RIMS,Bangalore

CONTENT

S.N. CHAPTER NAME PAGE

1.INTRODUCTION
1.1 General Introduction About the Sector……………………………..4
1.2 Industry Profile………………………………………………….....5-12
a. Origin & Development of the Industry……………………………...5-7
b. Growth & Present Status of the Industry…………………………..8-9
c. Future of the Insurance Sector…………………………………..10-12

2. PROFILE OF THE ORGANIZATION

2.1 Origin of ICICI Lombard GIC Ltd…………………………………..14
2.2 Growth & Development of ICICI Lombard………………………..15
2.3 Present Status of ICICI Lombard………………………………16-17
2.4 Functional Departments of ICICI Lombard……………………18-19
2.5 Organizational Structure & Chart…………………………………..20
2.6 Product & Service Profile of the Competitors…………………21-25
2.7 Market Profile of ICICI Lombard……………………………..…26-28

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3. DISCUSSION ON TRAINING
3.1 Work profile (Role and Responsibilities)…………………………..30
3.2 Description of Live Training………………………………………...31

4. STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of Research Problem…………………………………...33
4.2 Statement of Research Objectives……………………………...…33
4.3 Research Design & Methodology………………………………34-35
4.4 Analysis of Data………………………………………………….36-51
4.5 Summary of Findings………………………………………………..52

5. SUMMARY AND CONCLUSION

5.1 Summary of Learning Experience…………………………………54
5.2 Recommendations and Conclusion……………………………….55
CONCLUSION…………………………………………………56
ANNEXURE………………………………………………..57-58
BIBLIOGRAPHY……………………………………….……..59

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CHAPTER 1

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1.1 GENERAL INTRODUCTION ABOUT THE SECTOR

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 TATA AIG General Insurance Company, Reliance General
Insurance Company limited, Bajaj Allianz General Insurance Company,
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.

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1.2 INDUSTRY PROFILE

a. Origin and Development of the industry

In 1829, the Madras Equitable had begun transacting life insurance

business in the Madras Presidency. 1870 saw the enactment of the
British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of
India (1897) were started in the Bombay Residency. This era,
however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance,
Liverpool and London Globe Insurance and the Indian offices were up
for hard competition from the foreign companies.

HISTORY OF INSURANCE SECTOR

Some of the important milestones in the life insurance business in

India are given in the table 1.

Table 1: milestone’s in the life insurance business in India

Year Milestones in the life insurance business in India

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 nationalised. LIC formed by
an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore from the Government of India.

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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 given in the table 2.

Table 2: milestone’s in the general insurance business in India

Year Milestones in the general insurance business in India

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 (Nationalisation) Act, 1972

nationalised 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
Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

INDIAN INSURANCE MARKET – HISTORY

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Insurance has a long history in India. Life Insurance in its current form
was introduced in 1818 when Oriental Life Insurance Company began
its operations in India. General Insurance was however a
comparatively late entrant in 1850 when Triton Insurance company set
up its base in Kolkata. History of Insurance in India can be broadly
bifurcated into three eras: a) Pre-Nationalisation b) Nationalisation and
c) Post-Nationalisation. Life Insurance was the first to be nationalized
in 1956. Life Insurance Corporation of India was formed by
consolidating the operations of various insurance companies. General
Insurance followed suit and was nationalized in 1973. General
Insurance Corporation of India was set up as the controlling body with
New India, United India, National and Oriental as its subsidiaries. The
process of opening up the insurance sector was initiated against the
background of Economic Reform process which commenced from
1991. For this purpose Malhotra Committee was formed during this
year who submitted their report in 1994 and Insurance Regulatory
Development Act (IRDA) was passed in 1999. Resultantly Indian
Insurance was opened for private companies and Private Insurance
Company effectively started operations from 2001.

The four subsidiaries formed were as under:

1. The National Insurance Co. Ltd

2. The India Assurance Co. Ltd
3. The Oriental Insurance Co. Ltd
4. The United India Insurance Co. Ltd

The four subsidiary companies operated under the all direction of the
GIC.Each of these had almost a similar structure with 4 tiers

• The branch at the bottom rung,

• The divisional office,
• Regional office and
• The Head Office at the apex.

b. Growth and Present status of the industry

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At present 12 companies are operating in general insurance market for
direct business. The four public sector companies mentioned above
and the following companies in the private sector. These private
companies were formed after the passing of the IRDA Act, 1999. This
removed the prohibition existing in the GIBNA Act relating to formation
of insurance companies other than the four Public sector companies.

The companies in the private sector are:-

1. Bajaj Allianz General Insurance Co.Ltd.

2. Cholamandalam General Insurance Co. Ltd.
3. HDFC Chubb General Insurance Co. Ltd.
4. ICICI LOMBARD General Insurance Co. Ltd.
5. IFFOCO Tokyo General Insurance Co. Ltd.
6. Reliance General Insurance Co. Ltd.
7. Royal Sundaram Alliance Insurance Co. Ltd.
8. Tata AIG General Insurance Co. Ltd.

The General Insurance Corporation is now only Reinsurance Company

and operates as the National Reinsures. There are however, some
companies in the market, which are formed for a specific purpose only.

Deposit insurance company

To take care of loss suffered by the depositors of a bank.

• Exports Credit Guarantee Corporation - this takes care of the

credit risk, which exporters face in respect of the goods
exported.

• Agricultural Insurance Corporation to take care of crop insurance

and allied risks.

