A

Project study report

On

Training undertaken at

Beacon Insurance brokers Pvt. Ltd.

Titled

“Creating awareness about brokerage services in industries

at Ankleshwar city”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By: - Submitted To:-

Anika Joshi Mr.Dhiraj Jain
MBA Part II

2008-2010

1
Acknowledgement

I express my sincere thanks to my project guide, Mr.Dhiraj Jain, for guiding me right
from the inception till the successful completion of the project. I sincerely acknowledge
him for extending his valuable guidance, support for literature, critical reviews of project
and the report and above all the moral support he had provided to me with all stages of
this project.

Anika Joshi

(Signature of Student)
Name of the Student

Contents
2
Particulars Page no.

1. Insurance in India 04
2. Beacon Insurance broker’s pvt. Ltd. 04
3. Difference between agent and broker 08
4. Insurance
- Need 09
- History 10
- Origin 10
- Nationalization 11
- Privatization 11
5. Types of Insurance 12
6. Principles of General Insurance 13
7. Value chain of ABC 14
8. Mediclaim Insurance 17
9. Overseas/Travel Insurance 21
10. Personal accident Insurance 24
11. Vehicle Insurance 29
12. Home Insurance 32
13. Fire Insurance 35
14. Burglary and House breaking Insurance 37
15. MTD format 40
16. Objective of the study 41
17. Research methodology 42
18. Procedure followed for creating awareness of
Brokering services 43
19. Certain questions asked to the sample industries. 45
20. Awareness among industries about brokerage
Services 46
21. Awareness among industries about Beacon
Insurance brokers pvt. Ltd. 47
22. Suggestions 48
23. Conclusions 48
24. Marketing strategies followed by Beacon
Insurance company 49
25. Index for tables and graphs 51
26. Bibliography 52

3
 Insurance in India

Current:
 Marketing by Insurance Company or agent.
 Variety of products not available at one destination.
 Transaction oriented.

Future:
 Broker representing insured to insurance companies.
 Varied options- products and insurance companies.
 Consulting oriented.

CLIENT BROKER RELATIONSHIP:

Insurance company A
Insured/Client ↔ Insurer Broker → Insurance company B
Insurance company C

CLIENT-INSURER /AGENT RELATIONSHIP:

Insurance Company ↔ Insurance official agent → Insured/client

Beacon Insurance Brokers Pvt. Ltd.

 Enlightened Advice by experienced professionals.

 Matched with efficient execution.
 Beacon Insurance Brokers Pvt. Ltd. is an insurance broker licensed by IRDA to
transact Life and General Insurance business.

Beacon’s Pride
 One of the most vital assets of Beacon Insurance is its Manpower.
 Beacon has got some of top Brains of Insurance industry in both life & Non Life
Segment.
 Can be rumors….but we believe that we have got persons who are unofficially
ranked under top 10 brains in Insurance Industry.
4
  To prove what we think, Beacon is nourishing under the guidance of following
members:
 Mr. S.K.Rustagi- Managing director & principal Officer – Beacon Insurance
Brokers Pvt. Ltd – Serving General Insurance Sector from more than 20 years.
 Mr. Sanjay Agrawal – Director, Beacon Insurance, serving General Insurance
Industry from more than 15 years having versatile experience handling Marketing
and Human resources.
 Beacon is having a staff of more than 100 professionals for Life & Non Life
Insurance
 Including MBA’s Specialized in Insurance &Marketing, Licentiates, Associates&
fellows, Servicing Professionals, Sound underwriting experts, Excellent Claim
Department & Chartered accountant.

Beacon’s Growth

• With a company of two we are now a company of more than one hundred.
• It shows how the Indian insurance industry and Beacon are growing matching the
footsteps with each other.
• Earlier Beacon was having their branches in only two cities i.e. Vadodara and
Surat.
• Currently we have added three more branches to our name and that are in some
of the biggest Metropolitan cities of India namely, Mumbai, Ahmedabad and
Anand.
• After cementing the legs in Gujarat now Beacon is planning & working on the
Expansion strategy and module, likely to expand in Northern India by opening a
full fledge Branch in Capital of India i.e. New Delhi , Gandhidham & in some
cities of Uttaranchal.
• From a company of INR 50 million (Premium) we have grown to a company of
INR 100 million( Premium) just in one year and now we have targeted a Premium
of INR 500 million for the year 2007-08, and we are on the way to achieve it
hopefully…….
• Growth of a company depends upon the competitiveness of its employees and
we are proud to say that we have started winning over our major competitors,
thereby increasing the no. of clients day by day both in Life and Non Life
Insurance segment.

5
Beacon’s Culture

• Beacon from the very beginning is working on the perfect blend of

Professionalism, Teamwork & Healthy Competition with a continuous spirit to win
over on its market competitor.
• Beacon is also working on the culture of continuous arrangement of Workshops
on Marketing, Team work enhancement spirit, Moral Building.
• Regular quiz competitions are held on bi monthly basis to increase knowledge
and an opportunity for the employees to win some fabulous prizes!!!!
• Yearly Picnics and or Tours are arranged to make the employees relaxed and to
give them a feel enjoyment from the monotonous routine works.

Beacon’s Aim for Life Insurance

Beacon is having some of the very big Business Giants as its patron, now we aim to
convert these giants to give us the life insurance premium as well as we have
retained these clients for our general insurance business.

Why Beacon

1. Industry Expertise: With their in-depth industry experience they can help you
foresee the unique risks that your business faces. Allow you to customize your
risk management strategy and make your business future proof.
2. Dedicated services: With a team of risk management experts working on our
business, helps us in minimizing risk exposures. Their well experienced and
responsive teams keep you informed and ahead of risk, keeping your business
safe.
3. Offering a better deal: They provide superior insurance solutions that are
backed by flexibility, responsiveness, financial strength and integrity.
4. Local expertise covered with national coverage: With full service office at
major cities in western India and growing, they expect to be close to your
business. This would also help you to understand the local dynamics better. Also
with their offices spread all across the country, they can work even for well
spread out organizations.
5. Responsive claims service: They pride themselves on delivering fast and fair
claim resolution in our time of need. They make sure that your documents are
perfect, thus avoiding delays at the time of claims.
6
 Corporate philosophy
 To work the utmost satisfaction of the client by always taking care of their best
interests.
 Continuously work to improve knowledge, skill, attitude and best experience and
be the most competent in the field.
 Always provide the best services as outsourced partners.
 Be flexible in approach, innovative and continuously deliver value added
services.

