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CONTENT

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1.1

BACKGROUND OF THE
INSURANCE SECTOR

1.2

HISTORY

1.3

TYPES OF HOME INSURANCE

4-8

1.4

FUNCTIONS OF INSURANCE

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CHAPTER - 1

1.1 BACKGROUND OF THE INSURANCE SECTOR


Insurance is over one and one-half centuries old in India. The First general
insurance company, Titan Insurance Company Ltd., was established in
1850.Life insurance came to India from the U.K. in 1880, with the
establishment of the Oriental Life Assurance Company in Calcutta. By 1938,
the insurance market was buzzing with 176 companies--both life and non-life.
In 1956, the Government of India recognized that malpractice had entered the
management of the life insurance. Consequently, the life insurance industry
was nationalized under the Life Insurance Corporation (LIC) of India. Although
efforts were made to maintain an open market for the general insurance industry
by amending the Insurance Act of 1938 from time to time, malpractice escalated
beyond control. Thus, the general insurance industry was nationalized in 1972.
RECENT INITIATIVES
Privatization is expected to foster competition, innovations and greater
awareness on the need for buying insurance services and variety of products.
The IRDA bill Passed by the parliament was an important development in the
field of Insurance business. The IRDA Act marks an end to the monopoly of the
government in the insurance sectors by opening it up to private players. It gives
priority in the Utilization of the policyholder's funds for development of society
and Infrastructure sector.
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1.2 HISTORY
The first homeowners policy perse in the United States was introduced in
September 1950, but similar policies had existed in Great Britain and certain
areas of the United States. In the late forties US insurance law was reformed
and during this process multiple line statutes were written, allowing
homeowners policies to become legal.
Prior to the 1950s, there were separate policies for the various perils that could
affect a home. A homeowner would have had to purchase separate policies
covering fire losses, theft, personal property, and the like. During the 1950s,
policy forms were developed allowing the homeowner to purchase all the
insurance they needed on one complete policy. However, these policies varied
by insurance company, and were difficult to comprehend.
The need for standardization grew so great that a private company based in
Jersey City, New Jersey, Insurance Services Office, also known as the ISO, was
formed in 1971 to provide risk information and issued a simplified homeowners
policy for resell to insurance companies. These policies have been amended
over the years.

1.3 TYPES OF INSURANCE

There are however, four insurances that most financial experts recommend that
all of us have: life, health, auto and long-term disability. Each one of these
covers a specific aspect of your life, and each one is very important to your
financial future.
Life Insurance
The greatest factor in having life insurance is providing for those you
leave behind. This is extremely important if you have a family that is
dependent on your salary to pay the bills. Industry experts suggest a life
insurance policy should cover "ten times your yearly income." This sum
would provide enough money to cover existing expenses, funeral
expenses and give your family a financial cushion. That cushion will help
them re-group after your death.

When estimating the amount of life insurance coverage you need, remember to
factor in not only funeral expenses, but also mortgage payments and living
expenses such as loans, credit cards and taxes, but also child care, and future
college costs.
LIMRA, formerly known as the Life Insurance Marketing & Research
Association, says that if the primary wage earner dies in a family with
dependent children that family will only be able to cover their living expenses
for a few months, and four in 10 would have difficulty immediately.
The two basic types of life insurance are Traditional Whole Life and Term Life.
Simply explained, Whole Life is a policy you pay on until you die and Term
Life is a policy for a set amount of time. You should seek the advice of a
financial expert when planning your life insurance needs. There are
considerable differences between the two policies. In deciding between these
two, consumers should consider their age, occupation, number of dependent
children and other factors to ensure they have the coverage necessary to protect
their families. (For additional reading, see What To Expect When Applying For
Life Insurance.)
Health Insurance
A recent Harvard study noted that statistically, "your family is just one
serious illness away from bankruptcy." They also concluded that, "62%
of all personal bankruptcies in the U.S. in 2007 were caused by health
problems and 78% of those filers had medical insurance at the start of
their illness."
Those numbers alone should urge you to obtain health insurance, or increase
your current coverage. The key to finding adequate coverage is shopping
around. While the best option and the least expensive is participating in your
employer's insurance program, many smaller businesses do not offer this
benefit.