• There are also insurance departments in some of the states.

Today the technology is boosting in each and every field. Insurance is

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not an exception. Companies have started providing customers facility
of online payment of premium through their websites. They also
provide online assistant to the customer the policy status and how to
calculate the premium. To calculate the premium they just need the
present age, the type of police, sum assured, and accident covered if
any. By filling in this information you can calculate the amount of
premium you have to pay. The customer can pay their premiums by
means of credit cards or can also give standing instruction to the bank
in order to pay their monthly premiums.

The insurance companies also provide loan facilities against their

policies. At present loans are granted on unencumbered polices as: Up
to 90% of the Surrender Value for policies, where the premium due is
fully paid-up, and Up to 85% of the Surrender Value for policies where
the premium due is partly paid- up.

The minimum amount for which a loan can be granted under a policy
is Rs150. The rate of interest charged is 10.5% p.a., payable half-
yearly. Loans are not granted for a period shorter than six months, or
on the security of lost policies (the assured must have the duplicate
policies) or on policies issued under certain plans. Certain types of
policies are, however, without loan facility.

In the first month of financial year 2007-08, private sector insurers

grew 37.34 per cent to Rs1272.22 crore over April 2006. In the
process, the market shares have further undergone a change.

Private sector has grabbed a market share of 40 per cent in the non-
life insurance business, from 34 per cent in the financial year 2006-07.
Public sector market share is now only 60 per cent.

c. Future of the Industry

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With a huge population base and large untapped market, insurance
industry is a big opportunity area in India for national as well as
foreign investors.

India is the fifth largest life insurance market in the emerging

insurance economies globally and is growing at 32-34% annually. This
impressive growth in the market has been driven by liberalization, with
new players significantly enhancing product awareness and promoting
consumer education and information.

The strong growth potential of the country has also made international
players to look at the Indian insurance market. Moreover, saturation of
insurance markets in many developed economies has made the Indian
market more attractive for international insurance players. This
research report will help the client to analyze the leading-edge
opportunities critical to the success of insurance industry in India.
Based on this analysis, the report gives a future forecast of the market
that is intended as a rough guide to the direction in which the market
is likely to move.

-Total life insurance premium in India is projected to grow Rs

1,230,000 crore by 2010-11.

-Total non-life insurance premium is expected to increase at a CAGR of

25% for the period spanning from 2008-09 to 2010-11.

-With the entry of several low-cost airlines, along with fleet expansion
by existing ones and increasing corporate aircraft ownership, the
Indian aviation insurance market is all set to boom in a big way in
coming years.

-Home insurance segment is set to achieve a 100% growth as financial

institutions have made home insurance obligatory for housing loan
approvals.

-Health insurance is poised to become the second largest business for

non-life insurers after motor insurance in next three years.

-A booming life insurance market has propelled the Indian life

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insurance agents into the ‘top 10 country list’ in terms of membership
to the Million Dollar Round Table (MDRT) — an exclusive club for the
highest performing life insurance agents.

To grab the maximum market share, the companies are

focusing on the following aspects:-

Information Technology

The Insurance companies are utilizing the Information technology

applications for better customer service, cost reduction, new product
design and development and many more.The technology has enabled
the Insurer to innovate new products, provide better customer service
and deeper and wider insurance coverage to them.

Product Innovations

Insurers are continuously innovating new products based on forward-

looking models. Understanding the customer better will enable
Insurance companies to design appropriate products, determine price
correctly and to increase profitability. Product development is made
possible by integrating actuarial, rating, claims and illustration
systems. Moreover, with increased commoditization of insurance
products, brand building is going to play a vital role.

Distribution Network

While companies have been successful in product innovation, most of

them are still grappling with right mix of Distribution Channels for
capturing maximum market share to build brand equity, building
strong and effective customer relationships and cost effective
customer service.

Customer Education and Services

In the present competitive scenario, a key differentiator is the

professional customer service in terms of quality of advice on product
choice along with policy servicing.

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MODERN MARKETING APPROACH:

In India Insurance is sold and not bought. The agents/Advisors by

using various strategies sell the product by convincing the customers.
Here, the customer is seen as a person to be served and not a person
to be sold. It helps the purchaser to make an intelligent decision. The
four-step process includes:

1) Need discovery
2) Selection of the product
3) Need satisfaction presentation
4) Serving the sale

This approach to selling their products requires understanding of

concepts and principles borrowed from the fields of psychology,
communications, and sociology and needs a lot of personal
commitments and self – discipline from the seller.

The commitments referred are:

• Finding and understanding the needs of the customers.

• Partnering with the customers.
• Helping the customers to achieve his business and other
objectives by the purchase of the product or service.
• Believing that your products / services are a great fit with your
customer's needs, and
• Believing in yourself and your ability to help the customers in
solving their problems.

The demand for health insurance covers has seen a healthy increase,
and today the sector is the fastest growing segment in the non-life
insurance industry in India, which grew at over 40% last year. It is
also emerging as an increasingly significant line of business for life
insurance companies. While this rate of growth appears to be very
healthy, it is on a low base, and health insurance penetration in the
country continues to be low. Only about 25 million persons are
presently covered for health through commercial insurance, in a
country of over 1.1 billion people. Overall, the Indian health sector is
still characterized by the near absence of any significant risk protection
against major health-related expenditure

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CHAPTER 2

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2.1 Origin of the Organization:

The 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 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. At the same time it will sell property insurance for ICICI home
loan seekers and auto insurance for those availing of car finance.

