Executive summary

In today’s modern world everything has become far advance and therefore insurance a plays
a very important role in every field and aspect of life is oriented towards the growth of nation
but also , common man general . every transaction that takes place has an aspect of banking
and insurance involved in it .

All the industries that are existing today are all related to the banking insurances activates
thus you can say that banking and insurance acts as a focal point for all activates. Why
insurance necessary? The question contents the answer within itself. After all, life is fraught
with tension & apprehensions regarding the future and hot it holds for the individual despite,
all the planning and preparation one might make , no one can accurately guarantee or predict
how or when death might result

Motor insurance is one of the largest non – life insurance business in the world .This is
because it is statutorily mandatory in the most part of the world .All motor vehicles are
required to be registered with the road transport authority and insured for third party liability.
There are different classification of vehicle and risk associated with each are different and the
tariff are decide by the advisory committee based such a classification. The basic premise is
that motor vehicle could either case injury or be a subject of damage and injury, and thus
insurance

The motor vehicle act 1939 introduced a compulsory insurance to take care of those who
might get injured in and accident . motor insurance is more of a hedging mechanism other
then a real investment avenue it is essential mechanism that eliminates the risks primary by
transferring the risk from indured to the insurer. The chance for fatality and injury to occur to
the average individual may not be particularly high but then no one can really afford to
completely disregard his or hers future and what it holds

Therefore the motor insurance is mandatory for all new vehicle be it for commercial or
personnel use . insurance company or coming out with comprehensive policies for its
customers
CHAPTER- INTRODUCTION

1.1Introduction

What is Motor Insurance

Motor insurance is insurance policy which covers you and your vehicle against the cost
incurred due to accident. Motor insurance gives you a financial stability against high rising
cost of repair and protection against third party liability.

1.2TYPES OF MOTOR INSURANCE

 Two Wheeler Insurance: Two wheeler insurance is insurance policy which covers
you and your vehicle against the cost incurred due to accident as well as any third
party liability which may arise. Two wheeler insurance gives you a financial stability
against this high rising cost of repair and protection against third party liability.
 Car Insurance: Car insurance is a contract between insured (customer) and insurer
(insurance company) wherein the insurer will cover financial losses of customer
occurred either due to an accident, Theft or a natural calamity.

1.3 History of insurance industry

By the end of the First World War (1918) people were returning from the conflict with an
interest to continue their driving experience. Even at this stage in time, no compulsory
requirement for motor insurance existed.

1920s’ there were so many motor vehicles on the land that legislation was almost invisible
and in 1930 the Road Traffic Act 1930 was passed. The intention of the act, inter alias, was to
ensure that funds would be available to compensate the innocent victims of motor accidents.
This was to be provided by means of insurance against legal liability to pay damages to
injured persons. The insurance requirement applied to all users of motor vehicles, except
where some special legal arrangement is in force. Further legislation followed in the Road
Traffic act 1960, the Motor vehicles Act 1972 and the Road Traffic Act 1974 so that today
insurance must be in force to cover legal liability to pay damages to any person, including
others in the car, arising out injury. The compulsory insurance requirement was extended
under the Road Traffic Act 1998 to include the owners of property damaged in road accidents
The insurance industry has been at the forefront of economic development in India. Gross
premiums have grown at a CAGR of 7.2% over the last decade, 1 pushing the country’s
sector into the league of larger insurance economies globally. During this period, the
behaviour of customers has also changed significantly, with 20–25% of them now using
digital channels to understand and compare insurance products. Moreover, with the rapid
adoption of the Internet of things (Iota) and other devices, enterprises have become more
connected and aware

The connected world and rise of digital technologies are ushering in a more precise, data-
driven era, creating huge opportunities for insurers to demonstrate their value and to reap the
financial rewards of doing so. However, today’s customers are being prompted with relevant
information even before they have identified a need. They also have greater access to
information whenever and wherever they want it, thus intensifying competition for insurers.
The lack of brand loyalty in the insurance industry is compounded by the expectation of
exemplary customer service that is seamlessly delivered across a range of communication
touch points

Post liberalisation, the insurance industry in India recorded significant growth owing to solid
economic growth and higher personal disposable incomes in the country.

Currently, there are 24 life insurance, 25 non-life insurance and six health insurance
companies in the Indian market that compete on prices and services to attract customers. The
industry has been spurred by product innovation and vibrant distribution channels, along with
targeted publicity and promotional campaigns by insurers

The Government of India had approved Insurance Law (Amendment) Bill in 2015 to increase
the foreign direct investment (FDI) limit in the insurance sector from 26% to 49%, which will
further help attract investments in the sector.

The Insurance Regulatory and Development Authority of India (IRDAI) recently allowed life
insurance companies that have completed 10 years of operations to raise capital through
initial public offerings (IPOs). Insurance products are also covered under the exempt (EEE)
method of taxation, which translates to an effective tax benefit of approximately .

In the future, increasing life expectancy, favourable savings and greater employment in the
private sector are expected to fuel demand for pension plans. Likewise, strong growth in the
automotive industry over the next decade will be a key driver for the motor insurance market
Insurance industry in India has seen a major growth in the last decade along with an
introduction of a huge number of advanced products. This has led to a tough competition with
a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It
substantially increases the opportunities for savings amongst the individuals, safeguards their
future and helps the insurance sector form a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital markets,
thereby increasing large infrastructure developments in India.

1.4 Benefits of motor insurance:

 Covers loss or damage occurred to the insured due to accidents.

 Covers loss or damage to the vehicle due to accident, theft, self-ignition, fire,
explosion, riots, and natural calamities.
 Covers financial liability occurred due to loss or damage to third party or third party
property.
 Transfer up to 60% of your existing No Claim Bonus (NCB) from any other motor
insurance provider.

1.5 Why Buy Motor Insurance

Motor insurance gives protection to the vehicle owner against

 Damages to his/her vehicle and

 Pays for any Third Party Liability determined as per law against the owner of the
vehicle. Third Party Insurance is a statutory requirement. The owner of the vehicle is
legally liable for any injury or damage to third party life or property caused by or
arising out of the use of the vehicle in a public place. Driving a motor vehicle without
insurance in a public place is a punishable offence in terms of the Motor Vehicles
Act, 1988.

What Does Car Insurance Cover?

Car insurance or Motor Insurance is mandatory by law. It is a legal requirement to have a
minimal level of insurance before driving a car in India. Coverage would differ by product;
however following is a list of possible car Insurance coverage:

 Bodily injury liability- It covers bodily injury claims of people who get injured in an
accident.
 Property damage liability- It covers property damages to third parties such as another
person's car.
 Medical payments- This payment is done to the policy owner and other passengers in
the policy owner’s car.
 Uninsured and under insured motorist coverage. This coverage protects you when the
negligent driver has no insurance or insufficient insurance. In most states, this covers
only bodily injury losses, though some states do include property damage losses.

Physical damage covers damage to your car in the following instances:

 Covers losses to your car involved in a collision.

 Covers non-collision physical damage if your car is damaged in storm or windshield
breaks etc.

