFH on the

TSF Lombard Canada Ltd. has achieved a reputation for providing solid

underwriting performance, diversified books of business and strong capital

positions.

The Joint Venture

ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv Kerkar.

ICICI would hold about 74 percent stake, while Canadian insurer Lombard

would hold the maximum permissible 26 percent and commence business

with a start-up capital of Rs.100 crore. ICICl Lombard has plans to sell

covers to the corporate clients of ICICl. St the same time it will sell property

insurance for ICICI home loan seekers and auto insurance for those availing

of car finance.
Tata AIG General Insurance Company
Limited:

TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and

with an annual turnover exceeding US $ 8.8 billion, employs more than

262,000 people. Tata Group has shown over years that it is a value driven

company and has" pioneering contributions in various fields including

insurance, activation, iron and steel. Tata companies have forged a number

of global alliances with eminent international partners in several fields. In

terms of capital market performance as many as 40 listed Tata companies

account for nearly 5% 6fthe total market capitalization of all listed

companies.

TATA Group in Insurance

 The Late Sir Dorab Tata was the founder Chairman of New India

Assurance Co. Ltd., a group company incorporated way back in 1919.

Government of India took over the management of this company as a part of

Nationalization of general insurance companies in 1972. Not deterred by the

move, Tata group have ventured into" risk management services having tied

up with AIG group, back in 1977, with the incorporation of Tata AIG Risk

Management Services Pvt. Ltd.

AIG

“American Insurance Group is the leading U.S. based international

insurance and financial services organization and the largest underwriter of

commercial and industrial insurance in the United States. Its member

companies write a wide range of commercial and personal insurance

products through a variety of distribution channels in over 130 countries and

jurisdictions throughout the world. AIG's global businesses also include

financial services and asset management, including aircraft leasing, financial

products, trading and market making, consumer finance, institutional, retail

and direct investment fund asset management, real estate investment

management, and retirement savings products.

The Joint Venture

 Tata AIG General Insurance Co. Ltd. has a start-up capital of Rs. 125

crores of which 74 per cent has been brought in by Tata Sons and American

partner brings in the balance 26 per cent.

Tata -AIG plans to be the first Indian insurance company to offer a

comprehensive policy to cover various risks in the IT sector, risk arising out

of virus, cyber crime, negligent acts, errors and omissions and third party

liability from a security failure. Other products on offer are property,

casualty, marine, directors and officer’s liability, accident and health,

homeowners and automobile insurance.

Bajaj Allianz General Insurance

Products

o Personal Accident

o Hospital Cash Daily Allowance Policy

o Health Guard

o Critical Illness

o Burglary Insurance

o Householders Insurance

o Travel Companion

o Fidelity Guarantee Policy

o Office package
o Money Insurance

o Public Liability

o Plate Glass Insurance

o Consequential Loss (Fire) Insurance Policy

o Tata AIG General Insurance Company Products

o Executive Guard

o Family Guard

o Travel Guard

o Home Secure

o Business Guard Sanjeevani

Reliance General Insurance Company

Limited:

Reliance Group'

Reliance 'Group is India's largest business house has annual sales

turnover of Rs. 41,280 crore (US$ 9,003 million) and has posted a net profit

of Rs. 2,940 crore (US $ 641 million) for the 12-month period ending June

30, 2000. The Group has total assets of Rs. 52,100 crore and net worth of

Rs. 22,415 crore. It has a large investor base of over 5 million, as well as a

large customer base in retail (textiles, LPG, Cellular phones, etc.) and

commercial segments.
 Reliance Industries Limited, India's largest private sector enterprise, is

a, major player in the Indian petrochemicals sector. Relianc6~s operations

capture value addition at every stage from producing crude oil and gas to

polyester and polymer products and are vertically integrated to the

production of textiles. Reliance has one of the largest marketing networks in

the Indian Industry. All its brands are market leaders.