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2.2 Growth and Development of the Organization

ICICI Lombard GIC Ltd. is the largest private sector general insurance
company in India with a Gross Written Premium (GWP) of Rs. 36,948
million for the year ended March 31, 2010. The company issued over
44 lakh policies and settled over 62 lakh claims and has a claim
disposal ratio of 96% (percentage of claims settled against claims
reported) as on March 31, 2010. The company has 4,634 employees
and 350 branches as on March 31, 2010.

The company has been assigned a domestic rating of ‘iAAA’ by ICRA

(an associate of Moody’s Investors Service) for highest claim paying
ability and a fundamentally strong position, for the fourth consecutive
year. ICICI Lombard Auto Insurance has been rated highest in
customer satisfaction by J.D. Power Asia Pacific in India among 11
auto insurance providers. The company has been conferred the Golden
Peacock- Eco Innovation Award of 2009 for weather insurance and the
Customer and Brand Loyalty award in the ‘Insurance Sector - Non-Life’
at the 3rd Loyalty awards, 2010.

ICICI Lombard Auto Insurance has been rated highest in customer

satisfaction by J.D. Power Asia Pacific in India among 11 auto
insurance providers. The company has been conferred the Golden
Peacock- Eco Innovation Award of 2009 for weather insurance and the
Customer and Brand Loyalty award in the “Insurance Sector - Non-
Life” at the 2nd Loyalty awards, 2009. It was awarded the ‘General
Insurance Company of the Year’ at the 11th Asia Insurance Industry
Awards. The company also won the NDTV Profit Business Leadership
Award 2007 and was adjudged as the most Customer Responsive
Company in the Insurance category at the Economic Times Avaya
Global Connect Customer Responsiveness Award 2006. It has the Gold
Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2006.

2007 - ICICI Lombard General Insurance Corporation has grabbed the

second spot in insurance premiums growth displacing three public
sector companies earned the second largest premium of Rs448.65
crore for April but was at top place in terms of premium growth of 35
per cent over the corresponding period of the last financial year.

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2.3 Present status of the organization

ICICI Lombard Auto Insurance has been rated highest in customer

satisfaction by J.D. Power Asia Pacific in India among 11 auto
insurance providers. The company has been conferred the Golden
Peacock- Eco Innovation Award of 2009 for weather insurance and the
Customer and Brand Loyalty award in the “Insurance Sector - Non-
Life” at the 2nd Loyalty awards, 2010. It was awarded the ‘General
Insurance Company of the Year’ at the 11th Asia Insurance Industry
Awards. The company also won the NDTV Profit Business Leadership
Award 2007 and was adjudged as the most Customer Responsive
Company in the Insurance category at the Economic Times Avaya
Global Connect Customer Responsiveness Award 2006. It has the Gold
Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2006.

AWARDAS AND RECOGNITION

World Business Leader Award 2010

ICICI Lombard GIC Ltd. conferred the ‘World Business Leader’ award at ‘The Bizz 2010’ awards
held on April 2, 2010.
JD Power Asia Pacific Award

ICICI Lombard Ranks Highest in Customer Satisfaction among Auto Insurance

Providers in India: J D Power Asia Pacific.

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Customer and Brand Loyalty Award 2009

ICICI Lombard wins the Customer and Brand Loyalty Award in the "Insurance
Sector- Non-Life" at the 2nd Loyalty Awards on January 29, 2009.
General Insurance Company of the Year

11th Asia Insurance Industry Awards 2007, SingaporeICICI Lombard becomes

the first Indian insurance company to win this prestigious award.
iAAA rating by ICRA

Assigned the iAAA rating by ICRA indicating highest claims paying ability and a
fundamentally strong position.

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2.4 Functional Departments of the Organization

Claim Settlement:

Lightning-fast claim settlement is one of the key areas of focus for

ICICI Lombard. Our dedicated Relationship Managers, wide spread
network across India and presence of 24 *7 call centers assure our
customers that we are always on call, day or night. Our tie-up with
Cunningham Lindsey, the worldís second largest loss adjustors with
its network in 80 locations across India.

Rural Initiative:

ICICI Lombard believes in striking the right balance between the

commercial and socio-economic aspects of the insurance business. In
its Endeavour to offer tailor-made products to meet the requirement of
the rural population, explore business opportunities in the related
segments and build a competitive edge through strong distribution
network and product innovation, ICICI Lombard uses Intermediaries
like ICICI Banks kiosks, direct selling Agents, state-level tie-ups,
ITC’s e-Chou pals, NGOs and other micro finance Institutions (MFIs).

Corporate Business:

ICICI Lombard via its CSG segment aims to tap large corporate with
high premium potential. The company has emerged as a major player
in the corporate segment with a well-balanced portfolio. It has made
forays into specialized products that require complex product
development and strong underwriting skills.

Bank assurance

The Company has set up a dedicated SBU to cater to banc assurance

business managed by dedicated teams for each bank partner across all
locations to ensure highest levels of service to the channel and their
customers.The company has tied up with few partners like ABN Amro
Bank, ICICI Bank, UTI Bank etc, to ensure complete support and
continuous value addition to the partner.

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Retail

ICICI Lombard aims to tap retail segment through multi-product and

multi- channel approach to marketing. It has presence in all retail
categories -- travel, health, home and motor.

