A PROJECT ON

COMPRATIVE STUDY OF GENERAL INSURANCE COMPANY ORIENTIAL INSURANCE WITH NEW INDIA ASSURANCE COMPANY INDIA

In the partial fulfillment of the award of the degree of BACHELOR OF COMMERCE (B.COM VOCATIONAL) INSURANCE 2009-2011
Under the Guidance Submitted by Dr. Sanjeev Sharma Professor

UDITA DWIVEDI

ST. JOHNS COLLEGE, AGRA

P RE F AC E The field of insurance has taken a giant leap at the threshold of twentieth century. Insurance have become an integral part of life of man all over the globe. The proverb Need is the mother of invention is proving equally correct in case of insurance. Insurance have already had a considerable impact on many aspects of our society. This project on GENERAL INSURANCE AND ORIENAL ASSURANCE deals with the automation of various activities done in insurance like how the insurance companies doing there business and what is the feature of life insurance.

STUDENTS DECLARATION

I hereby declare that the Project Report conducted Comparative study of general insurance company oriental insurance with new India assurance company India Under the guidance of Dr. Sanjeev Sharma Submitted in partial fulfillment of the requirements for the St. Johns College Agra is my original work

and the same has not been submitted for the award of any other Degree/diploma.

UDITA DWIVEDI

ACKNO WLEDGEMENT

We are hearty grateful to Mr. .sir (director). They have always been an invaluable source of inspiration had work, sincerity and dedication. It gives me immense pleasure in submitting this project on Comparative study of general insurance company oriental insurance with new India assurance company India I have developed this project in partial fulfillment of B.Com from St. Johns College, Agra I would like to express my sincere ineptness to my Project Guide Dr. Sanjeev Sharma for his constant guidance and valuable support during the project work. Encouragement and excellent guidance in the successful completion of the project work. And of course nothing could have come true without the support of my family, friends and all the classmates for their constant

encouragement and useful tips through out my project. I will always grateful to them.

UDITA DWIVEDI

CONTENT
Acknowledgement Certificate Preface Declaration Introduction of GIC PROFILE (A,B) WORKING OF ORIENTAL INSURANCE WORKING OF NEW INDIA ASSURANCE COMPANY LTD. DATA ANALAYSIS COPARISON RESULTS

 CONCLUSION SUGGESTS LIMITATION OF STUDY BIBILOGRAPHY

INTRODUCTION
General Insurance Corporation of India (GIC) The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were operating in the country prior to nationalization, were grouped into four operating companies, namely, (i) National Insurance Company Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance Company Limited. (However, with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies). All the above four

subsidiaries of GIC operate all over the country competing with one another and underwriting various classes of general insurance business except for aviation insurance of national airlines and crop insurance which is handled by the GIC. Besides the domestic market, the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies.

LIFE INSURANCE COMPANIES Max New York Life Insurance Co. Ltd. Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max India Limited, a multi-business corporate, together with New York Life International, a global expert in life insurance. With their various Products and Riders, there are more than 400 product combinations to choose from. They have a national presence with a network of 57 offices in 37 cities across India. ICICI Prudential Life Insurance Company Ltd. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading

international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups. Om Kotak Mahindra Life Insurance Co. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Birla Sun Life Insurance Company Ltd. Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited ING Vysya Life Insurance Company Private Limited Allianz Bajaj Life Insurance Company Ltd. Metlife India Insurance Company Pvt. Ltd. AMP SANMAR Assurance Company Ltd.

 Dabur CGU Life Insurance Company Pvt. Ltd. GENERAL INSURANCE 1. Royal Sundaram Alliance Insurance Company Limited The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started its operations from March 2001. The company is Head Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. 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, Germany.

3. ICICI Lombard General Insurance Company Limited ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001. 4. Cholamandalam General Insurance Company Ltd. Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa Group & Mitsui Sumitomo. Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh policies in its first calendar year of operations. The company has a pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag. 5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines. 6. Reliance General Insurance Company Limited. 7. IFFCO Tokio General Insurance Co. Ltd 8. Export Credit Guarantee Corporation Ltd. 9. HDFC-Chubb General Insurance Co. Ltd. STRENGHS Financial Expertise As a joint venture of leading financial services groups, hdfc standard life has the financial expertise required to manage your long-term investments safely and efficiently. Range of Solutions We have a range of individual and group solutions, which can be easily

customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Track Record so far Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores. The company has covered over 9,59,000 lives year ending March 31, 2008.

