CHAPTER I:

CONCEPTUAL FRAMEWORK

1.1 INTODUCTION
1 | Page

Insurance is not the sale of products, but servicing customers. 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 premiums
collected from the insuring public and the Insurance Companies act as trustees to the amount
collected. The very fundamental principle of spreading of the risk is actually practiced by the
insurance companies by reinsuring the risks that they have insured. The opening up of the
Insurance Sector to Private Companies, has made available more products and world class
service to Indian Customer.
This project has been made with an objective to give an insight into various facts of
General Insurance sector in India. An attempt has been made to explain the apex body of
General Insurance. i.e. General Insurance Corporation of India, its structure, products and
subsidiaries.
Also the review of latest entrants into insurance sector viz. private players like
CholaGeneral Insurance Company, TATA AIG General Insurance Company, Reliance General
Insurance Company limited, IFFCO Tokyo General Insurance Company, Royal Sundaram
General Insurance Company limited and ICICI Lombard General Insurance Company have
been described in brief, Due to the growth in the technological sector of the country, the
insurance companies have started utilizing these technologies to it as optimum level.
1.2 CONCEPT OF MARKETING
"Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, services, organizations, and events to create and
maintain relationships that will satisfy individual and organizational objectives."
The American Marketing Association (AMA) states, "Marketing is an organizational
function and a set of processes for creating, communicating and delivering value to customers
and for managing customer relationships in ways that benefit the organization and its
stakeholders."
Marketing is an ongoing process of planning and executing the marketing mix
(Product, Price, Place, and Promotion) for products, services or ideas to create exchange
between individuals and organizations. Marketing tends to be seen as a creative process,
which includes advertising, distribution and selling. It is also concerned with anticipating the
customers' future needs and wants, which are often discovered through market research.
In general, marketing activities are all those associated with identifying the particular
wants and needs of a target market of customers, and then going about satisfying those
customers better than the competitors. This involves doing market research on customers,
analyzing their needs, and then making strategic decisions about product design, pricing,
promotion and distribution.

2 | Page

Essentially, marketing is the process of creating or directing an organization to be

successful in selling a product or service that people not only desire, but are willing to buy.
Therefore good marketing must be able to create a "proposition" or set of benefits for the end
customer that delivers value through products or services.
A market-focused, or customer-focused, organization first determines what its
potential customer and then builds the product or service. Marketing theory and practice is
justified in the belief that customers use a product or service because they have a need, or
because it provides a perceived benefit.
Two major factors of marketing are the recruitment of new customers (acquisition) and
the retention and expansion of relationships with existing customers (base management).
Once a marketer has converted the prospective buyer, base management marketing takes
over. The process for base management shifts the marketer to building a relationship,
nurturing the links, enhancing the benefits that sold the buyer in the first place, and
improving the product/service continuously to protect the business from competitive
encroachments.
For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants
and desires of the consumers or Shoppers in the target market. Trying to convince a market
segment to buy something they don't want is extremely expensive and seldom successful.
Marketers depend on insights from marketing research, both formal and informal, to
determine what consumers want and what they are willing to pay for. Marketers hope that this
process will give them a sustainable competitive advantage. Marketing management is the
practical application of this process. The offer is also an important addition to the 4P's theory.
Marketing methods are informed by many of the social sciences, particularly
psychology, sociology, and economics. Anthropology is also a small, but growing influence.
Market research underpins these activities. Through advertising, it is also related to many of
the creative arts. Marketing is a wide and heavily interconnected subject with extensive
publications. It is also an area of activity infamous for re-inventing itself and its vocabulary
according to the times and the culture.
Marketing is an instructive business domain that serves to inform and educate target markets
about the value and competitive advantage of a company and its products. Value is worth
derived by the customer from owning and using the product. Competitive Advantage is a
depiction that the company or its products are each doing something better than their
competition in a way that could benefit the customer.
Marketing is focused on the task of conveying pertinent company and product related
information to specific customers, and there are a multitude of decisions (strategies) to be
made within the marketing domain regarding what information to deliver, how much
information to deliver, to whom to deliver, how to deliver, when to deliver, and where to
deliver. Once the decisions are made, there are numerous ways (tactics) and processes that
could be employed in support of the selected strategies.
The goal of marketing is to build and maintain a preference for a company and its
products within the target markets. The goal of any business is to build mutually profitable
and sustainable relationships with its customers. While all business domains are responsible
for accomplishing this goal, the marketing domain bears a significant share of the
3 | Page

responsibility. Within the larger scope of its definition, marketing is performed through the
actions of three coordinated disciplines named: Product Marketing, Corporate Marketing,
and Marketing Communications.
1.3 CUSTOMER SATISFACTION
It is a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals."
It is seen as a key performance indicator within business and is often part of a
Balanced Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.
Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and profitability. These metrics
quantify an important dynamic. When a brand has loyal customers, it gains positive word-ofmouth marketing, which is both free and highly effective.
Therefore, it is essential for businesses to effectively manage customer satisfaction.
To be able do this, firms need reliable and reprehensive measures of satisfaction. In
researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and
will likely rate their experience as less than satisfying.
The importance of customer satisfaction diminishes when a firm has increased
bargaining power
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms. Customer satisfaction provides a leading indicator of consumer
purchase intentions and loyalty. Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:
1. Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the companys goods and services
2. Although sales or market share can indicate how well a firm is performing currently,
satisfaction is an indicator of how likely it is that the firms customers will make
further purchases in the future. Much research has focused on the relationship
between customer satisfaction and retention. Studies indicate that the ramifications of
4 | Page

satisfaction are most strongly realized at the extremes. Willingness to recommend is a

key metric relating to customer satisfaction.
The Following is diagrammatic representation of customer satisfaction