Mission statement

We shall deliver excellent and superior products to our customers, remain focused on
their needs and strive for continuous improvement through communication and
technology. We shall unite and operate our business through the shared value of trust,
Tolerance and Openness. Our team shall be known and respected in the industry for
their expertise, committed services and professional integrity.

Beacon Advantages for your business

1. Comprehensively identify all risks-Immediate and future.

2. Audit all existing Risk and ensure adequacy of policy coverage.
3. Evaluation of your existing policy sum insured ensuring no under or over
insurance.
4. Arrange surveys by reputable experts to identify various areas of risk- Fire,
Electrical and Logistics etc. and Identifying ways and means for reduction.
5. Effectively monitor and report the unattended hazardous areas within the factory
by way of photographic reports/safety audits.
6. Explore the insurance market for all options matching your needs and provide
you with preferred list of insurers based on their strengths in respective fields.
7. Prepare you for a De tariff Scenario to ensure optimum coverage at most
economical cost.

Difference between agent and broker

7
 AGENT
-Insurance agents are insurance
Professionals that serve as an in-
Termediary between the insuran-
ce company and the Insured.
BROKER
-Insurance brokers are the pr-
ofessionals that serve as an
intermediary between the ins-
ured and many other insuran-
ce companies.

-Agents have no duty to conduct -Broker effectively monitor

a thorough examination of your and report the unattended
Business or to make sure you hazardous areas within the
have appropriate coverage. factory by way of photogra-
phic Reports/safety audits.

Why a broker?

Brokers can offer a whole host of insurance products for you to consider. Brokers are
required to have a broker’s license which typically means the broker will have more
education or experience than an agent.

Brokers also have a higher duty, in most states, to their clients. Brokers have the duty to
analyze a business and secure correct and adequate coverage for the business. This is
a higher duty than the pure administrative duty of the agent. However, this expertise
comes at a price. Brokers typically charge an administrative fee or premium payments
are higher when purchased through a broker.

INSURANCE

8
The Need for Insurance

I don’t need Insurance. It’s a brave refrain of the uninsured, but just stops for a moment,
and ponders over some uncomfortable, yet necessary, questions. What if an accident
felled you? How will your loved ones maintain their lifestyle and meet their financial
goals? Or, what if a fire razed the house you so pain staking built with money saved
over half-a-lifetime? What if ……

Disasters don’t usually announce their arrival. They strike unnoticed, often with dire
consequences that scar your world and play havoc with your personal finances. You
can take the greatest care in the world with all things precious, but will never eliminate
the possibility of harm befalling them. What you can do is mitigate the effect of such
eventualities on your family’s finances balanced, by buying INSURANCE.

Insurance, in its purest form, is a risk management tool, a security blanket. It provides
you financial protection against unexpected events. When you buy insurance, you
effectively transfer a portion of your risk to your insurer. This protection comes at a
price, but it’s a fraction of what you might otherwise find yourself burdened with.

Factors affecting the need for Insurance:

 Steady rise of the Indian middle class

 Increasing level of affluence

 Better standard of living

 Increased incomes have resulted in higher disposable incomes in the hands of

consumers

 Globalization and Integrated Markets have increased the exposure of Indian

consumers to goods and services offered in the international market

 As a result of this, there is a heightened requirement of making one’s home as

comfortable and luxurious to reside in

 This can be effected by accumulating home contents, valuables, electrical and

mechanical appliances, etc

9
  Change in buyer behavior by way of increased spending and expenditure as a
result of enhanced lifestyles

 Significant investment is made in accumulating these

 Heightened requirement to protect these home contents against various perils

through a comprehensive home insurance policy

The history of Insurance

The story goes back to around 2100 B.C., to the ancient civilization of Babylon and a
business practice called ‘bottomry’. For all practical purposes a form of marine
insurance, bottomry enabled ship owners to borrow money against their ships to pay for
the trip. The arrangement was that only if their ship returned did traders have to repay
the loan, along with interest, which was pegged at an above-market rate for the risk
covered. So, if their ship failed to make it back, they did not have to repay the loan,
thereby recovering some or all of the loss.

Origins

With the marine route being the bedrock of he trade and commerce in those days, the
practice of bottomry evolved, and spread. By the middle of the 14 th century, as
evidenced by the earliest known insurance contract (Genoa, 1347), marine insurance
was common among maritime nations of Europe.

The British bought Insurance to India in 1818, replete with imperialist prejudices. The
oriental Life Insurance Company, the first insurance company in the country, insured
only European widows. British insurers eventually began insuring Indian lives, but for a
premium that was 15-20% higher than that payable by the British.

It was only in 1870 that the disparity was corrected. Six Indians, peeved by this second
class treatment, set up Bombay Mutual Life Assurance Society, and started insuring
Indian lives at the same cost as British lives. Social discrimination, in fact, turned out to
be a catalyst for Indian initiative in the insurance sector.

Nationalization

10
On 19th January 1956, the life business was nationalized. In one swoop the government
snapped up 245 insurers and provident societies. Eight months later life insurance
company (LIC) was formed, which took over the businesses of the erstwhile private
insurers, and started expanding at a frenetic pace.

Today there are 2100 branches offices, 800000 agents, and offers a bevy of insurance
and investment products. LIC marketed insurance less as a risk management tool and
more as a saving instrument with a tax edge. A look at LIC’s policy profile shows that
just 18% of policies in force currently are protection plans, insurance-cum-investment
plans account for 60%, with the balance being pure investment plans.

Similar circumstances led to the nationalization of non-life (or general insurance). Non
life insurance was nationalized in 1972. General Insurance Corporation (GIC) was set
up as a holding company; a total of 107 private insurers were merged and grouped to
form GIC’s four subsidiaries.

Privatization

In the early nineties, the government went on a reforms binge and started loosening
controls on Indian industry. The Insurance Regulatory and Development Authority
(IRDA) was formed to regulate the sector and oversee the process of privatization.

In 2000, the IRDA started giving out licenses, and a year later, the first of the private
players started operations. The wheel has come full circle. Under state control both, life
and non-life grew steadily. Still, Indians are not adequately insured and lag behind most
countries.