Products of HDFC standard life insurance Indivisual Group Social

Individual Products We at HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Protection Plans

You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan. Investment Plans Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.

Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients:

Group Term Insurance Group Variable Term Insurance

Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes Social Product Development insurance plan Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is

paid to those member beneficiaries to help meet some of the immediate financial needs following their loss. Eligibility Members of the development agency and their spouses with: Minimum age at the start of the policy 18 years last birthday Maximum age at the start of policy 50 years last birthday Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments The premium to be paid will be quoted per member in the group and will be the same for all members of the group. The premium can only be paid by the Development Agency as a single lump sum that includes all premiums for the group to be covered. Cover will not start until the premium and all the member information in our specified format has been received The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member. Benefits On the death of each member covered by the policy during the year of cover a lump sum equal to the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits paid at

the end of the year of cover and there is no surrender value available at any time. The role of the Development Agency Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative tasks onto the Development Agency. By passing on these tasks the premium charged can be lower. These tasks would include: Submission of member data in a specified computer format Collection of premiums from group members Recording changes in the details of group members Disbursement of claim payments and the mortality rebate (if any) to group members. These tasks would be in addition to the usual duties of a policyholder such as: Payment of premiums Reporting of claims Keeping policy holder information up to date Training and support will be available to give guidance on how to complete the tasks appropriately. Since these additional tasks will impose a burden on the Development Agency, the Development Agency may charge a Rs. 10 administration fee to their members. Prohibition of rebates Section 41 of the Insurance Act, 1938 states

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer If any person fails to comply with sub regulation (previous point) above, he shall be liable to payment of a fine which may extend to rupees five hundred.

PROFILE GENERAL INSURANCE

With the opening up of the insurance industry to the private sector, the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation. The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of

holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business). Definition and meaning: 1. INSURANCE: Insurance is the means of managing risk and protection against financial loss arising as a result of contingencies, which may or may not occur. In other words, insurance is the act of providing assurance, against a possible loss, by entering into a contract, with one who is willing to give assurance. Through this contract the person willing to give assurance binds himself to make good such loss, if it occurs. 2. GENERAL INSURANCE: General insurance means managing risk against financial loss arising due to fire, marine or miscellaneous events as a result of contingencies, which may or may not occur. General Insurance means to Cover the risk of the financial loss from any natural calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyond the control of the owner of the goods for the things having insurable interest with the utmost good faith

by declaring the facts about the circumstances and the products by paying the stipulated sum , a premium and not having a motive of making profit from the insurance contract. Some of the General Rules: 1. Mis-description : The insurance policy shall be void and all the premiums paid by insured may be forfeited by the insurance company in the event of mispresentation or mis-declaration and/or non-disclosure of any material facts.

2.

Reasonable care : The insured shall take all reasonable steps to safeguard the property

insured against any loss or damage. Insured shall exercise reasonable care that only competent employees are employed and shall take all reasonable precautions to prevent all accidents and shall comply with all statuary or other regulations 3. Fraud : If any claim under the policy may be in any respect fraudulent or if any fraudulent means or device are used by the insured or any one acting on the insureds behalf to obtain any benefit under the insurance policy, all the benefits under the insurance policy may be forfeited.

4. 1. 2. 3. 4. 5. 5

Few basic principles of general insurance are : Insurable interest Utmost good faith Subrogation Contribution Indemnity Risks of loss not covered under general insurance are: The loss or damage or liability or expenses whether direct or indirect

occasion by happening through or arising from any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion revolution, civil commotion or loot or pillage in connection therewith and loss or damage caused by depreciation or wear and tear. However the risk of loss or damage by war can be insured by payment of additional premium in some cases only.