E-channel

ICICI Lombard’s e-channel mainly focuses on targeting customers

through Internet, intranet (of large corporate and manufacturing
companies) and other national level distribution networks. The focus is
on targeting customers through the online medium.

Board Members

Chanda Kochhar, Chairperson

R. Athappan, Director
Sandeep Bakhshi, Director
B.V. Bhargava, Director
Dileep Choksi, Director
N.S. Kannan, Director
S. Mukherji, Director
Chandran Ratnaswami, Director
M.K. Sharma, Director
H.N. Sinor, Director
Bhargav Dasgupta, Managing Director & CEO

COMMITTEES

Audit Committee
Mr. S Mukherji, Chairman
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director

Investment Committee

Mr. Chandran Ratnaswami, Chairman

Ms. Kalpana Morparia, Director
Mr. Sandeep Bakhshi,, Managing Director & CEO
Mr. S Gopalakrishnan, Head ñ Investments

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Mr. Rakesh Jain, Head-Finance & Accounts
Mr. Liyaquat Khan, Appointed Actuary
2.5 Organization Structure and Organization Chart

ICICI LOMBARD GIC LTD.

BOARD OF DIRECTORS

WHOLE- AGRICUL
RETAIL RURAL TURE
SALE AREA SALES MANAGER

NATIONAL SALES MANAGER

UNIT SALES MANAGER
SALES

REGIONAL SALES MANAGER

2.6 PRODUCT AND OFFICERSERVICE PROFILE OF

ORGANIZATION COMPETITORS

A. Fire Insurance

1. STANDRARD FIRE AND SPECIAL PERILS

FIRE and Lighting

Explosion and Implosion

Aircraft damage

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Riot, strike and malicious damage

Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and

inundation

Impact Damage

Subsidence and land slide including rockslide

Bursting and/or overflowing of water tanks apparatus & pipes.

Missile testing operations.

Leakage from automatic sprinkler installations.

Bush Fire

2. BURGLARY:

The company shall compensate the insured for any loss or damage,
caused by burglary, to the contents of insured’s premises.

3. CASH IN SAFE:

The company will compensate the insured in respect of loss of, or

damage to, money and/or valuables caused by burglary and/or
attempted burglary when such money and/or valuables are contained
in a domestic safe or vault which is protected by appropriate and
adequate security measures with lock in key.

4. CASH IN TRANSIT

The company shall compensate the insured for loss of money in coins
and/or notes caused by burglary, robbery or theft occurring while such
money is in the insured’s possession and is being conveyed by the
insured to the insured’s premises from the insured’s bank /ATM from
where such money had been withdrawn immediately prior to the
occurrence.

5. NEON SIGN /GLOW SIGN:

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The company will compensate the insured in respect of loss or damage
to neon sign/glow sign belonging to the insured.

6. GLASS BREAKAGE:

The company shall compensate the insured for loss or damage to any
fixed glass other than that which are specifically excluded hereunder,
caused by any accidental, external and visible means.

7. CHEQUE FORGERY:

The company shall compensate the insured for any loss to the insured
caused by forgery or material alteration of cheques, drafts or other
negotiable instruments issued by, or in favor of, the insured.

8. EMPLOYERS LIABILITY:

The company shall indemnify the insured against the legal liability of
the insured in respect of any bodily injury sustained by, or the loss of
life of, the insured’s employees arising out of and in the course of their
employment.

9. ACCIDENTAL, MEDICAL/HOSPITAL EXPENSES TO INSURED:

The company shall compensate the insured for actual and reasonable
medical expenses incurred for hospital treatment by the insured in
respect of any bodily injury sustained by the insured arising out of
operation at an insured peril as provided for in standard fire and
special perils- buildings and standard fire and special perils- contents
and / or burglary, coverage’s in this policy and subject to a deductible
excess of an amount as may be specified in part 1 of the schedule.

10. PUBLIC LIABILITY:

The company shall indemnify the insured for those sums that insured
becomes legally liable to pay, including litigation expenses and any
amount in compensation, by virtue of the following items as specified
occurring in and about the insured’s premises.

• Accidental death or bodily injury to any person other than insured

or the insured employees / staff.

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• Accidental damage to property of any person other than the
insured or insured employees / staff.

11. FIDELITY:

The company will compensate the insured for any direct pecuniary loss
sustained by the insured through act of fraud or dishonesty committed
by any salaried employee of the insured in the insured premises.

B. Health Insurance:

We save money for a better future. But life is full of surprises; a

medical emergency can strain your hard-earned investments. Now, let
your savings be untouched, get secured.

C. Home Insurance:

Insure your home and its contents against natural calamities like fire,
earthquake, flood, gas cylinder explosion, fire due to electric short
circuit as well as man-made disaster like burglary.

Home Plans

Gold Plan

Silver Plan

D. Motor Insurance:

Your vehicle helps you reach destinations and enables you to commute
from one place to another. But it might face some damage in an
accident or get stolen. The security of your co-passengers can be
endangered during accidents. Motor insurance takes care of all these
possibilities and more.

Motor Plans

Four Wheeler Package Policy

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Two Wheeler Package Policies

E. Travel Insurance:

You do not want anything to ruin your hard earned holiday or your
crucial business meeting. Unfortunate events such as baggage loss,
passport loss, a medical emergency or an accident can affect you.
Having Travel Insurance protects you from all such perils at a fraction
of the cost of your trip.