Total insurance penetration (insurance premiums as a percentage of gross domestic

product) is dismal when compared to its economic standing. Just 2% of the population
has some form of life insurance. But in this gap lies a huge opportunity, which is why
private insurers are queuing up.

In many ways, the re-entry of private insurers has marked a second coming for the
sector. In just three years, the sector has undergone a makeover, offering the fruits of
the free market: more choice, better service, quicker settlement, tighter regulations, and
greater awareness.

11
 Types of Insurance

Types of Insurance

Life Insurance Non-Life Insurance

1. Mediclaim

2. Overseas/Travel

3. Personal accident

4. Vehicle

5. Home

6. Fire

7. Burglary

Non-Life Insurance

OR
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 General Insurance

First 5 principles:

1. Principle of Insurable Interest: You should have an insurable interest in

the item you want covered. In other words, any mishappening related to the insured
item should result in a financial loss to you. For instance, you have a financial
interest in ensuring a house you own. However, if you have rented a house, it’s your
responsibility to get it insured only if it is explicitly stated so in the lease agreement.
If it is not stated and you still get it insured, and subsequently raise a claim, it is likely
to be rejected by the insurer on the grounds that you don’t have any insurable
interest in the property; the owner of the house does.
By the same principle, goods belonging to others that might be lying at your house
are not covered by your home insurance policy. If they are damaged your insurer is
likely to reject any claim made by you.

2. Principle of utmost good faith: You are expected to be honest in all your
dealings with an insurer, and disclose all material facts related to the risk sought to
be covered. In case of non-disclosure of vital information, the insurer, if it finds out,
can reject your claim.
While buying health insurance, you have to disclose the existing diseases and
ailments to the insurer. If you withhold this information, intentionally or
unintentionally, an insurer can reject your claim.

3. Principle of Indemnity: You should not profit from insurance. In case of a

loss, the insurer will, subject to the terms and conditions of the underlying policy,
compensate you in a manner so as to restore your financial position before the loss.
Insurers expect you to insure all your articles for their full value-not more, not less. If
you insure an article for less than its worth (underinsurance), the insurer will not
compensate you in full, but in proportion of the cover taken.

4. Principle of Contribution: This happens when same risk is covered by

more than insurers. Say, you buy house cover of Rs.5 lakh each from 2 insurers. In
case of a claim, partial or full, if both insurers were to pay compensation in isolation,
you would be compensated twice over. In case of multiple insurance, the insurers
divide the compensation amount in share of their share of the cover. So, each
insurer will pay 50% of the compensation amount.

5. Principle of subrogation: The principle of subrogation is a corollary of the

principle of indemnity. If the loss suffered by the insured is recoverable from third
parties who are responsible for the loss, the insured’s rights of recovery are
transferred or subrogated to the insurers when they indemnify the loss.

13
 GENERAL INSURANCE
THE VALUE CHAIN

ABC OF & INTERMIDIARY

A AGENT
B BROKER
C CORPORATE AGENT(BANKS)
D DIRECT/DEALERS
E E-COMMERCE

AGENTS

MOST ACCEPTED FORM OF INTERMIDIARY IN RETAIL SECTOR

HAS TO BE LICENCED BY IRDA FOR DOING BUSINESS
CAN WORK FOR ONLY 1 INSURANCE CO.
VERY SUCCESSFUL IN RETAIL SEGEMENT.
REPRESENTS THE INSURANCE CO.

BROKERS

LICENSED BY IRDA BY VERY STRINGENT NORMS.

CAN WORK FOR ALL INSURANCE CO.
IS SUPPOSED TO REPRESENT THE CLIENTS & not THE INSURANCE CO?
PRESENTLY PENETRATING IN CORPORATE WORLD.
INVOLVES A LOT OF TECHNICAL INPUTS IN SERVICING THE CLIENTS.

CORPORATE AGENTS OR BANKS

BANKS ARE ENTERING THE INSURANCE FIELD

CROSS SELLS TO ITS EXISTING CUSTOMER BASE.
14
 BANKS STATUS IS THAT OF A CORPORATE AGENT & IS ATTACHED TO
ONLY 1 INSURANCE CO.

DIRECT

DONE BY VARIOUS INSURANCE COMPANIES.

TARGETS MAINLY TOP CORPORATE CLIENTS OR THE NICHE MARKETS.
THE COMPANIES ARE NOT REDUCING THE DIRECT PENETRATION &
DEPENDING MORE ON THE QUALITY BROKERS FOR CONVASSING THE
BUSINESS.

E COMMERCE

INSURANCE BOUGHT THROUGH THE INTERNET.

NOT VERY POPULAR IN INDIA AS OF NOW
HOWEVER, GAINING THE POPULARITY.

OTHER….

MOTOR DEALERS
TRAVEL AGENTS

DISTRIBUTION PIE OF
ABC AND
INTERMIDIARIES

15
 7%

3%

DIRECT
40%
AGENTS
25%
BROKER
BANKS
OTHERS

25%

1. MEDICLAIM INSURANCE

What is Mediclaim Insurance?

16
 The insurance provides reimbursement of hospitalization and domiciliary
hospitalization expenses incurred in India for the treatment of illness/diseases or
injuries sustained by the insured person during the period of insurance.

This policy will trigger when there is minimum 24 hours hospitalisation.

What are the expenses reimbursable?

Room, Boarding expenses provided by the Hospital/Nursing Home

Nursing expenses
Doctor’s Fee
Cost of Diagnosis/diagnostic, materials, Anaesthesia, Blood, Oxygen, Theatre,
Surgical Appliance, Medicines & drugs
Cost of pacemaker, artificial limbs & similar expenses.

What are the expenses NOT reimbursable?

Food purchased from Hotels / or brought from home.

Naturopathy Treatment
Cost of vitamins/tonics unless forming part of treatment for the covered disease
Spectacles, contact lens, hearing aids.

Age Limit:

> 5 years or < 80 years – Less than 5 years can be covered if EITHER of the
parent is covered.

Insured persons; Self, spouse, dependent children. Dependent parents.

MEDICAL TEST REQUIRED FOR AGE ABOVE 45 YEARS FOR

MEDICLAIM POLICY

a) Pre post blood test

b) Urine test
c) ECG
d) X-RAY chest report
17
 e) Fitness certificate.