Reliance General Insurance Company Limited

Reliance group has announced its plans to enter the Indian insurance

sector- both in the life and general insurance businesses'. Reliance Industries

plans to bring in around Rs. 300 Crores into its insurance venture through its

financial arm Reliance Capital Ltd. Reliance group will be the lead investor

for this initiative. The two companies will have an initial authorized capital

of Rs.200 crores (US $ 43.62 million) each. This is the first application from

an Indian company without a foreign insurance tie-up. However, Reliance

will associate with international insurance consultants to bring the best

practices in the business to India.

Iffco Tokio General Insurance Company ltd

Iffco

Indian farmer’s fertilizers cooperative limited was created on Nov 3,

1967 as a multi unit cooperative society engaged in production and

distribution of fertilizers the byelaws of the society provide a broad

framework for the activities of IIFCO as a cooperative society the main

emphasis is on production and distribution of fertilizers The Tokio marine

and fire insurance The Tokio marine and fire insurance (Tokio marine)

company holds a leading position in Japan’s property and casualty insurance

industry. It is the second largest in P & C insurance market in the world.

With superior capitalization, stable profitability and conservative

management tem the company provides a large rage of property and casualty

insurance products n services including, automobile fire and personal

accident to retail corporate clients

The Joint Venture

IFFCO TOKIO General Insurance Company is a joint venture

promoted by India Farmers Fertilizers Co-Operative, Tokio Marine and fire

Insurance Company, Japan, the fifth largest insurance company in the world,

Krishak bharathi Cooperative ltd. (KRIBHCO), and Indian potash. Their

contribution to the Rs.100 crore equity capitals is 49 percent, 20 percent and

5 percent respectively. The head Office is in Delhi and operating Office are

in about 20 cities.

IFFCO Tokio Insurance Products

• Home & Family Protector

• Standard Fire & Special Perils

• Burglary and House Breaking

• Personal accident

• Trade Protector

• Travel Protector

OBJECTIVES

� To find out general insurance and which are the companies involved

in it.

� To know what are the trends in General Insurance.

� To find out the developments in the General Insurance.

� To find out the Procedure of Claims.

 RESEARHC METHODOLOGY

� The study was carried out in Mumbai.

� Extensive Library Research was carried out.

� Various Websites were referred.

� Primary data was collected through interviews.

� Various books, magazines and newspapers have been referred.

 DATA ANALYSIS & INTERPRETATION

 DATA GIVES PREFERENCE OF RESPONDENTS OF

INSURANCE COMPANIES

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT

GENERAL INSURANCE 78 78

ORIENTAL ASSURANCE 50 50
 GENERAL
INSURANCE
GENERAL
50 50
INSURANCE
ORIENTAL
INSURANCE

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and

therefore it is ranked no.1 by that percent of respondents.

 DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY

RESPONDENTS

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

25%
Tax Deductions 20
Cover Future 20
Uncertainty
Future Investment 25
Tax Deductions 25
55%
TOTAL 100
Future Investment 100
20%
INTERPRETATION

 55% of the respondents believe that covering future uncertainty

is the biggest benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits

are Tax deduction and future investments respectively.

 DATA PROVIDES FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100
 FEATURES OF INSURANCE POLICY

MONEY BACK
GUAARENTEE
11% 15% LARGER RISK
COVERANCE
EASY ACCESS TO
AGENTS
30%
LOW PREMIUM
37%
7%
REPUTATION OF
COMPANY

INTERPRETATION

 Majority of the respondent (37%) found Larger risk coverance

as the most attracted feature of the all.

  DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

NATURE OF POLICY

45

LIFE
POLICY
NON LIFE
75
POLICY
BOTH

25

INTERPRETATION

 75% of the respondents have Life Insurance Policy while 45%

have both. (The % is calculated out of 280 positive response)

  DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

81
100

SAVING
TOOL

TAX SAVING
TOOL

74 FAMILY
PROTECTIO
N

INTERPRETATION

• 81% of the respondents have perception of Insurance being a

saving tool.

• And 74% of the respondents have perception of Insurance

being a tax saving device.

• But 100% of the respondents are with the view that

Insurance is a tool to protect your family.

  DATA SHOWS PEOPLES HAVING INSURANCE

30%

70%

Yes
No

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION

• Of the sample size of 400 surveyed respondents 70% of the

respondents are having Insurance policy.