Finding affordable health insurance is difficult, particularly without


an employer-sponsored program or if you have a pre-existing condition.
According to the Kaiser/HRET survey, the average premium cost to the
employee in an employer sponsored health care program was around $4,100.
With rising co-payments, yearly deductibles and dropped coverage's, health
insurance has become a luxury less and less can afford, yet even a minimal
policy is better than having no coverage. The cost for a day in the hospital can
range from $985 to $2,696. Even if you have minimal coverage, it can provide
some monetary benefit for your hospital stay.
As the health care debate continues in Washington, approximately 48 million
Americans are without insurance coverage. Check with your employer
regarding health care benefits, inquire of any occupational organizations that
you belong to regarding possible group health coverage. If you are over age
50, AARP has some health insurance offers available. (To learn more, check
out Buying Private Health Insurance.)
Long-Term Disability Coverage
This is the one insurance most us think we will never need, as none of us
assumes we will become disabled. Yet, statistics from the Social Security
Administration show that three in 10 workers entering the workforce will
become disabled, and will be unable to work before they reach the age of
retirement. Of the population, 12% are currently disabled in some form,
and nearly 50% of those workers are in their working years.
Even those workers that have great health insurance, a nice nest egg and a good
life insurance policy never prepare for the day when they might not be able to
work for weeks, months or may not ever be able to return to the job. While
health insurance pays for your hospitalization and medical bills, where is money
coming from to pay those daily expenses that your paycheck covers? Here are a
few very sobering statistics regarding disability:
Disability Causes Nearly 50% of all Mortgage Foreclosures, 2% are
Caused by Death.
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Close to 90% of Disabling Accidents and Illnesses Are not Work Related.
In the Last 10 Minutes, 498 Americans Became Disabled.
If you are injured and off work for even three months, would you have enough
in savings to cover your living expenses? Consider what you might face
financially if you suffer a major medical condition such as cancer and were
unable to work for over a year.
Many employers offer both short-term and long-term disability coverage as part
of their benefits package. This would be the best option for securing affordable
disability coverage. If they don't, seek out a private insurer. If you aren't sure
how much coverage you need, AARP offers a very good disability insurance
calculator to help you.
A policy that guarantees income replacement is the optimal policy; more usual
terms are replacement of 50 to 60% of your income. The cost of disability
insurance is based on many factors including age, lifestyle and health. For group
or employer coverage, the average rate in 2009 was about $238 per year or
approximately $5 per week. A small price to pay if you are faced with a
devastating illness or injury. Disability insurance will guarantee that you will
have some income when you can't work.
Auto Insurance
There were over 10-million traffic accidents in the U.S. in 2009 (latest
available data) and 33,808 people died in motor vehicle crashes in those
accidents, according to data released by the Fatality Analysis Reporting
System (FARS). The number one cause of death for American's between
the ages of 5 and 34 were auto accidents. Over 2.3 million drivers and
passengers received treatment in emergency rooms in 2009, and the costs
of those accidents including deaths and disabling injuries was around $70
billion.

While all states do not require drivers to have auto insurance, most do have
requirements regarding financial responsibility in the event of an accident.
Many states do periodic random checks of drivers for proof of insurance. If you
do not have coverage, the fines can vary by state and can range from the
suspension of your license, to points on your driving record, to fines from $500
to $1,000.
If you drive without auto insurance and have an accident, the fines will probably
be the least of your financial burden. Your car, like your home is a
valuable asset you use every day. If your car is damaged in an accident and you
have no auto insurance, you will have no way to replace that vehicle unless you
have a large savings account, and you don't really want to tap into that savings
when auto insurance could cover the cost.
If you, a passenger or the other driver is injured in the accident, your auto
insurance will pay those expenses, and help guard you against any litigation that
might result from the accident. Auto insurance also protects your vehicle against
theft, vandalism or a natural disaster such as a tornado or other weather related
incidents.
Again, as with all insurances, your individual circumstances will determine the
price of your auto insurance. The best advice is to seek out several rate quotes,
read the coverage provided carefully and check periodically to see if you qualify
for lower rates based on age, driving record or the area where you live.

1.4 FUNCTIONS OF INSURANCE


FUNCTIONS OF INSURANCE The functions of insurance can be studied into
two parts: (i) Primary Functions (ii) Secondary Functions. Primary Functions:

1) Primary Functions:
(i) Insurance provides certainty: insurance Provides certainty of payment at
the uncertainty of loss. The uncertainty of loss can be reduced by better
planning and administration. But, the insurance relieves the person from such
difficult task. Moreover, if the subject matters are not adequate, the selfprovision may prove costlier. There are different types of uncertainty in a risk.
The risk will occur or not, when will occur, how much loss will be there.
In other words, there are uncertainty of happening of time and amount of loss.
Insurance removes all these uncertainty and the assured is given certainty of
payment of loss. The insurer charges premium for providing the said certainty.

(ii) Insurance provides protection: The main function of the insurance is to


provide protection against the probable chances of loss. The time and amount of
loss are uncertain and at the happening of risk, the person will suffer loss in
absence of insurance. The insurance guarantees the payment of loss and thus
protects the assured from sufferings. The insurance cannot cheek the happening
of risk but can provide for losses at the happening of the risk.
(iii) Risk-Sharing: The risk is uncertain, and therefore, the loss arising from
the risk is also uncertain. When risk takes place, the loss is shared by all the
persons who are exposed to the risk. The risk sharing in ancient time was done
only at time of damage or death, but today, on the basis of probability of risk,
the share is obtained from each and every insured in the shape of premium
without which protection is not guaranteed by the insurer.

2) Secondary Functions:
Besides the above primary functions, the insurance works for the following
functions:
(i) Prevention of loss: The insurance joins hands with those institutions which
are engaged in preventing the losses of the assured and so more saving is
possible which will assist in reducing the premium. Lesser premium invites
more business and more business causes lesser share to the assured. So again
premium is reduced to, which will stimulate more business and more protection
to the masses. Therefore, the insurance assist financially to the health
organization, fire brigade, educational institution and other organizations which
are engaged in preventing the losses of the masses from death or damage.
(ii) It provides Capital: The insurance provides capital to the society. The
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accumulated funds are invested in productive channel. The dearth of capital of


the society is minimized to a greater extent with the help of investment of
insurance. The industry, the business & the individual are benefited by the
investment & loans of the insurers
(iii) It improves Efficiency: The insurance eliminates worries and miseries of
losses at death and destruction of property. The care-free person can devote his
body & soul together for better achievement. It improves not only his efficiency,
but the efficiencies of the masses are also advanced.
(iv) It helps Economic Progress: The insurance by protecting the society from
huge losses of damage, destruction and death. Provides an initiative to work
hard for the betterment of the masses. The next factor of economic progress, the
capital, is also immensely provided by the masses. The property, the valuable
assets, the man the machine & the society cannot lose much at the disaster.