5 | Page

CHAPTER II:
METHODOLOGY

6 | Page

2.1 NEED OF THE STUDY

It is first step towards achieving the ultimate goal of company is customer satisfaction,
loyalty and retention. They provide a foundation in which you can start building upon your
customer relationships. A customer satisfaction survey encourages your clients and customers
to give your business vital feedback on issues that can affect customer retention, including:

Overall satisfaction

Product-specific satisfaction

Brand perception

Pricing

Timeliness of delivery

Customer service satisfaction

Returns and exchange process satisfaction

Interest in new products and services

7 | Page

2.2 OBJECTIVES OF THE STUDY

To know whether the Customers of Cholaare satisfied with the Company.

To identify limitations of customer retention.
To get knowledge on different operations of company.
To know the renewals Process.
To know about reimbursement during claims.

8 | Page

2.3 SCOPE OF STUDY

I have limited the scope of my study to the analysis of the satisfaction of insurance
products and insurance companies of Cholacustomers only located in Visakhapatnam.
We can get a sample of respondents from Cholaonly.
Moreover, we can get the segmented data of customer.
Conducting a survey prevents irritation and resistance from the respondents unlike
those in case of doing a survey in an organization.

9 | Page

2.4 RESEARCH DESIGN

The present study includes exploratory approach to gather a huge amount of
information before concluding the study. Both descriptive and Causal approaches were
adopted. Bajaj Allianz, being an insurance sector requires a huge data collection, wherein
both primary and secondary data were used to maximum extent. The primary data collection
includes Questionnaires, Personal Interviews etc., to draw information. The main objective
behind was to get a deeper insight regarding the customers satisfaction, rather than a
particular way of thinking. As a result, various journals, web sites and books were collected
as a part of secondary data.
Sampling:
It is a process of collecting useful information .The fundamental aspect of sampling is
fixing of sample size i.e., 150, how many people should be surveyed? In order to get more
reliable results, large samples are used rather than small samples.
Sample units: Sample units were the customers of company.

Sample size: Sample size included had covered a set of 150 customers.

Methodology:
In this project the primary data is collected through a questionnaire which consists of
17 questions. Secondary data information was collected from journals, magazines and
company handbook and also with interaction with customers in Visakhapatnam.
Limitations of the Study

The limited period allocated for the survey is not sufficient to analyze the market.
There is possibility of collecting biased opinions from the customers.
The survey is limited to area of Visakhapatnam only.
The survey was conducted to customers of CholaVizag only.
Some respondents refused to give information.

10 | P a g e

CHAPTER III:
ORGANISATION PROFILE

11 | P a g e

3.1 INDUSTRY PROFILE:

Insurance in India started without any regulations in the nineteenth century. It was a
typical story of a colonial era: a few British insurance companies dominating the market
serving mostly large urban centers. After the independence, the Life Insurance Company was
nationalized in 1956, and then the general insurance business was nationalized in 1972. Only
in 1999 private insurance companies were allowed back into the business of insurance with a
maximum of 26 per cent of foreign holding (World Bank Economic Review 2000). The entry
of the State Bank of India with its proposal of bank assurance brings a new dynamics in the
game. On July 14, 2000 Insurance Regulatory and Development Authority bill was passed to
protect the interest of the policyholders from private and foreign players. The following
companies are entitled to do insurance business in India.
The private insurance joint ventures have collected the premium of Rs.1019.09 crore
with the investment of just Rs.3, 000 crore in three years of liberalization. The private
insurance players have significantly improving their market share when compared to 50 years
Old Corporation (i.e.LIC). As per the figures compiled by IRDA, the Life Insurance Industry
recorded a total premium underwritten of Rs. 16814.72 crore for the period under review. Of
this, private players contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life
Insurance Corporation of India (LIC), the public sector giant, continued to lead with a
premium collection of Rs.9,688.87 crore, translating into a market share of 90 per cent. In
terms of number of policies and schemes sold, private sector accounted for only 3.77per cent
as compared to 96.23 per cent share of LIC.
The ICICI Prudential topped among the private players in terms of premium
collection. It recorded a premium of Rs. 364.9 crore and a market share of 25 per cent,
followed by Birla Sun Life with a premium under- written Rs.170 crore and a market share of
15 percent, HDFC Standard with 132.7 crore and Max New York Life with Rs.76.8 crore
with a market share of approximately 15 per cent each. Unlike their counterpart in the life
insurance business, private non-life insurance companies have not yet started addressing the
retail market. All is set to change in the coming years. Like in the banking sector, non-life
insurance companies will soon have no choice but to focus on individual buyers.
In case of private non-life insurance players that their market shares raised to 13 per
cent over previous year. Private sector grew at 12.8 per cent and public sector grew by 13.8
per cent by the end of January 2010. Among the private non-life insurance players, ICICI
Lombard topped the list with a premium collection of Rs. 4,251.87 crore in one year period
with a market share of 9.98 per cent and annual rate of 10.28 percent, followed by Cholawith
a premium of Rs. 2,904.74 crore and 6.82 per cent market share and annual growth rate of