Types of polices

Group
Mediclaim

Individual Mediclaim

Individual Mediclaim:

For Individual insured with Family they get Family Discount of 10%.
Cumulative Bonus is available for claim free year. On every such C Bonus the
Sum Insured increases.
There is no loading in premium in the event of claim.
Maternity Benefits are not available for Individual Mediclaim policy.
Floater Policy is not available.
Tax Benefit is available.

Group Mediclaim Insurance:

 Offered to Groups, Companies, and Institutions.

 The policy is issued in the name of the Group/ Corporate.

 The names of the Employees / Dependents will form a part of the policy.
18
Features of Group Mediclaim:

1. Premium minimizes with the group size. For ex: For a group size of 1100 persons
along with the family the group can avail a discount of approx 20%
2. Claim experience discount is available.
3. Lower is the claim ration higher is the discount.
4. Maternity extension is available.
5. Floater is available.
6. Tax benefit is not available; however negotiations can be made with the insurance
company.

EXCLUSIONS UNDER MEDICLAIM POLICY:

o Diseases/ injuries existing at the time of proposing this insurance.

o Disease contracted during the first 30 days of commencement of the policy.
o Certain disease such as hernia, cataract, piles, sinusitis, and stones in urinary
tract, gall bladder, and breast lump, gastric or duodenal ulcer shall be covered
after a waiting period of 2 years.
o Congenital diseases.
o All expenses arising from AIDS and related diseases.
o Cosmetic, aesthetic or related treatment.
o Use of intoxicating drugs, alcohol.
o Treatment arising from or traceable to pregnancy.
o Non Allopathic medicine.

CRITICAL ILLNESS COVER

Many serious illnesses can only be cured using state-of-the-art and highly expensive
form of therapy.
First Heart Attack
Coronary Artery Disease requiring surgery
Stroke
Cancer
Kidney Failure
Major Organ transplant
Primary Pulmonary Arterial Hypertension
Multiple Sclerosis
Aorta Graft Surgery
Paralysis

19
Scope of Cover

This policy pays out a lump sum amount on diagnosis of the listed illness after
completion of the waiting period

This is contrary to Mediclaim policy where the member has to first pay and then
claim reimbursement. The treatment is reimbursable only in India

Since the money is in advance, treatment can be planned accordingly. Even

costly treatments can be resorted to both in India and over seas.

Some of the expenses like donor expenses incurred during a transplant surgery
which are not payable under Mediclaim can be paid through this cover

Premium rates competitive. High sum insured can be opted unlike the Mediclaim
product currently available

Tax benefits available under 80D of the Income Tax Act.

Sum Assured: Premiums

Sum 90days- 26-40 yrs 41-45 yrs 46-55 yrs

Insured / 25 yrs
Age Group
50000 665 713 784 1130
100000 1045 1211 1330 2280
150000 1568 1758 1948 3420
200000 1948 2280 2565 4560
300000 2755 3230 3610 5700
400000 3610 4275 4655 -
500000 4370 5130 5700 -
Minimum SI amount shall be for Rs.50, 000 and the maximum Rs 500,000. Rs
50,000 is not offered to single member proposals

Maximum sum assured that can be offered for above 50 years will be Rs 300,000.

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 2. Overseas mediclaim/Travel
Insurance Policy

Overseas Mediclaim Policy – Coverage

• Section A: Personal Accident

• Section B: Medical Expenses & Medical Evacuation
• Section C: Loss of Checked Baggage
• Section D: Delay of Checked Baggage
• Section E: Loss of Passport
• Section F: Personal Liability
New features
• Emergency Cash Advance
• Hijack Allowance
• Trip Delay

Section A: Personal Accident

• Death or Permanent Partial or Permanent Total Disablement due to accidental

bodily injury during the course of the insured journey and is the sole and direct
cause for the death or the disablement.

Section B: Medical expenses & Medical evacuation.

• Medical expenses incurred for medical treatment outside India.
• Medical evacuation expenses.
• Repatriation expenses.
• Medical expenses with in India up to a period of 90 days as a continuation of the
treatment that was started outside of India.

Exclusions for Section A & B

• Routine physical or other examination where there is no objective indication of

impairment of normal health
• If the Insured is traveling against the advice of the physician
• Traveling for the purpose of obtaining treatment

21
 • Suicide, self-inflected injury, pregnancy or childbirth, pre-existing physical or
mental defects, stress or depression, alcoholism, drunkenness, or the abuse of
drugs.
• Losses from accidents of motorized vehicles, unless at the time of accident the
insured is in procession of a current full international license and the driver is
wearing a crash helmet in case the insured is driving a two wheeled motorized
vehicles.

Section C: Loss of Checked Baggage

• Complete and permanent loss or destruction of the Insured’s checked baggage

Specific Conditions
• Relevant property irregularity report from the Airline is required
• Documentation evidencing the Insured’s ownership of the same if the claim
exceeds Rs 6,000/-

Exclusions
• Claim for valuables

Section D: Delay of Checked Baggage

• The insured’s emergency purchase of toiletries, medication, clothing to replace

those contained in checked baggage, the arrival of which is delayed by more
than 12 hours beyond the time of the Insured’s arrival at the intended destination
outside of India.
Requirement
• Written non-delivery confirmation from the airline also mentioning the duration of
delay.

Exclusion

• No payment will be made in the absence of proof of purchase by the insured

Section E: Loss of Passport

• Expenses necessarily incurred by the insured in obtaining a duplicate or fresh

passport
22
Exclusions
• Loss or damage to the passport as a result of the confiscation or detention by
customs, police or any other authority
• Loss is not reported to the appropriate police authority within 24 hrs of the
discovery of loss, and in respect of which as official report has not been obtained.
• Loss caused by the insured’s failure to take reasonable steps to guard against
the loss of the passport.

Section F: Personal Liability

• Any Legal Liability incurred by the Insured in his private capacity to pay damages
for third party civil claims arising out of Accidental Bodily Injury or Accidental
Property damage occurring during an Insured Journey

Exclusions

• The Insured liability to any employee

• Injury or damage to the Insured’s own family or property, or of any Co-worker
and any traveling companion
• Any liability arising directly or indirectly arising from or due to:
Any willful, malicious, criminal or unlawful act, the ownership, possession or use of
vehicles, aircraft or watercraft, parachuting, hand gliding or any other hazardous activity,
alcoholism, drug addiction, supply of goods or services,etc

New Features

• Hijack Cover: For each 24 hour hijack the company will pay the amount
specified in the schedule

• Emergency Cash allowance: Assistance to getting cash incase of an

emergency because of theft/burglary of luggage/money or hold up.