CONTENT

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2.1

HOME INSURANCE IN INDIA

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2.2

REASON OF HOME INSURANCE

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2.3

TYPES OF HOME INSURANCE

16-18

2.4

HOME CLAIM PROCEDURE

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2.5

CLAIMS COVERED UNDER HOME


INSURANCE

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2.6

HOME INSURANCE CLAIM

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CHAPTER -2

2.1 HOME INSURANCE IN INDIA

The Home insurance sector in India is at a nascent stage as compared to other


insurance sectors in the country. With the real estate boom at its prime in India,
home finance has become an indispensable part of real estate functioning.
Moreover, the housing finance companies (HFCs) are also playing an important
role in the evolvement of the home insurance company in India. Due to the new
regulations by the finance companies making home insurance mandatory for
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seeking home loans in India, the home insurance sector has recently seen
massive revival in business. Industry analyst say that, if the home loans and
insurance sector continue to facilitate each others growth, then the insurance
segment is soon set to achieve a 100% growth. The latest growth curve shows
the home insurance premium touching the Rs 150 crore-mark, registering a
growth of 25% in the last financial year; and if the situation prevails, the trend is
predicted to continue.
As the growth curve of investments in Indian real estate sector escalates, more
and more insurance companies are making their foray into the home insurance
sector. This has also initiated a trend of insurance companies from across the
globe making their foray into Indian market either as individual entity or in joint
ventures with the local existing insurance companies. Home insurance and real
estate has of late become conspicuous of the buzz it has created in the realty
industry in India. Adding to the list of leading and existing public sector
companies in the home insurance business like New India Assurance, Life
Insurance Company of India, United India Insurance, Oriental Insurance and
National Insurance Company; is a list of private insurance companies which are
set to play a pivotal role in the growth of the sector.
The most thriving amongst those are mostly joint venture companies like ICICI
Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General
Insurance Company Ltd, IFFCO-TOKIO and Royal Sundaram Alliance to name
a few. Considering the feasibility of a largely huge and growing market, the
home insurance sectors has lately expanded its business beyond the metros to
the Tier I and II cities where real estate development is expected to flare up in
the years to come.The booming real estate sector in India is considered to be
one of the most encouraging factors in the resurgence of the home insurance
sector. However, apart from the real estate factor, the recent spate of calamities
that has hit the country like the earthquakes, tsunami, the consistent flood every
year in most parts of the country and the exceptional cases of 'deluge' in
Mumbai in 2005 has made people opt for home insurance like never before.

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2.2 REASON OF HOME INSURANCE


Homeowners insurance protects you against a variety of risks that come with
home ownership. The benefits are designed to cover your home's structure, your
personal property, the cost of living arrangements in case of damage to your
home and certain liabilities you may incur to others relating to your home. It
doesn't cover every kind of risk, though. For example, it doesn't cover the risk
of title defects that could subject your home's ownership to legal challenges.
following are they reasons .
1) Repairing Structural Damage
Since homeowners insurance covers the risk of extraordinarily destructive
events such as fires and tornadoes, you might submit claim to allow you to
either repair or rebuild your home. Many lenders require you to purchase at
least enough homeowners insurance to cover the value of the mortgage. In any
case, you need enough insurance to cover the cost of completely rebuilding your
home. The purchase price of your home, however, is not a good indicator of
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how much it might cost to rebuild it because costs might increase over time.
Some policies exclude structural damage due to particularly catastrophic events
such as earthquakes and hurricanes. Other policies offer coverage for these risks
only at a higher cost than a standard policy.
2) Replacing Personal Property
Most homeowners insurance policies cover the value of personal possessions,
such as jewelry, that you keep at home. Coverage is typically limited to half or
three-quarters of the value of the coverage of the structure of the home. You are
covered regardless of whether you lose these items in a natural disaster or a
burglary. You have a choice you can purchase coverage for the actual cash
value of your belongings, or for the cost of replacing them. Typically,
replacement value coverage is higher and costs more because the value of
your claim is proportional to the cost of purchasing a new item, rather than
reimbursing you for the value of a used item.
3) Paying For Alternative Living Arrangements
If your home is destroyed or damaged severely enough to cause you to have to
temporarily move out, most homeowners policies cover your extra expenses.
These expenses include hotel bills, restaurant meals and even lost rent if you
board a tenant who moves out because of the damage. Coverage may be limited
by a maximum dollar amount, or it may be limited by a maximum amount of
time you spend living outside your home.
4) Reimbursing You For Third-Party Liability
You may be subject to legal liability arising out of your use of your home. A
dangerous condition, for example, might injure a guest who then sues you for
personal injury. Homeowners insurance covers your legal expenses including
court costs, attorney's fees and the cost of paying any judgment against you.
Your policy may exclude coverage, however, for legal expenses arising from
injuries intentionally inflicted on another by you or a member of your family.
Many companies offer additional policies offering higher coverage limits for an
additional premium.

