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  • TABLE OF CONTENTS
  • EXECUTIVE SUMMARY
  • INTRODUCTION:
  • OBJECTIVES OF THE STUDY:
  • METHODOLOGY
  • RELIANCE MONEY
  • RELIANCE GENERAL INSURANCE
  • WHAT IS INSURANCE?
  • WHY SHOULD ONE INSURE?
  • WHAT IS GENERAL INSURANCE?
  • WHO SHOULD BUY GENERAL INSURANCE?
  • RISK COVERED UNDER GENERAL INSURANCE
  • IMPORTANCE OF GENERAL INSURANCE
  • HISTORY
  • THE GENERAL INSURANCE IS BASICALLY DIVIDED INTO FOLLOWING
  • CATEGORIES
  • PREMIUM UNDERWRITTEN BY GENERAL INSURANCE -SEGMENT WISE
  • INDIAN GENERAL INSURANCE INDUSTRY - MARKET OVERVIEW
  • IMPACT OF RECESSION ON GENERAL INSURANCE
  • MAJOR CHALLENGES
  • about Risk exposures and about insurance products available to the
  • MAJOR PLAYERS IN GENERAL INSURANCE INDUSTRY
  • PUBLIC SECTOR
  • PRIVATE SECTOR
  • PRIVATE SECTOR’S GROWING INFLUENCE
  • Market Share – Redistribution
  • REGULATORY ENVIRONMENT
  • Impact of Regulation – Emphasis on Policyholder Protection
  • Three Phases of De-Tariffing
  • OPPORTUNITIES AVAILABLE
  • FUTURE PROSPECTS
  • AUTO INSURANCE
  • Auto insurance is divided into three parts
  • There are two types of Auto Insurance,
  • MOTOR POLICY A- THIRD PARTY INSURANCE COVERS
  • Third Party insurance covers Personal Injury and Property damage
  • Personal Injury includes
  • MOTOR POLICY B - COMPREHENSIVE INSURANCE
  • A Comprehensive Auto Insurance Policy Includes
  • HOW THE POLICY CAN BE OBTAINED
  • PREMIUM
  • RENEWAL
  • NO CLAIM BONUS
  • TRANSFER OF INSURANCE POLICY
  • CLAIMING PROCEDURE
  • The documents to be submitted are
  • THIRD PARTY INSURANCE CLAIM
  • Documents Required for Auto Insurance Claim
  • For Accident Claims
  • For Third Party Claims
  • AUTO POLICY OF GOVERNMENT OF INDIA
  • TO ESTABLISH A GLOBALLY COMPETITIVE AUTOMOTIVE INDUSTRY IN
  • INDIA AND TO DOUBLE ITS CONTRIBUTION TO THE ECONOMY BY 2010
  • Policy Objectives
  • CHALLENGES
  • INDIAN AUTO INSURANCE INDUSTRY - MARKET OVERVIEW
  • MAJOR PLAYERS IN AUTO INSURANCE INDUSTRY
  • OPPORTUNITIES
  • FINDINGS
  • SUGGESTIONS
  • CONCLUSION
  • BIBLIOGRAPHY
  • India: The Next Insurance Giant India by PRwire Pvt. Ltd
  • www.moody.com –Indian General insurance outlook

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009

TABLE OF CONTENTS

Sr.No.

Particulars

Page No.

1 Executive Summary 2 Introduction 3 Objectives of the Study 4 Methodology 5 A study on Indian General Insurance Industry- Auto Insurance 6 Suggestions & Findings 7 Conclusion 8 Bibliography

A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE

PAGE 1

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009

EXECUTIVE SUMMARY

The project is about the study conducted on Indian General Insurance Industry, in particular with the Auto Insurance segment of general insurance. It studies the current market how the insurance segment is booming in the last few years. How the market has chanced with the new private entrants, what are the major challenges faced by insurance companies, The role played by Government in this industry. The marketing strategies used by the competitors to survive in the market The opportunities available with the company to progress and to overcome the challenges faced by them. The future of this industry is very bright the short term scenario For the general insurance sector appears to be challenging the long term prospects definitely present ample opportunities for growth.