WORKING OF ORIENTAL ASSURANCE The Oriental Insurance Company' Ltd. (OICL) is one of the leading General Insurance companies in India and is a subsidiary of the General Insurance Corporation (GIC) of India. It is one of the oldest Insurance companies and was established in the year 1947. The Company transacts all kinds of non-life insurance business ranging from insurance covers for very big projects to small rural insurance covers. OICL has its Head office in New Delhi, the capital of India. The Company has 21 Regional Offices, 311 Divisional Offices and 635 Branch offices in various cities of the country. Reinsurance connections are spread all over the world. The Company has a very high reputation in the Reinsurance market. OICL specializes in

devising special covers for large projects like Power Plants, Petro-chemical, Steel Plants and chemical plants. It has a highly technically qualified and competent team of professionals, to render the best customer service. The Company has a dedicated project cell at the Head Office as well as major cities of India. A special R & D team has been dedicated to bring out special innovative covers like Stock-Brokers' Policies, Special Package Policies etc. MISSION o To develop general insurance business in the best interest of the community. o To provide financial security to individuals, trade and commerce by offering insurance products and service of high quality at affordable cost. VALUES o o o Highest priority to customer needs. High standards of public conduct. Transparency in operations.

COMMITMENTS TO THE CITIZENS o In areas coming within competence of GIC respond to all commercially viable general insurance requirements of the citizens, not hitherto available within three months from the date on which such a demand is received.

In areas covered by tariff, appropriate proposals will be submitted to the Tariff Advisory Committee with appropriate comments within two months.

Continue to provide customized insurance products for weaker sections of the society at affordable price within six months of receipt of a request for a specific type of cover.

Prepare booklets on standard policy covers setting out essential information and make such booklets readily available for purchase at suitable places.

Promote customer education in general insurance service by holding workshops in important regional centers.

Make available to a customer, on request to the policy issuing office, the status of his claim and/or claim settlement details within 7 working days.

Endeavor to set up a system of Ombudsman at four metropolitan cities to conciliate disputes on personal line insurance claims

CORPORATE OBJECTIVES: o To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus. o To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus.

To manage Business profitably, Manage funds judiciously and deploy investible funds for optimum Yield.

To manage Business profitably, Manage funds judiciously and deploy investible funds for optimum Yield.

To work towards minimization of losses and develop Risk Management Technologies.

To function as a strong and dynamic non-life insurer.

PRODUCTS: The various products can be grouped under the following categories: o o o o o o o o o o Individuals/Family Marine Professionals Business/Office/Traders Engineering/Industry Agriculture/Sericulture/Poultry Animals/Birds Aviation Motor Vehicle Private/Commercial Health-Mediclaim/Overseas Mediclaim/Personal Accident

Documents requirement for various types of Claims Different documents are required for settling different types of claims. The most commonly required ones are mentioned under each claims type listed below. Your full cooperation to surveyor/Investigator appointed by the Company would enable prompt settlement of claims. o o Claim due to Fire and/or Explosion. Claim due to Flood, Storm, Cyclone, Earthquake, and

Subsidence/Landslide. o Claim due to Riot, Strike, Malicious Damage and Terrorism (RSMDT). o o o o Marine Inland Transit Loss of cargo/machinery. Marine Loss of cargo/machinery for export' Marine Loss of cargo/machinery during Import Claim due to Electrical / Mechanical/ Electronic Breakdown/ mishandling/ o o o o o Impact damage to machine. Claim due to Burglary/Theft of Vehicle Accidental Death Claim Permanent Disability/Injury claim due to accident Temporary Total Disability (TTD) (Weekly compensation) claim due to accident

o o

Mediclaim claim due to hospitalization (disease/accident) Claim due to Death of Cattle (Non-IRDP)/Permanent Total Disablement. Damage claim to private Vehicle (Car/2Wheeler) due. to accident

Claim of Damage to Commercial Vehicle (Taxi/Bus/Lorry) due to accident. Third Party (T.P.) Claim due to accident.

WORKING OF NEW INDIA ASSURANCE COMPANY LTD.