Car insurance is packaged into different coverage types and is broadly divided into two
as discussed below:

Comprehensive car insurance policy:

Protects against any loss or damage caused to the vehicle and its insured accessories as a
result of natural and man-made calamities. These calamities can be broadly classified as
‘Natural Calamities’ and ‘Man Made Calamities’. Natural calamities include: fire, explosion,
lightning, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost,
landslide, rockslide, and fire and shock damage due to earthquake.

Man-made calamities include: burglary, housebreaking, theft, riot or strike, accident by

external means, malicious act, terrorist activity and damage during travel by road, rail,
inland-waterway, or air. This policy also includes personal accident cover, which provides
accident cover for the driver of the vehicle while driving.
The owner can avail personal accident cover for passengers in the vehicle. Another
mandatory feature is the third party legal liability cover. It protects the owner against legal
liability arising from an accident causing any permanent injury or death as well as any
damage to the property. It also covers for fire and theft provided the vehicles are laid up in a
garage and not in active use.

Third Party car insurance policy:

An insurance policy is between two parties, the insurer and the insured. Therefore, a third
party is any person who is neither the insured nor the insurer. Third parties are mainly
pedestrians, fare-paying and non-fare paying passengers in a vehicle. People in the vehicles
like the driver, owner or passengers are also third parties. Fare paying passengers are the
people who travel in public transport such as taxis, auto rickshaws and buses.

,Non-Fare Paying Passengers are the people who are allowed to travel in a vehicle for free.
The Third Party car insurance policy covers your legal liability for any compensation to be
paid arising from accident caused by your vehicle. It includes liability for death or injury to
third parties like pedestrians, occupant of other vehicles, and outsiders other than passengers.

Passengers of private vehicles and pillion riders are also considered to be covered. As an
owner of the vehicle you are insured against death or injury caused to passengers carried in
the vehicle for hire. The liability covered is unlimited in case of death or injury. Damage to
third party’s property is usually covered by the insurance policy.

What is the inclusions and exclusions in a car insurance policy?

Even if you hold a valid license, driving a car out from the showroom right after purchasing it
may not always happen. It is important that you get the car insured before it can be driven on
the road

Such an insurance cover may be bought from a general insurance company directly or
through the dealer who could have a tie-up with the insurer. No matter from where you buy,
here are few things to be aware of as far as inclusions and exclusions in a car insurance policy
are concerned.

Inclusions in a car insurance policy

Among the two types of car insurance policies in India, the third-party (TP) car insurance,
which is a mandatory a cover, serves to protect the insured from claims arising from a third
party, when the insured's vehicle is at fault. This cover will pay for any fiscal liability and
will also take care of any legal repercussions that arise out of the accident. It covers only your
legal liability for the damage you may cause to a third party - bodily injury, death and
damage to third party property

Elsewhere, a Package Policy or a Comprehensive Policy covers loss or own damage (OD) to
the vehicle insured in addition to all the covers provided by a third-party policy. It is the non-
compulsory 'own-damages cover' part of the comprehensive motor policy that actually pays
you in case of damage to or theft of your car. Such a policy provides coverage against loss of
or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning,
riots, strikes or act of terrorism

Permanent exclusions in car insurance policy

At the time of claim, one may not be entitled to the entire claim amount. There are several
restrictions and specific exclusions in a car insurance policy. This list includes the following
situations in which loss of or damage to your car is not covered.
“The motor policy is a yearly contract and has to be renewed without a break. In case any
damage happens post the expiry, the loss won't be covered.
“If the insured or any other person, with the knowledge and consent of the insured, is driving
the car under the influence of alcohol or drugs or any other intoxicating substance.

“If the vehicle was being driven by a person without a valid driving licence.
"Damage.to.engine.as.a.result.of.oil.leakage.
“In case of violation of car manufacturer's guidelines for use of car and related failures or
breakages.

“Any damage to the car due to war, terror attacks, invasion, foreign enemy action, civil war,
mutiny, rebellion, hostilities, radiation or nuclear material/weapons are not covered under a
standard.motor.policy.
" Deliberate accidental loss, that is a loss arising out of an accident or event that was
deliberate.is.also.not.covered.
“Consequential losses or damages which are a consequence of a certain action resulting by
the policyholder or a third-party (whether intentional or by accident) and not an outcome of
an uncertain event are not covered. For instance, engine damage due to hydrostatic loss
during monsoons is a common consequential loss. This is because the damage did not happen
because of flooding or the rains, instead someone had cranked up the car in a water-logged
area. It could be a mistake, an intentional act...

“The policy would also not cover any contractual liability that a policyholder may have
towards the insured asset, that is, the car. Contractual liability refers to any claim that may
arise because of the policyholder entering into a contract. For instance, say the policyholder
has pledged his car to someone (say against a loan) for a certain period of time and the car is
damaged while being driven by the person to whom it has been pledged. Then any losses due
to this damage won't be covered by... the person to whom it has been pledged. Then any
losses due to this damage won't be covered by your motor insurer. However, if the insured is
driving the car, even if pledged to someone, then any damages to the car would be covered
subject to the other conditions of the policy.

Certain restrictions in a car insurance policy may still be availed by paying an

additional premium. Here are those add-on features in the policy.
1. Zero Depreciation cover: Loss due to normal wear and tear of the car is not covered
under a standard plan. This is the reason why at the time of policy renewal, the insured value
(technically called the Insured Declared Value (IDV)) of your car is revised downward to
adjust for depreciation. By doing this the insurance company is excluding the loss in value
that your car has already suffered due to the normal wear and tear in the previous years.

IDV of vehicles over 5 years of age and of obsolete models of the vehicles (i.e., models
which the manufacturers have stopped producing) is determined on the basis of an
understanding.between.the.insurer.and.the.insured.
Not just the car, the IDV of additional accessories (not included in the manufacturer's listed
selling price of the vehicle), fitted to the vehicle are depreciable. The rate of depreciation for
all rubber, nylon/ plastic parts, tubes, batteries and airbags is 50%, while for fibreglass
components it is 30%. For damage to tyres, unless the motor vehicle was damaged in the
same incident /at the same time, re-imbursement is limited to 50% of the cost of replacement.
For glass, depreciation is nil. For all other parts, including wooden parts, the depreciation rate

2. Invoice Cover: For own damages, no matter how big your loss is, the maximum that your
insurer is liable to pay you is the IDV of your car as specified in the policy subject to
deductibles. The IDV is the current market value of your vehicle on the basis of
manufacturer's listed selling price of the brand and model. It is provided by the insurer in case
of theft or total loss of vehicle. A vehicle will be considered to be a total loss, where the
aggregate cost of retrieval and / or repair of the vehicle subject to terms and conditions of the
policy exceed 75% of the IDV.

However, even in case of total loss, where you get full IDV, the settlement amount is often
much less than what you had actually paid for the car. Thus, what you get from your insurer
in case of theft/total loss in a standard policy is well below the cost of buying a new car of the
same or similar make and model again. Adding an Invoice Cover to your standard policy
makes you eligible for reimbursement of the full original amount (as per invoice) paid for the
car.

However, this cover is usually available only up to two years from the date of registration of
the car. This cover only makes sense when your vehicle is brand new.