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2.3 TYPES OF HOME INSURANCE


Home insurance in India has a key role to play in the protection of your house
or building structure and valuable possessions or building content. Home
insurance policy is a guarantee provided by the insurance company that
combines insurance on the home, its contents the personal possessions of the
homeowner, as well as insurance covering accidents that may happen at the
house like fire and natural calamities. The coverage of the risk however depends
on the type of policy.
There are mainly two types of home insurance in India.
Building insurance
Content insurance
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1. Buildings Insurance
Buildings insurance is an important part of property investments. The
mandatory obligation made by the housing finance companies has strengthened
the need for insurance in conjunction with property investments. Insuring the
building or building structure is important since it protects you against
inevitable losses in case your building is destructed and debilitated in any
natural or man-made calamities.
The housing finance companies are insisting on building insurance so that in the
event of a disaster it can be repaired or rebuilt, as lenders don't want to be left
without security for their loan. A home insurance policy should cover
expenditure to rebuild your home in the event of it being totally destroyed or
damaged to the point that complete rebuilding is necessary (in eventualities like
earthquake, fire etc).
Different home insurance companies have different specifications for policy
coverage. It is recommended that you check the terms and conditions of the
policy. Home insurance companies in India mostly have home insurance plans
that insure the building structure of your home for its reconstruction value. This
is the cost incurred to reconstruct the home if it is damaged and not for its
market value such as the cost of land etc. Sum insured is calculated by
multiplying the built up area of your home with the construction rate per sq. feet
Home insurance plan for buildings are usually meted out on conditions as per
the policy terms arising out of conditions like
Fire, Lightening, explosion of gas in domestic appliances

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Bursting and overflowing of water tanks, apparatus or pipes.


Riot, Strike, Malicious or Terrorist Act
Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone
Damage due to earthquake, subsidence and Landslide (including
Rockslide).
Damage caused by Aircraft & Impact damage
Third party liability and personal accident.

2. Content Insurance
Content insurance may be considered optional but with the threat of burglaries,
natural disasters and fire, content insurance covers are rising in demand.
Contents insurance for home insurance plans includes protection to movable
goods, possessions or contents in the house; anything that is not a fixed parts of
your home, for example your appliances, electronic goods, furniture and
clothing.
Similarly as the modalities adopted in building insurance, different home
insurance companies in India have different policies for content insurance. Most
companies comply with insurance plans where a value equivalent to the market
value of household contents i.e. the value for which this used item could be
bought or sold in the market is covered as insurance. The insured amount given
against the perils for building or structure and its contents is assessed either on
'reinstatement value' basis -which is the value for replacing the item with a new
item of same type and make; or on 'market value' basis -which is the
reinstatement value less depreciation depending on the age of the item.
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Content insurance offers protection against various perils including:


Fires
Storms/flooding
Explosions
Theft and vandalism
Valuables such as jewellery, cameras and watches against all risks,
Cover against all kinds of accidental breakage of plate glass fixed in
doors and window frames.
Loss/damage to domestic appliances due to electrical and mechanical
breakdown.
Home insurance can be availed for both building and content combined.
However, most home insurance plans in India excludes underinsurance of the
property value, wilful destruction of property, loss, damage or destruction
caused by war perils, wear and tear and atmospheric conditions etc., damage
due to an act of terrorism(unless specifically covered) and losses or damages
incurred when premises are unoccupied beyond 60 consecutive days.

2.4 HOME CLAIM PROCEDURE


Inform the call center with policy details.

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Provide relevant information, which includes your policy and other


details regarding your claim. Consequently, your claim request is authenticated
and is escalated to the company's claims department.
Company's claims department validates and registers the request. They
appoint a surveyor within 48 hours.
The insured submits all the relevant documents to the surveyor. The
surveyor submits the Final Survey Report (FSR) along with the documents
within 7 days.
If surveyor is not appointed, the company's claims department sends a
letter of requirement for submitting documents to the insured within 24 hours of
claim intimation.
On receipt of documents, the claims department processes the claim
within 7 days. On approval of the claim, a letter is send to the insured giving the
approved amount of settlement along with the discharge voucher.
Payment cheque is released on receipt of the signed discharge voucher.

2.5 CLAIMS COVERED UNDER HOME INSURANCE


Insurance claim amount is always something creeping up on the mind of both
insurer and the insurance company. It is more evident in case when there is a
possibility of you filing a claim to recover the amount for that claim. If you
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provide sufficient proof and necessary documents for your home insurance
claim, there is a fair chance you can get the amount by the Home Insurance
company or provider. Also, submitting a claim on your home policy is a
relatively quite simple process. The steps involve contacting your agent, filling
out a claim form and waiting for an appointed arbiter to verify the facts and
judge the authenticity of the damage. If the damage is really worth notice, it's a
matter of few days to get the claimed amount through check. Most claims are
handled quickly.
Sometimes the claim process can really be time taking and frustrating. Also
keep in mind that most insurance providers don't enjoy the idea of two or three
claims in a short span of time and you stand almost certain chance of getting
cancellation of these claims. Try to stay away from high risks, so you should be
sure to make only those claims that are absolutely necessary. Or, if you are sure
about your rights to claim and corresponding damage or loss, just go full throttle
to register a claim. Only remember that there can sometimes be unpleasant
repercussions.
Here are some general tips for handling auto and home insurance claims:

Know your policy.


Stake your claim quickly.
Avoid using the word "lawyer."
Keep a copy of the police report.
Get an estimate or two.