II. The New India Assurance Company. Established by Sir Dorab tata in 1919, New India was the first fully Indian owned insurance company in India. There were nearly 150 insurance firms in India including ones from France, the UK and America. These were operated through managing agencies in India largely held by Indian business houses.New India is a leading global insurance group, with offices and branches throughout India and various countries abroad. The company services the Indian subcontinent with a network of 1,130 offices, comprising 26 Regional offices, 366 Divisional offices and 738 Branches. With approximately 25,000 employees, New India has the largest number of specialist and technically qualified personnel at all levels of management,

who are empowered to underwrite and settle claims of high magnitude New India has historically been a frontrunner in several diverse fields of business and industrial activity. New India are lead underwriters of India's Space programn1e having insured several INSAT and other, satellites. New India are pioneers in Engineering insurance, Financial risks insurance and are now offering customized Risk Management solutions to our: corporate clients in the Private and public Sectors in Power, Telecom, Petrochemicals, Steel and Automobile industries New India's foreign operations started with the establishment of an office in London in 1920. An international presence was built up by New India as a direct writing Company in 23 countries spanning 5 continents. It increased its reach and capacity, for reinsurance facilities for all classes of business. Starting way back in the 1920s, New India's UK operations have now taken deep root. New India is party to one of the oldest reinsurance treaties in the UK market. Through participation in Aviation and Marine Hull underwriting, New India has, over a period of time, strengthened its market presence. In 1980's with the establishment of a fullfledged branch to underwrite UK Business, it has extended its UK operations, authorized by the Department of Trade and industry The New India commenced its Japan operations in 1950, and now: operates through 8 branches. The Japanese operation covers 35% of the Companys overseas premium income.

Since incorporation in the year 1906, National Insurance~ Company has been carrying out general insurance business under private management until 1972, the year of its nationalization. In the same year 22 foreign and 11 Indian Insurance Companies were amalgamated with National Insurance Company Limited, as a subsidiary company of General Insurance Corporation of India Headquartered in Calcutta it has an organizational network of over 964 offices with around 20,077 trained workforces. The company also has operations in Hong Kong and Nepal and ranks among the top global business insurers. Later on in 2002, with the passage of Insurance amendment Bill (2002), National Insurance Company has been delinked from GlC and. has been functioning as an independent company Its product range includes motor vehicle insurance; fire insurance on buildings and other assets; various crime covers like burglary and theft of cash; machinery breakdown cover for industrial equipment; transit damage cover for imported or exported goods; as well as legal liability cover. Professional indemnity and directors and officers liability covers are some of the new covers. NICO General Insurance seeks to attract clients and intermediaries and flexibility in claims settlements, and at the same time ensuring that we do not erode shareholder value. The objective is to add value to the shareholders' funds whilst ensuring customer satisfaction? The strength of NGI is in its balance sheet. NICO General Insurance views the

future and its prospects as extremely bright, exciting and rewarding for staff, clientele and shareholders alike. United India Insurance Company United India Insurance is one of the four subsidiaries of the General Insurance Company carrying on general insurance business with its head office at Chennai. Later on in 2002, with the passage of Insurance amendment Bill (2002), United India Insurance has been Del inked from GIC and has been functioning as an independent company. UI spans the country with a network of 1123 offices and manpower of Over 21,000 employees. The organizational structure comprises 22 regional offices, 327 divisional offices.., and 777 branch offices, supported by 21,505 employees. ICRA has maintained the iAAA rating, indicating the claims paying ability of United India Insurance (UII) to be of the highest order. The rating takes into consideration the favorable prospects for the domestic general insurance industry following the deregulation of the sector. UII continues to be a dominant player in the Indian insurance industry, with an overall market share of 25% and a leadership position in the southern markets. UII is a Pioneer of Personal Insurance Products in India who specializes in non-life insurance products including Medical and Accident Insurance. It enjoys a market share of over 25 percent of the nonlife insurance sector in India.

PRIVATE COMPANIES
1.

Bajaj Allianz General Insurance Company:

Allianz group was founded in 1890 and is one of the world's leading insurance companies with over 100 year's experience in insurance and related services. It is also the largest insurer in Europe. Allianz group has multi-local structure and presence in over 70 countries. The key business areas of Allianz group include General Insurance (property, engineering, marine, motor, casualty and miscellaneous), Reinsurance, Risk

Management, Life & health insurance, Asset Management and Pension Funds Management. Bajaj Auto Ltd. Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj Trading Corporation. Initially it started by assembling

two and three wheelers in collaboration with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and ability to offer value for money products leveraging on its largescale operations. The Joint Venture Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the Joint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris is the CEO of the company. Bajaj Allianz General Insurance will leverage the customer base and expertise of Bajaj Auto Ltd and Allianz.