 • 30% of the respondents are either not having any Insurance

policy at present or their policy is already matured.

• And at present 100% of the respondents are with the view

that Insurance is a tool to protect your family.

 DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF SHARE (%)

RESPONDENTS

Customer approached 45 45%

Insurance company/Agent

Company/agent approached 55 555

customer

Total 100 100%

55%
45%

Customer approached Insurance company/Agent

Company/agent approached customer

INTERPRETATION

• 44.5% of the respondents approached the Insurance

Company / Agent.
• Whereas, 55.5% of the respondents were approached by the

Company /Agent.
  DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

80

100

80
Slice 1 Slice 2 Slice 3

INTERPRETATION

• 80.71% of the Respondents opted for Insurance for tax

saving benefits.

• 80.71% of the Respondents opted for saving / Investments.

• But all of them, i.e. 100% of the respondents have opted for

insurance for their family protection.

  DATA SHOWS SATISFACTION OF RESPONDENTS WITH
RESPECT TO POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

0%

40%

60%

Satisfied Not satisfied Not Responded

INTERPRETATION

• 60% of the respondents are more or less satisfied with their

existing policy.

• 40% of the respondents are not satisfied with their existing

policy.
• In this case all of those who have taken a policy have

responded.
  DATA SHOWS SATISFACTION OF +RESPONDENTS WITH
RESPECT TO SERVICE AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

45.00%
55.00%

Satisfied Not satisfied

INTERPRETATION

• 45% of the respondents are satisfied with their existing

service agent.

• 55% of the respondents are not satisfied with their existing

insurance agent.

• All of those who have taken a policy have responded.

  DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

0%

100%

Paying tax Not paying tax

INTERPRETATION

• Of the sample size of 400 respondents, all the respondents

are paying tax.

  DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX
SAVING

INVESTMENTS NO. OF SHARE (%)

RESPONDENTS
LIC 51 51%
NSC 33 33%
Bonds 32 32%
PPF 25 25%
PF 21 21%
EPF 11 11%

11

21
51

25

33
32
LIC NSC BOND PPF PF EPF

INTERPRETATION

• 51% of the respondents save their tax by investing in LIC,

which is the highest among all Investment. This shows that most

people for getting taxes benefits invest in LIC.

• 33.25% of the respondents do their tax saving by investing in

NSC.
 • 32.25% of the respondents to their tax saving by investing in

bonds.

 DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST

FORM OF INVESTMENT FOR SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDENTS
Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%
Shares 10 10%
Insurance 70 70%

Fixed Assets
70
75 Bank deposits

Cash &
Jewellery
Securities i.e.
10 bonds, MFs
11 Shares
40 25 Insurance

INTERPRETATION

• 75.25% of the respondents as with the view that Fixed Assets

is the best form of investment for securing their future.

• 70.5% of the respondents are with the perception that

Insurance is the best form of investment for securing their future,

 which is one of the highest and this shows that insurance is an

important key for securing your future.

 DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM

THEIR INVESTMENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Saving & Returns 100 100%

Security 90 90%

Tax benefits 71. 71.%

71
100

90

Saving & Returns Security Tax benefits

INTERPRETATION

• 100% of the respondents intent to gain saving and returns

from their investment.

 • 90% of the respondent’s intent to gain security from their

investments.

• Whereas, 71.75% of the respondent’s intent to gain tax

benefits from their investments.

 DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE

AGE FOR BUYING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS
After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%

29%

60.61% 10.10%
0%

After 25 years After 35 years After 45 years Anytime

INTERPRETATION
• 29% of the respondents are with the view that insurance

should be bought after the age of 25 years.

• 10.5% of the respondents are with the view that insurance

should be buyed after the age of 35 years.

• Whereas, 60.5% of the respondents are with the view that

buying of insurance do not have any thing to do with age i.e. there

is no age limitations. It can be purchased any time according to the

need.
  DATA SHOWS PEOPLE OPINION ABOUT INDIAN
INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%

67

10 0
24

33

26 29

Inflexible plans Non user friendly

Unsatisfactory services Non Aggressive
Satisfactory Good
Very good

INTERPRETATION

• 67% of the respondents have the opinion that Indian

Insurance Companies have Rigid plans.