A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE

PAGE 2

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009

INTRODUCTION:

This project is about the study conducted on the general insurance industry. In particular with the auto insurance this is a part of general insurance. This is the detailed study on how auto insurance industry sector functions, What are the challenges faced by auto insurance industry currently, Who are the market players in this auto insurance sector? What is the current market situation about of the auto insurance sector What are the various market strategies followed by these industries What are the challenges faced by auto insurance sector How the companies are taking steps in order can overcome the challenges. What are the future prospects of auto insurance industry

A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE

PAGE 3

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009

OBJECTIVES OF THE STUDY:

The objective of the thesis is: “To study the Indian general insurance industry particularly with the auto insurance segment of general insurance , identify areas of excellence and areas needing improvement; and provide suggestions for such improvement”.

The aim of this Thesis is to successfully study general insurance sector a common platform, analyze their working and performance, marketing

on

strategies highlight their performance , evaluating the various challenges faced by them while providing suggestions and recommendations for improvement.

A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE

PAGE 4

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009

METHODOLOGY

The data is collected from various articles, documents,

market analysis , published on the internet and also form

booklet of few auto insurance companies

the charts and table are done with the help of MS excel

software

A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE

PAGE 5

Wealth Management Services. Offshore Investments. Life and General Insurance products and Gold Coins.000 outlets and 20. Customers can also avail Loans. catering to the diverse needs of over 3 million existing customers. Portfolio Management Services. providing end-to-end financial solutions (including mobile and web-based services).165 cities/ towns. Money Transfer and Money Changing services. Equity and Commodity Derivatives. It is a one-stop-shop. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 RELIANCE MONEY Reliance Money. IPOs. Investment Banking. a Reliance Capital company and part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider. Credit Card. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity. Mutual Funds.000 touch points spread across 5. It has the largest non-banking distribution channel with over 10.AUTO INSURANCE PAGE 6 .

and ranks among the top 3 private sector financial services and banking groups. Reliance General Insurance has an extended network of over 200 offices spread across 173 cities in 22 states. The Company has launched innovative products like India’s first Over-The-Counter health & home insurance policies. RELIANCE GENERAL INSURANCE Reliance General Insurance is one of India’s leading private general insurance companies with over 94 customized insurance products catering to the corporate. It is also India’s first insurance company to be awarded the ISO 9001:2000 certification across all functions. processes. in terms of net worth.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Reliance Capital is one of India's leading and fastest growing private sector financial services companies. The various general insurance products offered by the company are • • • Health Insurance Motor Insurance Home Insurance PAGE 7 A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE . products and locations pan-India. a wide distribution channel network. SME and individual customers. 24x7 customer service assistance and a full fledged website.

WHY SHOULD ONE INSURE? One of the main reasons one should insure is to protect one’s belongings and assets against financial loss. in case we should cause a loss to another person. That is. The law also requires us to be insured against some liabilities. For a payment (premium).AUTO INSURANCE PAGE 8 . that person A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. an insurance company will take the responsibility of compensating your financial losses.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 • • Travel Insurance Accident Cover WHAT IS INSURANCE? We face a lot of risks in our daily lives. Some of these lead to financial losses. protecting it is prudent. When one has earned and accumulated property. Insurance is a way of protecting against these financial losses. Insurance provides us with protection against unforeseen incidents along with a felling of security and also keep saving intact for the future.

AUTO INSURANCE PAGE 9 . To ensure that we can afford to pay that compensation. Life Insurance 2. Injury due to accident or hospitalization for illness and surgery can also be insured. Each one of us can insure our and our dependents’ health A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance. WHO SHOULD BUY GENERAL INSURANCE? Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. General Insurance WHAT IS GENERAL INSURANCE? Insuring anything other than human life is called general insurance. Insurance is generally categorized into two divisions: 1. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 is entitled to compensation. the law requires us to buy liability insurance so that the responsibility of paying the compensation is transferred to an insurance company.