12 | P a g e

9.92 per cent and IFFCO Tokio with a premium of Rs. 18, 15.50 crore and 4.26 per cent
market share and annual rate of 4.34 per cent.
Among the public sector players, New India garnered a market share of 16.66 per
cent, Rs.7, 096.53 crore premium and an annual rate of 17.62 per cent, followed by United
India with a market share of 14.97 per cent with Rs.6.376.35 crore premium, National with a
market share of 14.36 per cent with Rs.6115.41 crore premium and annual rate by 13.65 per
cent and Oriental with a market share of 12.77 per cent, Rs.5439.60 crore premium and an
annual rate 14.74. If this trend continues, private insurer would dominate the public sector
like New India Insurance Corporation. It is obviously reflect the insurance sector has facing
the challenges with foreign counter parties as well as private counter parties and lot more
opportunities are prevailing to penetrate the insurance business among the uncovered people
and area of India. Further, it leads to economic development of the country. In this regard, it
assumes greater significance to conduct debate among the inter- disciplinary persons.

13 | P a g e

3.2 COMPANY PROFILE:

CholaGeneral 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.
CholaGeneral 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 crore. Bajaj Auto holds 74% and the remaining 26%
is held by Allianz, AGGermany.
Vision

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry

To be the number one insurer for creating shareholder value

Mission
As a responsible, customer focused market leader, we will strive to understand the insurance
needs of the consumers and translate it into affordable products that deliver value for money.
Achievements
Cholahas received iAAA rating, from ICRA Limited, an associate of Moody's Investors
Service, for Claims Paying ability. This rating indicates highest claims paying ability and a
fundamentally strong position.

CholaGeneral Insurance has received the prestigious "Business Leader in General

Insurance", award by NDTV Profit Business Leadership Awards 2008.
The company was one of the top three finalists for the year 2007 and 2008 in the
General Insurance Company of the Year award by Asia Insurance Review.
It is Celebrating 10 years in market.

3.2.1 Allianz Group:

Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 151,340+

14 | P a g e

employees. At the top of the international group is the holding company, Allianz AG, with its
head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of

Property and Casualty Insurance,

Life and Health Insurance,
Asset Management and Banking.
Allianz AG- A global finance power house
Worldwide 2nd by Gross Written Premiums - 43,895 million.
3rd largest Assets under Management (AUM) & largest amongst Insurance cos. AUM of 1131 billion
12th largest corporation in the world
49.8 % of global business from Life Insurance
Established in 1891, 110 yrs of Insurance expertise
70 countries, 151,340+ employees worldwide

Cholatoday has centers in 200 cities spread across the length and breadth of the
country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.

3.2.2 Bajaj Group:

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest
manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
One of the largest 2 & 3 wheeler manufacturer in the world
21 million+ vehicles on the roads across the globe
Managing funds of over Rs 4000 cr.
Bajaj Auto finance one of the largest auto finance cos. in India
Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
15 | P a g e

It has joined hands with Allianz to provide the Indian consumers with a distinct option
in terms of life insurance products.
As a promoter of CholaLife Insurance Co. Ltd., Bajaj Auto has the following to offer Financial strength and stability to support the Insurance Business.
A strong brand-equity.
A good market reputation as a world class organization.
An extensive distribution network.
Adequate experience of running a large organization.

3.2.3 Insurance Company Operations:

The most important insurance company operations consist of the following.

Rate making

Underwriting

Products

Claim settlement

Renewals

3.2.4 Products
1. Motor:
A) Car Insurance:
Car insurance policy is the most important document in your vehicle. Along with
comprehensive coverage against physical damage, bodily injury and cover against third-party
liability, car insurance brings confidence and peace of mind. All this is backed by superior
claims servicing capability and fast settlement record.
B) Two Wheeler Insurance:
Two wheeler is about freedom and the Cholatwo wheeler insurance policies have been
designed to set you free. Our comprehensive policy provides hassle free protection to your
two wheeler against physical damage, theft and third party liability.
Benefits (For Car&2 wheeler):
16 | P a g e

In just 4 easy steps get your Two Wheeler Insurance or Insurance Renewal done

Cashless claims at over 1500 preferred garages, Get 75% on account payment when
cashless facility is not available

Transfer up to 50% of your existing No Claim Bonus from any insurance provider

Avail of our 24x7 Telephonic Service

Instant Claims Assistance and SMS updates on your motor claim status through our
24x7 call-centers

Bajaj Allianz' preferred workshops give you access to Hassle Free Inspection, High
Service Standards

0% interest EMI option available on payment through Citibank Credit Card.