Royal Sundaram General Insurance

Company Limited: Sundaram Finance Sundaram Finance Limited (SF) was established In 1954 with a paid-up capital of Rs. 0.02 million, primarily to assist the development of Road Transport Industry. SF has been providing financial assistance to road transport operators for acquiring commercial vehicles under hire purchase system. Emerging as the leader in the industry, SF has been staying at that position for over four decades. SF diversified into equipment leasing in 1981. Royal & Sun Alliance Royal & Sun Alliance is one of the world's leading international Insurance companies. The Sun was established in 1710 and is the oldest.

Insurance company in existence still trading under its original name. The Alliance was founded in 1824 and the Royal in 1845. The Group's international presence began to emerge in the 18th century with business ventures in mainland Europe. Forays into the US and Canadian markets followed in the 19th century, and in 1998, Royal & Sun Alliance became the first UK insurance company to be granted a license to operate in China.

The Joint Venture The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started its operations from March 2001. The company is Head Quartered at Chennai, and has two Regional Offices, one at Mumbai and another one at Delhi. The venture is aiming at Rs. 120 Crores in revenue during first year of its operations and is confident of breaking even by fifth year.

ICICI ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the Indian Industry, to promote industrial development of India by .Providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. Lombard Lombard Canada Ltd., is a leading insurance management company responsible for providing insurance management services for all of the Lombard group's commercial, personal, and specialized insurance

companies. Canadian owned and operated, Lombard Canada Ltd. has its

head office in Toronto and has annual sales in excess of$500 million and is a wholly owned subsidiary of Fairfax Financial Holdings Limited (FFH on the TSF Lombard Canada Ltd. has achieved a reputation for providing solid underwriting performance, diversified books of business and strong capital positions. The Joint Venture ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv Kerkar. ICICI would hold about 74 percent stake, while Canadian insurer Lombard would hold the maximum permissible 26 percent and commence business with a start-up capital of Rs.100 crore. ICICl Lombard has plans to sell covers to the corporate clients of ICICl. St the same time it will sell property insurance for ICICI home loan seekers and auto insurance for those availing of car finance.

Tata AIG General Insurance Company Limited:

TATA Group Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has" pioneering contributions in various fields including insurance, activation, iron and steel. Tata companies have forged a number of global alliances with eminent international partners in several fields. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% 6fthe total market capitalization of all listed companies. TATA Group in Insurance

The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government of India took over the management of this company as a part of Nationalization of general insurance companies in 1972. Not deterred by the move, Tata group have ventured into" risk management services having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt. Ltd.

AIG American Insurance Group is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. The Joint Venture

Tata AIG General Insurance Co. Ltd. has a start-up capital of Rs. 125 crores of which 74 per cent has been brought in by Tata Sons and American partner brings in the balance 26 per cent. Tata -AIG plans to be the first Indian insurance company to offer a comprehensive policy to cover various risks in the IT sector, risk arising out of virus, cyber crime, negligent acts, errors and omissions and third party liability from a security failure. Other products on offer are property, casualty, marine, directors and officers liability, accident and health, homeowners and automobile insurance.

Bajaj Allianz General Insurance Products

o Personal Accident o Hospital Cash Daily Allowance Policy o Health Guard o Critical Illness o Burglary Insurance o Householders Insurance o Travel Companion o Fidelity Guarantee Policy o Office package

o Money Insurance o Public Liability o Plate Glass Insurance o Consequential Loss (Fire) Insurance Policy o Tata AIG General Insurance Company Products o Executive Guard o Family Guard o Travel Guard o Home Secure o Business Guard Sanjeevani Reliance General Insurance Company Limited: Reliance Group' Reliance 'Group is India's largest business house has annual sales turnover of Rs. 41,280 crore (US$ 9,003 million) and has posted a net profit of Rs. 2,940 crore (US $ 641 million) for the 12-month period ending June 30, 2000. The Group has total assets of Rs. 52,100 crore and net worth of Rs. 22,415 crore. It has a large investor base of over 5 million, as well as a large customer base in retail (textiles, LPG, Cellular phones, etc.) and commercial segments.

