Chapter 1

Introduction to Insurance
Insurance is an integral part of everyones life in present scenario. Insurance or assurance is a device for indemnifying or guaranteeing an individual against loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called PREMIUMS. Payments for an individual loss, divided among many, do not fall heavily upon the actual loser. The essence of the contract of insurance, called a POLICY is mutuality. The entity that is transferring the risk, which may be an individual or association of any type, including a government or government agency-, is called INSURED. The entity accepting the risk is called the INSURER. The agreement between the two by which the risk is transferred is called the POLICY. This is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called PREMIUM. This is usually determined by the insurer to fund estimated future claims paid, administrative costs and profits. The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers, which surround the individual or property, jeopardizing the well being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by the actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital and they rank among the nations largest institutional investors.

Utmost Good Faith This doctrine calls for the proposer to disclose all facts that are material to the risk, whether the insurer inquires for the facts or not. Utmost good faith means complete honesty. Complete honesty relating to an insurance contract means that both parties (sides) to an insurance contract must make a full disclosure of all the material facts. Insurable Interest The legal right enjoyed by the owner of a property to insure is called Insurable Interest. The insurance will become null and void, without the insurable interest. Indemnity

Princip

The principle of Indemnity states that under the policy of insurance, the insured has to be placed after the loss in the same financial position in which he was immediately before the loss.

Subrogation

Transfer of rights and remedies from the insured to the insurer who has indemnified the insured in respect of the loss.

Utmost
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Contribution The right of insurers who have paid a loss under a policy to recover a proportionate amount from other insurers, who are liable for the same loss. Proximate Cause

The active efficient cause that sets in motion a train of events which brings about a result without intervention of any force started and working actively from a new independent source.

DEVELOPMENTS IN THE INDIAN INSURANCE SECTOR

Liberalization and reform have the potential to change the complexion of an industry. The Indian Insurance sector is no exception. Until recently, India continued to be one of few remaining countries of the world to remain insulated from the foreign direct investment in the insurance sector in abid to make this sector more competitive the government constituted an eight member committee chaired by Mr. R N MALHOTRA in 1993.The committee took a year to submit its report. The main thrust of its recommendations was: Open up the insurance sector Improve the service standards of Indian insurance majors Extend insurance coverage to a larger section of Indian population. The benefits of liberalization of Indian insurance sector were deemed to be that reforms would lead to: A competitive environment World class sophisticated technology Better and wide range of products with more reasonable & affordable pricing. Efficiency in the conduct of Insurance Business. Global Expertise & practices of insurance. Services of intermediaries like corporate agents, brokers etc.

General Insurance companies in India

In todays age of consumerism, insurance requirements have expanded to keep pace with the increasing risks. Gone are the days when life insurances ruled the roost; today we have a wide assortment of risk coverage commencing from health insurance to travel insurance to theft insurance to even a wedding insurance. With affluence and spending capacity on the surge there is a growing trend to fulfil needs, deal with responsibilities and secure ones possessions, be it good health or worldly wealth

General insurance companies have willingly catered to these increasing demands and have offered a plethora of insurance covers that almost cover anything under the sun. Any insurance other than Life Insurance falls under the classification of General Insurance. It comprises of: Insurance of property against fire, theft, burglary, terrorism, natural disasters etc Personal insurance such as Accident Policy, Health Insurance and liability insurance which covers legal liabilities. Errors and Omissions Insurance for professionals, credit insurance etc. Policy covers such as coverage of machinery against breakdown or loss or damage during the transit. Policies that provide marine insurance covering goods in transit by sea, air, railways, waterways and road and cover the hull of ships. Insurance of motor vehicles against damages or accidents and theft All these above mentioned form a major chunk of non-life insurance business. General insurance products and services are being offered as package policies offering a combination of the covers mentioned above in various permutations and combinations. There are package policies specially designed for householders, shopkeepers, industrialists, agriculturists, entrepreneurs, employees and for professionals such as doctors, engineers, chartered accountants etc. Apart from standard covers, General insurance companies also offer customized or tailor-made policies based on the personal requirements of the customer. A suitable general insurance cover is an absolute essential for every family. This is a necessity to overcome uncertainties and risks prevalent in life. It is also necessary to protect ones property against risks as a loss or damage to ones property can leave one in doldrums. Losses created by catastrophes such as the tsunami, earthquakes, cyclones, floods, and volcano eruptions or landslides have left many penniless and shelter-less. Such losses have the potential to shatter lives but availing a suitable insurance cover could help mitigate the unforeseen risks.

Similarly, an individual can be provided with a suitable insurance cover against Personal Accidents. A Health Insurance policy can provide financial relief and lowering of mental agony to an individual undergoing medical treatment on account of a disease or an injury. It is important for prospective customers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in correctly and completely with all factual and relevant data by the customer. He must also ensure that the insurance cover is adequate and an appropriate one, as desired.

Classification of Indian Insurance Industry

General Insurance is also known as Non-Life Insurance in India. There are totally 16 General Insurance (Non-Life) Companies in India. These 16 General Insurance companies have been classified into two broad categories namely: a) b) PSUs Private (Public Sector Insurance Undertakings) Companies

a)

PSUs

(Public

Sector

Undertakings):-

These insurance companies are wholly owned by the Government of India. There are totally 4 PSUs in India namely: National Oriental The New Insurance Insurance India Company Company Assurance Pvt Ltd Ltd Ltd

United

India

Insurance

Company

Ltd

b)

Private

Insurance

Companies:-

There are totally 12 private General Insurance companies in India namely: Apollo DKV Health Insurance Bajaj Allianz General Insurance Co. Cholamandalam MS General Insurance Co. Future Generali Insurance Company HDFC Ergo General Insurance Co ICICI Lombard General Insurance Ltd IFFCO Tokio General Insurance Pvt Ltd Reliance General Insurance Ltd Royal Sundaram General Insurance Co Ltd Star Health and Allied Insurance Tata AIG General Insurance Co Ltd Universal Sompo General Insurance Pvt Ltd Bharti AXA General Insurance India Ltd Ltd Ltd Ltd Ltd

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, and Germany. As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. The company garnered a premium income of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has made a profit before tax of Rs. 149.8 crore and has become the only private insurer to cross the Rs.100 crore marks in profit before tax in the last two years. The profit after tax was Rs.95 crores, which is also the highest by any private insurer.

VISION, MISSION AND ACHIEVEMENTS

Vision To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value Mission As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. Achievements Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moody's Investors Services, for Claims Paying Ability. This rating indicates highest claims paying ability and a fundamentally strong position.