Coverage (For Car&2 wheeler):

Loss or Damage to your car and two wheeler against Natural Calamities Fire,
explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm,
tempest, inundation, cyclone, hailstorm, frost, landslide and rockslide.

Loss or Damage to your car and two wheeler against Man-made Calamities Burglary,
theft, riot, strike, malicious act, accident by external means, terrorist activity, any
damage in transit by road, rail, inland waterway, lift, elevator or air.

Personal Accident Cover Coverage of Rs. 1 Lakh for the individual owner/driver of
the vehicle while driving or travelling, mounting or dismounting from the two
wheeler. Optional personal accident covers for co-passengers available.

Third Party Legal Liability Protection against legal liability due to accidental damages
resulting in the permanent injury or death of a person, and damage caused to the
surrounding property.

2. Travel:
A) Travel Companion:
The Travel Companion Policy is a comprehensive package which provides complete medical
and health cover to the international traveler in 3 packages such as Care, Secure, and Value.
With different sum assured and benefits. It designed for Individual, Family, and Senior
Citizen (61-70). The policy premium varies including or excluding USA, Canada.
Coverage:
Medical Expenses, Evacuation and Repatriation
Emergency dental pain relief
Loss of Checked Baggage
17 | P a g e

Delay of Baggage
Personal Accident
Hijack
Trip Delay
Emergency Cash Advance
Golfer Hole-in-one

B) Travel Elite:
This Plan is for those who travel a class apart. It gives the discerning traveler an array of
policies to choose from, with each policy customized to meet your specific needs. Depending
upon whether one is a student, businessman, corporate executive, senior citizen or one
traveling with the family, one can choose.
It has 3 packages such as Silver, Gold, and Platinum with different sum assured and benefits.
It designed for Individual, Family, Senior Citizen (61-70), and Senior Citizen (71-75). The
policy premium varies including or excluding USA, Canada.
Coverage:

It include all the coverages of Travel Companion with.,

AD & D Common Carrier
Trip Cancellation
Home Burglary Insurance
Trip Curtailment
Hospitalization Daily Allowance
Loss of Passport

C) Student Travel:
It Make student Dreams Come True without Worries. It designed special for students who
study in abroad. It make your travel risk free, choose from an array of Student Travel
Insurance plans that offer protection for your travel, as well as coverage for other essential
needs such as medical and hospitalization help.
It has Companion, Elite, and Scholars Guide & Brilliant minds which sub dived into
Standard, Silver, and Gold where Premium and sum assured vary
Coverage:

Medical Expenses, Evacuation and Repatriation

Emergency dental pain relief (Excluded for Brilliant minds)
Tuition Fee
Personal Accident
Loss of Checked Baggage
Accident to Sponsor
Family Visit
Personal Liability
Bail Bond Insurance( For only Elite& Brilliant minds)
AD &D Common Carrier(For Only Elite& Brilliant minds)

18 | P a g e

It is a unique health insurance plan that allows you to extend your existing health insurance cover.
If the sum insured of your existing health insurance plan does not suffice for expenses due to
illness or accidents, Extra Care health insurance policy takes care of the additional hospitalization
expenses.

3.

Health
A) Individual Health guard:
It is to stand by during those difficult times of physical and mental stress. Health Guard
policy takes care of your hospitalization expenses & offers a wide coverage of pre & post
hospitalization expenses. We are the first insurance company to offer a sum insured of Rs. 10
lacs.
B) Health Ensure:
The Health Ensure policy is the perfect health protection for you and your family. It takes
care of medical treatment costs incurred during hospitalization due to serious accident or
illness.
C) Extra Care:

D) Family Floater Health Guard Policy:

It is the perfect Health protection for you and your family. It takes care of the expensive
medical treatment incurred during hospitalization resulting from serious accident or illness.
The policy covers pre and post hospitalization expenses and also ambulance charges in case
of an emergency
E) Critical Illness:
A health insurance plan that covers critical illness 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 amount will be paid if the
unexpected happens and you are diagnosed with a critical illness.
F) Star Package:
It is a unique family floater policy which protects your family against various risks and
contingencies. It provides a gamut of covers for various health risks, household contents,
education grant, travel baggage and public liability all under a single policy. It has 8 sections
and you would have to opt for a minimum 3 sections to avail for this policy. The death, Injury
or sickness of a breadwinner or family member can create serious financial problems for any
19 | P a g e

family. Star package insures you against these circumstances.

Features (For All Policies):

The member has cashless facility at over 2300 hospitals across India

With Health Guard, the member has access to cashless facility at various
empanelled hospitals across India.

