GIDC ROFEL BUSINESS SCHOOL

TABLE OF CONTENTS

Sr.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

CONTENTS INTRODUCTION OF TOPIC SECTOR PROFILE COMPANY PROFILE REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION FINDING SUGGESTION BIBLIOGRAPHY QUESTIONNIARE

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INTRODUCTION

Brief History of the Insurance Sector

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The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India 3

GIDC ROFEL BUSINESS SCHOOL Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.

SOME PLAYERS IN THE INDUSTRY:

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General Insurance Life Insurance

Life Insurance Corporation of India

General Insurance Corporation of India. 1. Oriental Insurance Company Ltd. 2. New India Assurance Company Ltd. 3. National Insurance Company Ltd. 4. United India Insurance Company Ltd.

New Entrants ICICI Prudential Life Insurance Ltd. Tata AIG Life Insurance Corporation Ltd. ING Vysya Life Insurance Corporation Ltd. Om Kotak Mahindra Life Insurance Corporation Ltd. MaxNewYork Life Insurance Ltd

Bajaj Allianz General Insurance Company Ltd. Reliance General Insurance Company Ltd. Tata AIG General Insurance Company Ltd. Royal Sundaram Alliance Insurance Company Ltd.

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COMPANY PROFILE

INTRODUCTION OF THE COMPANY:

THE NEW INDIA ASSURANCE COMPANY was initially formed by MR.R.D. 6

GIDC ROFEL BUSINESS SCHOOL TATA, when it was registered as a private limited company. It was only after nationalization act passed in 1952; it was named as the New India Assurance Company Limited. After nationalization all the 104 private insurance companies functioning under various names were merged and four subsidiary companies based on region under the GENERAL INSURANCE CORPORATION OF INDIA were formed via J, 1) THE NEW INDIA ASSSURANCE COMPANY LIMITED 2) NATIONAL INSURANCE COMPANY LIMITED 3) THE ORIENTAL INSURANCE COMPANY LIMITED AND 4) UNITED INDIA INSURANCE COMPANY LIMITED THE NEW INDIA ASSURANCE COMPANY LIMITED is the largest non-Life Insurance Company operated in India. It has approximately 2200 offices widely spread throughout India and 22 branches in foreign countries

HISTORY Established by Sir DorabTata 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, comprising26 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

GIDC ROFEL BUSINESS SCHOOL 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 8branches. The Japanese operation covers 35% of the Companys overseas premium income. INTERNATIONAL PRESENCE Overseas operations commenced in 1920. Operations in 24 countries in the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies and 2 Subsidiarycompanies in the year 2004-05. Overseas Premium of Rs. 892.35 crores in the year 2004-05, which accounts for more than 80% of total overseas premium in India. Our Mission 1. To develop general insurance business in the best interest of the community. 2. To provide financial security to individuals, trade, commerce and all other segments of the society by offering insurance products and services of high quality at affordable cost Our Vision New India will continue to be the largest non-life insurance company in India with a strong global presence, and will be: 1. Recognized for the highest level of customer service 2. The employer of choice, known for its energetic and motivated workforce 3. An innovative, nimble and technology enabled company 4. A socially responsible organization with best corporate governance 5. The most preferred and trusted brand, surpassing stakeholders expectation

Regional offices
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MOTOR INSURANCE

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MOTOR INSURANCE IN INDIA

Legally, no motor vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory to get the vehicle insured. Motor insurance policies cover against any loss or damage caused to the following and man mad calamities Natural calamities: fire, explosion, lightning, earth quake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man-made calamities: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist, activity, and any damage in transit by road, rail, in land waterway, lift, elevator or air. Motor insurance provides compulsory personal accident cover for individual owner or the vehicle while driving. One can also opt for a personal accident cover for passengers and third party legal liability. Third party legal liability protects against legal liability arising due to accidental damage. It includes any permanent injury/death of a person and caused to the property.The vehicles are insured at a fixed value called the insureds declared value (IDV). IDV is calculated on the basis of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian motor tariff. If the price of any electrical and/or electrical item installed in the vehicle is not included in the vehicle is not included in the manufacturers listed selling price, then the actual value ( after depreciation ) on this item can be added to the sum insured over and the IDV. In case the vehicle is fitted with CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium.

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MOTOR POLICIY
This policy covers all types of vehicles plying on public roads such as:1. Scooters &Motorcycles 2. Private cars 3. All types of commercial vehicles 4. Motor Trade (vehicles in show rooms and garages) As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance. Two types of covers are available: Liability Only policies: This covers third party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included.