SHARE HOLDERS AND PROMOTERS

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the following to offer: Vast distribution network. Knowledge of Indian consumers. Financial strength and stability to support the insurance business.

Allianz SE, Germany

Allianz SE is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the world's largest infrastructure projects (including Hong Kong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels. Allianz SE has the following to offer Bajaj Allianz General Insurance Company Ltd. : Set up and running of General insurance operations New and improved international products One of the world's leading insurance companies More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide Provides insurance to almost half the Fortune 500 companies Technology.

STRENGTHS OF BAJAJ ALLIANZ

The Bajaj Allianz Difference: Business strategy aligned to clients' needs and trends in Indian and global economy / industry Internationally experienced core team, majority with local background Fast, decentralised decision making Long-term commitment to market and clients

Trust
At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto Limited is trusted name for over 55 years in the Indian market and Allianz SE has over 110 years of global experience in financial services. Together we are committed to provide you with time tested and trusted financial solutions that provide you all the security you need for your investments.

Underwriting Philosophy
Our underwriting philosophy focuses on: Understanding the customer's needs Underwriting what we understand Meeting the customer's requirements Ensuring optimal coverage at lowest cost

Claims Philosophy
The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing. We pride ourselves on a friendly and open approach. We are focused towards providing you a hassle free and speedy claims processing. Our claims philosophy is to: Be flexible and settle fast Ensure no claim file to be seen by more than 3 people Check processes regularly against the global Allianz OPEX (Operational Excellence) methodology sold over 1 million since inception.

Customer Orientation
At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our efforts are directed towards understanding the culture, social environment and individual insurance requirements - so that we can cater to all your varied needs.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are supported by the necessary international expertise required to analyse and assess them. Service engineers located in every major city.

Superior Technology Unique Forms of Risk Cover

In order to ensure speedy and accurate processing of your needs, we have established world class technology, with renowned insurance software, which networks all our offices and intermediaries Using the Web, policies can be issued from any office across the country for retail products Unique, user friendly software developed to make the process of issue of policies and claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

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Special PA cover for Amarnath Yatris Film insurance Event management cover Sports & Entertainment Insurance Package

Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves: Risk identification: Inspections Risk analysis: Portfolio review and gap analysis Risk retention Risk Transfer: To an insurer as well as reinsurer (as required) Creation of need based products

Channels
We have multichannel distribution strategy Agents and Corporate Brokers Over 7000 agents across India Banc assurance Over 200 Banc assurance Motor Dealers Travel Agents

LOCATIONS COVERED IN DELHI NCR: - LOCATION MAPPING

1) Delhi (Area office) 2) Gopal Das (Area office) 3) 4) 5) Gurgaon (Area office) Rewari - Satellite office Dwarka - Satellite office Old Gurgaon - Satellite office Noida (Area office) Agra - Satellite office Dehradun - Satellite office Ghaziabad - Satellite office West Delhi (Area office) Rajendra Place - Satellite office Janakpuri - Satellite office

6) Nehru Place (Area office) Faridabad - Satellite office

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Products

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We have a range of Insurance Plans to suit your needs be it Individual or Corporate. Plans to suit your health, travel, vehicle and also your dream home. In addition to this we have plans to protect you against your profession. We have also several tailors made insurance solutions to suit the needs of your Business Unit not only your Assets but also your Human Assets.

Assets insurance:You build your dream homes to house your loved ones. And then you nurture it with great care. With our vast insurance plans secure your...

Health insurance:Now you can protect yourself from costly medical bills in case of any emergency. Our range of health plans covers you and your...

Travel insurance:While travelling alone, or with friends and families, for business or for pleasure - you are exposed to many travel related risks...

Corporate insurance:You put your hard earned money into your business. We have a range of products to secure your business against all risks...

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Asset Insurance: Insure and get benefit of Highest Standard Services Motor insurance: - Your vehicle is exposed to lot of risks putting yourself, your family in trouble in case of accident. Get benefit of speedy cashless claim settlement... Home: Protection against all risks: - At Bajaj Allianz we do not insure houses, we insure homes. For you your home is the most valued possession, a haven of safety... Shop /showrooms: protection against all risks: - Comprehensive package policy to insure money, data media, software, cost of recovery of lost data, personal insurance of employees... Easy householders package policy:-Your dream home can now be protected with Bajaj Allianz Easy Householders Package Policy- a simplified householders policy designed for your convenience...

The worst nightmare that anyone can have is the one when a family member is hospitalized. Today, when everything is uncertain nobody can be sure what will happen. A seemingly small ailment can turn into major one. And what happens when the earning member of your family is hospitalized? But with a policy from Bajaj Allianz you and your family can rest assured!

Health guard: - It is rightly said Health is Wealth. We are all aware that health care costs are high and getting higher. At times, unfortunately we fall prey to unanticipated accidents & illness... Hospital cash: - With a Hospital Cash policy from Bajaj Allianz you and your family can now breathe a sigh of relief! As this is a benefit policy which covers the incidental expenses...

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Critical Illness: - Critical illness policy provides protection from the life threatening illness, which can hamper your routine life style. With a critical illness cover you can secure... Personal Guard: - Life is full of uncertainties and unexpected events. Accidents can happen at home, at work, even at play. The death or injury of a breadwinner can create serious... Silver Health: - As the age of an individual increases the health care costs increase & become a burden on the individual. The senior citizens have to pay out the hard earned savings... E-Opinion: - Bajaj Allianz launches e-opinion rider, which will cover the expenses of 2nd opinion e-consultation services for serious illness in India... Star Package: - Star Package policy is a unique family floater policy which protects your family against various risks and contingencies. It provides a gamut of covers... Health Ensure: - In the times of rising medical costs Bajaj Allianzs Health Ensure policy is the perfect health protection for you and your family... Insta Insure: - In the times of rising medical costs Bajaj Allianz's Insta Insure Family Health Policy is the perfect health protection for you and your family... Sankat Mochan: - Experience the joys of life with an assurance of Extra Safety for you! Bajaj Allianz General Insurance Company introduces Sankat Mochan policy which... Family Floater HG: - Everyone is entitled for a quality medical care. But with the increasing costs of these services it is difficult to manage the... Tax Gain: - Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Fiserv Limited (recently demerged from Bajaj Auto Limited) and... Extra gain: - Bajaj Allianz Extra Care, a unique health insurance plan, allows you to extend your health insurance cover. So incase of higher expenses...