3. Engine protector cover: Meaning, the most valuable part of the car, your engine is not
covered for non-accidental failures or malfunctions. Now, imagine a situation where the
engine of the car is submerged in a waterlogged area. Starting the car in such a scenario can
result in the engine seizing. This will not be covered under regular insurance. Here, adding an
engine protector cover will insure the car for all non-accidental exclusions related to your
engine.

4. Extended Accident Cover: A basic personal accident cover for the owner-driver is
compulsory while purchasing insurance for the car. However, the passengers or a hired driver
are not covered under personal accident insurance. There is an optional add-on personal
accident cover for the passengers of your car as well as separately for your paid driver.

Other.out-of-pocket.expenses
In car insurance policies, there could be a deductible in-built into the plan. A deductible is
that portion of any claim, which is not covered by the insurance company, which the insured
has to compulsorily pay out of his pocket at the time of claim settlement. Only the balance
amount is payable by insurance company. However, you can get additional discount on your
premium by adding a voluntary deductible amount to the compulsory deductible. If your car
is old you could consider going for a voluntary deductible to get a good deal on the premium.
Car Insurance Claim Process - A Step By Step Guide For Claims

1. First and foremost, as the policyholder, you will have to submit a duly filled in claim
form along with the requisite documents to the insurance company and inform the
insurance company before you send the car to the garage for any repairs. The forms
are available on the insurers’ websites as well as at their offices.
2. The insurance company will send a surveyor to assess the damages. The surveyor will
prepare a report and pass it on to the insurer and you will also receive a copy.
3. If the damage is severe and requires immediate attention, then the surveyor will reach
the spot of the accident at the earliest.
4. Based on the surveyor’s report, you can arrange for your car to be repaired.
5. After the work is completed, you will have to take the duly signed bills and
documents from the garage and submit them to surveyor, who in turn will send it to
the insurance company.
6. If all the documents are in place, the insurance provider will reimburse your bills.

Remember that the insurance company will not reimburse your bills if you do not submit
them immediately after your car is released from the garage. So you cannot keep the small
bills and hope to submit them at the end of the year.

1.6 Objective of the project

 To explore about the motor insurance industry

 To find the explore about the process of motor insurance
 To explore about the benefits of motor insurance
 To explore the satisfaction level of an insurer

1.7 Limitations in projects

 As an intern was there with insurance department. I was not allowed to have direct
contact with their clients
  I was only told to do the filing work of basic filing the document in to the particular
folder
 They didn’t participated me in to any decision meeting as the will an chance of data
leaks of their clients in to the temporary role s

1.8 SCOPE

As a student, in college or after having completed school, if you feel you have good selling
skills and people skills, then Insurance most definitely is the right subject for you. You may
join one of the popular Insurance companies as an Insurance Agent or a Sales Executive-
Insurance. For this, you will need to clear the agent exam conducted by IRDA (Insurance
Regulatory Authority of India). After working for a few years you can look forward to
becoming an Insurance Manager.

There are primarily two skills required for taking up Insurance as a career option: First is the
ability to easily befriend people. The second important skill required is the ability to see their
problems clearly and make them understand the need for insurance.
CHAPTER 3 COMPANY ANALYSIS

ASSURANCE

Introduction-
LO
Assurance industry has always been a growth-oriented industry globally. On the Indian
scene too, the assurance industry has always recorded noticeable growth vis-à-vis other
Indian industries.
The new India assurance Co. Ltd. was the first general assurance company to be
established in India in 1850, which was a wholly British-owned company. The new India
assurance company to be set up by an Indian was Indian Mercantile assurance Co. Ltd.,
which was established in 1907. There emerged many a assurance player on the Indian scene
thereafter.
The general assurance business was nationalized after the promulgation of General
Insurance Business (Nationalization) Act, 1972. The post-nationalization general assurance
business was undertaken by the assurance Corporation of India (GIC) and its 3 subsidiaries:

1. New India Assurance Company Limited

2. National Insurance Company Limited

3.United.India.Insurance.Company.Limited

Towards the end of 2000, the relation ceased to exist and the four companies are, at
present, operating as independent companies.
The Life assurance Corporation (AIC) was established on 01.09.1956 and had been the sole
corporation to write the life assurance business in India.
The Indian assurance industry saw a new sun when the assurance Development
Authority invited the applications for registration as assurors in August, 2000. With the
liberalization and opening up of the sector to private players, the industry has presented
promising prospects for the coming future. The transition has also resulted into introduction
of ample opportunities for the professionals including Chartered Accountants.
The Indian assurance industry is featured by the attributes:
Low market penetration;

 Ever-growing middle class component in population.

Growth of consumer
 Movement with an increasing demand for better assurance products;
 Inadequate application of information technology for business.
Adequate
 Fillip from the Government in the form of tax incentives to the assured, etc.

The industry formations need to keep vigil on these characteristics of the Indian market
and formulate their strategies to entail maximum contribution to the output of the sector.
The Indian life and non-life assurance business accounted for merely 0.42 percent of
the world's life and non-life business in 1997. The figures of the basic parameters of the
industry's performance viz. assurance Density and assurance Penetration also are evident
of the hitherto existing low-yield Indian market conditions.
The term "assurance Penetration" broadly measures the contribution of the
assurance industry in relation to a nation's entire economic productivity. The figure of
premium vis-à-vis the GDP of 1999 stood at 0.54 percent for non-life assurance business
and 1.39 percent for the life assurance business. The term "assurance Density" reflects the
assurance purchasing power. The premium per capita in India amounted to US $ 2.40 for
assurance and US $ 6.10 for life assurance in 1999 but with the deregulation of the sector,
a sea change in the scene is most likely.
The assurance sector in India has come a full circle from being an open competitive
market to Nationalization and back to a liberalized market again. Tracing the
developments in the Indian assurance sector reveals the 360-degree turn witnessed over a
period of almost two centuries.

STRUCTURE OF THE ASSURANCE INDUSTRY

The structure of the assurance industry comprises of the Operating department,

Administrative department and the finance department. The Operating Department generally
performs the basic functions pertaining to the designing of products, marketing thereof,
servicing the insured, the insured, management of portfolio, etc.
 The Administrative Department looks after the day-to-day affairs of the company. The
Finance Department backs the operations and administration of the company by accounting
for the transactions, streamlining the flow of funds, materializing the management decisions,
etc.
The Administration Department as well as the Finance Department, usually, functions
through in-house setup. The Finance Department functions in the areas of accounting,
financial and management reporting, budgeting and controlling, etc. and thus renders
enormous scope for finance professionals. The new entrants in the assurance sector are likely
to call for the services of the Chartered Accountants for their financial setup requirements.
The Chartered Accountants have engaged themselves in the audit of assurance Companies
since long. With the transition in the insurance sector, the horizons for their contribution have
broadened.

There has, emerged a king-size pool of opportunities that the Chartered Accountants
can explore and apply their professional wisdom and experience to.

BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

1. Risk
2.
3. Perception and Evaluation:

The fundamental function of an insurer is to provide a cover against the detriment

caused to the insured due to the happening of certain specified and agreed events. Thus, prior
to providing such umbrella through a product, the insurer has to assess the risk involved in
the transaction. The insurer has to identify the element of risk prevalent in the concerned
industry or a particular unit. The perception of risk requires the study of variables through
various methods including the application of scientific and statistical techniques and
correlation thereof with the industry or unit under study in light of their basic environmental
and infra-structural characteristics.
4. Designing the Insurance Product:
On the basis of the risks perceived, the insurer develops a product to cover the stipulated
risks. While designing an insurance product, an insurer decides its cost to be charged from
the insured in the form of premium, reduction thereof in certain cases like not lodging any
claim during the previous covered period(s), suggesting the implementation of risk-mitigating
measures, etc.
5. Marketing of the Product:

The core function of the marketing force of an insurance company is to generate awareness
about the insurance products among the target market. But in the Indian scenario, where the
insurance penetration is too low as compared to the other nations, the marketing force needs
to perform the pro-active role in developing an insurance culture. It is through the efficiency
of the sales force of an insurance company that the desirability and the success of a product
are determined.

Adequate knowledge of the insurance industry, products and the modalities attached
therewith. Further, the marketing personnel should be adequately backed by the back-office
setup.

Selling of the Products:

The term selling in the context of Assurance industry connotes the issuance of policies to the
applicant proposer. The Assurance basically embodies the covenant between the insurer and
the insured wherein the former agrees to indemnify the latter for the loss caused to him on the
happening of the certain agreed events up to a specified limit. The life insurance policy
generally contains the agreement whereby the insurer agrees to pay to the insured or the
beneficiary of the policy an agreed amount on the expiry of the term of the policy or in the
event of the death of the insured respectively. The additional benefits in the shape of Riders
viz. Accidental Death Benefit, Double Sum Assured, Critical Illness benefits; Waiver of
Premiums, etc. can also be appended with the policy on the payment of an additional
premium.

6. Management of Portfolio:

The management of the portfolio includes the assessment of requirement of funds,

identification of various sources of finance, the evaluation of the sources in the light of their
cost, availability, timing, etc., reconciling the features of various sources with the needs of
the company and the selection of appropriate conjunction of sources. The insurer possesses
huge amount of funds, which need proper management. The management of the portfolio of
an insurance company requires the identification of investment avenues, evaluation thereof
and the selection of the most appropriate mix of alternatives where the funds of the company
can be invested. The selection requires the knowledge of finance related functions and
techniques apart from the in-depth know of the patterns of requirement of funds in the
company as well as in the industry as a whole.

TYPES OF ASSURANCE SCHEMES-

There are a wide variety of assurance schemes that cater to your needs, whatever your age,
financial position, risk tolerance and return expectations. Whether as the foundation of your
investment programmed or as a supplement, assurance schemes can help you meet your
financial goals?

(A) By Structure

Open-Ended Scheme

These do not have a fixed maturity. You deal with the assurance for your investments and
redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net
Asset

Value(NAV) related prices, at any point of time.

Close-Ended Schemes

Schemes that have a stipulated assurance period (ranging from 2 to 15 years) are called close
ended schemes. You can invest in the scheme at the time of the initial issue and thereafter
you can buy or sell the units of the scheme on the stock exchanges where they are listed. The
market price at the stock exchange could vary from the schemes on account of demand and
supply situation, unit holders' expectations and other market factors.

One of the characteristics of the close-ended schemes is that they are generally traded at a
discount to NAV; but closer to maturity, the discount narrows. Some close-ended schemes
give you an additional option of selling your units to the assurance company through periodic
repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit
routes are provided to the investor under the close ended schemes.
Interval Schemes These combine the features of open-ended and close-ended schemes. They
may be traded on the stock exchange or may be open for sale or redemption during
predetermined intervals at NAV related prices.

(B) By Investment Objective

Growth Schemes

Aim to provide capital appreciation over the medium to long term. These schemes normally
invest a majority of their funds in equities and are willing to bear short term decline in value
for possible future appreciation.

These schemes are not for investors seeking regular income or needing their money back in
the short term.

Ideal for:

 Investors in their prime earning years.

 Investors seeking growth over the long term.

Income Schemes

Aim to provide regular and steady income to investors. These schemes generally invest in
fixed income securities such as bonds and corporate debentures. Capital appreciation in such
schemes may be limited.

Ideal for:

 Retired people and others with a need for capital stability and regular income.
 Investors who need some income to supplement their earnings.

Balanced Schemes

Aim to provide both growth and income by periodically distributing a part of the income and

Capital gains they earn. They invest in both shares and fixed income securities in the
proportion indicated in their offer documents. In a rising stock market, the NAV of these
schemes may not normally keep pace or fall equally when the market falls.
Ideal for:

 Investors looking for a combination of income and moderate growth.

Money Market / Liquid Schemes

Aim to provide easy liquidity, preservation of capital and moderate income. These schemes
generally invest in safer, short term instruments such as treasury bills, certific:

 Corporate and individual investors as a means to park their surplus funds for short
periods or awaiting a more favorable investment alternative.

2.2 THE NEW INDIA ASSURANCE CO. LTD

The New India Assurance Co. Ltd was incorporated on July 23rd, 1919. It was founded by
Sir Dorab Tata. New India is the first fully Indian owned insurance company in India. Earlier
it was a subsidiary of the General Insurance Corporation of India (GIC). But as GIC became
a reinsurance company as according to IRDA Act 1999, all of its four primary insurance
subsidiaries (New India Assurance, United India Insurance, Oriental Insurance and National
Insurance) got sovereignty.
The New India Assurance Co. Ltd. is a leading global insurance group, with offices and
branches throughout India and various countries abroad. It is the only Indian company which
has successfully managed to develop considerable International operations and an extensive
record for successfully trading outside India. The company has its presence felt in nearly 27
countries and accounts for more than 80% of the total overseas premium in India. The New
India employs approximately 21000 employees, specialists and technically qualified
personnel at all levels of management who are empowered to underwrite and settle claims of
high magnitude. Government of India is the principal shareholder of the company. With a
wide range of policies New India has become one of the largest non-life insurance
companies, not only in India, but also in the Afro-Asian region.
The company aims to develop insurance business in the best interest of the society by
providing financial security to individuals, trade, commerce and other segments of the society
with high quality services at an affordable cost.