DOCUMENTS REQUIRED

Documents are the most valid and appropriate proof for your home insurance
claims. Always keep your documents in place and ready both before you need to
make a claim and when you need to make one. It is always advisable to save the
receipts for items you buy. This will give the indication and estimation of the
total cost of items and damage claim amount accordingly. Photographs and/or
videotapes of your home (both in pre- and post-disaster form) can also be
beneficial. These will help you establish an inventory of your belongings should
the need arise. Always save photos or videos of the damage before you begin
cleaning up.
List of Documents Required
1.

Duly completed and signed claim form


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2.

Xerox copy of policy

3.

Copy of FIR

4.

Final Report from police

5.

Copy of all invoices, price lists, repair estimate

2.6 HOME INSURANCE CLAIM


In case of any incident leading to a valid claim under the policy, following steps
should be taken:
Take necessary steps to minimize the loss/damage.
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In case of fire, inform fire brigade immediately.


In case of theft, larceny or burglary inform the police immediately along
with a list of items stolen and their approximate value.
Inform insurance company by phone or fax and in writing.
Extend full co-operation to the surveyor appointed by the insurance Co. and
provide necessary documents to the substantiate the loss. A claim form issued
by the company is also to be submitted.
In case any rights of recovery exist against any other party responsible for the
loss, your rights of recovery have to be subrogated to the insurance company on
payment of claim.
CALCULATION OF HOME INSURANCE PREMIUM OR AMOUNT.
The factors to be kept in mind while calculating the insurance premium
and accepting the home insurance quote being offered by the home
insurance company are
Area of the House (calculated in sq.ft.)
Location and neighbourhood
Approximate rate of construction (calculated in Rs. per sq.ft.)
Permanent construction on the land
The time period offered for the insurance premium (monthly, quarterly or
six monthly depending upon the insurance amount) Property more than
50 years old is not covered in home insurance
The insurance policy offered is standard or flexi covering

CHAPTER -3

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3.1

CONTENT

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COMPANIES PROVIDING HOME


INSURANCE

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3.2

ICICI Home Insurance


Tata AIG General Insurance Company
Limited

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3.3

The Oriental Insurance Co. Ltd.

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3.4

BAJAJ ALLIANZ

29-30

3.5

IFFCO-TOKIO General Insurance

31-32

3.6

Quality Buildings Insurance from Royal


Sundaram

33-34

3.7

The New India Assurance Co. Ltd

35-37

3.1 COMPANIES PROVIDING HOME INSURANCE


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ICICI Home Insurance

It is imperative that you secure your home from natural and man-made
catastrophes. Before Applying for Home Insurance you should know about
Importance of Home Insurance. Our Home Insurance Plan ensures you peace of
mind by protecting the structure and the contents of your home.

Policy Details & Coverage


You can choose to buy insurance for only the building (structure) of your home,
or only the contents (belongings) or both. The policy covers the losses to the
structure and contents of your home due to any natural and man made
calamities.
The calamities covered are:
1.

Fire

2.

Riot, strike & malicious damage

3.

Explosion & implosion

4.

Earthquake

5.

Lightning

6.

Storm, cyclone, tempest, tornado, hurricane, flood & inundation

7.

Damage due to impact by vehicles

8.

Missile testing operation

9.

Subsidence, landslides and rockslides

10.

Leakage from automatic Sprinkler installations

11.

Bursting and/or overflowing of water tanks, apparatus and pipes


Burglary covers (only for contents):
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The contents of your home are also covered against loss due to burglary
or an attempted burglary. It also covers loss of jewellery, silver articles
and precious stones kept under lock and key, up to 25% of the total
content sum insured or Rs. 1 Lac, whichever is lower.
Additional expenses of rent for alternative accommodation - If you are
forced to shift into an alternative accommodation because your home is
destroyed or damaged by any insured peril, the policy will cover you
against the additional rent.
The maximum coverage is up to Rs. 1,00,000 for up to 6 months. The
cover is available only if you are insuring the structure of your home.

Key Benefits

Digitally signed policy is available 24X7 online, customer can take prints
instantly. The hard copy of the policy is couriered the same day (or next
day if customer buys after 6 PM) and will reach him/her within 2-3
working days.
Avail 15% discount on a 3 years home insurance policy and 25% discount
on 5 years policy.
Optional covers available - Terrorism and Additional expenses of rent for
alternative accommodation.
Sum Insured
How to calculate the sum insured for:
Home Structure
The home insurance policy insures the structure of your home for its
reconstruction value (and not for market value). Reconstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. On
the other hand market value is a combination of cost of land, demand &
supply scenario, etc.
Sum insured is calculated by multiplying the built up area of your home
with the construction rate per sq. feet, e.g. if your built up area of your
home is 1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the
sum insured for your home structure is Rs. 8,00,000.
We recommend the rate of construction for your location when you are
buying online. However, this value can be revised appropriately if
expensive material - like marble flooring, etc. - has been used in
construction. If your home has lawn / garden surrounded by a perimeter
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wall, the construction rate can be revised to include the cost of


construction of this wall in home structure sum insured.