To buy a policy the person should be the one who will bear financial losses if they occur. Marine Cargo policy covers goods in transit including by sea. there are policies that cover the hull of ships and so on. insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. The non-life companies also offer policies covering machinery against breakdown.AUTO INSURANCE PAGE 10 . A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. RISK COVERED UNDER GENERAL INSURANCE Non-life insurance companies have products that cover property against Fire and allied perils. earthquake and so on. air and road. Further. There are products that cover property against burglary. This is known as insurable interest. theft etc.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 and well being through hospitalization and personal accident policies. flood storm and inundation.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Personal insurance covers include policies for Accident.e. the insured will have to bear a ratable proportion of the loss Accident and health insurance policies are available for individuals as well as groups. Liability insurance covers such as Motor Third Party Liability Insurance. The Workmen’s Compensation Act etc. insurers offer group discounts. Where a property is undervalued for the purposes of insurance. Normally when a group is covered.AUTO INSURANCE PAGE 11 . Insurance of property. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. i. Health etc. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. Sometimes the insurers themselves process reimbursement claims.. hospitals. Products offering Personal Accident cover are benefit policies. Some of the covers such as the foregoing (Motor Third A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. The cashless service is offered through Third Party Administrators who have arrangements with various service providers. Workmen’s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes— Motor Vehicles Act. The Third Party Administrators also provide service for reimbursement claims.

It is important to protect one’s property. chartered accountants etc. Liability Insurance not compulsory by statute is also gaining popularity these days. There are liability covers available for Products as well. there are package policies available for householders. Such losses can be devastating but insurance could help mitigate them. A loss or damage to one’s property can leave one shattered. Many industries insure against Public liability.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Party and Workmen’s Compensation policy) are compulsory by statute. Cyclones etc have left many homeless and penniless. IMPORTANCE OF GENERAL INSURANCE General Insurance covers are necessary for every family.AUTO INSURANCE PAGE 12 . insurers also offer customized or tailor-made ones. which one might have acquired from one’s hard earned income. Losses created by catastrophes such as the tsunami. earthquakes. shop keepers and also for professionals such as doctors. For instance. There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. Apart from offering standard covers. Property can be covered. so also the people A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 against Personal Accident. there are few products that are long-term HISTORY 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. Industries also need to protect themselves by obtaining insurance covers to protect their building. Financiers insist on insurance. Most general insurance covers are annual contracts. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. They need to cover their liabilities as well. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. machinery. Also organizations or industries that are self-financed should ensure that they are protected by insurance. most industries or businesses that are financed by banks and other institutions do obtain covers. However. So. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE PAGE 13 . stocks etc.

Marine Insurance 4. Health Insurance 3. Auto Insurance 2.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 THE GENERAL INSURANCE IS BASICALLY DIVIDED INTO FOLLOWING CATEGORIES 1. Fire Insurance 5. Others PREMIUM UNDERWRITTEN BY GENERAL INSURANCE -SEGMENT WISE A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE PAGE 14 .

The country is geographically large and has the world’s 2nd largest population -. during which the sector was opened to private participation.AUTO INSURANCE PAGE 15 . Big changes have occurred over the last few years. China and Taiwan. following Japan. The sector achieved double-digit growth and this trend is expected to persist over the medium term on the back of greater penetration. The A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.MARKET OVERVIEW The Indian insurance sector is rapidly moving towards international standards of free (risk-based) market pricing and new/innovative product offerings.13 billion in 2007 – but it also has one of the lowest penetration rates for property and casualty insurance in Asia in terms of premium as a percentage of GDP.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 INDIAN GENERAL INSURANCE INDUSTRY . Korea.1. along with foreign direct investment (FDI) capped at 26%. India’s general insurance market witnessed a variety of changes as deregulation continued at a hectic pace. due partly in turn to the intense marketing efforts of private insurers. India is the 5th largest market in Asia by premium.