New India is a pioneer among the Indian Companies on various fronts, right from insuring
the first domestic airlines to satellite insurance. Lately The New India Assurance Co. Ltd. has
insured the INSAT-2E.
New India Assurance was the first group to meet with the needs of the Indian Shipping Fleet,
and the initiators of engineering insurance and satellite insurances as well.
The company was the first to build an Aviation Insurance Department, way back in 1946, to
handle the requirements related to insurance of the Indian Shipping Fleet, to establish its own
Training School, to introduce the concept of 'Model Office Training', and to create a
department in Engineering insurance.
It was also the first Indian non-life company to cross Rupees 5000 Cores Gross Premium. In
order to maintain being the first always the company aims at continuing the procedure of
providing optimized services for individuals and organizations.
New India has been rated "A-" (Excellent) by A.M. Best Co., making it the only Indian
insurance company to have been rated by an international rating agency.
The company is headed by Mr M. Ramadoss, Chairman and Managing Director of the
company. In the recent years it has succeeded in forging tie-ups with some of the leading
public sector banks in India like State Bank of India (SBI), Central Bank of India,
Corporation Bank and United Western Bank to increase its dof the society by offering
insurance products and services of high quality at affordable –
Management team

Board Of Directors Mr.Atul Sahai

Chairman & Managing Director Mr.Kuldip Singh

Director Mr.Sanjeev Kumar Chanana

Director Mr.S K Banerjee Director

Mr.Neelam Damodharan Director

Ms.Papia Sengupta Director

Mr.P Ramana Murthy Director

Mr.Debasish Panda Director

Key Executives
Mr.Sharad Ramnarayanan Actuary
Mr.Ashok Kumar Pradhan Chief Vigilance Officer
Ms.Jayashree Nair Company Secretary
Mr.Francis Titus Maliakkel Deputy General Manager
Mr.S Vaideswaran Deputy General Manager
Mr.P K Behera Deputy General Manager
Mr.R C Kumaria Deputy General Manager
Mr.P S Arora Deputy General Manager
Mr.S P Sinha Deputy General Manager
Mr.S R Shreeram Deputy General Manager
Mr.Mahesh S Joshi Deputy General Manager
Mrs.K S Jyothi Deputy General Manager
Mrs.Sushma Anupam Deputy General Manager
Mr.Sunil Kumar Singh Deputy General Manager
Mr.C S Ayyappan Deputy General Manager
Mr.Anil Jain Deputy General Manager
Mr.R K Agrawal Deputy General Manager
Mrs.Kuhu Mohapatra Deputy General Manager
Mr.Ranjit Gangadharan General Manager
Mr.J K Garg General Manager
Ms.Gouri Rajan Dinakaran General Manager
Ms.J Jayanthi General Manager
Mr.Anjan Dey General Manager
Mr.A K Longani General Manager
Mr.R M Singh General Manager
Ms.Rekha Gopalakrishnan General Manager
Ms.S N Rajeswari General Manager & Chief Finance Officer
Company Strengths

Largest number of Offices - In India and Abroad Trained and technically qualified
staff 1068 fully computerized offices across India. "A-" (Excellent) rating by A.M.Best & Co
(Europe) First domestic company to be rated by an International Rating Agency Rating based
upon following factors: Superior capital position Strong operating performance Strong
market position Only company to develop significant International operations, long record of
successful trading outside India

Pioneers

 First company to set up an Aviation Insurance Department in 1946.

 First company to handle the Hull Insurance requirements of the Indian Shipping Fleet.
 First company to establish its own Training School.
 First company to introduce the concept of 'Model Office Training'.
 First company to create department in Engineering insurance.

Vision

To be the most trusted name in investment and wealth management, to be the

preferred employer in the industry and to be a catalyst for growth and excellence of the asset
management business in India. The vision is to make assurance Company the dominant new
insurer in the life insurance industry. This it hopes to achieve through our commitment to
excellence, focus on service, speed and innovation, and leveraging our technological
expertise. The success of this organization will be founded on its strong focus on values and
clarity of purpose. These include:
• Understanding the needs of customers and offering them superior products and
• 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.
• Leveraging technology to service customers quickly, efficiently and conveniently
Mission

GOAL- THE PHILOSOPHICAL GOAL.

The assurance Company collects money in the form of premium from individuals (A, B, C &
D). The money collected from people is used to meet one person's calamity. The assurance
Company enters into the process of canalizing by disbursing the amount collected into the
command economy. Thus a significant part of the activities of the insurance industry of an
economy entails mobilization of domestic savings and its subsequent disbursal to investors.

The main risk faced by the assurance company is when all the Assurors claim for the
reimbursement at the same time. This situation is very rare to occur, and is one of the major
threat that the assurance company faces in its business operations.

To provide financial security to individuals, trade, commerce and all other segments of the
society by offering insurance products and services of high quality at affordable

To consistently pursue investor's wealth optimization by achieving superior and consistent

investment results. To develop general insurance Business in the best interest

Creating a conducive environment to hone and retain talent.

 Providing customer delight.

 Institutionalizing system-approach in all aspects of functioning.
 Upholding highest standards of ethical values at all times.
Values

 Highest priority to customer needs

 High standards of public conduct
 Transparency in operations.
 BUSINESS FOCUS
 The business focus is to position themselves as a leading corporate & retail insurance
company.catering.to.the.needs.of.our.customers.
At General Assurance, the guiding principles are customer service and client
satisfaction. All efforts are directed towards understanding the culture, social
environment and individual insurance requirements of the customers so that they can
cater to their varied needs.
 They are working closely with leading intermediaries including corporate agents;
motor dealers; agents; banks; associations and other intermediaries to focus on the
corporate and retail business.
 Assurance leverages the customer base and expertise of Tata Auto Ltd.
 They are technology driven and strive to set up world-class technological
infrastructure. This will include a renowned insurance software; networking of all
offices and intermediaries as well as the ability to interface with customers via all
media.
Overview-
 The new India assurance Co. charted a growth of 73.04% during the year with the
asset under management (AUM) as on March 31, 2008 increasing to Rs. 44863.89
crores from a level of Rs. 21,047 crores as on March 31, 2007. Debt & Cash Schemes,
together, grew by around 90% in this fiscal year. The Investor base of the Fund grew
from 11, 45,345 to 18, 90,102 in this fiscal year.
The new India assurance Co.- 3 & 5 Year Plan, a close ended capital
protection oriented scheme was launched on June 20, 2007 with an objective to seek
capital protection by investing in high quality fixed income securities maturing in line
with the tenure of the scheme and seeking capital appreciation by investing in equity
and equity related instruments.
 Also, The new India assurance Co. Value, a 3-year close ended diversified equity
scheme with an automatic conversion into an open-ended scheme upon maturity to
generate consistent long-term capital appreciation by investing predominantly in
equity and equity related securities by following value investing strategy, was
launched on January 17, 2008.
 The new India assurance Equity Fund – Plan A & B, open-ended diversified equity
scheme with an objective to generate long-term growth of capital, by investing
predominantly in a diversified portfolio of equity and equity related securities in the
domestic and international markets, was launched September 17, 2007. The new India
assurance Co. Life Special Situations an open-ended diversified equity scheme with
an objective to generate long-term capital by investing in a portfolio of equity and
equity related securities. The scheme would follow an investment strategy that would
take advantage of Special Situations & contrarian investment style.
 The scheme was launched on December 17, 2003. The new India assurance Co. Life
Long Term Advantage Fund- Series 1; a 3-year close ended Small and Midcap equity
scheme with an automatic conversion into an open-ended scheme upon maturity
which seeks to generate consistent long-term capital appreciation by investing
predominantly in equity and equity related securities of companies considered to be
small and mid cap.
 The Scheme may also invest a certain portion of its corpus in fixed income securities
including money market instruments, in order to meet liquidity requirements from
time to time. The scheme was launched on May 31, 2007. We also launched 35 Fixed
Term Plans (FTPs) of various maturities in this fiscal year. On the Debt side most of
the mobilizations were concentrated in FTPs.