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3.2 Tata AIG General Insurance Company Limited

HOME INSURANCE
"Home sweet Home" - a destination, any individual or a family feels very close
to the heart. It is an investment of one's lifetime savings, emotional dreams and
aspirations to realize their ideal home. Home signifies a set of emotions for any
individual, be it pride, ownership, stability or be it a sense of belonging. It
echoes the owners' sentiments "It's my house". After all, one's Home including
its contents is the single most important and expensive asset that we have
created for ourselves. We have learnt to value life and health sufficiently to
understand the importance of insuring it. But when it comes to applying the
same logic to our home (around which our lives revolve) most of us suffers a
blind spot. It is only when a calamity or catastrophe strikes that we feel helpless.
HOME SECURE BENEFITS.
Home Insurance in India provides exactly the care one needs at such times - to
safeguard against unforeseen eventualities and to preserve one's lifestyle and
that too at an affordable price. You can protect your priceless investment for
very little money. Assuming you have possessions worth Rs. 300,000 in your
house, you can insure those possessions for as little as Rs. 3 a day - for Fire,
Natural Hazards (Flood, Earthquake etc) and Burglary & Theft.

28

3.3 The Oriental Insurance Co. Ltd.

Householders Insurance Policy


Brief Description: The House holder's Insurance Policy is a comprehensive
shelter that protects your house and the various contents in it against a variety of
risks. It is a single policy that takes care of a number of contingencies. The
policy is divided into 10 sections. Sec 1(B) and a minimum of any 2 other
sections are compulsory.
1.
2.
3.
4.

Section 1: Fire and Allied Perils.


Section 2: Burglary.
Section 3: All risks.
Section 4: Plate Glass.

Section 5: Breakdown of domestic appliances.


6. Section 6: T.V. Set.
7. Section 7: Pedal Cycles.
Section 8: Baggage Insurance.
9. Section 9: Personal Accident.
10. Section 10: Public Liability
Covered Risks: Buildings of class 'A' construction, Plate Glass, Breakdown of
domestic appliances, T.V. Set, Pedal Cycles, Baggage Insurance, Personal
Accident, Public Liability.

29

3.4 BAJAJ ALLIANZ

Householders
Your home is our most valued possession, a haven of safety. But is it really as
safe as we would like to believe? We at Bajaj Allianz realize your need to make
your home as secure in reality as it is in your mind. This is why we bring to you
the House- Holders' Insurance policy designed to cover various risks and
contingencies faced by householders under a single policy. It provides
protection for property and interests of the insured and his family members who
permanently reside with the insured. A home insurance(householder's
insurance), protects not just your flat but also your domestic and electronic
appliances.
Unique Features
1.
2.
3.
4.
5.

Very competitive premium rates.


First loss basis option for burglary and jewelry.
Flexible rating for personal accident of the insured
No valuation certificate required for jewelry upto Rs.2 lacs.
Assembled computers can also be covered under EEI.

Benefits
1.
2.
3.
4.
5.

No strain on pockets of insured.


xSaving on cost.
Customized cover can be opted by the insured.
Save on time while proposing.
Same policy addressing varied needs.

30

Advantages
1.
2.
3.
4.
5.

Single Proposal form.


Complete coverage at reduced premium.
Client needs being addressed.
Simple and quick documentation.
Related items got covered under respective sections

31

3.5 IFFCO-TOKIO General Insurance

A Complete Protector
Our Home Suvidha Insurance Policy gives complete protection to your home
against a wide range of risks and perils. It is a simple Home Insurance Policy
wherein there are various categories of Sum Insured and you may opt for the
category most suitable to you depending upon the extent of risk perceived and
total value of your assets.
The Sum Insured under Section 1 & 2 represents the First Loss limit which
should be within 50% of the actual Market Value of the property at risk, below
which underinsurance condition will be applicable. The other Sections are
covered on Full Value basis - Market Value for Section 5 and Reinstatement
Value for Section 3 & 6. Sections 5 and 6 are optional. Either on both of them
can be deleted from the cover taken, in case they are not relevant to you.
Coverage Under Home Suvidha
Fire and Allied Perils (Contents): Contents of your premises are
covered against fire, explosion, bursting/ overflowing of watertanks, riots,
strike and malicious damage, earthquake, flood, cyclone, landslide etc.
Burglary and other Perils (Contents): Contents of your premises are
covered against housebreaking, burglary, robbery or dacoity and also
against impact damages by falling trees/electric poles/lamp posts,
breakage or collapse of television or radio aerials/satellite dishes and
damage by civic authorities in the prevention of fire.
Television/Video Equipment: This Section covers loss or damage to
your television/ video equipment against fire, theft, accidental damage
and breakdown.
Personal Accident: This section covers you and your named family
members against accidental bodily injury leading to death or disablement
(either permanent total or permanent partial).
32

Fire and Allied Perils (Building): This Section covers the residential
building, if owned by you against perils mentioned under the Fire and
Allied Perils (Contents) Section.
Personal Computer: This Section covers loss or damage to your
personal computer against fire, theft, accidental damage and breakdown.

Who can apply for this policy?


This Policy is suitable for you as a householder, whether you are a landlord or a
tenant, whether you reside in an independent house or in a flat/apartment,
whether the building is single storied or is a high rise, since each of the
alternatives above would imply different risk exposures which can be covered
under this policy.

33

3.6 Quality Buildings Insurance from Royal Sundaram

Home Insurance
Homeshield Classic is a comprehensive package of insurance benefits designed
to cover the buildings and contents of your home against all possible kinds of
perils such as fire, earthquake, terrorism, storm, flood, cyclone, burglary and
breakdown of appliances. Your building cover can be arranged in conjunction
with your contents cover or on its own.
Homeshield Classic - Coverage
When it comes to contents of your home, Royal Sundaram-s Homeshield
Classic will give you complete peace of mind by covering the contents against a
range of risks. We also cover building insurance.
Three levels of cover to choose from to suit your lifestyle.
You have the option of insuring your building against fire and allied
perils.
You have an option of payment through credit card with automatic
renewal facility.
Assured Claims service: Claims will be settled within 10 days of receipt
of documents.
We provide you 15 days to review your policy document. If you are not
completely satisfied, simply return your policy for cancellation and Royal
Sundaram will refund the entire premium paid provided no claim has
been made.