Whether you travel for business or pleasure, international travel involves risk. Medical treatment abroad can be expensive & one never knows when one would require it. There are other difficult situations also, that one might face like loss of passport or baggage. Bajaj Allianz's Travel companion is designed to help you deal with such situations while overseas travel.

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Travel Companion: - International travel involves risk. Travel companion is specially designed to help you deal with situations while overseas travel. Choice to select out of 5 plans suitable for you... Student Companion: - Most suitable policy for students travelling overseas. Choose out of 3 plans. Online renewal facility. 24x7 Call centre for any claims help... Pravasi Bharti Bima Yojana: - A special package for overseas travellers travelling to gulf countries with special rates by Bajaj Allianz. .. Travel Asia: - Bajaj Allianz General Insurance has introduced two new, low-cost travel insurance plans for travellers to Asian countries... Travel Elite: - An exclusive policy for high end travellers called Travel Elite- a cluster of benefits policy made for the specific customer group... Travel Assist: - Bajaj Allianz General Insurance along with ASSIST CARD a Swiss company has launched a co-branded travel insurance product called TRAVEL ASSIST... Swades Yatra: - Travelling has become very frequent be it for business or leisure. The risk of accidents increase due to frequency of travel...

You put your hard earned money into your business. We have a range of products to secure your business against all risks. Specialty Lines: - In order to take care of special needs like Aviation, Marine Hull, Project Insurance, Freight Forwarders, Port Liabilities, Film Insurance... Your Employees: - Your employees are your strength, you can take care of your employees with our Group policies like PA, Group HG, Group CI, Group Travel... Office: - Your office is a hive of activity. Major investment, time and effort go into building up your business. Our office package is the best way to protect your business...

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Manufacturing Unit: - While going about your daily business activities, dangers could be lurking close to you. Machinery breakdown, Fire, Earthquake, etc. could severely affect your...

Motor Vehicle Insurance

Technology has made our daily life simpler in various ways. Motor vehicle is an invention which has made daily commuting easy. It is convenient and fast and saves our time. Though it is easy to own a vehicle but it is expensive maintaining a motor vehicle especially in case of damage caused to your vehicle due to some unavoidable circumstances or accidents. Bajaj Allianzs Motor Vehicle policy helps you in maintaining your vehicle in such situations. What does the Bajaj Allianz Motor Policy cover? The policy offers the following scope of Cover : Section 1 : Undertakes to reimburse the expenses incurred for: Repair / replacement of the parts of the vehicle To pay the market value of the vehicle in case of a total loss, provided that the originating cause of such damage is an accident, including theft. Section 2: Is compulsory. It covers the legal liability to third party personal injury and property damage arising out of an accident involving the insured vehicle. What are the Optional Extensions? The extensions that can be opted for are as follows : Loss of accessories Legal liability to the paid driver, cleaner or any workman Personal accident to the occupants Personal accident cover for owner-driver is compulsory Increased Legal liability towards property damage of third party for a limit of Rs. 7.5 lacs Other Salient Features For claims free experience, discount available on subsequent renewal. Discount available if voluntary excess opted for Discount available for membership with approved Automobile Association Discount available for installing approved anti-theft device Depreciation, for the parts needing replacement in the accident is defined What does the policy not cover? The General Exclusions are as listed below : Any accidents outside the geographical area Consequential loss, normal wear and tear

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 Driving without a valid licence for that class of vehicle. Driving under the influence of liquor / drugs Vehicle not being used as per Limitations to use

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What is not covered

Normal wear and tear and general ageing of the vehicle Depreciation or any consequential loss Mechanical/ electrical breakdown Wear and tear of consumables like tyres and tubes unless the vehicle is damaged at the same time, in which case the liability of the company shall be limited to 50% of the cost of replacement Vehicles being used otherwise than in accordance with limitations as to use Damage to/ by a person driving any vehicles without a valid license Damage to/ by a person driving the vehicle under the influence of drugs or liquor. Loss/ damage due to war, mutiny or nuclear risk

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Objective of the Study The Primary objective of the project undertaken is as follows: The main aim of the project is to know the process of Underwriting & flow of documents at Bajaj Allianz.

1. With the help of this project we can know the improvement area where the processes are delayed in operations. 2. The objective is to discover the remedies that would help to improve the quality of working life operation of Bajaj Allianz. The secondary objective of the project is to know the view of the different channel partners members about the working of the operations of the company.

With the help of: Questionnaire Interviews Personal Talk Policies Guidance Websites Questionnaire: - It is a kind of document having certain questions and fill in the blanks through we can able to know the views of persons/employees. Interview: - It is a kind of face to face official kind of conversation in which we will enquire/communicate and ask questions which restricts to official levels in order to gather certain project relates information, it may be organized and sometimes it may be on the spot i.e. non- organized. Personal Talk: - It is a kind of Normal/friendly talk/communication through which we can ask anything friendly or frankly in order to know the person and gather certain mix information. Policies: - It is a kind of documents in which companys legal, confidential, private strategies, rules, principals are written according to which that has to be obeyed by every employee of the company. Moreover every work is done according to following the companys policy.

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Guidance: - It is just like advices and help of the guide and other employees who use to give time-to-time guidance in order to improve and update, edit the work and performance. Websites: - It is a global network where we get the information.

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Research methodology
1) 2) 3) 4) 5) 6) Type of research design. Data collection from secondary sources. Data collection from primary sources Scaling technique Questionnaire development Sampling technique

1) Type of research design

Research design is a framework or blueprint for conducting the business research project. In my project I used the descriptive research design. Descriptive research is a type of research that has as its major objective the description of something usually business characteristic or functions. It may be qualitative or quantitative. Descriptive research is conducted for the following reasons: a.To describe the characteristics of relevant groups, such as consumers, sales, people, organisation or market area. b. To estimate the percentage of units in a specified population exhibing a certain behaviour. c.To determine the perceptions of product characteristic etc. d. To make specific predictions. 2) Data collection from secondary sources Data collected from some purpose other than the problem at hand is called secondary data. It can be qualitative or quantitative. The Secondary source of data collection used in the project is: Website Books

3)

Data collection from primary sources

Data originated by the researcher for the specific purpose of addressing the research problem is called Primary Data. The primary sources of data used in my project are: Observations Interviews Questionnaires Face to face talk 4) Scaling Technique

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In this project Likert scale is used, which is a measurement scale with five response categories ranging from strongly agree to strongly disagree or strongly dissatisfied to strongly satisfied which requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements related to the stimulus objects. 5) Questionnaire Development A structured technique for data collection that consists of a series of question written or verbal that a respondent answers is known as questionnaire. Questions used in this project are both unstructured (Open Ended) and structured. In the sampling technique instead of every unit of the whole universe only a part of universe is studied and the conclusions are drawn on that basis for the entire universe. And I have chosen random sampling techniques.