 Consistency:
 We strive to deliver consistent results through our value-based investing
methodology, keeping alive the credo of the late doyen of the TATA Group, Mr. Sir
Dorab Tata that money received from the people should go back to them several
times over.
 Flexibility:
 The new India assurance offers investors a broad range of managed investment
products in various asset classes and risk parameters, with operational flexibility to
suit their varied investment needs.
 Stability:
 Our commitment to the highest quality of service and integrity is the foundation upon
which we build trust with our clients.
 Service:
 We offer a wide range of services to assist investors have a fulfilling and rewarding
financial planning experience with us. We have designed our services keeping in
mind the needs of our investors, giving them a smooth and hassle-free financial
planning process.
 A Proud Pedigree
 The new India assurance is a part of the Govt. of India, one of India's largest and most
respected industrial groups, renowned for its adherence to business ethics.
 The Group has always believed in returning wealth to the society that it serves. Thus,
nearly two-thirds of the equity of Tata group, the Group's promoter company, is held
by philanthropic trusts, which have created a host of national institutions in the natural
sciences, medical care, energy and the arts. The trusts also give substantial annual
grants and endowments to deserving individuals and institutions in the areas of
education, healthcare and social uplift.
 By combining ethical values with business acumen, globalization with national
interests and core businesses with emerging ones, the Tata Group aims to be the
largest and most respected global brand from India. This way, it fulfils its long-
standing commitment to improving the quality of life of its stakeholders.
 Leadership with Trust
 Our purpose at The new India assurance is to improve the quality of life of the
communities we serve. We do this by attaining leadership positions in sectors of
national economic significance, to which the Group brings a unique set of capabilities.
 This requires us to grow aggressively in focused areas of business.
 Our heritage of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. It is an ongoing process, continuously
enriched by the formalization of the high standards of behavior that we expect from
employees and companies.
 The Tata name is a unique asset, representing leadership with trust. Leveraging this
asset to enhance Group synergy and becoming globally competitive is the route to
sustained growth and long-term success.
 RURAL-URBAN MIX CUSTOMER VIEW”S
 It must be borne in mind that India is a predominantly rural country and will continue
to be so in the near future. New players may tend to favor the "creamy" layer of the
urban population. But, in doing so, they may well miss a large chunk of the insurable
population. A strong case in point is the current business composition of predominant
market leader – the Life Insurance Corporation of India. The lion's share of its new
business comes from the rural and semi-rural markets. In a country of 1 billion
people, mass marketing is always a profitable and cost-effective option for gaining
market share. The rural sector is a perfect case for mass marketing.
 Competition in rural areas tends to be "kinder and gentler" than that in urban areas,
which can easily be termed cutthroat And the generally smaller policy amounts in
 rural areas would be more than offset by the higher volume potential in these areas in
contrast with urban areas. Identifying the right agents to harness the full potential of
the vibrant and dynamic rural markets will be imperative.
 Rural insurance should be looked upon as an opportunity and not an obligation. A
smaller bundle of innovative products in sync with rural needs and perception and an
efficient delivery system are the two aspects that have to be developed in order to
penetrate the rural markets.
A. Products & Policy

1. Commercial Products Policy

Jewellers Block Policy

Bankers Indemnity Policy

Shopkeepers Policy

Marine Cargo Policy

Plate Glass Insurance

Special Contingency Policy

Neon Sign Insurance

Multi Peril Policy for L.P.G. Dealers

Fidelity Guarantee Insurance Policy

Marine Hull Policy

Aviation Insurance

1. Personal Products Policy

1.1. Pravasi Bharatiya Bima Yojana Policy
1.2. Personal Accident Policy
1.3. Householders Policy
1.4. Motor Policy
1.5. Money Insurance
1.6. Rasta Apatti Kavach (Road Safety Insurance)
 1.7. TV/VCR/VCP Insurance
1.8. Mobile/Cellular Phone Insurance
1.9. Other Personal Insurance
2. Liability Policy
2.1. Public Liability Policy
2.2. Products Liability Policy
2.3. Professional Indemnity Policy
2.4. Directors and Officers Liability Policy
2.5. Lift (Third Party) Insurance
2.6. Employers' Liability Policy
2.7. Carrier's Liability Insurance
2.8. Liability Insurance Act Policy
2.9. Golfers Indemnity Insurance
3. Industrial Policy
3.1. Fire Policy
3.2. Burglary Policy
3.3. Machinery Breakdown Policy
3.4. Electronics Equipment Policy
3.5. Consequential Loss Policy
3.6. Contractors All Risk Policy
3.7. Marine cum Erection / Storage cum Erection Policy
3.8. Advanced Loss of Profit / Delay in Startup Policy
3.9. Contractor Plant and Machinery Policy
3.10. Mega Package Policies
4. Social Policy
4.1. Universal Health Insurance Scheme
4.2. Jan Arogya Bima Policy
4.3. Raj Rajeshwari Mahila Kalyan Yojana
4.4. Bhagyashree Child Welfare Policy
4.5. Janata Personal Accident Insurance
4.6. Student Safety Insurance
4.7. Ashrya Bima Yojana
4.8. Rural Insurance
THE TOTAL PRODUCT CONCEPT
The Total Product Concept (TPC), which implied that a product had three levels of features
and the consumption, was in totality.
LEVEL

1: Core Product:

In the Insurance Industry the core product is the policy that provides protection to the
consumers against the risks. This is the main reason for which the Insurance Company is in
existence. It provides protection by way of various riders viz. Accidental Death Benefit,
Double Sum Assured, Critical Illness benefits, Waiver of Premiums, etc.

On the basis of the risks perceived, the insurer develops a product to cover the stipulated
risks. While designing an insurance product, an insurer decides its cost to be charged from
the insured in the form of premium, reduction thereof in certain cases like not lodging any
claim during the previous covered period(s), suggesting the implementation of risk-
mitigating measures, etc. The features of a product should be flexible enough to provide for
the determination of premiums, rebates, additional premiums, etc. depending upon the risk
benchmarks.as.determined.
LEVEL

2: Formal Product:

When the customers’ expectations grow synchronized with increased competition the
marketer offers some tangibility to the existing core product to differentiate itself from the
competitors.

1. Brand:

In order to distinguish itself from the competitors, the Insurance Company gives a brand
name to its policy. This brand name gives an identity to the product (policy) offered by the
insurance.company.
2. Attributes:

Just giving a brand name to the policy may not be enough for the insurance company to
distinguish its offerings. The product offering must also have attributes that will attract the
consumers to take the policy. The attributes must suit and satisfy the needs wants and desires
of the various types of consumers that the company is targeting at.
Thus ICICI's investment plans suit the consumers who want to secure their family through
insurance or invest money for growth. And its retirement plans suit the ones who want to
enjoy their fruits of labor after retirement or want to go for a dream vacation.