• Trip Delay: For delays of Flight from India

• Hospital Cash daily allowance : $25/day up to max of $150 if claim is

payable.

23
Student Overseas Mediclaim Policy

Coverage:
– Medical Expenses
– Personal Accident
– Loss of checked baggage
– Tuition fees
– Accident to sponsor
– Family visit
– Personal liability

3. Personal Accident Insurance

Basics of Personal Accident Insurance:

Life is full of uncertainties and unexpected events. Accidents can happen at home, at
work or even at play. The death or injury of a breadwinner can create serious financial
problems for any family. It is in situations like these that you need to be prepared. This
policy has been designed to help in these kinds of situations.
“Accident” or “Accidental” means a sudden, unintended and fortuitous external and
visible event.
Accident: An accident is an event which is wholly unexpected, not intended or
designed. It does not include the cumulative result or a series of small incidents. Thus, a
bent hand, the result o using a pneumatic drill, is not caused by accident.

Eligibility….

1. Limit of age 5-70 years

2. The foresaid limits would apply cumulatively in the event of there being more
than one policy on the life of the insured person
3. The proposer may choose any one or more of the above tables
4. The cover is round the clock & worldwide
24
 5. Cumulative Bonus (CB): The Sum payable under item no 1 to 4 is increased by
5% each claim free year on renewal of policy up to limit of 50%. Earned CB will
not be lost if the policy is renewed within 30 days of its expiry.

Exclusions……

 Suicide, Intentional self-inflected injury, pregnancy or childbirth, pre-existing

physical or mental defects, infections, bleeding from inner organs
 Aviation other than as a passenger (fare paying or otherwise) in any duly
licensed standard type of aircraft anywhere in the world.
 Any consequence of war, invasion, Act of foreign enemy, Hostilities (whether war
to be declared or not) civil war, rebellion, revolution, insurrection, mutiny or
usurped power, seizure, capture, arrests restraint & detainments of all kings,
Princes & people of whatsoever nation condition or quality
 Any deliberate or intentional, unlawful or criminal act, error, or omission of the
insured
 Engaged in aviation or ballooning or related activities
 Any loss caused either directly or indirectly by nuclear radiation of nuclear
weapon materials
 Alcoholics & person habitually under the influence of drugs

In case of Claim what is payable:

 Death due to Accident :- 100% of sum insured subject to there is no claim

in the policy
 In case of TTD Accidental: - She will get 1% of CSI. In this e.g. if TTD is
for 2 weeks then 3000*2 weeks. She will get Rs6000/-
 Since she has taken medical extension benefit so in addition to TTD she will get
10% of CSI or 40% of weekly compensation which ever is less. So 40% of
Rs6000. i.e. Rs2400/-
 NOTE: If actual medical expenses are Rs.2000/-then she shall get Rs.2000/-
only & not Rs.2400/-
 In case of death after TTD: in this case she will get 300000 (SA)-6000
(Weekly Compensation for 2 Weeks)-2400 (medical Expenses)

Very Important To Remember:

 In case the policy is renewed with addition in sum assured & the accident
occurred during old policy then the claim payable will be according to the
conditions of old policy.
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Is suicide an accident?

Suicide is not an accident. Besides it is an offence under the Indian Penal Code and
insured is not allowed to benefit form his own criminal act. But when the circumstances
are such that the evidence is equally consistent with either suicide or accident, then the
presumption of law against suicide applies and accident will be presumed.

Am I covered for sports?

AMATEUR (UN-PAID) sports will be covered. While you are covered for most of the
normal, non- hazardous sports, Professional sport and any racing are not covered.
You'll find an exclusions paragraph on your brochure, which explains accidents that
aren't covered.

If I am hijacked on a plane and die as a result, am I covered?

YES, you will be covered only if travel in the Plane as a passenger and if the death is
due to physical injury caused by the hijackers or if such hijacked plane meets with an
accident.

If I am a passenger in a car and die in an accident, am I

covered even if I am drunk?

No. This will not be covered.

I am a pilot/glider/balloonist/parachutist - am I covered if I die

from an accident?

NO - Only people traveling as a passenger on a registered standard airline are covered.

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Sample of accident insurance policy

27
4. Vehicle Insurance
28
On the road, it’s impossible to tell with surety what awaits you around the bend. But with
vehicle insurance on your side, you can cushion yourself against the adverse financial
repercussions that could befall you and your vehicle. Vehicle Insurance offers you a
cover against every conceivable risk related to your vehicle: theft or damage to it, death
of the driver and passengers in an accident and damage caused by your vehicle to any
other person
or property.

WHAT IS IT?
All vehicle insurance policies can be broken down under three heads:

Third party liability: You, the Insured, are the first party, the insurer the second
party, and every other person the third party. The law makes it mandatory for every
vehicle owner to have at least third party motor insurance. This covers your liability to
compensate any person up to a pre-specified amount, subject to a court ruling, for
bodily injuries and property damages done by your vehicle. But third party cover alone
is not adequate. With the ever-present possibility of accidents and exorbitant repair
costs, it makes sense to go beyond compulsory third party cover, and buy
comprehensive ‘Motor Insurance cover’.

Theft and own damage: This entitles you to claim compensation in case your
vehicle is stolen or damaged. On the standard policy, the annual premium is the
function of the type of vehicle (two-wheeler or four-wheeler, commercial or private), its
size (cubic capacity), its age and the region in which it is registered.

Cover for occupants of vehicle: This provides cover against death or injury to
vehicle driver and passengers. The maximum cover that can be taken under this section
is 1 lakh for a driver and 2 lakh for each passenger .

Fine print:

1. The premium rates are specified by the IRDA and are identical across insurers.
2. Vehicle insurance policies have a compulsory ‘deductible’- an arrangement
whereby the claim amount up to a pre-specified limit has to be borne by the
policy holder. Insurers offer discounts on premiums to policy holders who opt for
a higher deductible. When you increase the deductible; you effectively transfer a
greater amount of risk to yourself than you would otherwise do under the
standard policy, the reward for which is a fall in premium. As the deductible
increases, the premium falls.