Reliance Industries Limited, India's largest private sector enterprise, is a, major player in the Indian petrochemicals sector. Relianc6~s operations capture value addition at every stage from producing crude oil and gas to polyester and polymer products and are vertically integrated to the production of textiles. Reliance has one of the largest marketing networks in the Indian Industry. All its brands are market leaders. Reliance General Insurance Company Limited Reliance group has announced its plans to enter the Indian insurance sector- both in the life and general insurance businesses'. Reliance Industries plans to bring in around Rs. 300 Crores into its insurance venture through its financial arm Reliance Capital Ltd. Reliance group will be the lead investor for this initiative. The two companies will have an initial authorized capital of Rs.200 crores (US $ 43.62 million) each. This is the first application from an Indian company without a foreign insurance tie-up. However, Reliance will associate with international insurance consultants to bring the best practices in the business to India. Iffco Tokio General Insurance Company ltd Iffco Indian farmers fertilizers cooperative limited was created on Nov 3, 1967 as a multi unit cooperative society engaged in production and distribution of fertilizers the byelaws of the society provide a broad

framework for the activities of IIFCO as a cooperative society the main emphasis is on production and distribution of fertilizers The Tokio marine and fire insurance The Tokio marine and fire insurance (Tokio marine) company holds a leading position in Japans property and casualty insurance industry. It is the second largest in P & C insurance market in the world. With superior capitalization, stable profitability and conservative management tem the company provides a large rage of property and casualty insurance products n services including, automobile fire and personal accident to retail corporate clients The Joint Venture IFFCO TOKIO General Insurance Company is a joint venture promoted by India Farmers Fertilizers Co-Operative, Tokio Marine and fire Insurance Company, Japan, the fifth largest insurance company in the world, Krishak bharathi Cooperative ltd. (KRIBHCO), and Indian potash. Their contribution to the Rs.100 crore equity capitals is 49 percent, 20 percent and 5 percent respectively. The head Office is in Delhi and operating Office are in about 20 cities. IFFCO Tokio Insurance Products Home & Family Protector Standard Fire & Special Perils Burglary and House Breaking

Personal accident Trade Protector Travel Protector

OBJECTIVES
To find out general insurance and which are the companies involved in it. To know what are the trends in General Insurance. To find out the developments in the General Insurance. To find out the Procedure of Claims.

RESEARHC METHODOLOGY
The study was carried out in Mumbai. Extensive Library Research was carried out. Various Websites were referred. Primary data was collected through interviews. Various books, magazines and newspapers have been referred.

DATA ANALYSIS & INTERPRETATION

DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYS NAME GENERAL INSURANCE ORIENTAL ASSURANCE NO.OF RESPONDENT 78 50 SHARE (%) 78 50

50

50

GENERAL INSURANCE GENERAL INSURANCE ORIENTAL INSURANCE

INTERPRETATION 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

DATA

GIVES

BENEFITS

OF

INSURANCE

PERCEIVED

BY

RESPONDENTS
BENEFITS Cover Future Uncertainty Tax Deductions NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20

25%

Future Investment TOTAL

Cover Future 25 Uncertainty 100 Tax Deductions Future Investment

55% 20%

INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively. DATA PROVIDES FEATURES OF INSURANCE POLICY THAT

ATTRACTED RESPONDENTS
FEATURE Money Back Guarantee Larger Risk Coverance Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

FEATURES OF INSURANCE POLICY

MONEY BACK GUAARENTEE

11% 15%

LARGER RISK COVERANCE EASY ACCESS TO AGENTS

37%

30%

LOW PREMIUM REPUTATION OF COMPANY

7%

INTERPRETATION Majority of the respondent (37%) found Larger risk coverance as the most attracted feature of the all.