Travel Plans

Individual Overseas Plan

Student Travel Plan
Domestic Travel Plan

COMPRTITORS

The National Insurance Co. Ltd

The New India Assurance Co. Ltd
The Oriental Insurance Co. Ltd
The United India Insurance Co. Ltd
Bajaj Allianz GIC Ltd.

COMPARISON FROM COMPETITORS

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ICICI Lombard GIC Competitors

 Low Premium Better Service High Premium Average Service

 Competitive Discount is High Very less Discount

 Product range is vast Limited products

 Better Customer Retention Retention is very low

 No hidden Charges Many hidden charges

 Policy wordings are documentedNo documentation

 Main focus is Revenue Main focus is only Profit

 Immediate claim settlement Very long process

2.7 MARKET PROFILE OF THE ORGANIZATION

The company is the largest private sector general insurance company

in India with a Gross Written Premium (GWP) of Rs 30,034 million for
the 12 months ended March 31, 2007 with a market share of nearly
12.4% and compounded annual growth rate of over 84% in the last
two years.

ICICI Lombard is the largest private sector general insurance company

in India with a Gross Written Premium (GWP) of Rs. 34,198.4 million
for the year ended March 31, 2009. The company presently has
around 4,777 employees in 357 branches. In the financial year ended

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March 31, 2009, the company issued over 4 million policies and
serviced over 33 lakh claims. The company has a claim disposal ratio
of 97% (percentage of claims) settled against claims reported as on
March 31, 2009.

Core Value System

ICICI Lombard's value system is the DNA, which molds and

determines the growth and success of the company and its employees.

Transparency

ICICI Lombard encourages total transparency in all channels of

communication (internally and externally) and complete accountability
in customer deliverables. In November 2005, ICICI Lombard became
the first private sector general insurance company to cross the Rs. 10
billion Gross Working Profit (GWP) marks.

Empowerment

ICICI Lombard provides you the platform to evolve from an employee

to a partner in progressive growth. Since our origin in 2001, our
employees have always been empowered to make decisions that chart
their career path. We do not create jobs but build futures.

Passion

The passion to excel with customer focus in mind is what initiates

ICICI Lombard to attain greater milestones.

Integrity

At ICICI Lombard, integrity is not limited to the organization's capacity

to meet the needs of the stakeholder but also encompasses the vision
and values of everyone involved.

Humility

One of the key values we look for and inculcate in our employees is
humility which allows us to keep the interests of our customer and the
organization before our own and work efficiently as a team.

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SWOT ANALYSIS - INTERNAL FACTORS
STRENGTHS
Rural customers are a must
As per the regulator IRDA, all the companies incorporated should at least do 5%
of its business in the rural parts of the country. If not, the regulator would not
allow the company to function anywhere within the country. So this is a great
advantage for not only the rural population but also the newly formed companies
since most of the revenue could be earned from the rural India.
Use of IT
IT is bringing new dimensions to insurance sector. The Insurance companies are
utilizing the Information technology applications for better customer service, cost
reduction, new product design and development. New technology gives the
policyholders / insured better, wider and faster access to products and services.

WEAKNESS
New Insurers
The new insurers will have to invest a minimum capital of Rs. 100 crores. The
normal gestation period is of 5 years. The generation of profit normally starts in
the sixth year. Hence the new insurers have to lock up their capital for at least 5
years.
Outdated Products
Today, LIC has more than 60 products and GIC has more than 180 products to
offer in the market. But most of them are outdated, as they are not suitable to the
needs of the consumers. Hence old as well as new insurers have to offer
innovative products to the consumers and bringing more products would require
good amount of capital investment.

EXTERNAL FACTORS
OPPORTUNITIES
Vast country
India is a vast country with more than 5, 76,000 villages having a population of at
least 500-600 per village. The companies could recognize the fact that if it takes
the whole zilla as one, it would consist of a population more than 5000-10000.
One zilla could give them a good amount of business. The company could have

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this opportunity and tap it and reap revenues.
Job opportunities
Since the sector has opened up, many new companies have already started its
operation and few are just about to begin, Major areas of employment in this
sector are the agents. A company can appoint any number of agents anywhere
within the country on commission basis. Moreover, the professional staff and the
peons and clerks’ appointment also increase. Thus this sector has tremendous
scope on employment.

THREATS
Lack of awareness
With limited range of products offered by LIC and GIC, there is chaos as far as
the consumers are concerned. The existing level of awareness of the consumers
for insurance products is very low. This is because only 62% of the population of
India is literate and only 10% are well educated. Even the educated consumers
are ignorant about the various products of insurance.
Lower profit margin
Increasing expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.

CHAPTER 3

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3.1 Discussion on Training

a. Student’s Work Profile (Role and Responsibilities)

CORPORATE SALES TRAINEE

I was recruited, as a Corporate Sales Trainee in ICICI Lombard GIC

Ltd.My role is to fix an appointment with client company’s Account, HR
and General Managers and Lead Generation. And collect information
about existing policies.

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RIMS,Bangalore
I have conducted a Research for General Insurance
products in Koramangala area of Bangalore. My target was IT and non-
IT, Software companies, Hotels, Construction Sights and Commercial
building having Offices.