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 3. In the event of replacement of parts, the insurer pays only the depreciated value,
which means you have to bear the portion of the claim amount.
4. An additional premium is charged to insure items not originally part of the vehicle
such as CNG/LPG kits, electronic items (stereos and television sets) and
electrical fittings (extra lights and horns).
5. Vehicles manufactured in other countries have to be valued by an automobile
engineer at the time of getting them insured.
6. You can make the claim even when the accident happened while driving on the
wrong side of the road or while committing a traffic violation without any criminal
intent.

Exclusions

1. The policy doesn’t cover for the loss or damage if the driver of the vehicle was
drunk at the time of the accident – which has to be established through a breath
analyzer test or a stomach wash test – or driving without a driving license.
2. Damage to tyres (unless vehicle is also damaged), wear and tear routine
maintenance and mechanical breakdown.

Making a claim

If your vehicle is damaged in an accident, take it to the garage, and notify your insurer.
If the accident takes place in another city, ask your insurer to do a spot survey before
getting the vehicle towed to the garage. The insurer will send a surveyor to inspect the
vehicle within 24 hours (in case of a local site) or 48 hours (in case of outstation site) of
intimation. It is advisable you be present during the surveyor’s visit, to answer his
questions and put together the papers. The surveyor will assess the loss and
recommend a claim amount to the insurer, who will pay that sum to you. If you feel
short-changed by the claim amount, you can ask your insurer to appoint another
surveyor.
The paper work is less and procedures are fewer in theft cases. File a police complaint
and inform the insurer. If your vehicle is not found within 90 days ask the police to issue
you a ‘non traceable report’ – basically an undertaking by them that they are yet to find
your vehicle. The insurer will wait for 90 days from the date of theft for the vehicle to be
found, failing of which the insurer will start the claim process.

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Sample of Vehicle insurance policy

31
 5. Home Insurance

It often takes a life time of effort to acquire a home – your largest asset.
So, once you have it, you need to
Protect it and its contents.

Need for Home Insurance

 Home is the Most prized possession..

 Are we prepared for:
Real estate prices & interest rates are at all time high – Can we rebuild
these assets?
Gaining crime rate … burglary, robbery, theft...
Weak infrastructure … leading to short-circuiting of Electronic equipment
Increased cost of Electronic Equipments …maintenance , repair or
reinstatement
Natural disaster
 Substantial population close to the upper middle class and living out of rented
houses on occupational grounds...
 In case of adverse situation buying another / reinstating / repairing the existing
house becomes heavy on the savings.

India – Natural Hazard Challenges

 Earthquakes – Frequent and Severe

Reported >Richter 8.7 and above
54% of landmass has suffered earthquakes
Suggested man-made causes for some interpolate seismic events – e.g.,
location and filling of Konya dam
Bhuj earthquake official figures on the
Death toll - 19,727
Injured people -166,000
Homeless - 600,000 people
Houses destroyed - 348,000 and an additional 844,000 damaged.
Directly or indirectly people impacted, - 15.9 ml out of a total
population of 37.8 ml.

 Elevated norm also due to complete lack or inadequate enforcement of building

codes
Poor building quality
Elevated demographic density – population & buildings

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 These ensure higher cost of damage per capita
 Tsunami in the Indian subcontinent
On the Indian mainland, more than 9000 people are confirmed dead with
thousands more still missing.
India was the third most devastated country due to Tsunami.

Cumulative Fatalities from Earthquakes in India

Home Contents

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“Home contents” mean and include furniture, fixture, fittings, linen, clothing, kitchen
items, cutlery /crockery contained in the Insured’s home for domestic use and all such
items for which the Insured is accountable.

Appliances

“Appliances” shall mean and include electrical, mechanical and electronic appliances
such as refrigerator, television, DVD player, videocassette recorder/player, washing
machine, microwave oven, music system, personal computer, laptops and air-
conditioner contained or fixed in the Insured’s home for domestic use.

Home Contents & Appliances

Coverage under this section is based on

 Fire and allied perils including earthquake - Condition of average
 Burglary, housebreaking, hold-up – First Loss basis
 Breakdown of appliances – First Loss Basis

The Policy covers against of loss or damage to home contents and appliances in the
Insured’s home due to –
 Fire and allied perils including earthquake
 Burglary, housebreaking, hold-up
 Terrorism if opted and mentioned in the Schedule to this Policy

Mechanical and/or electrical breakdown

 The policy also covers domestic mechanical, electrical and electronic
appliances, apparatus or gadgets and/or any mechanical, electrical or
electronic installation while contained or fixed in the Insured’s home
against loss or damage due to unforeseen and sudden accidental damage
caused by and /or solely due to mechanical and/or electrical breakdown.

Valuables

 “Valuables” shall mean and include articles of jewellery made of gold, silver,
precious metals and/or stones and shall include furs, cameras and watches,
owned by the Insured and contained in the Insured’s home and/or worn by
Insured and/or members of Insured’s family permanently living with the Insured.

Valuables owned by the Insured and contained in the Insured’s home and/or worn by
the Insured and/or members of Insured’s family permanently living with the Insured
against loss or damage caused by accident or misfortune whilst anywhere in India
covering the risks of
Fire and allied perils including earthquake
Burglary, housebreaking, hold-up including theft

34
 Robbery, waylaying, snatching away.

Coverage under this section is based on First Loss Basis.

6. Fire Insurance

Perils Covered

 Fire
 Lightning
 Explosion / implosion
 Aircraft Damage
 Riot, Strike and Malicious Damage (RSMD)
 Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood & Inundation
(STFI)
 Impact Damage
 Subsidence, Landslide & Rockslide
 Bursting &/or overflowing of Water Tanks, Apparatus & Pipes
 Missile Testing operations
 Leakage from Automatic Sprinkler Installations
 Bush Fire
Excluding loss, destruction or damage caused by forest fire.
 Earthquake (Fire & Shock)

Specific exclusions

Exclusions in respect of loss or damage due to fire and allied perils including
earthquake.
This Policy does not cover loss or damage:-
 War, invasion, act of foreign enemy, hostilities or war like
operations etc.
ionizing, radiation or contamination by radioactivity from any nuclear fuel
or its waste
pollution or contamination excluding
 pollution or contamination which itself results from a peril hereby
insured against
 Any peril hereby insured against which itself results from pollution
or contamination.
To bullion or works of art of an amount exceeding Rs. 10,000/-
manuscripts, plans, drawings etc.
to the stocks in cold storage premises caused by change of temperature

35
 To any electrical machine, apparatus, fixture or fitting arising from or
occasioned by over-running, excessive pressure, short circuiting, arcing,
self heating or leakage of electricity.