Pre and post - hospitalization expenses covers relevant medical expenses incurred
60 days prior to and 90 days after hospitalization

Covers ambulance charges in an emergency (limit of Rs. 1000 /-)

No tests required up to 45 years up to SI 10 lacs*

10% co- payment applicable if treatment taken in non-network hospitals

20% co-payment applicable for members of age group 56 -65 years, opting this
policy for first time

Waiver on 10% co-payment is available on payment of additional premium

Pre-existing diseases covered after 4 years continuous renewal with Chola

Benefits (For All Policies):

Health Administration Team for hospitalization claims to lower time.

Access to over 2300 hospitals all over India for cashless facility.

130 day care procedures covered.

No Sub-limits applicable on room rent and other expenses

Hassle-free claim settlement due to In-house claim administration.

Income tax benefit on the premium paid as per section 80-D of Income Tax Act as per
existing IT law.

Health Check up for maximum amount of Rs. 1000 /- at the end of continuous four
claim free years

Family discount of 10% is applicable

20 | P a g e

4. Property Insurance:
A) Home Insurance:
Its a simplified home insurance policy designed for your convenience. This comprehensive
package policy is designed to cover various risks and contingencies faced by home owners.
Coverage:

Fire & allied perils

Baggage

Domestic appliances - Burglary & Theft

Electronic appliances

Benefits:

Can be bought online

Available as over the counter (OTC) kit

Instant activation through SMS/ Call centre

Convenience to choose from 3 customized plans

Affordable package premium

Combination of requisite covers (sections)

Waiver of under insurance

Easy claim settlement process

B) Shopkeeper Insurance:
Shopkeeper policy safeguards your shop from thefts and robberies. It keeps the shop secure
even when it's closed. This unique shop insurance policy is designed to cover risks and
difficulties faced by you as a shopkeeper. It provides a huge protection for the shop property,
interests of the insured and your partners in the business.
Coverage:

Fire & Allied Perils

Burglary & Robbery
Money
Plate Glass
21 | P a g e

Neon Sign/Glow Sign

Breakdown of Business Appliances

Electronic Equipment
Fidelity Guarantee
Personal Accident
Public Liability
Workmen Compensation
Business

Interruption

Exclusions:
Damage arising due Business interruption caused by terrorist activities
Note: Terrorism cover can be opted for extra premium.

C) Corporate insurance:
i) Engineering Insurance:
Contractors All Risk:
Covers civil construction projects, such as residential / commercial buildings, theatres,
factory sheds, warehouses, roads, bridges, dams, reservoirs, tunnels, oil / gas pipelines,
water / sewage disposal works, etc. Perils covered. The Sum Insured shall include landed cost
at site of imported / indigenous materials, construction cost (including visits of specialists /
experts, supervision charges). It is the completely erected value of property inclusive of
freights, custom duty, erection cost adjusted to fluctuations in wages / prices.
Boiler and Pressure Plant Insurance Policy:
It covers for damages under boilers Pressure plant other than by fire, to boilers & pressure
plant and to its surrounding property including third Party legal liability arising due to
explosion and collapse of the plant during its normal course of working
Machinery Loss of Profits Insurance:
This insurance policy covers reduction in turnover / output and increased cost of working of a
company due to accidental damage to machinery / boilers affected in stated premises.

Erection All Risks:

This policy covers All Risk pertaining to projects of Erection, Testing and Commissioning
subject to the following exclusions and conditions.
Machinery Break down Policy:
It covers Sudden and unforeseen accidental damage to machinery. The machinery can be at
22 | P a g e

work or at rest. Machinery being dismantled for cleaning/overhauling and in course of these
operations being shifted within specified premises or being re-erected subsequently also
covered
Electronic Equipment Insurance:
This policy covers entire range of Electronic Equipment from a personal computer to
sophisticated gadgetry. It covers any unforeseen and sudden physical loss or damage to
electronic equipment from any cause, external data media and the expenses for reconstruction
and re-recording of information and increased cost of working.
ii) Standard Fire and Special Perils Policy:
It offers the Standard Fire & Special Perils policy, which will support you in such trying
times. This insurance policy safeguards you against the losses that can arise due to a fire and
perils to buildings, plant & machinery, stocks, furniture and fixtures against loss or damage
Coverage:

Fire

Lightning

Explosion/Implosion

Aircraft Damage

Riot, Strike, Malicious Damages & Terrorism

Storm, Tempest, Cyclone, Typhoon, Hurricane, Tornado, Flood&inundation,

Impact damage

Subsidence, Landslide and Rock slide

Missile Testing operations

Bush Fire

Bursting and/or overflowing of Water Tanks, Apparatus and Pipes

Leakage from Automatic Sprinkler Installations

iii) Business Interruption:

This policy operates in the event of damage to the premises of an insured due to any peril
insured under the Standard Fire & Special Perils Policy. This policy operates in the event of
damage to the premises of an insured due to any peril insured under the Standard Fire &
Special Perils Policy, causing an interruption to his business
Coverage:
23 | P a g e

Loss of Gross Profit due to a reduction in turnover

Increased Cost of Working incurred in minimizing that loss of gross profit

iv) Industrial All Risk:

All industrial risks (other than risks ratable under Petrochemical Tariff) having overall Sum
Insured of Rs. 100 Crores and above in one or more locations in India are eligible

Coverage:

Fire and Special Perils including Flood, Storm, Tempest

Earthquake, Fire & Shock

Consequential Loss (Fire)

Machinery Breakdown, Boiler Explosion, Electronic Equipment

Machinery Breakdown - Optional

v) Work Mens Compensation:

The Indian Workmen's Compensation Act 1923 provides for the payment of compensation by
the employer to his employees (for their dependents in the event of fatal accidents) if
personal injury is caused to them by accidents arising out of and in the course of their
employment.
Coverage:
Maximum compensation paid as per W.C. Amendment Act 2000 on the following scale

Fatal Injury- Rs.4,57,080

Permanent Total Disablement - Rs.5,48,496

Permanent Partial Disablement -According to incapacity caused

Temporary Disablement - Rs. 2000 per month up to a period of 5 years

vi) Public Liability:

It offers to indemnify you against legal liability to pay compensation including the claimant's
costs, fees and expenses as a result of bodily injury or property damage to third parties arising
out of accidents occurring in your premises during and notified within the currency of the
policy.

24 | P a g e

vii) Product Liability:

The policy offers to indemnify the legal liability that you incur as a result of bodily injury or
property damage caused by the use of your products after they are sold or supplied.
viii) Composite Public & Private Insurance:
An organization is exposed to various risks, risks that can lead to heavy losses and liabilities.
Amongst these you can't ignore the possibility of third party bodily injury or property damage
in your premises or the ones caused due to goods sold and manufactured by you. Cholais
pleased to offer you a unique policy, the composite Product & Public Liability, which offers a
combined cover to safeguard your interests and minimize your losses in such situations.
Coverage:

Legal liability to pay compensation including the compensation awarded

Legal fees and expenses as a result of bodily injury or property damage to third
parties arising out of accidents occurring in your premises.
Liability arising during the period of the policy out of goods sold during the period of
insurance is also covered.

ix) Fidelity Guarantee Insurance:

It covers you against these losses caused due to fraud or dishonesty. It pays the actual
financial loss sustained as a result of the dishonesty / fraudulent act of the employee. After
adjusting any salary, commission security deposit or any other money standing to the credit.
The loss is payable up to the limit specified for the employee. The policy does not pay more
than one claim in respect of liability/loss arising out of an individual employee's acts.
Types:

Individual Policy: Under this policy only one individual is guaranteed per policy.

Collective Policy: This option covers the entire staff or number of selected people.
One policy is issued showing amount of guarantee against the name of each
individual covered.

Floating Policy or Floater: This cover is an extension of the collective policy, where
the sum insured for the whole group is mentioned and not for an individual. The
names of the group members with their designations are mentioned in the schedule of
the policy. Each claim reduces the sum insured and has to be reinstated by paying
extra premium.

Position Policy: The Policy schedule contains 'positions' rather than the names of
individuals unlike in collective policy; with the sum insured specified for each
position. The liability for each position is limited to the amount of sum insured
against each position irrespective of the number of people working in that position.

x) Marine Insurance:
25 | P a g e

It compensates losses of goods in transit.

Coverage:

Stranding , Grounding, Sinking or Capsizing

Overturning or Derailment of Land Conveyance
Collision of Ship or Craft with another Ship or Craft
Contact of Ship, Craft or Conveyance with anything other than Ship or Craft
(excludes Water but not Ice)
Discharge of Cargo at Port of Distress
Loss overboard during Loading/Discharge (total loss only)
Fire or Explosion
Malicious Damage
Theft/ Pilferage
General Average Sacrifice
Jettison
Washing Overboard (deck cargo)
Seawater entering Ship, Craft, Hold, Conveyance Container Lift Van or Place of
Storage
River or Lake Water entering same
NOTE: No War Risks covered

26 | P a g e

CHAPTER IV
ANALYSIS OF STUDY

1. Nature of customer employment:

A person in the service of another under any contract of hire, express or implied, oral or
written, where the employer has the power or right to control and direct the employee in the
material details of how the work is to be performed.

Table: 1-Nature of customer employment

Employment Sector
Public Sector

Respondents
30

Percentage
20
27 | P a g e

Private Sector
Self Employed
Others
Total

30
66
24
150

20
44
16
100

Chart: 1

Interpretation:
44percent of customers are self employed, 20percent of customers are Private and Public
sector each respectively, 16Percent of customers are others.

2. Number of vehicles customers possesses:

Table: 2-Vehicles possessed by customers
Vehicle Possessed
One
Two
More than two
Total

Respondents
18
105
27
150

Percentage
12
70
18
100
28 | P a g e

Chart: 2

Interpretation:
70Percent of customers have two vehicles, 18Percent of customers have more than two
vehicles and 12Percent of Customers have more than one vehicles.

3. Customer posses any other policy in another insurance company:

Table: 3-Other Company Policies

Policy

Respondents

Percentage

Yes

87

58

No

63

42

Total

150

100
29 | P a g e

Chart: 3

Interpretation:
58Percent customers have insurance in other companies; 42Percent customers do not have
insurance in other companies.