As a Sales Officer my responsibilities were as under:

 Develop new relationships and nurture the existing ones

 Develop the partner channel for insurance cross - sell at the

location and the in catchments

 Responsible for sales budget of the business

 Manage the partner relation at location level and co-ordinate

internally with various functions to ensure efficient delivery of
day to day service requirements

 Lead Generation, Cold callings

 Fix an appointment with Managers (Clients)

 Prepare Database of new clients

 Conduct surveys in different segments

 Getting feedback from existing clients

 Making Agents

3.2 Description of live experiences

This working experience has helped me a lot in understanding

the corporate world and I came to know the meaning of sales
and marketing. Each and every thing you can take, there are

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two responses (experience) which I got from the market or field
work: Positive and Negative.

How to work in a corporate world and how can we survive in

corporate fields-that all types of practical and theoretical
knowledge we can get from corporate activities. We must have
to learn about customers’ requirement, what and which type of
customer have to expect their need or requirements. This
working experience also helped me in improving communication
and presentation skills. Some of these are:

 Real exposure to the corporate world which helped me a

lot in understanding the mind set of executives to a certain
extent.
 Learned about customer requirements, customer mind set
how to convince others and many.
 It helped me in improving my communication skills,
presentation skills and how to behave in front of corporate
executives.
 Apart from these positive experiences I faced certain
problems too which I would like to discuss here.
 It was quite difficult in the beginning to cope with both
college studies and job.

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CHAPTER 4

4.1 Statement of research problem

“Assessing the market awareness of office insurance products”

“The purpose of this is to fine out how we can tap potential after
assigning, through strategic marketing of services”.

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4.2 Statement of research objectives

• To find out the customer awareness level for office insurance

products.

• To assess the effectiveness of company service.

• To make an independent assessment of the magnitude of the

market potential in the light of the competitive scenario.

• To suggest remedial measures to exploit the market potential.

4.3 Research design and methodology

TYPE OF RESEARCH

The type of research used in this project is a Descriptive research

design. The major purpose of descriptive research is a description of

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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 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. When population elements are selected for inclusion in the
sample based on the ease of access, it can be called as convenient
sampling. Empirical field studies required collection of first hand
information and data pertaining to the units of study from the field.

SAMPLING DESIGN:

SAMPLING UNIT

The samples include various offices & shops in Bangalore city.

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SAMPLE SIZE

The sample size for listing questionnaire of research is 100, and the
sample size is broken down in to two samples i.e. a sample size of 80
respondents from the offices and shops and the sample size of 20
respondents from the customers.

SOURCES OF DATA COLLECTION:

Primary data:

The data was collected by using questionnaire and structured direct

interviews, which were separately conducted to know the market
awareness and market potential.

Secondary data:

The secondary data was collected from the company reports,

broaches, manuals, text books and Internet. The customer of 20
respondents was provided by the company for assessing the service
provided by a company.

RESEARCH LIMITATIONS:

This research is company- specific and confined only to Bangalore city,

the problem of generalization becomes obvious Limited sample size is
taken.
COMMON

4.4. Analysis of Data

The given below questions were being asked in every sector.

1. Are you aware of ICICI Lombard GIC Ltd.?

Table1:
Particulars No. Of respondents Percentages

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Yes 67 67
No 10 10
Little Bit 23 23
Total 100 100
Source: Field Study

Source: Field Study

Interpretation:

The response given by respondents 87% are aware of ICICI Lombard General
Insurance and 23% know very little about General Insurance. This clearly shows
that marketing strategies are working well to reach the people.

2. If Yes, How do you come to know about Lombard Insurance Policies?

Table 2:
Media No. Of Respondents Percentages
TV 42 42
News Paper 25 25

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Agents 20 20
By Reference 13 13
Total 100 100
Source: Field Study

Source: Field Study

Interpretation:
It is depicted from the chart that,
42% of respondents came to know through television.
25% of respondents came to know through newspapers.
20% of respondents came to know through agents
Major of the respondents came to know through television which shows that
Mass media advertisement is Perfect source of communication.

3. Which factor is important in your eye for purchasing insurance policy?

Table 3:
Factors No. Of Respondents Percentages
Company 53 53

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Premium 22 22
Service 25 25
Total 100 100
Source: Field Study

Interpretation:

The chart depicts that 53% of respondents prefer company as an important factor
where as 22% prefer for premium and 25% prefer service as an important factor
for purchase of insurance policy, which shows that Brand is creating good value.

4. How many employees are there in your office?

Table 4:
Employees No. Of Respondents Percentages

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More Than 5 66 66
More Than 10 22 22
More Than 20 12 12
Total 100 100
Source: Field Study

Interpretation:

The above chart shows that,

66% of respondents have more then 5 employees,
22% of respondents have more then 10 and
12% of respondents have more then 20.

5. If yes, Which Company Services do you prefer to avail?

Table 5:
Company No. Of Respondents Percentages

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RIMS,Bangalore
ICICI Lombard 28 28
HDFC Chubb 07 07
New India 30 30
Oriental 15 15
United India 20 20
Total 100 100
Source: Field Study

Interpretation:

The chart depicts that, 28% of the respondents wants to avail services of ICICI
Lombard, 30% of respondents prefer New India, 20%of the respondents prefer
united India and 15% prefer services of oriental. The data shows around 28% of
people are interested in taking insurance in ICICI Lombard. It means there is an
opportunity for company to capture the market. Most of the respondents want to
avail services in government companies but the services, various types of
policies and easy renewal facilities and quick response of ICICI Lombard attract
the customers’ attention.

6. Which type of insurance policy you would like to have?

Table 6:

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Type No. Of Respondents Percentages

Yearly Renewal 69 69

Auto Renewal 31 31

Total 100 100

Source: Field Study

Interpretation:

The above chart shows that 69% of respondents would like to have Yearly
renewal policy and 31% of respondents want to have Auto Renewal.