34

Homeshield Classic - Features

Simple documentation & customer-friendly package.


Comprehensive package covering fire, earthquake, terrorism, storm,
Option to cover building against Fire & allied perils @ Rs.78.56/- per lac.
Covers household contents, appliances, jewellery & breakdown of
appliances.
3 levels of cover to choose from : Silver, Gold & Platinum.
Assured Claims service: Claims will be settled within 10 days of receipt
of
documents.
You have an option of payment through credit card with automatic
renewal facility.
Option of Add-on covers for Computer, Air-conditioner, Air Cooler.

35

3.7 The New India Assurance Co. Ltd.

Householders Policy
Highlights
This is a package policy specially designed to meet the insurance requirements
of a householder by combining under a single policy, a number of our standard
policies usually taken by householders. Discount in premium is offered
depending upon the number of sections of the policy, opted for, by the proposer.
Scope

The policy comprises of 10 sections as given here under


Section I - Fire & Allied Peril
Coverage for building
Covers contents of the dwelling belonging to the proposer and his/her
family members permanently residing with him/her.

Allied Perils:

Fire, Lightening, Explosion of gas in domestic appliances


Bursting and overflowing of water tanks, apparatus or pipes.
Damage caused by Aircraft , Riot, Strike, Malicious or Terrorist Act
Earthquake, Fire and/or Shock, subsidence and Landslide (including
Rockslide) damage
Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or
Cyclone, Impact damage
Section II - Burglary & House Breaking including larceny and theft.
36

Covers contents of the dwelling against loss due to burglary, house breaking,
larceny or theft.
Section III - All Risks (Jewellery & Valuables)
Covers loss or damage to your jewellery and valuables by accident or
misfortune whilst kept, worn or carried anywhere in India subject to the value
declared in the schedule.
Section IV - Plate Glass
Loss or damage to fixed plate glass in the insured premises by accidental
breakage subject to limit of sum insured
Section V - Breakdown of Domestic appliances
Covers domestic appliances against unforeseen and sudden physical damage
due to mechanical or electrical breakdown.
Section VI - T.V. Set including VCP/VCR (ALL RISKS)
Covers loss or damage to T.V. Set including VCP/VCR by fire and allied perils,
burglary, house breaking or theft, breakage due to accidental external means,
mechanical or electrical breakdown. Any legal liability arising out of bodily
injury or accidental death of any person other than insured's family members or
employee as also damage to property not belonging to or in the custody of
insured , caused by use of the T.V. Set is also covered up to a limit of
Rs.25,000/-.
Section VII - Pedal Cycles (All Risks)
Covers loss or damage to pedal cycles by : Fire & allied perils , Burglary, housebreaking, theft , Accidental external
means
Third party personal injury or Third party property damage for
Rs.10,000/Section VII - Baggage Insurance
Covers loss or damage to insured's accompanied baggage by accident or
misfortune whilst the insured is traveling on tour or holiday anywhere in India.

37

Section IX - Public Accident


Covers Death or bodily injury by accidental, violent, external and visible means
to the insured person named in the schedule and subject to limits specified
therein.
Section X - Public liability.
Covers Insured's legal liability for bodily injury or loss of or damage to property
of third party limited to amount specified in the schedule and workmen's
compensation liability to domestic servants engaged in insured's premises. It is
compulsory to opt for Section IB of the policy. A minimum of three sections
including Section IB have to be taken for issuance of this policy.
How to select sum insured
For the insurance of household items, it would be necessary to group the items
in a broad category like furniture, clothing , linen, utensils , crockery etc. and
give a value equivalent to the market value i.e. the value for which this used
item could be bought or sold in the market. Sections I A & B, II, III, IV, VI, VII
& VIII should be insured on market value basis as described above. It is a
condition of Section V i.e. breakdown of domestic appliances, that the sum
insured should represent the current replacement value of a similar item. For
e.g. to insure 165 ltr. Godrej fridge which is 3 years old, the sum insured should
be equivalent to the cost price of a new 165 ltr. Godrej fridge. However, the
claim amount payable would be the amount required to bring the damaged item
to the same condition as it was prior to the damage subject to the adequacy of
the sum insured. The sum insured under section IX i.e. Personal Accident
should not exceed 72 months salary from gainful employment.

38

SR
NO
4.1

CONTENT

PAGE
NO

DATA ANALYSIS

39-48

CHAPTER -4

39

4.1 DATA ANALYSIS


1) Are you aware about Home Insurance ?
Table No:- 4.1 Review about aware of Home Insurance

Sample Size

Yes

No

50

35

15

15

35

Yes

No

Diagram No:- 4.1 Review about aware of Home Insurance

40

2) Do you have Home Insurance ?