The policy covers the vehicle owner's legal liability to pay compensation for: 1. Death or bodily injury to a third party person. 2. Damage to third party property. Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7.5 lakh under Commercial vehicle and private and Rs. 1 lakh for Scoter. Package Policy This cover loss or damage to the vehicle insured

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GIDC ROFEL BUSINESS SCHOOL The coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to: 1. Fire, explosion, self-ignition or lightning. 2. Burglary, housebreaking or theft. 3. Riot and Strike. 4. Malicious Act. 5. Terrorist Act. 6. Earthquake (Fire and Shock) Damage. 7. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm. 8. Accidental external means. 9. Whilst in transit by road, inland waterway, lift, elevator or air. 10. By landslide/Rockslide

The policy also pays for towing charges from the place of accident to the workshop up to a maximum limit of Rs.300/- for Scooters/Motorcycles and Rs.1500/- for cars and commercial vehicles. Rs. 2500/- It is also permissible to opt for higher towing charges subject to payment of extra premium. A restricted cover is also available covering the risk of Fire and/or Theft only, in addition to the compulsory cover granted under "Liability Only Policy". However the same is not available in case of vehicle ratable under Class D, Tariff for Miscellaneous and special types of vehicles.

The important exclusions under the policies are: 13 Wear and tear, breakdowns Consequential loss Loss when driving with invalid driving license or under the influence of Loss due to war, civil war, etc. Claims arising out of contractual liability.

alcohol.

GIDC ROFEL BUSINESS SCHOOL Use of vehicle otherwise than in accordance with `limitations as to use '

(e.g. private car being used as a taxi)

TYPES OF VEHICLES Motor Vehicles has been defined in the Motor Vehicles Act, 1939 as a mechanically propelled vehicle adopted for use upon road where the power of prolusion is transmitted there from external or internal source and includes a chassis to which a body has not been attached and a trailer but does not includes a vehicle running upon fixed rails. For purpose of insurance, Motor Vehicles are classified into 3 categories. 1) Private Cars 2) Motorized 2 Wheelers 3) Commercial Vehicle

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RESEARCH METHODOLOGY

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GIDC ROFEL BUSINESS SCHOOL Statement of research problem How can one assess the market awareness of Motor Insurance? On what basis or criteria people judge the Insurance Company? Statement of research objectives To find out the customer awareness level for motor insurance products. To assess the effectiveness of company service. Why people are shifting from one company to other? Where should company Improve so that they retain their customer?

Research design and methodology TYPE OF RESEARCH The type of research used in this project is an Exploratory & Descriptive research design. The major purpose of descriptive research is a description of the state of the affairs, as it exists at present. Thus a Descriptive study is a fact-finding investigation with adequate interpretation. It is the simplest type of research. It focuses on particular aspects or dimensions of the problem studied. It is so designed that it gathers descriptive information and provides information for formulating more sophisticated studies. There is a cause effective relationship.

The criteria for selecting this particular design are that, the problem of the project must be described and not arguable. The data collected is amenable to statistical analysis and has accuracy and significance. It is possible to develop valid standards of comparison. It lends 16

GIDC ROFEL BUSINESS SCHOOL itself to the verifiable procedure of collection and analysis of data.

Descriptive study objectives aim at identifying the various characteristics of a company problem under study. It can reveal potential relationships between variables with exploratory research.

SAMPLING TECHNIQUE: The sampling technique used is convenient sampling. It is also called as purposive sampling or non-probability sampling. This sampling method involves purposive or deliberate selection of particular units of the universe for constituting the sample, which represents the universe. SAMPLING UNIT The samples include 2 type of vehicle they are cars & bikes. SAMPLE SIZE The sample size for this research is 100. SOURCES OF DATA COLLECTION: Primary data: The data was collected by using structured questionnaire. Secondary data: Secondary data is the data about the company & sector detail.

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GIDC ROFEL BUSINESS SCHOOL RESEARCH LIMITATIONS: This research is company- specific and confined only to Vapi city, the problem of generalization becomes obvious Limited sample size is taken.

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GIDC ROFEL BUSINESS SCHOOL Analysis of data Q1. Awareness about General Insurance

Awareness Yes No

No. of respondent 100 0

Percent 100% 0%

Todays senario is that each & every vehicle on the road or in the show room are insured. So people has to buy insurance. It is a criminal offence if people does not have insurance. As there are may problems when the vehicle faces accident or is lost. Because if the vehicle is insured than the whole liablility is on insurance company. From the above chart we can see that all the vehicles were insured. People knows what is a general insurance. We can also say that awarness is 100%.

Q2. Type Of Insurance Taken 19

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Type of Vehicle Bike Car

N. of Respondent 38 62

Percentage 38% 62%

There is a huge market in these sector as the use of private cars & bikes are increasing day by day. The people who were interviewed were of 2 category . people using bikes & private cars. From the above chart we can say that 62% were car owners & 38% bike owners.