30 | P a g e

4. Type of company chosen by the customer when they already have a policy:

Table: 4-Name of company for other policies

Company
Life (Public)
Life (Private)
General (Public)
General (Private)
Total

Respondents
84
18
30
18
150

Percentage
56
12
20
12
100

Chart: 4

Interpretation:
56Percent of customers have insurance in public life insurance companies, 20Percent of
customers have insurance in public general insurance companies
12Percent of customers have insurance in private life insurance and public general insurance
companies respectively.

31 | P a g e

5. Number of years customer is insuring with Bajaj Allianz:

Table: 5-Customer with Company

Years
One year
Two years
Three years
Four years
More than Four years
Total

Respondents
12
42
66
18
12
150

Percentage
8
28
44
12
8
100

Chart: 5

Interpretation:
44Percent of customers are retained for 3Years, 28Percent of customers are retained for
2Years, 12Percent of customers are there since 4Years, and 8Percent of customers are
there for more than 4Years and 1 year each respectively.

32 | P a g e

6. Responsiveness of Company towards Customer:

It is providing information about the product, process, status and other details during and
after the purchase.
Table: 6-Responsivness
Responsiveness
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
42
78
18
12
00
150

Percentage
28
52
12
8
00
100

Chart: 6

Interpretation:
52Percent of customers are satisfied in Responsiveness of company; 28Percent of customers
are more satisfied in Responsiveness of company; 12Percent of customers less satisfied in
Responsiveness; and 8Percent of Customers awarded Poor in Responsiveness of company.

33 | P a g e

7. Professionalism of company:

High quality work in creations, products, services, presentations, consultancy, administrative,

marketing or other work endeavors including communicating with customer.

Table: 7-Professionalism
Professionalism
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
00
66
72
12
00
150

Percentage
00
44
48
8
00
100

Chart: 7

Interpretation:
48Percent customers rated average, 44Percent of customers rated good, and 8Percent of
customers rated poor towards Professionalism of company.

34 | P a g e

8. Delivery of product:

It is the process of transporting goods or services. The general process of delivering goods is
known as distribution

Table: 8-On time Delivery of product

Particulars
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
108
30
12
00
00
150

Percentage
72
20
8
00
00
100

Chart: 8

Interpretation:
72Percent of customers awarded very good, 20Percent of customers awarded good, and
8Percent of customers awarded average in Delivery of Product.

35 | P a g e

9. Premium charged:
Premium is the actual amount of money charged by insurance companies for active coverage.
An insurance premium for the same service can vary widely among insurance providers,
which is why experts strongly recommend getting several quotes before committing to an
insurance policy
Table: 9-Premium
Category
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
30
108
12
00
00
50

Percentage
20
72
8
00
00
100

Chart: 9

Interpretation:
72Percent of customers rated good; 20Percent of customers rated very Good; 8Percent of
customers rated average in levying Premium towards customer.

36 | P a g e

10. Claim Process of the company:

A formal request to an insurance company asking for a payment based on the terms of the
insurance policy. Insurance claims are reviewed by the company for their validity and then
paid out to the insured or requesting party (on behalf of the insured) once approved
Table: 10-Claim Process
Claim Process
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
24
96
18
12
00
50

Percentage
16
64
12
08
00
100

Chart: 10

Interpretation:
64Percent of customers awarded good, 16Percent of customers awarded very good, 12Percent
of customers awarded average in claim Process, and 8Percent of customers awarded poor in
Claim Process of the company.

37 | P a g e

11. Reimbursements during claims:

It is to pay back or compensate (another party) for money spent or losses incurred.
Table: 11- Reimbursements
Reimbursements
Respondents
Very Good
36
Good
96
Average
12
Poor
06
Very Poor
00
Total
150

Percentage
24
64
08
04
00
100

Chart: 11

Interpretation:
64Percent of customers awarded good, 24Percent of customers awarded very good, 8Percent
of customers awarded average in Reimbursements, and 4Percent of customers awarded poor
in Reimbursements of money during claims.

38 | P a g e

12. Renewals of lapsed Policy:

Renewal means you paid the regular bill on time. It is when the company offers to Renew, or
Continue, your insurance policy for another 1year
Table: 12-Renewals
Renewals
Very Good
Good
Average
Poor
Very Poor
Total

Respondents
108
30
12
00
00
150

Percentage
72
20
08
00
00
100

Chart: 12

Interpretation:
72Percent of customers awarded very good; 20Percent of customers awarded well, and
8Percent of customers awarded average in Renewals of lapse policy.

39 | P a g e

13. Office Atmosphere of Vizag Branch:

Table: 13-Office Atmosphere
Office atmosphere
Respondents
Very Good
48
Good
96
Average
06
Poor
00
Very Poor
00
Total
150

Percentage
32
64
04
00
00
100

Chart: 13

Interpretation:
64Percent of customers rated good, 32Percent of customers rated very good, and 4Percent of
customers rated average in Office atmosphere of Vizag branch.