Table No:- 4.2 Review about Home Insurance

Sample Size

Yes

No

50

11

39

22%

78%

Yes

No

Diagram No :- 4.2 Review about Home Insurance

41

3) From which company you have Home Insurance, Please specify the
name of the company
Table No:- 4.3 Review about Home Insurance company

Sample Size

ICICI Home
Insurance

BAJAJ
ALLIANZ

11

5
6

ICICI Home Insurance

BAJAJ ALLIANZ

Diagram No:- 4.3 Review about Home Insurance company

42

4) Have you taken this Policy from any Agent or have you visited
company personally?
Table No:- 4.4 Review of Policy taken about customer policy

Sample Size

Agent

Personally

11

Agent

Personally

Diagram No:- 4.4 Review of Policy taken about customer policy

43

5) Does company provide knowledge on entire product range in its


portfolio?
Table No:- 4.5 Review about company providing knowledge to customer

Sample Size

Yes

No

11

10

10

Yes

No

Diagram No:- 4.5 Review about company providing knowledge to customer

44

6) Are you satisfied with the service provided by them?


Table No:- 4.6 Review about customer satisfied of service provided

Sample Size

Yes

No

11

Yes

No

Diagram No:- 4.6 Review about customer satisfied of service provided

45

7) Does your Insurance Company provide information and alerts about


your policy from time to time?
Table No:- 4.7 Review of customer alerts and information provide by
company

Sample Size

Yes

No

11

11

Chart Title

11

Yes

No

Diagram No:- 4.7 Review of customer alerts and information provide by


company

46

8) Does your company provide online claim facility?


Table No:- 4.8 Review of customer provide online claim facility by company

Sample Size

Yes

No

11

Yes

No

Diagram No:- 4.8 Review of customer provide online claim facility by


company

9) How would you like to pay premium?


47

Table No:- 4.9 Review about customer paying premium

Sample
size

Monthly

HalfYearly

Quarterly

Yearly

11

4
5

Monthly

Half-Yearly

Quarterly

Yearly

Diagram No:- 4.9 Review about customer paying premium

10) Which Insurance company is good for Home Insurance plan?


48

Table No:- 4.10 Customer review of Insurance Company

Sample ICICI
size
Home
Insuranc
e
11

BAJAJ
ALLIAN
Z

Oriental
Tata
Insurance
AIG
Co. Ltd. General
Insuranc
e

ICICI Home Insurance

BAJAJ ALLIANG

Oriental Insurance Co. Ltd

Tata AIG General Insurance

Diagram No:- 4.10 Customer review of Insurance Company

49

CHAPTER 5
SR
NO

CONTENT

PAGE
NO

5.1

FINDINGS AND SUGGESTION

50-51

5.2

CONCLUSION

52

5.3

ANNEXURE

53-54

5.4

WEBLOGRAPHY

55

5.1 FINDINGS AND SUGGESTION


50

Finding of the Study


After doing survey I have analysed that many of customers
having Insurance, but they are not aware about all the kinds of
Home Insurance plans which can be more beneficial for them.

From above survey and find out most of the people are not
prefer to but Home Insurance and they have absence of
knowledge above Home Insurance.
From above survey and find out many people not having much
more knowledge about Home Insurance.

LIMITATIONS
Inadequate time was the major constraints during the whole
project.

All the answers given by the respondents have been assumed


true.

SUGGESTIONS
51

It is necessary that every person should be aware Home


Insurance company plan.
The home insurance company provide proper and detail
information to their customers of Home Insurance.
Today is competitive world. Home Insurance Company provide
online claim facility to their customers.

5.2 CONCLUSION
52

The insurance industry is in the silent revolution and the best part is that all of
us are part of this revolution process, contributing to it and influencing shape of
things to emerge. It will be quite interesting to see an excess of distribution
system taking shape and competing with each others.
There is one truth in marketing that is different consumers Approach buying
differently. Studies have time and again shown that insurance is bought because
of convenience, product features, product placement, and safety of funds,
advice, and not the price.
From the survey of customers I came to conclusion that many of the customers
are not aware about the concept home insurance. As this policy is generally
taken by the businessmens, self-professionals. We can expect from this
organization that it will lead the innovative process with quality of services that
will help the Indian consumer to take advantage from insurance business.

5.3 ANNEXURE
NAME: - ____________________________________
AGE: - ______
53

1) Are you aware about Home Insurance?


1. Yes

2. No

2) Do you have Home Insurance?


1. Yes

2. No

3) From which company you have Home Insurance, Please specify


the name of the company
1.______________________
4) Have you taken this Policy from any Agent or have you visited
company personally?
1. Agent

2. Personally

5) Does company provide knowledge on entire product range in its


portfolio?
1. Yes

2. No

6) Are you satisfied with the service provided by them?


1. Yes

2. No

7) Does your Insurance Company provide information and alerts


about your policy from time to time?
1. Yes

2. No

54

8) Does your company provide online claim facility?


1. Yes

2. No

9) How would you like to pay premium?


1. Monthly
2. Half-Yearly
3. Quarterly
4. Yearly
10) Which Insurance company is good for Home Insurance plan?
1. ICICI Home Insurance
2. BAJAJ ALLIANZ
3. Oriental Insurance Co. Ltd.
4. Tata AIG General Insurance

5.4 WEBLOGRAPHY

WWW.GOOGLE.COM
WWW.ICICILOMBARD .COM

www.nriol.com/tata-aig/property-insurance
55

https://www.orientalinsurance.org.in
www.iffcotokio.co.in/home-insurance
https://www.bajajallianz.com/Corp/property-insurance/homeinsurance.jsp
www.royalsundaram.in/homeinsurance-online.aspx
www.investopedia.com/terms/h/home
owners-insurance.asp

56