DATA

PROVIDES

NUMBER

OF

INSURANCE

POLICY

TYPE

RESPONDENTS
POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

NATURE OF POLICY

45

75

LIFE POLICY NON LIFE POLICY BOTH

25

INTERPRETATION 75% of the respondents have Life Insurance Policy while 45% have

both. (The % is calculated out of 280 positive response)

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF RESPONDENTS 81 74 100 SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

81 100

SAVING TOOL TAX SAVING TOOL

74

FAMILY PROTECTIO N

INTERPRETATION tool. And 74% of the respondents have perception of Insurance being a tax 81% of the respondents have perception of Insurance being a saving

saving device. But 100% of the respondents are with the view that Insurance is a

tool to protect your family.

DATA SHOWS PEOPLES HAVING INSURANCE

30%

70% Yes No

RESPONSE Yes No Total

NO. OF RESPONDENTS 70 30 100

SHARE (%) 70% 30% 100%

INTERPRETATION Of the sample size of 400 surveyed respondents 70% of the

respondents are having Insurance policy.

30% of the respondents are either not having any Insurance policy at

present or their policy is already matured. And at present 100% of the respondents are with the view that

Insurance is a tool to protect your family.

DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF RESPONDENTS 45 55 100 SHARE (%) 45% 555 100%

Customer approached Insurance company/Agent Company/agent approached customer Total

55% 45%

Customer approached Insurance company/Agent Company/agent approached customer

INTERPRETATION Agent. 44.5% of the respondents approached the Insurance Company /

Whereas, 55.5% of the respondents were approached by the

Company /Agent.

DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF RESPONDENTS 80 80 100 SHARE (%) 80% 80.% 100%

Tax saving Saving / Investment Family protection

80 100

Slice 1

Slice 2

80

Slice 3

INTERPRETATION 80.71% of the Respondents opted for Insurance for tax saving

benefits. 80.71% of the Respondents opted for saving / Investments. But all of them, i.e. 100% of the respondents have opted for

insurance for their family protection.

 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 60 40 0 100 SHARE (%) 60% 40% 0.0% 100%

0% 40%

60%

Satisfied

Not satisfied

Not Responded

INTERPRETATION policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded. 60% of the respondents are more or less satisfied with their existing

DATA

SHOWS

SATISFACTION

OF

+RESPONDENTS

WITH

RESPECT TO SERVICE AGENT

RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 45 55 0 100 SHARE (%) 45% 55% 0.0% 100%

55.00%

45.00%

Satisfied

Not satisfied

INTERPRETATION agent. All of those who have taken a policy have responded. 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

NO. OF RESPONDENTS 100 100 SHARE (%) 100% 0% 100%

RESPONSE Paying tax Not paying tax Total

0%

100%

Paying tax

Not paying tax

INTERPRETATION tax. Of the sample size of 400 respondents, all the respondents are paying

DATA SHOWS RESPONDENTS INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF RESPONDENTS 51 33 32 25 21 11
11 21 51

SHARE (%) 51% 33% 32% 25% 21% 11%

LIC NSC Bonds PPF PF EPF

25

33 32

LIC

NSC

BOND

PPF

PF

EPF

INTERPRETATION 51% of the respondents save their tax by investing in LIC, which is

the highest among all Investment. This shows that most people for getting taxes benefits invest in LIC. 33.25% of the respondents do their tax saving by investing in NSC. 32.25% of the respondents to their tax saving by investing in bonds.

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM

OF INVESTMENT FOR SECURING THEIR FUTURE

NO. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance 75 11 25 40. 10 70 SHARE (%) 75% 11% 25% 40% 10% 70%

Fixed Assets
70 75

Bank deposits Cash & Jewellery Securities i.e. bonds, MFs Shares Insurance

10 40 25

11

INTERPRETATION 75.25% of the respondents as with the view that Fixed Assets is the

best form of investment for securing their future. 70.5% of the respondents are with the perception that Insurance is

the best form of investment for securing their future, which is one of the highest and this shows that insurance is an important key for securing your future.

DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR

INVESTMENT
RESPONSE Saving & Returns Security Tax benefits NO. OF RESPONDENTS 100 90 71. SHARE (%) 100% 90% 71.%

71 100

90 Saving & Returns Security Tax benefits

INTERPRETATION 100% of the respondents intent to gain saving and returns from their

investment. 90% of the respondents intent to gain security from their

investments.