3. Instruction Manual:

To make the service consumption easier for the consumers, the instruction manual with the
policy becomes very important. The instruction manual gives an overview to the consumers
as to how to go on with the filling of the application form. It also gives information about the
various formalities that have to be adhered to at the time of submission of the application
form.
LEVEL

3: Augmented product:

With further expectation of the consumer – again synchronized with intense competition –
marketers offer more and more intangible features.
1. Post-sales service:

The insurance company must not consider it as the end of the service providing the consumer
has taken once the policy. The functions of an insurance company include the provision of
the Post-sales services to the consumer. Among the services rendered by the insurance
company is the service of processing and release of claims. The insurance company needs to
verify the accuracy of the facts presented in relation to the insurance claim and the
documents produced in support thereof.
2. Delivery points:

The delivery points can be the branches that the insurance company has at the discretion of
the of the consumers' location. The delivery points can also be mobilized with the presence
of the insurance agents. The agents can cover a wide area and get in contact with the
consumers to provide the service to him.

3. Customer education and training:

The customer education and training is very important for the insurance company. The
agents play a vital role in this context. The customer can be educated on various benefits that
can be accrued in his future life by taking a policy. This is where the agents' communication
skills come into the picture. The insurance company has to play an active role in enabling the
agents to impart the best customer education through appropriate training given to the
agents.
4. Customer complaint management:

Customer complaints management with regards to delay in discharge of claims must be

effectively handled by the insurance company to have competitive edge over its competitors.
The complaint management will help the company to get the consumers closer to the
organization as the consumers feel that their grievances are taken care of.

Thus LIC has an online feedback system where the consumers of the policy can register their
grievances.
5. Payment options:

The insurance company can offer payment options to the consumers with regards to payment
of premium – the mode of payment and the period within which the premium amount has to
be paid.

*India’s..Offices
Corporate
Corporate Head office Address:

The.New.India.Assurance.Co..Ltd.
87,.M.G..Road,.Fort,
Mumbai 400 001.

Domestic offices
 Ahmedabad

Bangalore

Baroda

Bhopal

Chandigarh

Chennai

Coimbatore

Delhi RO I

Guwahati

Hyderabad

Jaipur
Patna
Kanpur
Pune
Kolkata
Surat
Ludhiana
Vishakhapatnam
Mumbai RO I
Nagpur
Mumbai RO II

Overview of Product-

At The new India assurance Company, we believe that your investment needs depend on
personal and financial goals. Identifying your financial goals is the key to achieving the big
things in your life, be it your child's education or a carefree and comfortable retired life.

After identifying and defining your financial goals, you now need to plan for each of them in
an organized and a professional way. Investment experts around the world advise instruments
like equity funds and stocks for long-term (more than 5 years), income funds for medium-
term and liquid funds for short-term needs.
The investment matrix here depicts the entire available variety of investment options. Those
at the top provide for a greater opportunity for long-term capital growth while those at the
bottom take care of current income and reasonable return & liquidity. Tata Fund offers a wide
range of funds for different investment instruments designed to cater to your individual
profile and life-stage.

Systematic Investment Plan

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for
accumulation of wealth in a disciplined manner over long term period. The plan aims at a
better future for its investors as an SIP investor gets good rate of returns compared to a one
time investor.

A specific amount should be invested for a continuous period at regular intervals under this
plan. SIP is similar to a regular saving scheme like a recurring deposit. It is a method of
investing a fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month. The investor decides the
amount and also the mutual fund scheme.

While the investor's investment remains the same, more number of units can be bought in a
declining market and less number of units in a rising market.

The investor automatically participates in the market swings once the option for SIP is made.

SIP ensures averaging of rupee cost as consistent investment ensures that average cost per
unit fits in the lower range of average market price. An investor can either give post dated
cheques or ECS instruction and the investment will be made regularly in the mutual fund
desired for the required amount. SIP generally starts at minimum amounts of Rs.1000/- per
month and upper limit for using an ECS is Rs.25000/- per instruction. For instance, if one
wishes to invest Rs.1, 00,000/- per month, then they need to do it on four different dates.

Fund Product are divided in following scheme

Pure value fund Income plus

EF Balance fund Income fund

Frontline Eqt. Fund 95'Fund Short term opportunity

Midcap fund Monthly Income fund

Tax Relief -96 Asset allocation fund Dynamic Bond fund

Special situation fund Protection oriented Gilt plus liquid plan

Inter Equity fund fund Govt. security fund

Top 100 fund Liquid plus

Advantage fund Term advantage fund Short term fund

series-1 Floating rate fund

Long term advantage fund Cash fund

Dividend yield plus

Tax plan

Index fund

Commodity equity fund

TYPES OF SCHEMES

Wide variety of Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc.

The table below gives an overview into the existing types of schemes in the Industry

FREQUENTLY USED TERMS

Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per
unit NAV is the net asset value of the scheme divided by the number of units outstanding on
the Valuation Date.
Sale Price

Is the price you pay when you invest in a scheme? Also called Offer Price. It may include a
sales load.

Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a back-
end load. This is also called Bid Price.

Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called, 'Front-end' load.
Schemes that do not charge a load are called 'No Load' schemes.

Repurchase or 'Back-end’ Load

Is a charge collected by a scheme when it buys back the units from the unit holders.