Sampling design
1) Target Population Target population is defined as the collection of elements or objects that posses the information sought by the researcher and about which inferences are to be made. Target population in my project is the employees of Bajaj Allianz. 2) Sampling Frame A representation of the element of the target population is sampling frame. It consists of a list or set of direction for identifying target population. Sampling frame of my project is from the record kept to the administration vertical. 3) Sample Size Sample size is the number of elements to be included in a study. Sample size of my project is 70. 4) Sampling Technique A non probability sampling technique that attempts to obtain a sample of convenient elements. The selection of sampling units is left primarily to the interviewer. In my project I used convenience sampling and approached frequently to them whom I knew and who frequently visited the branch. 5) Tools Used Tools used for my project is PIE Chart for representation of Data Sample.

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6) Response side
Employees of the Nehru place branch of Bajaj Allianz.

Collection of Data
The Data collected from the respondents have been entered in an excel sheet and attached with project as Annexure I.

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Operations process at basic

POLICY PROCESSING MODULE

Policy processing module is the software that is use for all the operational functions that are performed from Registering the proposal, PID generation, viewing the proposal, underwriting to issuance and printing and verifying the proposal. Record of business proposals Upload/attach scanned images/XL calculations/important docs Monitor progress Track paper movement Capture approvals Internal communication Refer business case to competent authority on-line Communication with IMDs Business done MIS MIS to our Channel Partners Internal MIS for process TAT

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Stages of Document Movement recorded in PPM

Register Proposal - To record a business received

Generate Partner ID - To search and/or create a new PID Generate Receipt Generate DAR Inward Proposal View Proposal Modify Proposal - Account money/instrument received - Electronic transfer of SO/BO Proposals to issuing office - Electronic registration of BO/SO cases at issuing office - Status enquiry window - Edit contents of a Proposal

U/W Decision [Approve / On Hold / Reject / Refer] Underwriters interface to record his/her decision Approve [Referred/Represented Proposal] ZRA, HO decision on cases referred to them Assign Proposals Forward approved Proposals to Policy issuers for data entry Policy/Endorsement Issuance Interface To issue policy or create CID on Web-based issuance module Policy Printing Interface - Centralised Policy printing access

Policy Preparation Interface - Status update on Policy document preparation

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 Policy Verify/Sign Interface - Status update on Signature of Policy Dispatch Interface - Information on Process flows, presentations,

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PROCESS AT BRANCH

1) Register proposal - The process at branch starts with the generation of proposal number by registering the proposal on PTM. This number is mandatory for policy issuance. Every proposal is given a unique number which is the following format: Location Code Year 1101 09 Running Number 00000001

Registering the proposal means specifying that the proposal received is a renewal, transfer from other company. In case its a renewal the previous policy details i.e. is the policy no and PID OR PPID, product code and contact numbers will automatically be updated partner database Imd code or sub Imd code will also be mentioned on all the proposals to be registered whether its a renewal or a transfer from some other company. (IMD code is the unique number given to all the intermediaries like agents, brokers etc) Payment mode has to be specified cheque or cash if cheque then cheque number, date and amount of proposal mean the amount that is paid as premium or the amount that is written on the cover note not the amount of cheque that is given as the cheque. Documents that are enclosed along with the proposals are ticked also the cover note number is a mandatory field after all the details are filled the proposal is registered.

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2) Generate PID After creation of a proposal number, the documents are then forwarded for PID creation and receipting. PTM has the feature to generate a PID number, which is automatically linked with the proposal number. It is known as patner identification number it is unique to every proposal that is registered. PID are created before Approval of Proposal. For a new relationship, PID needs to be searched from database before creating new. If identical details exist, Search existing PID. Modify Proposal and update the PID. For creating new PID Proposal Number is mandatory. Will not allow creation if Proposal Number already has a PID captured. Once created, will update Proposal. Partener idntification number includes feeding the partner information i.e the customers name his profession, and most importantly customers address and his contact numbers if any for future reference like renewal letters etc.

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3)

Generate Receipt The receipting also is done through PTM and the receipt number is auto linked to the proposal number.for creating a recipt number the proposal number is mandatory without that the recipt can not be generated. PID Number, Partner Name, IMD Code and Sub-IMD Code are auto-populated and blocked for editing . If any previous Receipt exists it is capture the number in Receipt Number field at Register Proposal stage. Instrument that is the mode through which the payment is done is updated and a receipt is generated. Its gives the conformation that the proposal is registered.

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4)

Initial scrutiny at branch - After the partner id is generated and receipting is done the next step is to scrutinising the proposals at branch level according underwriting guidelines issued this is called 1st level underwriting. The initial scrutiny of proposal is done at the branches. The proposals are checked for complete documents as per the product proposed for insurance. The proposals cleared off from 1st level scrutiny are send for issuance to Hub and the rejections are held at branches for follow-ups.

Ok cases (clear cases) Sent to hub for further processing. (Underwriting and issuance)

Branch rejection Held at branch for follow up. (Follow up with MOs and IMDs)

Ok (clear cases) are sent to hub for further processing i.e. for second level underwriting and issuance and the others are held at branch are known as Branch Rejections. The Proposals which are rejected at the 1st level underwriting are held at branches only and are followed up by the underwriters/ branch operations in charges full filling the requirements. DAR for such proposals is not generated by the branches and the status of such proposals remains Inwarded by BO in PTM and reason for rejections are updated in remarks column of proposal. The reason for rejection can be : Declined Risk. Inspection Requirement. NCB recovery. Loading requirement. Approval for cases with deviation from Underwriting guidelines. NCB Declaration required. Documents requirement (RC, Prev. Policy copy, Permit, Form 29-30) Additional premium for specific coverage opted.

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These are the rejections that occur after 1st level underwriting of the branches as discussed before. For its resolution there is a separate person deputed to handle these rejections. He/she looks after the necessary steps to be undertaken to complete the formalities and issues arising out of the concerned proposal by co-ordinating with the marketing department etc. If it is not resolved then after a specific period of about 30 days it is sent to the hub. The hub receives it and then the 2nd level underwriting takes place which further segregate these cases as approved or non-approved. The approved cases are sent for issuance while the non-approved cases are put on hold and are directed to be resolved again by the hub through sending letters to the insured to ask for completion of necessary requirements which acts as a necessary proof of evidence by the Laws governing the industry. 5) Daily Activity Report Generation After the proposals are scrutinised, the ok case are sent to hub and their daily activity report is generated which is attached with the physical copy of covernotes and their corresponding documents. The proposals that are being physically send at Hub, DAR is generated by the branches. A print of this DAR is taken and attached with the proposals being sent which helps Hub in reconciliation process of documents received. DAR Proposals are tallied with physical paper sets that are physically sent to hub for further processing.