• 29.5% feel that Indian Insurance companies are Non-user

friendly.

• 26.5% feel that services of Indian Insurance companies are

Unsatisfactory.

• 35.75% of the respondents are with the view that Indian

Insurance companies are Non-aggressive.

• 24% of the respondents feel that products and services of

Indian Insurance companies is Satisfactory.

• Whereas only 10.25% feel that it is Good enough.

• And according to the data, no single person has felt that it is

very good.
  DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN
INSURANCE COMPANY

RESPONSE NO. OF SHARE (%)

RESPONDENT
S
A trusted name 82 82%
Friendly service & 71 71%
responsiveness
Good plans 81 81%
Accessibility 49 49%

49

82

81

71
A trusted name
Frie ndly service & responsiveness
Good plans
Acce ssibility

INTERPRETATION

• 82% customers look for a Trusted name in a company for

insurance.

• 81.5% customers look for a good plan in a company for

insurance.
 • Friendly service & responsiveness and Accessibility are also

important factors looked by customers in a company.

• DATA SHOWS PEOPLE PLANNING FOR NEW

INVESTMENTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Planning 87 87%

Not planning 13 13%

Total 100 100%

13.0%

87.0%

Planning Not planning

INTERPRETATION

• Only 12.5% of the customers contacted are not planning for

new investments presently.

• Whereas, 87.5% of the customers are still planning for new

investments this can be a great potential for Reliance Life

Insurance to take them on their favor.

  DATA SHOWS PEOPLE INTERESTED IN GOING FOR
INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY
OFFERS BETTER SERVICE & PRODUCTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

13%

43%

44%

Yes No Uncertain

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even
away from a city if services and products are worthwhile, which again
is a good prospect (potential) for Reliance Life Insurance to take them
on their favor.
COMPARISON
RESULT
 CONCLUSION

Our exhaustive research in the field of General life

Insurance threw up some interesting trends which can be

seen in the above analysis. A general impression that we

gathered during Data collection was the immense

awareness and knowledge among people about various

companies and their insurance products. People are

beginning to look beyond GIC for their insurance needs

and are willing to trust private players with their hard

earned money.

People in general have been impression by the marketing

and advertising campaigns of insurance companies. A high

penetration of print , radio and Television ad campaigns

over the years is beginning to have it’s impact now.

The general satisfaction levels among public with regards

to policy and agents still requires improvement. But

therein lays the opportunity for a relative new comer like

ING.
 SUGGESTION

• According the survey only 42% people are insured in Alwar so

reaming other part is potential for insurance sector.
• Among that 42% people who having insurance, they have
insurance 40% for self 28%for spouse 21% for children and
18% for their parents and 11% for all family member, also its
very help full for insurance sector so they should take necessary
step for capture this potential.

• Only 42% people having insurance in Alwar in that 42% there

are 82 % people are under insured and other 18% people are
fully insured according to their income so that is also plus point
for insurance sector to capture the market
 LIMITATIONS OF STUDY

1. Some respondents were reluctant to divulge personal information

which can affect the validity of all responses.

2. In a rapidly changing industry, analysis on one day or in one

segment can change very quickly. The environmental

changes are vital to be considered in order to assimilate the

findings.
 BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED:

 STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE, BY AIMA.

 BOOKS PUBLISHED BY INSURANCE INSTITUTE OF INDIA

 LIFE-INSURANCE, BY MC GILL

 INSURANCEWATCH.

 MONEYOUTLOOK.

2. WEBSITES REFFERED:

 WWW.C
IFAINSURANCE.COM

 WWW.
MONEYOUTLOOK.COM

 WWW.I
NSURANCE.IND.COM

3. REPORTS/ARTICLES REFFERED:
REPORT: ISSUES & CHALLENGES FACING THE INSURANCE
INDUSTRY…. DEC2005.

BRIEF PROFILE OF LIC, INDIA…DEC 2006.

REPORT: COPING WITH COMPETITION…JAN2007