7. When you are going to have new insurance policy?

Table 7:

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Particulars No. Of Respondents Percentages
Within 15 Days 37 37
15 to 30 Days 43 43
30 to 60 Days 20 20
Total 100 100
Source: Field Study

Interpretation:

Out of 20 respondents, 37% of respondents wants to have insurance policy

within 15 days, 43% of respondents wants to have with in 30 days.

8. How do you rate about services?

Table 8:

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Opinion No. Of Respondents Percentages

Very Good 30 30

Good 45 45

Normal 20 20

Not Good 05 05

Total 100 100

Source: Field Study

Interpretation:

ICICI Lombard customers rated the services are as:

30% of respondents said very well, 45% of respondents said well, 20% of
respondents said normal and 5% of respondents said not well. Company’s online
renewal and new policy documentation, 24hrs free helpline and one to one
interaction helps to attract new clients and retention.

9. Have you ever-contacted customer help desk?

Table 9:

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Particulars No. Of Respondents Percentages

Yes 80 80

No 20 20

Total 100 100

Source : Field Study

Interpretation:

The above chart depicts that

80% of respondents contacted customer help desk and
20% of respondents did not contact customer help desk.
While company providing full details about every policy and use of mass
communication strategies pull the clients.

10. If yes, what is your opinion about customer help desk?

Table 10:

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Opinion No. Of Respondents Percentages
Good 50 50
Normal 40 40
Poor 10 10
Total 100 100
Source: Field Study

Interpretation:

Out of 20 respondents, 50% of respondents’ opinions about customer help desk

is good, 40% of respondents told ok and 10% of respondents told poor. Major of
the respondents told they are happy regarding the information and service
provided by customer help desk.

HOTEL INDUSTRY

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Below given opinions and data were collected from Hotel Industry.

11. Are you aware about Hotel Insurance policies?

Table 5:
Particulars No. Of Respondents Percentages
Yes 45 45
No 55 55
Total 100 100
Source: Field Study

Interpretation:

The response given by respondents 45% is aware of office insurance and 55%
know very little about office insurance. Which shows the potentiality of General
Insurance and this need more attraction towards advertisement and marketing.

12.We have Fire Insurance Policy, Electronic Equipment Insurance, Group

Health policy and Terrorism Insurance Policy. Which policy do you prefer?

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Table: 12

No. Particulars No. of respondents Percentages

1 Only Fire Policy 10 10

2 Only Electronic Equipment 07 07

3 Only Terrorism Insurance 09 09

4 Only GHI 05 05

5 Both 1 & 2 31 31

6 Option 1,2 & 3 23 23

7 All Policies 15 15

Total 100 100

Source: Field Study

Interpretation:

Above graph shows that clients wants to be full secure are 23%.This
policy is based more on the no. of employees because where
employees are more, premium would be high and some hotels would
like to have different policies with different companies.

HEALTH POLICY

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13. Are you aware about General Health insurance policy?

Table 13:
Particulars No. Of Respondents Percentages
Yes 30 30
No 70 70
Total 100 100
Source: Field Study

Source: Field Study

Interpretation:
The response given by respondents 30% is aware of office insurance and 70%
know very little about office insurance. Which shows that company needs more
advertisement and new marketing strategies.

14.We have Personal Care, Individual Health policy, Critical care policy, Family

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RIMS,Bangalore
Health Policy. Which policy do you prefer?
Table 14:

Particulars No. of Respondents Percentages

Personal Care 13 13

Individual Health Policy 27 27

Critical Care 21 21

Family Health Policy 39 39

Total 100 100

Source: Field Study

Interpretation:

Table 14 shows that 39% clients wants to avail Family health policy,
which has more coverage and can, protect all family members. Other
policies are also having attractive premiums and coverage’s.27% of
respondents showed interest in Individual policy which shows that we
should target young employees and bachelors.

PROJECT INSURANCE

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15. Are you aware about Project insurance Policies?

Table 15:
Particulars No. Of Respondents Percentages
Yes 40 40
No 60 60
Total 100 100
Source: Field Study

Source: Field Study

Interpretation:
The response given by respondents 40% is aware of office insurance and 60%
know very little about office insurance. Which shows that construction and
builders groups are more aware about ICICI Lombard. Though it’s risky factor for
company but premium is higher than other policies which has more than 25%
share in total revenue.

16.We have Liability Insurance, Full Project Coverage, Workers’ Insurance and
Fire under-Construction policies. Which would you prefer?

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Table 16:

No. Particulars No. of %

Respondents

1 Liability Insurance 18 18

2 Total Coverage 29 29

3 WC Policy 25 25

4 Fire Under Construction 09 09

5 Both 1 & 3 19 19

Total 100 100

Source: Field Study

Source: Field Study

Interpretation:

Table 16 shows clients attention is towards total coverage, which is

29%. Some (19%) respondents want to avail only liability and WC
policy and 25% respondents are interested in WC policy.

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4.5 Summary of Findings

 All respondents have awareness about office insurance.

 Majority of respondents told they were come to know about office

insurance through television and agents.

 Majority of respondents told employees are more then 5.

 There is a market potential for office insurance products.

 Majority of respondents believe in Government owned insurance

companies.

 There is a market potential for ICCI Lombard office insurance products.

 Majority of respondents told they are trying to avail Fire insurance and
electronic equipment insurance for their offices.