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PROCESS AT HUB

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 Received by RO The documents that are sent to hub are received by RO. The proposals being sent by the branches are received at Hub and the Hub underwriters change the status from Sent to RO to Received by RO. After successful Inward, the Proposals will be available for further actions at issuing office. Physical reconciliation of these proposals is then done at Hub and cases not received are followed up with the Branches. Covernote scrutiny at hub The proposals, which are accepted by Hub underwriters for issuance, are then forwarded to the Issuance team for conversion into policies. For proposals rejected by the underwriters, the reasons for rejections are uploaded in the PTM and cases are then forwarded to the rejection team for follow ups or for Issuance and Cancellation. After the proposals are received by hub they are scrutinised by the hub underwriters (2nd level under writing). The proposals, which are not acceptable from underwriting point of view, are rejected and forwarded to the rejection team for resolution or for Issue and cancel. The rejections in underwriting are done mainly for the following reasons: NCB recovery or NCB recovery required. Loading is done some specific make and models. Inspection is done in the cases where there is break in insurance. Approval is needed if there is any diversion from underwriting guidelines (if discount is given on OD premium) Declined Risk (decline vehicle) Documents requirement (RC, Prev. Policy copy, Permit, Form 29-30) Additional premium for specific coverage taken. (PA to unnamed passenger, CNG kit, electrical accessories

Ok cases (approved) (Sent for issuance) them)

On- hold and hub rejection (Sent to rejections team for resolving

Underwriter can categorize decision to Approve comments for policy issuance can be captured Put On-hold deficient Proposals

37

 Reject unacceptable Refer to HAT/ZRA/HO Represent case denied earlier

38

39

 Underwriter rejects the proposals. They select only one entry at a time. Click on the exact reason for rejection.

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 Approval and assigning of ok cases for issuance The proposals that are approved from underwriting (ok cases) are assigned to issuance team for issuing the policy. The proposals, which are accepted by Hub underwriters for issuance, are then forwarded to the Issuance team for conversion into policies. For proposals rejected by the underwriters, the reasons for rejections are uploaded in the PTM and cases are then forwarded to the rejection team for follow ups or for Issuance and Cancellation.

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 On hold and hub rejection forwarded to rejections The proposals that are not accepted by hub underwriters due to any of the above stated reasons are sent to rejections team for resolution (letters are sent to clients and IMDs) or issue and cancel. These are the rejections that are basically rejected due to violation of underwriting guidelines of the company. There may be various reasons for it like the vehicle model is a declined risk that is not accepted by the company to undertake the risk, there is wrong calculation of premium regarding discounts and NCB, etc. These are sent to the rejections team which send letters to the insured to ask for clarification or to negotiate with them for undertaking the risks involved Issuance of ok cases - The approved proposals are then forwarded for conversion into policies to the issuance team at Hub. In case there are any rejections at issuance end, they submit the same with the rejection team, which then follows up with branches for resolution of such cases. The rejections at issuance end are mostly for short premium, cheque bounces, variation in IDV above allowed limits etc. Then the print of policy document is taken from Proposal Tracking Module. Short Fall in Premium Cheque Bounce IMD Change approval Discount approvals

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Policy printing The proposal that are converted into policies through policy issuance interface that are printed for dispatching it to customer. But before

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dispatching the verification of documents is done. Printing can be for selected Proposal or a range.

Policy preparation interface After the policy is printed before dispatching it is prepared for verification. It is an Interface to record binding/preparation of Policy docket. All Proposals in status Printed will be listed in the screen by default. On completion of job, if we Click on Proposal followed by Update Preparation Details will update status to Prepared.

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 Verification of documents - The issued policies are then verified and signed and if there is any difference found between the details of cove note and policy then that is forwarded for endorsement. Prepared policies are listed in screen by default. On verification and signature on physical copy, update is required to be recorded on system. On Update Proposal the status will change to Verified-Signed.

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 Dispatching the policy - The policies are then dispatched to the concerned client as entered while registering Proposal. Proposals in Verified-Signed status will be listed by default. Process steps Select Proposals to be updated Export to XL - Generate spreadsheet; save with unique name Use sheet update relevant details like Mode Name - Courier Name; IMD Name; Relationship Person Name

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POD No Courier POD No; RPAD/UCP Registration No Dispatch date in Format DD-MMM-YYYY.

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STANDARD REJECTION REASONS

For issue & Cancel Break in the Insurance Period - Vehicle Inspection required Overwriting on the Covernote, copy of original Covernote required Overwriting on the Covernote- Vehicle Inspection required Last year policy or pre inspection, loading required Declined Model - M&M Bolero, TP proof of sold vehicle, Invoice & Delivery receipt and NCB transfer letter in company letterhead required. Risk Declined - Covernote is issued even after the non-recommended Inspection Difference of 1 day in cover note issuance date and the date of invoice Vehicle Inspection required Transfer papers and pre inspection required Transfer case, pre inspection required Pre inspection required Vehicle has stage carriage permit. Issue and cancel: -Declined Risk Age of vehicle is not as per u/w. Last year policy or pre inspection, RC COPY, NCB recovery and 10% loading required

CNG Inspection, CNG- endorsed RC and CNG invoice copy required for covering the same in the policy

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 LPG Inspection, LPG- endorsed RC and LPG invoice copy required for covering the same in the policy Declined Risk, loading required.