Claims Process

Claims Administration

 Loss or damage to Home contents and appliance

 Loss of valuables
 Personal Accident claims
 Loss of passport
 Moving to new home
 Loss of title deeds
 Payment for home loan installment

How to lodge a claim?

 On happening of a loss, claim can be intimated immediately through Call Centre,

portal, telephone /fax/ e-Mail to Regional Claims Team or even through a letter to
nearest Regional offices.
 While intimating a claim the person must, provide the minimum details for
registration of the claim and further processing.
Policy No.
Insured’s name
Name of the caller
Date and time of loss
Brief of how the loss has taken place
Extent of loss,
Loss location,
Estimated Loss [in approximate]
Place & contact details of the Insured Person

Action by RGICL Claims on receipt of the intimation --

 On receipt of the claim intimation, claim form and document checklist will be
delivered to the customer within 48 working hours.
 In case of loss of Home contents and appliance or Valuable, Surveyor will be
appointed by RGICL from panel of surveyors, immediately for accessing the loss.

36
  In case of complicated Personal Accident claim, Investigator may be appointed
by RGICL from panel of investigators to ascertain the facts of the incident.

Submission of claim documents

Claims other than Property or Valuables:

 Insured must forward claim documents as per the document checklist to the
nearest Regional office of RGICL as listed in the annexure within 15 days of
happening of the lost.

Property and Valuables Claim:

 Insured must forward claim documents as per the documents checklist the
nearest Regional office of RGICL as listed in the annexure/Surveyor immediately
after happening of the loss for quick finalization of the reports.

Action of RGICL on receipt of the documents:

 RGICL shall process claims within 7 working days from receipt of the complete
documents from insured/Surveyor.

7. BURGLARY AND HOUSE

BREAKING INSURANCE

Scope of Cover:

Definition:

Taking away or carrying away of property from premises

Following felonious entry/exit by use of violent and forcible means
The presence of visible marks at the place of entry /exit

The property covered under this policy normally is:

1 .Stock In Trade
2. Office furniture, fixture, fittings, utensils in trade, stationary, books
3. Cash and Currency notes properly secured in locked safe
4. Electrical and Electronic Equipment
37
 • Loss or damage to property by theft following upon actual, forcible and violent
entry of premises
• Damage to premises.

Exclusions:

• Gold, Silver, Valuable, money etc.

• Fire damage
• Infidelity
• EQ, War and Nuclear
• Unoccupied more than 7 days
• Change of risk and insurable interest

Loss or damage:
1. Where any inmate or insured’s family member or business staff is involved as
principal or accessory
2. By acts of persons lawfully on the premises ( larceny)
3. Consequent upon fire or explosion
4. Loss of cash from safe following use of key or duplicate key belonging to the
insured, unless the key has been obtained by threats & violence
5. Earthquake or other natural perils
6. Riot, strike and civil commotion
7. War and allied perils
8. Nuclear Perils
9. Premise left unoccupied by day and night for 7 or more days & nights while the
premises are left uninhabited.

Types of Burglary Policies

1. FULL VALUE POLICY

Sum insured is the complete value of the policy.

2. FIRST LOSS BASIS POLICY

Sum insured is an amount less than the total value of the policy. Given mainly to
large warehouses and stores where value of stock is very considerable and of bulky
nature and total loss is a remote possibility. E.g. Baled goods, heavy machinery etc.

3. FLOATER POLICY
To cover more than one location for single sum insured in aggregate on stocks.

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4. DECLARATION POLICY (SAME AS IN FIRE)
Min. sum insured shall be Rs. 1 crore. Refund of premium on adjustment basis on
declaration/cancellation shall not exceed 50%of total premium.

EXCLUSIONS

• Gold, Silver, Valuable, money etc.

• Fire damage.
• Infidelity.
• EQ, War and Nuclear.
• Unoccupied more than 7 days.
• Change of risk and insurable interest.

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 OBJECTIVE OF THE STUDY

There are basically two objectives of my study, namely:

 Creating awareness among the industries about the brokerage

services- The first objective of my study clearly states the creation of
awareness among the various industries at Ankleshwar city in Gujrat, regarding
the brokerage services that is, how useful these services are as compared to the
normal Insurance services being offered to the various industries.

 Creating awareness about Beacon insurance brokers pvt. Ltd. -

Another objective of my study was creating awareness about Beacon insurance
brokers pvt. Ltd. among the various industries in Ankleshwar city. I.e. to make
them aware about what all services Beacon is providing, and how a broker firm
can benefit them as compared to any other insurance company.

40
 Research Methodology used

 Area of study- Ankleshwar Industrial area, Gujrat.

 Sample size - 40 industries.

 Sampling procedure - Random sampling.

 Data collection – Primary data-telephonic calls.

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 Procedure followed for creating awareness of brokering
services

1. Identifying the market: First step of identifying the market includes the
finding of the market in which you have to sell your product. I.e. finding out the
prospective clients for our product. After finding the market, then only you we can
proceed for selling our product.
2. Area segregation: After identifying the market for our product then there is a
need for segregating that market. Segregation of the market includes finding of
the market where we have to focus to sell our product .i.e. to find out who can be
our clients.
3. Identifying the clients: After segregating the market then we will be able to
identify the clients who are interested in our product. Then after that only we can
follow our course of action.
4. Approaching the client: After we have identified our prospective clients
then we need to approach them. This work of approaching them can be done in 2
ways:

 Telephonic calls: It means calling the customer on phone and fixing

an appointment for meeting the client. After fixing a meeting then we meet
the concerned person and sell our product.
 Physical visit: This is another way of approaching the clients. In this
method we can directly go and meet the client. There is no waste of time
and money in calling and then meeting the client.
These are the 2 ways in which we can go and meet the client. Rest of the procedure
can be followed there after only.