40 | P a g e

14. Over All satisfaction of Chola General Insurance:

Table: 14-Over All Satisfaction
Satisfaction
Respondents
Very Good
28
Good
08
Average
06
Poor
08
Very Poor
00
Total
50

Percentage
56
16
12
16
00
100

Chart 14:

Interpretation:
56Percent of customers are more satisfied, 16Percent of customers are satisfied,
12Percent of customers are less satisfied and 16Percent of customers are not satisfied in
Overall operations of company.

41 | P a g e

15. Customer is interested in taking any Other Insurance Policy:

Table: 15-Customer interested in any other insurance in company
Interested
Respondents
Percentage
Yes

18

12

No

132

88

Total

150

100

Chart: 15

Interpretation:
88Percent of customers not interested to take any other policy, 12Percent of customers
interested to take any other policy in Bajaj Allianz.

42 | P a g e

16. Customer suggests Cholato Any other (Promotion):

Table: 16-Recommend Cholato others
Suggest Company

Respondents

Percentage

Yes
No

120
30

80
20

Total

150

100

Chart: 16

Interpretation:
80Percent of customers recommend, 20Percent of customers will not Recommend Cholato
Others.

43 | P a g e

CHAPTER V
Findings,
Suggestions &Conclusions

44 | P a g e

5.1 FINDINGS:

72Percent of Motor Insurance customers are satisfied with CholaGeneral Insurance.

Majority of customers are satisfied with Delivery and Renewals of policies.

Important factor is the customers will suggest the company to others which help in
word of mouth publicity.

Cholahaving good Customer Satisfaction which made the company top in area of
Vizag.

Premium is bit high than other companies, but he services provided by the company is
good.

Many of the customers are not happy with the Professionalism, claim settlement
Process& Reimbursements.

Most of the Motor Business ids from Maruti, Hyundai Customers

45 | P a g e

5.2 SUGGESTIONS:

Agent/Employees need good communication in English or Hindi to compete in the

market.

20Percent of customers are not satisfied now days with response given by
Agents/Renewal team.

More hospitality is to be given to the customer, so he be loyal to the company.

Most of the insured are not aware of Drive assure policy, motivate them for that add
on package.

Motivate the Customers for Health Policies while follow up them for renewals.

46 | P a g e

5.3 CONCLUSION:
Competition will surely cause the market to grow beyond current rates, create a bigger
pie, and offer additional consumer choices through the introduction of new products, services
and price options. Yet, at the same time public and private sector companies will be working
together to ensure healthy growth and development of the sector. The market is now in an
evolving phase where one can expect a lot of actions in coming days.
It is concluded from the survey that many customers are satisfied of CholaGeneral
Insurance Company and will suggest the company to others which is powerful promotion to
company and it need to improve in communication of Agents/Employees. Company need to
create trust in costumers about private insurance companies by rendering good services like
proper claims, good response to costumer queries and maintaining good relationship with
costumers.
Most of Customers of Cholaare from Motor Policies. So company need to create the
awareness of the policies like Fire (Home), Travel and burglary many more..

47 | P a g e

BIBLIOGRAPHY
Books:
1. Phillip Kotlers, Marketing Management 13th Edition, 2010 Pearson, New Delhi.
2. C R Kothari, Research Methodology, 2009 New Age International publishers, New
Delhi
Websites:
1. Insurance Regulatory & Development Authority- www.irdaindia.org
2. CholaInsurance Company Limited.- www.bajajallianz.com
3. Allianz Company Limited- www.Allianz.com
4. Hindu- www.Hindu.co.in

48 | P a g e

ANNEXURES
Questionnaire
A Study on Customer Satisfaction (Motor) of Chola General Company Limited
Name:

Phone:

Gender: Male/Female

Age:

Make: ______________________

Type _____________________

1. Nature of employment?
(a)Public sector

(b) Private Sector

(c) Self employed

(d) others

2. How Many Vehicles do you have?

(a) 1

(b) 2

(c) >2

3. Do you have any other policy in another insurance company?

(a) Yes

(b) No

4. If Yes, Which Company and what policy?

____________________________________________
5. Since How many years you are insuring with Bajaj Allianz?
(a) 1

(b) 2

(c) 3

(d) 4

(e) >4

RATE THE FOLLOWING (Circle)

6. Responsiveness of company towards customer?
(a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
7. Professionalism of company?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________

8. Delivery of product?

49 | P a g e

a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion ________________________________
9.

Premium Charged on Policy?

a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
10. Claim Response of company?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
11. Reimbursements during claims?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
12. Renewals of lapsed policy?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
13. Office atmosphere of vizag branch?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
14. Over All satisfaction?
a) Very Good (b) Good (c) Average (d) Poor (e) Very Poor
Suggestion _________________________________
15. Interested to take any other Insurance?
__________________________________________
16. Do you suggest our Company to Anybody?
(a) Yes

(b)

No

THANK Q
Survey By: Prudhvi

50 | P a g e