Reason for on hold:

NCB transferred without submitting NCB Retention certificate from Previous Insurer NCB Retention Certificate Required Covernote details not filled up properly, IDV / Premium calculations are missing Covernotes issued for the vehicles that violates the UW guidelines on the grounds of Age restriction, Declined risk, Declined Make & Models Loading waived off /Higher rating as per U/W guidelines not charged Additional Excess not mentioned on the cover note, submit copy of original Covernote mentioning the same Proposal form not attached NCB Declaration Required from the client Delay in submission of covernotes, IMD Change approval required CD/ OD Discount Approval required from Branch head Shortfall in Premium amount deposited submission of difference amount. Vehicle sale proof required - submission of transferred RC or Form 29 30 Value of accessories above 10000/-, Inspection and invoice of accessories required TP proof of sold vehicle required

Wrong premium calculation, Class A rating required Transfer case, NCB NA, Recovery required Vehicle details endorsed policy and vehicle RC required

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 Proposal Form and NCB Declaration required Transferred RC, Form 29, 30, cng OD & TP Premium and cng invoice req. ADDITIONAL EXCESS Rs. 1500/- required Invoice & Delivery receipt required issue and cancel More than 1 month gap in between cover note issuance and inspection-pre inspection req. again Invoice req, ownership clarification req. From hero honda

GENERAL PROCEDURES IN UNDERWRITING

1) Bajaj Allianz renewals will be given to the original IMD in whose name the expiring policy was booked -- irrespective of who has picked up the current renewal year. This means (e.g.) if the IMD involved in the expiring policy was IMD A and this year the renewal cheque has been collected by IMD B -- then the policy will be issued in the name of IMD A and not IMD B. This provision came into effect for all covernotes received on or after 01/02/2005. 2) In case of break in insurance of our own renewals (Motor only) -- the credit will be given to the person who brings in the business (Break in insurance after 7 days). 3) Proposal Form must be complete in all respect and must be received along with cover note otherwise proposal are rejected. (Other than BAGICL renewals -- In case of break in and Transfer case Proposal Form is must); where the proposer opts for Voluntary Deductible, the same column must be signed by the proposer and it should be mentioned on Covernote also. Any discounts in the premium allowed to the insured, is clearly mentioned in bold-letters on the face of the cover

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note. There should be no amendments made in ink on the office copy of the cover note submitted and if found then the pre inspection is required. 4) Vehicles without any past insurance/ Break in insurance can only be covered after SATISFACTORY INSPECTION (to be conducted by our authorized agencies) REPORT and LOADING as under: a) Up to 3 months: b) Above 3 months and up to 6 months c) Above 6 months and up to any Nil 20% 50%

5) Original cover note and subsequent copies should carry the pre inspection number and damage details in special condition and additional risk if any Column duly signed by the insured.

6) Voluntary excess and additional excess details should be clearly noted down in the space provided in the original and copy of cover note duly signed by the insured. ** In such cases, Inspection Report must be attached with the Covernote and other relevant docs.

7) Rules relating to no claim bonus effective 1st July 2002 as under must be strictly followed: Details No claim made or pending during the preceding full year of insurance No claim made or pending during the preceding 2 consecutive years of insurance No claim made or pending during the preceding 3 consecutive years of insurance % Of Discount Premium on Own Damage

20%

25%

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35% No claim made or pending during the preceding 4 consecutive years of insurance No claim made or pending during the preceding 5 consecutive years of insurance

45%

50%

Old vehicle (less than 8 years) The following procedure should be strictly followed: a) Without break-in insurance: Copy of previous policy/covernote/renewal notice along with NCB proof to be attached NCB declaration as provided in the tariff must be signed by the insured where the renewal is from another insurance company. b) With break-in insurance: To contact the Inspection agencies either: a) Adroit Services at 22374994-96 & 43690000-100 & mail@adroitgroup.net b) Auto Risk Management at 45402992-91,66402990 & 9891990923 & autorisk@airtelbroadband.in

ENDORSEMENTS
A) TRANSFER: In case the vehicle is sold, vehicle need to be inspected, transfer of Policy request must accompany with copy of forms 29 & 30, delivery of vehicle receipt, transfer fee Rs. 50/- and amount of recovery of NCB. Further letter from the existing insured stating transfer of policy in the buyers name along with original policy must be submitted. NCB RECOVERY AMOUNT MUST BE CHECKED FROM OFFICE. No endorsement will be issued unless the inspection report is satisfactory.

B) CANCELLATION ON SALE OF VEHICLE: Proof of insurance of the vehicle in the name of new buyer along with documents form 29 & 30, delivery receipt, original policy is required.

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C) ANY OTHER: Written request from insured stating the changes to be made on the policy with policy number/covernote number.

COVERNOTE ISSUANCE
GENERAL

Cover note issued should carry all details like Registration. No., Engine No., Chassis No., Make & Sub Model including year of manufacturing, seating capacity, cubic capacity, IDV, name of financer, name and address including pin code, telephone number of insured details of any extra cover provided or discount allowed, previous insurance details, period of insurance (with time), date & time of issue of cover note, payment details and signature of the authorized signatory, STAMP CARRYING IMD CODE, IMD NAME & PHONE NUMBER,RECEIVING DATE and ADDRESS STAMP OF BAGIC OFFICE. a) I.D.V: As per IRDA Guidelines apply depreciation on current ex. Show Room cost of the vehicle excluding the cost of registration and insurance and other any additional cost such as handling cost and cost of number plate): IDV on cover note should be the same on which premium has been calculated.

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b) Period of insurance: Should start from date next to expiry of previous year insurance but not prior to todays i.e. cover note issuance date. No renewal should be accepted for which risk inception date is after more than one month. c) Details of extra cover: Like Electrical accessories IDV & make model with supporting documents i.e. Invoice and pre inspection. PA to passengers should be equal to total seating capacity. Voluntary excess-discount & amount clearly written on original & copy of CN. Details of previous insurance co, policy no. & date of expiry with NCB entitlement. d) Payment details: Cash or cheque no, dated & bank name. e) Signature: The nominated person authorized by BAGIC LTD. f) Premium calculation: Please provide calculation of premium (with full break-up) charged showing all extra /discounts allowed on the cover note. g) Phone No: correct contact number of the insured.

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COVERNOTE FORM

55

PRIVATE CAR/TWO WHEELER- PROPOSAL FORM

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57

CERTIFICATE CUM POLICY SCHEDULE

Motor Tariff at a glance

AGE OF VEHICLE
% OF DEPRECIATION FOR FIXING

effective 1st July 2002

IDV(Insureds Declared Value) Not exceeding 6 months Exceeding 6 months but not exceeding 1year Exceeding 1 years but not exceeding 2 years Exceeding 2 years but not exceeding 3 years Exceeding 3years but not exceeding 4 years Exceeding 4 years but not exceeding 5 years 5% 15%
Sunset Clause For insured already having NCB of 55 % / 65% the same rate will continue. NCB SLABS