Award for New India Assurance co.ltd

AWARDING
YEAR AWARDS WON BY THE COMPANY
AUTHORITY

GOLDEN PEACOCK BUSINESS EXCELLENCE

2017 GOLDEN PEACOCK
AWARD

INDIA INSURANCE SUMMIT - INSURANCE

2017 QUEST CONFERENCES
COMPANY OF THE YEAR

DUN & BRADSTREET BFSI AWARDS - INDIA'S

2017 LEADING INSURANCE COMPANY- NON-LIFE DUN & BRADSTREET
PUBLIC SECTOR

INDIAN INSURANCE AWARDS - GENERAL

2016 FINTELEKT
INSURANCE COMPANY OF THE YEAR

2016 GOLDEN PEACOCK EXCELLENCE IN GOLDEN PEACOCK

 AWARDING
YEAR AWARDS WON BY THE COMPANY
AUTHORITY

CORPORATE GOVERNANCE AWARD

GOLDEN PEACOCK EXCELLENCE INNOVATIVE

2016 GOLDEN PEACOCK
PRODUCT-SERVICE AWARD

INDIAN INSURANCE AWARDS e-BUSINESS

2016 FINTELEKT
LEADER -GENERAL INSURANCE

INDIAN INSURANCE AWARDS - UNDER SERVED

2016 MARKET PENETRATION - GENERAL INSURANCE FINTELEKT
(LARGE CATEGORY)

ABP NEWS - BEST GENERAL INSURANCE

2016 ABP
COMPANY

DUN & BRADSTREET PSU AWARDS - NON LIFE

2016 DUN & BRADSTREET
INSURANCE

INDIAN INSURANCE AWARDS - GENERAL

2015 FINTELEKT
INSURANCE COMPANY OF THE YEAR

DIGITAL
SAMUDRA MANTHAN AWARDS - INSURANCE
2015 EMPOWERMENT
COMPANY OF THE YEAR
FOUNDATION

OUTLOOK MONEY AWARDS - BEST HEALTH

2015 OUTLOOK MONEY
INSURER

INDIAN INSURANCE AWARDS - COMMERCIAL

2015 LINES GROWTH LEADERSHIP GENERAL FINTELEKT
INSURANCE - LARGE COMPANIES CATEGORY

INDIAN INSURANCE AWARDS - CLAIMS

2015 SERVICE LEADER - LARGE COMPANIES FINTELEKT
CATEGORY

DUN & BRADSTREET PSU AWARDS - INSURANCE

2015 DUN & BRADSTREET
(GENERAL)

2014 INDIAN INSURANCE AWARDS - UNDER SERVED FINTELEKT

 AWARDING
YEAR AWARDS WON BY THE COMPANY
AUTHORITY

MARKET PENETRATION - GENRAL INSURANCE

INDIAN INSURANCE AWARDS - PERSONAL

2014 LINES GROWTH LEADER (GENERAL INSURANCE FINTELEKT
) PUBLIC E SECTOR

2014 INDIA'S SME FORUM BEST INSURER INDIA SME FORUM

DALAL STREET INVESTMENT JOURNAL AWARD DALAL STREET

2014 FOR BEST GENERAL INSURANCE COMPANY OF INVESTMENT
THE YEAR JOURNAL

GOLDEN PEACOCK EXCELLENCE IN

2014 GOLDEN PEACOCK
CORPORATE GOVERNANCE AWARD

INDIAN INSURANCE AWARDS - TECHNOLOGY

2014 FINTELEKT
MATURITY - GENERAL INSURANCE

AWARDS WON BY CMD

INDIA INSURANCE SUMMIT - LIFETIME

2017 QUEST CONFERENCES
ACHIEVEMENT AWARD MR. G. SRINIVASAN

ASIA INSURANCE REVIEW - PERSONALITY OF ASIA INSURANCE

2016
THE YEAR AWARD REVIEW

LOKMAT BFSI AWARDS FOR OUTSTANDING

2015 LOKMAT
CONTRIBUTION TO THE INDUSTRY

SKOCH AWARD FOR STELLAR PERFORMANCE

2014 SKOCH
AS A LEADER

MAJOR COMPATITIORS

ICICI Lombard GIC Ltd

ICICI Lombard is one of the top private general firms in India. A brainchild of ICICI
Bank, ICICI Lombard has a stronghold in the insurance market, especially for car insurance.
insurance The company has sold more than 17 million policies so far and has settled more
than 2 million claims by the end of the last fiscal year. They offer insurance products
designed to meet the needs of customers from both urban and rural population. They provide
insurance solutions that cover personal, project and business liabilities

TATA AIG GIC Ltd.

TATA AIG GIC Ltd. is a joint venture between American International Group (AIG) and
Tata Group. The firm started its operations in 2001, offering a wide range of general
insurance products for personal and business needs across India. Their insurance products
include Marine Cargo , Personal Accident, Extended Warranty, Liability, Rural-Agriculture
Insurance, Travel, etc. The firm employs over 2,500 employees and 9,400 agents to serve the
public. The firm provides insurance services in 98 locations with 152 branches spread across
India.

Bajaj Allianz GIC Ltd.

Bajaj Allianz is a joint venture between Bajaj Fiserv Ltd. and Allianz SE. Bajaj Allianz
commenced its operations in 2001 and has their offices located in over 200 cities and towns
across India. The firm caters to the individual insurance needs of consumers. They offer a
number of insurance and have a large customer base in India. They have built technologically
advanced platforms like mobile and digital applications to engage the public. The firm takes
great pride in delivering high value to their consumers.

Bharti AXA General Insurance

Bharti AXA General Insurance has a large customer base with 79 offices situated across
India. They have issued close to 9.8 million insurance policies and have settled around 1.3
million claims altogether as of October 2017. This firm is a joint venture between AXA and
Bharti Enterprises and started its operations in 2008. They provide innovative and
comprehensive insurance solutions for various sectors like motor, home, health, etc. The firm
also provides 24X7 claims assistance to their consumers

The Oriental Insurance Co. Ltd.

The Oriental Insurance Company commenced their operations in Mumbai in September
1947. Being one of the pioneers in the insurance sector, the firm has a large customer base.
The firm is run by the Central Government of India. The insurance products offered by this
firm cater to the needs of both rural and urban population. It has its head office in New Delhi
with 31 regional offices and more than 1800 micro offices situated across India.
HDFC ERGO General Insurance Co. Ltd
HDFC ERGO is a general insurance firm and a joint venture between ERGO International
AG and HDFC Ltd. The firm offers a wide range of insurance products like home insurance,
motor insurance, travel insurance, etc. that cover both personal and business insurance needs.
The firm has an expanding network with 108 branch offices situated across 91 cities in India.
They have an employee base of 2000 who serve the public with the best insurance schemes
and offers. Besides the employed sales force they have retailers, corporate agents and brokers
extending the firm’s services to the public. They have launched a mobile app that helps in
faster communication, making it easier for the public to reach them
CHAPTER 3-REVIEW OF LITERATURE
3.1 Contextual review of research papers:
After liberalization, Indian Motor Insurance industry has become significant both from
economic and social point of view and researchers have explored and probed these aspects.
There has been substantial work on various aspects of Automobile insurance done abroad but
studies in India on Automobile Insurance are really scanty
Baltelsmit and Bouzouita (1998), in their paper, examined the relationship between
profitability and market structure in automobile insurance and tests for the existence of a
positive relationship between concentration and performance. The data for the study
pertained to the period 1984 to 1992. The results showed a significant positive impact of
concentration on profitability for combined liability and physical damage lines in private
passenger automobile insurance. These results differ from previous studies using state-level
data from the previous decade but confirm
Rao (1998), in his paper, examined the efficiency of the LIC, in physical and financial terms.
Insurance is essentially a service industry, a distinct set of criteria (both, physical and
financial) had been developed to evaluate its overall efficiency. There has been a significant
improvement in the physical performance of the LIC. But the financial performance in terms
of profitability had not been up to the expected level. However, given the constraints of
statutory regulations and government control, coupled with a highly cost-prone rural
business, the financial performance may be considered as satisfactory, although there is
considerable scope for improvement. The LIC should vigorously try to improve its
operational efficiency to benefit the policyholders and to compete in a liberalized
environment
Rudolf (2001), in his paper, examined the key factors and latest trends determining
profitability in the major non-life insurance markets. The study focused on the non-life
insurance markets of the group of seven countries (G7) mainly for the period 1996 to 2000.
To analyse the profitability, investment results and underwriting results were compared
between countries and across lines of business and to analyze the drivers of profitability,
return on equity was decomposed into its main components namely underwriting results and
investment income. The results indicated that only Germany and Japan did not have negative
underwriting results and return on equity was high in the UK, moderate in Canada and US,
and low in France and Germany. The study found that underwriting result and investment
yield are negatively correlated. The research suggested that due to uncertain prospects for
investment results, the insurers must focus on underwriting results to achieve greater
profitability.
Brien (2001), in his paper, examined two questions, namely, has the conduct of the new
entrants been different from that of the established players which have been the subject of
criticism, secondly, what has been the performance of the new entrants? The study used 28
companies authorized to write long-term insurance in the UK in 1990-99. The paper indicated
that there was strongevidence that the new entrantshave had high growth rates (in new
businesses and assets) but, from a low base, they have made little impact in terms of market
share. The largest new entrants, in terms of new business APE, are the investment house life
companies. There have been large financing requirements for the new entrants, and they have
tended to concentrate on no advice channels, paid less commission and granted higher
surrender values in the early years