 Most of the respondents said they are going to have insurance with in 15
to 30 days.

 Majority of respondents told they have satisfaction with the service of the
company. and customer help disk.

 Most of the customers told they dial to customer help disk for product
related enquiry.

 All general insurance policies are yearly renewal policies.

 Premium amount for general insurance policy is low and it is not

refundable.

 Majority of respondents told their paying premium is economical.

 Majority of respondents are frequently contacting customer help desk.

 Majority of respondents told company is the main factor for purchasing

insurance Policy.

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CHAPTER 5

5.1 SUMMARY OF LEARNING EXPERIENCE

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I went through a good learning practice in ICICI Lombard for the nearly
past three months which has developed me to heights of understanding
the customers mind as well their taste and preferences in the field of
services sector. The uncertain world or market structure existing in India
has very typical way of expectation when it comes to insurance and the
institutions have realized their needs and desires and working towards
satisfying their requirements and my organization is also in its run for
customer satisfaction. The working environment was excellent which
enabled me to learn the products and services features as well as the
internal aspects of management level. This project has opened up the new
window of learning, which enables me into the clear understanding of
corporate world. The proper understanding of customers is must when it
comes to service industry and that exactly what I went through in this
period of management training period.

 Tele calling: Converting all the leads given by Manager in

appointments.

 To make presentations with clients.

 Collection previous policy details, so that we can give competitive

quotation.

 Preparation of customer feedback report about our company’s

products and services.

5.2 CONCLUSIONS AND RECOMMENDATION

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RECOMMENDATIONS

Respondents do not have enough knowledge about the insurance policies

provided by the ICICI LOMBARD. Therefore ICICI LOMBARD Company should
bring awareness in the customers.

The recommendations I would like to make are:

 There is a necessity to make more advertising and promotions by the

Insurance Company through TV, newspapers, magazines and pamphlets
to make aware the customers about the insurance provided by them.
 Need for proper channel to reach to the customer.
 Marketing executives and agents should maintain good communication
with the customers to create the awareness of the policies like Mediclaim,
GPA (Group personnel accidental) burglary, and other insurance policies
provided by the company.
 The employees should be given incentives and bonus to motivate to
accomplish their targets.
 ICICI LOMBARD is concentrating only urban areas it should concentrate
on semi urban and rural areas also.
 As it was found that customers preparing only Government companies for
their office insurance so 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.
 Building internal technical expertise requiring well –stacked library
resource by way of settled cases of claims at every zonal office is an
immediate necessity.
 The staff of the insurers should be encouraged to refer to these references
often with a view to bring about early settlement to the satisfaction of
claimants.

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CONCLUSION

It is concluded from the survey that all respondents are aware about office
insurance and they think they need insurance for their offices.

It is concluded from the survey that customers preparing only Government

companies for their office insurance so 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 are using only Fire and electronic equipment insurance
policies so marketing executives and agents maintain good communication with
the customers to create the awareness of the policies like Mediclaim, burglary
and GPA.

ANNEXURE

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1. Are you aware of ICICI Lombard GIC Ltd.?

A.Yes
B.No
C.Little Bit

2. If Yes, How do you come to know about Lombard Insurance Policies?

A.TV
B.Newspaper
C.Agents
D.Reference

3. Which factor is important in your eye for purchasing insurance policy?

A.Company
B.Premium
C.Service
D.All of the above

4. How many employees are there in your office?

A.More than5
B.More than 10
C.More than 20

5. If yes, Which Company Services do you prefer to avail?

A.ICICI Lombard
B.HDFC Chubb
C.United India Assurance
D.New India Insurance
E.Oriental Insurance

6. Which type of insurance policy you would like to have?

A.Yearly Renewal
B.Auto Renewal

7. When you are going to have new insurance policy?

A.Within 15 days
B.15 to 30 days
C.30 to 60 days

8. How do you rate about services?

A.Very good
B.Good
C.Normal
D.Not good

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RIMS,Bangalore
9. Have you ever-contacted customer help desk?
A.Yes
B.No

10. If yes, what is your opinion about customer help desk?

A.Good
B.Normal
C.Poor

11. Are you aware about Hotel Insurance policies?

A.yes
B.No

12.We have Fire Insurance Policy, Electronic Equipment Insurance, Group

Health policy and Terrorism Insurance Policy. Which policy do you prefer?
A.Fire Policy
B.Electronic Equipment Insurance
C.Terrorism Insurance
D.GHI
E.Both A & B
F.All of above

13. Are you aware about General Health insurance policy?

A.Yes
B.No

14.We have Personal Care, Individual Health policy, Critical care policy, Family
Health Policy. Which policy do you prefer?
A.Personal Care Policy
B.Individual Health Policy
C.Critical Care Policy
D.Family Health Policy

15. Are you aware about Project insurance Policies?

A.Yes
B.No

16.We have Liability Insurance, Full Project Coverage, Workers’ Insurance and
Fire under-Construction policies. Which would you prefer?
A.Liability Insurance
B.Total Project Coverage
C.Workmen Compensation Policy
D.Fire under-construction policy

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BIBLIOGRAPHY

BOOKS AND MAGAZINES

Essentials of Marketing – Reddy and Appaniah

Marketing Management – Phillip Kotler

India Today

Business World and Money Regulator.

News Papers

The Times of India

The Economic Times

The Business Standards

INTERNET

www.google .com

www.icicilombard.c.com

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