20%

20%

25%

30%

35%

40%

45%

50%

50%

No Claim Bonus rules: Policy has to be taken within 90 days of previous Policy expiry to earn NCB.To transfer Policy on sale of vehicle the NCB has to be recovered on pro rata basis if the buyer is eligible for nil or lesser NCB .The NCB falls to 0% on a claim occurrence. No premium loading in this Tariff. Note: For vehicles beyond five years of age and obsolete models, which are not being manufactured, the IDV is to be fixed as per market value of that particular vehicle on mutual understanding. Please note that Sum Insured on electric and electronic accessories are also fixed in the beginning by taking market (depreciated) value. Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune. Zone B: Rest of India Private cars 1000cc 1000ccto 1500cc 20000/Above 1500cc 30000/P.A. Cover for owner driver holding effective D/L compulsory- Rs. 2 lacs cover, charge extra premium of Rs.100/Legal liability for paid driver/cleaner/employee extra premium Rs 25/-

Minimum IDV Below 5yrs

15000/-

3.127% Zone A 3.039% Zone B

3.283% Zone A 3.191% Zone B 3.447% Zone A

3.440% Zone A 3.343% Zone B 3.612% Zone A

Optional PA covers for other than owner driver maximum Rs. 2 lacs per person. Rate Rs. 20/- per Rs 10,000/- Sum Insured. For approved anti-theft device by AAI, discount 2.5% of OD Premium subject to maximum of Rs 500/TPPD for Rs. 7.5lacs inbuilt can be reduced to Rs 6,000/- (compulsory as per Act) by giving discount of Rs 100/- on the Third Party Premium.

5 yrs to 10yrs.

3.283% Zone A

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3.191% Zone B 3.362% Zone A Over 10 yrs 3.267% Zone B

3.351% Zone B 3.529% Zone A 3.430% Zone B

3.510% Zone B 3.698% Zone A 3.594% Zone B CNG/LPG charge extra premium 4% on value of kit + Rs 60/- (TP)
SHORT PERIOD RATES (4W and 2W)

Electrical/Electronic accessories to be charged extra at 4% of their value.

Upto 1month 1-2 moths 2-3 moths

20% 30% 40% 50% 60% 70% 80%

Third party
Compulsory Excess

670/500/-

800/500/-

2500/1000/-

Fibre glass fuel tanks premium by Rs 50/-

load

OD

Voluntary Deductible

If 2500/20% of OD max 750/-

If 5000/25% of OD max1500/-

If 7500/30% of OD max 2000/-

If 15000/35% of OD max2500/-

Minimum Premium 100/-

Rs

3-4 moths 4-5 moths 5-6 moths 6-7 moths

Transfer fees Rs50/AAUI discount 5% subject to max Rs 200/-

Premium Discount

Two wheelers Upto 150cc 150cc 350cc 6000/to Above 350cc 7000/P.A. Cover for owner driver compulsoryRs.1 lac cover, charge extra premium of Rs.50/-. Legal liability for paid driver/cleaner extra Rs 25/-

7-8 moths
Over 8mths

90% FULL

Minimum IDV

5000/-

1.708% Zone A Below 5yrs 1.676% Zone B 1.793% Zone A 5 yrs to 10yrs 1.760% Zone B Over 10yrs 1.836% Zone A 1.802% Zone B

1.793% Zone A 1.760% Zone B 1.883% Zone A 1.848% Zone B 1.928% Zone A 1.892% Zone B

1.879% Zone A 1.844% Zone B 1.973% Zone A 1.936% Zone B 2.020% Zone A 1.982% Zone B

Legal liability for employees of insured other than driver/ cleaner Rs60/-

For approved anti-theft device by AAI, discount 2.5% of OD Premium subject to maximum of Rs 500/-

TPPD for Rs.1 lac inbuilt can be reduced to Rs 6,000/- (compulsory as per Act) by giving discount of Rs 50/- on the Third Party Premium Electrical/Electronic accessories to be charged extra at 4% of their value.

Loss of accessories by theft is covered at an additional premium of 3% of accessories value subject to a minimum of Rs 50/Not exceeding 75c.c.

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Third party
Compulsory excess Voluntary Deductible

Rs.300/Rs50/If 500/5% of OD max 50/-

Rs.300/Rs50/-

Rs.620/Rs50/-

Rs.300/AAUI discount 5% subject to max Rs 50/Minimum Premium Rs 100/Transfer fees Rs50/-

If 750/10% of OD max75/-

If 1000/15% of OD max125/-

If 1500/20% of OD max200/-

If 3000/25% of OD max250/-

Premium discount

NOTE1. Motor was the only department covered me during my training period. 2. The process of issuance of policy in non motor(Health) is similar as that in motor.

Chapter-3

Analysis of Data and Interpretation

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1. You work under which channel Partner?

2. Are you satisfied with the present flow of documentation at Branch?

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3. Are you satisfied with the present process of flow of documents for issuance to HUB?

4. Are the time taken for issuance a policy is satisfactory?

5. You absolutely comfortable with your operation team.

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6. You frequently have conflicts with operation while issuing the policy.

7. Operations staffs come forward eagerly to resolve the issues.

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8. Do you really feel free to communicate with your Operation Team members on policy regarding issues?

9. You feel comfortable while working within company premises.

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10. Does the operation team issue the policy whenever they say?

11. Does the operation Team do whatever it promises to do?

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12. The operations activities are readily communicated to you regular basis.

13. Where do you think the process is getting delayed?

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14. How do you rank Bajaj Allianz Operation Department?

15. Where the operation is taking more time than actually required?

16. Add any improvement you feel in the process of flow of documents at Bajaj Allianz.

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Finding and Solution Proposed Findings Existing structures Merits: 1. Faster policy issuance. 2. Direct customer interface. 3. Fast decision making 4. Exposure/learning for local issuance team members. 5. Understanding of local trends. Existing structures demerits: 1. Quality of claims processing not consistent across offices. 2. No standardization in processes/assessments. 3. Paucity of trained resources. 4. High cost of upgrading skill sets of branch claim team. 5. High employed turn over may affect service levels. 6. Susceptible to misuse of authority. 7. Local pressures may lead incorrect settlements.

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Analysis on turnaround time between each stage of document flow

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ISSUES IDENTIFIED AT BRANCH LEVEL DOCUMENT FLOW

Firstly the covernotes that are received are not supported with all the documents that are needed to approve the cases in one go. Example in some documents the copy of RC is missing, in some the previous policy copy or previous insurance proof is missing, on some the proposal form etc because of which the proposals are hold at the branch only for resolving them. The proposal that are hold at branch due to any of the reason are not resolved immediately they are kept lying in the branch only. Even if they are tried to resolves by contacting the marketing officer or the IMDs there is no proper follow up done on them. All the cases that are lying in the branch as branch rejections they are sent to branch in the end of the month for clearing which increases the work load of the hub underwriters and increases the turnaround time (TAT) of proposal at hub as well. The ok or the clear case are sent physically to the hub by generating the Daily Activity Report and the status of those proposal is changed to sent to only after

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the DAR is generated, but in many cases the DAR is not generated and the proposals are sent to hub which further increase the TAT.