Whereas, 71.75% of the respondents intent to gain tax benefits from

their investments.

DATA GIVES PEOPLES PERCEPTION ON APPROPRIATE AGE FOR

BUYING INSURANCE
RESPONSE After 25 years After 35 years After 45 years Anytime NO. OF RESPONDENTS 29 10 0 60 SHARE (%) 29% 10% 0% 60%

29%

60.61% 0%

10.10%

After 25 years

After 35 years

After 45 years

Anytime

INTERPRETATION 29% of the respondents are with the view that insurance should be

bought after the age of 25 years.

10.5% of the respondents are with the view that insurance should be

buyed after the age of 35 years. Whereas, 60.5% of the respondents are with the view that buying of

insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time according to the need.

DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE

COMPANIES
RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%

67

10 24

33

26

29

Inflexible plans Unsatisfactory services Satisfactory Very good

Non user friendly Non Aggressive Good

INTERPRETATION

67% of the respondents have the opinion that Indian Insurance

Companies have Rigid plans. 29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are

Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance

companies are Non-aggressive. 24% of the respondents feel that products and services of Indian

Insurance companies is Satisfactory. good. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very

DATA

SHOWS

WHAT

PEOPLE

WOULD

LOOK

FOR

IN

AN

INSURANCE COMPANY
RESPONSE A trusted name Friendly service responsiveness Good plans Accessibility
49 82

NO. OF RESPONDENTS 82 & 71 81 49

SHARE (%) 82% 71% 81% 49%

81

A trusted name Friendly service & responsiveness Good plans Accessibility

71

INTERPRETATION 82% customers look for a Trusted name in a company for insurance. 81.5% customers look for a good plan in a company for insurance. Friendly service & responsiveness and Accessibility are also important

factors looked by customers in a company.

DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE NO. OF RESPONDENTS 87 13 100 SHARE (%) 87% 13% 100%

Planning Not planning Total

13.0%

87.0%

Planning

Not planning

INTERPRETATION Only 12.5% of the customers contacted are not planning for new

investments presently. Whereas, 87.5% of the customers are still planning for new

investments this can be a great potential for Reliance Life Insurance to take them on their favor.

DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE

IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS
RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100%

13% 43%

44%

Yes

No

Uncertain

INTERPRETATION The interested customers i.e. 43% are ready to go for insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Reliance Life Insurance to take them on their favor.

COMPARISON

RESULT

CONCLUSION
Our exhaustive research in the field of General life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond GIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impression by the marketing and advertising campaigns of insurance companies. A high penetration of print , radio and Television ad campaigns over the years is beginning to have its impact now. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lays the opportunity for a relative new comer like ING.

SUGGESTION According the survey only 42% people are insured in Alwar so reaming other part is potential for insurance sector. Among that 42% people who having insurance, they have insurance 40% for self 28%for spouse 21% for children and 18% for their parents and 11% for all family member, also its very help full for insurance sector so they should take necessary step for capture this potential. Only 42% people having insurance in Alwar in that 42% there are 82 % people are under insured and other 18% people are fully insured according to their income so that is also plus point for insurance sector to capture the market

LIMITATIONS OF STUDY

1. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 2. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

BIBLIOGRAPHY

1.

BOOKS/MAGAZINES REFFERED:

STUDY

GUIDE-

PRINCILES

&

PRACTICES

OF

LIFE

GENERALINSURANCE, BY AIMA. BOOKS PUBLISHED BY INSURANCE INSTITUTE OF INDIA LIFE-INSURANCE, BY MC GILL INSURANCEWATCH. MONEYOUTLOOK. 2. WEBSITES REFFERED:

IFAINSURANCE.COM

WWW.C

MONEYOUTLOOK.COM

WWW.

NSURANCE.IND.COM 3. REPORTS/ARTICLES REFFERED:

WWW.I

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE INDUSTRY. DEC2005.

BRIEF PROFILE OF LIC, INDIADEC 2006. REPORT: COPING WITH COMPETITIONJAN2007