Q3. Name Of The Company From Where You Have Taken The Insurance 20

GIDC ROFEL BUSINESS SCHOOL Company New India Assurance Co. Ltd./GIC Bajaj Allianz General Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokyo General Insurance Co. Ltd. Reliance General Insurance Co. Ltd. Others Respondent 72 13 9 5 1 0 Percentage 72% 13% 9% 5% 1% 0%

There are many players in this sector. They include both public & private sector. From the above chart we can say that people are been taking insurance from the public sector compnay more than private insurance. We can say that public still trust the domestic public sector company rather than foreign players. The major reason of these may be that Public sector company is in existence from last 91 years where as private sector since 2005.

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GIDC ROFEL BUSINESS SCHOOL Q4. Comapany Rating On The Following Criteria (a) Service

From the above chart we can see that most of the people have rated the companies service as good or average. We can say that people are satisfied with the service they are getting from the insurance company. The rest 21% who have rated the companies as bad or very bad must have faced some big problem with the companies services. Services plays a major role in the service industry because there is huge competition in the market. If one company fails to give proper service to the cliets the client may easily shift to competitors company.

(b) Premium Amount 22

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From the above chart we can say that people are fully satisfied with the premium they are paying to the company as 100% are saying good & average. So company need not work upon the premium.

(c) Information 23

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Information is also an important criteria on which people judge the company. So the data says people are quiet satisfied with the information passed on by the company to clients. There are very rare case where people have said that the service is bad.

(d) Companys Name

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People have said that they are satisfied with the companies name & if we see that companies name does not effect much in the buying behaviour of the people. As pie chart tells us that 46% of people are happy with the companies name & 50% have rated as average & 4% are very happy with the companies name.

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GIDC ROFEL BUSINESS SCHOOL (e) Easy Claims

Over here we can see that people are dissatisfied with the cliams of the company.79% people have bad experience. Very less people have said that they are happy with the claims. The people who are happy with the cliams is 21%. So people are shifting from 1 company to another. So company should improve upon claims department.

Q5. Overall Rating For The Company 26

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If we see the over all rating of the company people are just satisfied with the company. Only 5% of people are unhappy with the company & 20% of the people are quite happy with the company. 66% have rated company on overall basis as an average.

Q6. Ratio Of Shifting Companies 27

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Out of total 100 respondent who were interviewed 26 people i.e 26% people shifted from 0ne company to other company rest 74% are taking insurance from the same company & are loyal clients of the company. There may be many resons for being loyal to the same company & depends upon perception of people to people.

Q7. Reasons To Shift 28

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Out of 100 people who were interviewed 26 people shifted from the general insurance to private sector i.e 26% of people shifted. Major reason for shift was noted as service i.e we can say that the service was not given proper to the customer , claims was also major factor in the shift, so that we can say that people get faster & easy claims in private sector. The other small are Information not properly given , Premium amount & other includes overall dis sastisfaction among the customer. People has also shifted because of companies name. Private sectors are giving high discounts in the premium at the time of issuing the policy. They have made special arrangements of cashless facility.

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Q8. Areas For Improvement (a) Areas For Improvement In General

If we talk about Improment in the GIC sector people who were interviewed said that the companies should improve in the claims department or claim settelment , then in their services what they give to customer should be improved. We can also see that people want some reduction in the premium amount. The people who said others wants an overall improvement in this sector. So if claims section is improved than the clients will not leave the company & stick to one company or can attract more people.

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(b) Areas Of Improvement For New India Assurance

From the above chart we will come to know the exact thing what the existing customer of the company wants from the company which will help them to retain the clients. The major factor are the easy & fast claims settelment & sevices which they want the company to improve. If these 2 criteria are taken care off then they can get good business. Because 77% people have opted for these 2 factors. Rest 2 factors on which people have opted for is premium amount which they tell is higher & other includes overall improvement in the company.

SUGGETION 31

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1. According to the data collected it is proved that people want easy cliams settelment & proper service to the company. This is the main reason for customers dissatisfaction towards the company, thus the company needs to focus more on these 2 areas in order to attain complete customer satisfaction. 2. The company should improve upon the services & cliams. As we have seen above the major reason for people to shift from one insurance company to another are that they are not getting easy claims & appropriate services. If theses 2 things are improved they can retain their existing customer & also attract new customer. The company needs to understand the psychology of the customers and offer the schemes as per their requirements. The company should offer better services to customers. 3. As there is a huge market for this industry they can do tie ups with big dealers in the related market so that any vehicle leaving that showroom will be insured by the same company every time. For e.g. the company can do a tie up with any automobile company so that they can attract the new customers. 4. Regular follow ups through elctronic media can be one of the major criteria to make people aware about the due date of insurance. More awareness programmes such as frequent advertisements, hoardings of the company can be put up to increase the awareness of the company. 5. As private players give Cash less Facility they should also start these facility as soon as possible. 6. Timely call for renewal of policy. 7. Dos & donts should be made aware to people before issue of policy. 8. People should be made aware of documents required at the time of claim. 9. The most important thing is that private players are advertising more as compared to public sector companies.

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