ISSUES IDENTIFIED AT HUB

The manpower at the underwriting level is inadequate considering the number of proposals received from branches every day and other activities to be performed by them. Guidelines are not followed completely. There are a lot of software errors in the module that delays the issuance of policies The flow of document is really large. The flow of documents is manual and could be lost easily. At the time of closing i.e. month end lot of branch rejections are approved which should not be as per the underwriting guidelines of the company leading to high claim ratio The co-ordination between branches and hub are not up to the mark The co-ordination among various departments at hub are poor The cases that are rejected by the underwriters are sent to the rejections team which tries and resolve the case, which is done through letters that have to be prepared manually. Major issues that was found in hub was that the individual roles of the team member is not clear to them and between them self. The Document Pending, Pending to Agency and Filed and Closed takes a lot of time due to insufficient manpower. The NCB confirmation from previous insurance company also contains a lot of errors which eats up a lot of working time by means of calling and correcting them.

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PROBLEMS BEING FACED

1) General Cover note is to be submitted within 24hrs. of its issuance. Premium shown on cover note is different from the amount deposited. Mode of payment shown on cove note should be the same as being deposited in the office. Make model and sub model of the vehicle insured is not clearly mentioned on cover note. Period of insurance in case of renewal - should be from the next date of expiry of previous policy. Wherever required Proposal Form need to be submitted duly completed and signed by the insured. 2) New Vehicles Invoice need to be submitted in support of IDV. IDV should be 95% of cost of the vehicle. When the cover note is issued from the date of delivery it should carry the reference of the booking of vehicle like invoice no. And date. Registration Number / / Engine No. / Chassis No. / Proof of date of delivery need to be submitted as and when vehicle is delivered 3) Old Vehicles Proposal forms are either not submitted or submitted half filled. NCB allowed without adequate proof of entitlement of NCB. In case previous policy is with some other insurer and NCB is allowed this year Declaration in the prescribed format need to be submitted. Previous Insurance Policy showing all details including calculation of premium should be submitted.

GENERAL ERRORS IN THE COVERNOTES SCRUTINY

1) Overwriting in the office covernote copy. 2) Model, sub-model and year of maufacturing is not mentioned. 3) Proposal form is not attached with covernote and if it is attached it is not compleately filled or is attached without filling. 4) NCB declaration is not given and is the discount is given on the covernote. 5) Break in cases are received without pre inspection report specially in renewal cases.

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6) Anti theft discount is given without any proof of it. 7) IDV is not mentioned and NCB % is not clear in the calculation. 8) Covenotes are submitted late in some cases the covernote are submitted after 25 or 30 days. 9) Engine No. and Chassis No. are not mentioned and are not clear in covernote.

Solution Proposed 1. Need to build a robust non motor claims management system. 2. Claim details are registered in system must be accessible to all concerned with status and requirements. 3. Each claim must be validated with set no. of days auto mailers generated to claims processors and claim head. 4. Printing of follow up letters from the systems 5. Uploading claim documents through DMS. 6. Claims monitoring module to be incorporated in the system.

Benefits 1. Standardisation of LOR (Letter of requirement) 2. Standard follow up tenure. 3. Standardisation of review process. 4. No one can promise a TAT as approvers can see the file on real time basis. 5. Status of the claim on real time basis. Suggestion for implementation 1. Operation team should discuss the area for development or improvement in the current flow of document at branch. 2. Based on the regular feedback by the members of channel Partners, Operation Team should improve upon their short comings and grey areas. Recommendation The contributions of operation team in an insurance company are very important. Hence, they need regular monitoring and improvement in the way they work. Scope for Improvement 1. Some of the employees are dissatisfied with courier service. So, it needs to be improved and Courier Company must hold accountable for timely delivery of policies to customers. 2. Some are dissatisfied with the process of issuance of insurance polices from HUB. They feel all rights must be provided to branches also. Branches must empower to issue all types of policies. Due to this services to customers become more simple and less time taken.

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3. Some of the members feel that time taken to endorse the policies (correction in policies) are longer than normal. It should decrease and customers instantly or in less time get their endorsement done.

IMPORTANT SCRUTINY

SUGGESTIONS

REGARDING

COVERNOTE

1) All covernotes along with payments must reach the office within 24 hours of issuance. 2) No new cover note book should be issued without the cover note control statement of previous cover note book. 3) No cover note should be issued in break in insurance cases without having satisfactory inspection report. 4) Wherever there is a cutting on copy of cover note the same should be supported with photocopy of original cover note and pre inspection. 5) Premium calculation with full break-up showing all extras/ discounts/ ncb/ coverages allowed the insurer and premium charged should be same on the original and copy of covernotes.

SUGGESTIONS
Training must be organised for the people in hub like marketing officers, agents and IMDs regarding all the issues at hub Training must be organised for hub operations team for smoothening of process. The individual roles of the operations team must be made clear to them and imporantly they must be informed about the change in role and the change in procedure as well. Interacting with Branches and all departments at Hub for Issues that faced in Proposal Module and in the process flow. There must be some person deputed to chek out proposals that are recived at hub and are not converted into policies with in 15 days. Duplicte entries must be identified and must be close on daily basis so that the actual pending cases can be identified.

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 Training sessions to be organised for agents with high rejection ratio at underwriting level. No cheques to be accepted by Sub IMDs with frequent cheque bounces. The branch must not accept the cases which are not complete in any manner (documents) At underwriting level there must be a chek list of documents that have to be attactched with every proposal and the documents that are attached must be ticked on that check list. Telecalling to be done by rejection team to reduce the TAT for resolution of rejected cases. Sms must be sent to the IMDs on daily basis regarding their pending cases The letters that are sent by the rejection team must be automatically generated they must not be manually made. Availability of Policy Number as search criteria for searching proposal number. Proposal module must have an option of not generating the two proposals for a single cover note. This would help in avoiding duplicity, which is a major reason for pendency reflected at Hub Average tat of each location must calculate and efforts must be done to reduce the tat of the particular location.

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Chapter-4 Summary and conclusions The Company sales are increasing every year. The company has good demand of its product in the market. So, the operations team work is very important in this case to keep customer faith in Bajaj Allianz as the no. of insurance companies are also increasing. In this competitive market those are going survive which provide better services to their customer and more open to the chances which required as per the demand of time and customers.

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