5. Categorization: Based on the above 2 methods of approaching we can then

classify our clients in 5 categories namely:
-A category: These are the active clients, who respond to our calling and we can
further talk to them for the matter concerned.
-B category: In this we have between clients i.e. those clients for whom we have
50%-50% of chances that whether they will response to our call or not.

42
-C category: This is a cold call. In this we call or try to reach the client for the first
time and have no idea about the response of the client.
-D category: This is the dead call category in which there is no hope that there will
be a positive response from the client. These clients are not interested in making a
deal with us. So we have do not require to waste much time on these types of calls.
-E CATEGORY: This category includes the existing clients. Those clients who are
already dealing with us are included in this category.

6. Regular follow up’s: After categorizing the clients then we need to perform
the follow up activities. These activities are done mainly for those clients who are
interested in doing business with us this includes category A, B and C. Follow up
means talking with them for an appointment and then meeting the concerned
person.

7. Conversion of clients: Once we have met the person then we will try to
convert the person as our client. This is the step from where our business starts.
After converting him as our client then only we can move further.

8. Gathering information for the required proposal: After selecting a

client then we need to gather the information about the required proposal. We
would take all the necessary information which we require for the purpose.

9. Floating the information to the insurance company: After taking the

information from the client we would pass on the information to the various
insurance companies to get a better option for the client.

10. Getting the quotations from the insurance companies: Once the
information is passed on to the insurance companies then the company would give
the appropriate solution to our problem. Then only we can further talk to our clients.

11. Submitting the final quote to the client: After taking the possible
quotations from the insurance companies then we will provide the final quote to the
client.
12. Finalizing the deal: At the last when the client is satisfied by the proposal
then we can finalize the deal and sell our product to the client.

43
These were certain questions asked to the sample industries:

On the basis of these following questions then the conclusion was drawn that
whether the objective was fulfilled or not. Some of the questions are:

 Are these industries dealing with normal insurance companies or

brokerage companies?

YES: 30 NO: 10

 Is the interest rate being provided by insurance companies higher or

lower as compared to the brokerage companies?

HIGH: 15 Low: 25

 Are these industries aware of the advantages of brokerage services

over normal insurance services?

YES: 25 NO: 15

44
 Awareness among industries about brokering services

Out of 40 industries studied, 25 were aware about the brokerage

services being offered by the company.

45
And rest 15 industries were not at all aware about the brokerage
services.

Awareness among the industries about Beacon Insurance

brokers

Of the 25 industries, 12 were only aware only aware of the Beacon

insurance brokers pvt. Ltd.

46
13 industries were not aware about Beacon insurance brokers pvt. Ltd.
about what services they provide and also how they operate.

Suggestions

The suggestion that I can give after my study on the topic “Creating awareness
about brokerage services in industries at Ankleshwar city” is that company can
increase its awareness especially through “ADVERTISING”.

Conclusion

Though many industries are aware of the brokerage services still the company
should do things to increase their clients and increase the awareness among the
other industrialists both regarding the brokerage services and also about the
company Beacon insurance brokers pvt. Ltd.

47
Marketing Strategies adopted by Beacon Insurance Company

There are insurance marketing strategies that can take any insurance agency from
mediocre to success when utilized correctly. Breaking into a new business climate
and finding customers is hard work, but when equipped with innovative ideas and
proven techniques, financial markets sales personnel can become extremely
successful. This same has been followed by Beacon Insurance broker’s pvt.ltd. in
competition with its competitors. Beacon has followed some strategies which have
left behind other insurance brokers behind.

Beacon understands that consumers need to be contacted again and again in order
to make a vital connection. Also, great follow-up protocol lets the potential customer
know that good, solid customer service will be part of the over-all package. Follow-
up says to a consumer that they are important, thought of, and that their business
would be greatly appreciated. The consumer today not only wants a product at a
great price, they also want a personal relationship, especially when it comes to
financial system sales, such as various insurances. Letters and phone calls are
gentle reminders that the salesperson intends to serve with his or her whole heart.
And, once a sale is secured, a thank you call is strongly advised.

The competition is fierce today, and Beacon does not want to loose a customer to
the next guy or service to come along. Clients that have had no contact for a period
of time loose loyalty. Beacon keeps birthday and anniversary postcards going into
the home on a regular basis. Keeping a name before a consumer will keep a name
in Beacon’s conscience. A small gift or token of appreciation is also a means for
keeping customers loyal. Christmas goody packages or dinner out certificates will
leave lasting impressions on consistent customers.

Consumers today value information. We live in the information age, and faithful
customer is one that has knowledge about the products and services offered. The
next most valuable insurance marketing strategy of Beacon includes the
salesperson being the source of financial information for the client. Newsletters,
email updates, and notifications will keep customers informed about issues

48
surrounding insurance and other financial programs. Newsletters could include
contests, special interest areas for kids, safety concerns, and economic updates.

These are some of the marketing strategies being followed by Beacon Insurance
broker’s pvt.ltd which differentiate Beacon from its competitors.

The other insurance marketing strategies followed by Beacon are:-

 Estimating local market potential for insurance.
 Products are a continual challenge for the insurance industry.
 Do you know who is likely to buy your products or how much business there
is in your territory?
For all insurance products, survey respondents identify the number of policies,
the total annual premium and the total value of the policy coverage.

Respondents also indicate if the policy had been purchased in the past three
years, if the policy was a new policy or a change in coverage, and any
replacement strategies. The result is a rich, unique data source for your
insurance marketing strategy and analysis.

Beacon is also known for:

 Getting the survey conducted within 24 hrs of the loss.
 Getting associated with you in preparation of documents for claims.
 Regular follow up with the surveyor for early release of the report.
 Scrutinizing the assessment of loss for ensuring protection of your interest.
 Ensuring expeditious claims settlement from the Insurance Company.

49
 Index for tables and graphs

Particulars Page no.

1. Distribution pie chart of ABC and intermediaries 16
2. Table for premiums: sum assured (mediclaim) 20
3. Sample of accident Insurance policy 28
4. Sample of Vehicle Insurance policy 31
5. Cumulative fatalities from earthquakes in India 33
6. Pie chart for awareness of brokerage services 45
7. Pie chart for awareness of Beacon insurance brokers
Pvt. Ltd. 46

50
Bibliography:

 Outlook money books; the lay mans guide to insurance.

 Company presentations.
 Company policy copies.
 Web site www.beacon.co.in

51