The number of private insurers is growing as various foreign companies have announced intentions to establish joint ventures.AUTO INSURANCE PAGE 16 . With the regulator lifting the ceiling on foreign ownership to 49%. Rate reductions in the recently de-tariff corporate portfolio (fire & engineering) has impacted the premium growth.9620 Crores With CAGR: 16. foreign players participation has increase both volumes and types of products. but this is also leading to the greater sales of existing and new products. Private players continue to capture market share at the expense of public enterprises on a mix of aggressive distribution and service.60% of GDP and the Gross Premium has increased to(2007-08) is Rs. With the increasing number of insurers in the private sector. insurers have discounted their rates by 50% in order to retain or win market share.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 removal of pricing controls on fire and engineering lines in 2007. The industry forecasts for a continuous growth and rise domestic demand.6% IMPACT OF RECESSION ON GENERAL INSURANCE A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. General Insurance Penetration 0.28130 Crores compared to the Gross Premium (2000-01) of Rs.

This along with rigorous cost cutting measures in all businesses has directly impacted the general insurance (non-life) industry in the country. Among the government companies only United India could manage to grow14 per cent. This was the slowest growth in gross premium underwritten in the last five years. The general insurance industry’s premium collection grew 22 per cent in 2006-07 and 12 per cent in 2007-08.10 per cent from Rs 28. tractors and near stagnation in car sales led to a big drop in insurance premium underwritten Among the private players IFFCO-Tokio did the best with 22 per cent growth in premium underwritten in 2008-09. The 16-players industry together collected Rs 30. or went for lower cover to save on premium expenditure. up only 9.AUTO INSURANCE PAGE 17 . The most important reason for the drop in business was that many small and medium businesses either did not buy insurance covers. while the other three grew only by single digit. Also the sharp drop in sales of commercial vehicles. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.051 crore in 2007-08. Royal Sudaram.601 crore as premium underwritten in 2008-09. Bajaj Allianz are the other two players to manage a decent growth.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 The slowdown in economic activities in India has led to a sharp reduction in asset creation in the Indian industries. like fire insurance.

while short term scenario for the general insurance sector appears to be challenging the long term prospects definitely present ample opportunities for growth MAJOR CHALLENGES Awareness It is the main problem faced by all the insurance company is lack of awareness about Risk exposures and about insurance products available to the customers. On the whole. General insurance companies also made losses because abolition of tariffs has led to a virtual price war in certain lines of business like Fire and Engineering insurance. Majority of the populations who are living in the rural areas and sub urban areas are not aware of the about risk exposures and about insurance products available in the market A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. This is evident from the higher claims ratio in both.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 One of the major milestones in the Indian general insurance industry has been the withdrawal of premium pricing restrictions post January 2007. In India only 20% of the population is insured. the fire and motor segment as well as the higher underwriting losses posted by both the private as well as public sector companies.AUTO INSURANCE PAGE 18 .

Majority of the population is not aware of the benefits that the insurance company provides And they are also not aware of the various schemes which these companies introduce MAJOR PLAYERS IN GENERAL INSURANCE INDUSTRY A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Uneconomical premium of insurance policy is also a major constrains Accessibility The policies are complex to understand by a layman the procedures are difficult to obtain policies if done individual .KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Affordability In India majority of the population standard of living is low and majority of them belong to middle class and lower class and they have very little money left after satisfying basic needs.there are a lot of activities and formalities involved in order to get the insurance policy Inappropriate / inadequate distribution strategies.AUTO INSURANCE PAGE 19 .

They primarily focused on their immediate regions and there was little competition.AUTO INSURANCE PAGE 20 . The public enterprises – Oriental Insurance Company of India (OIC). In the private sector.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 PUBLIC SECTOR Until 2000. PRIVATE SECTOR The private sector has been steadily growing market share despite the fact that public sector companies have been around for a lot longer. There are total 12 players in the private sector. formed after the nationalization of 107 general insurers. the major players are – A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. National Insurance Company of India (NIC). whereas the public sector companies have been constrained by their traditions and inability to innovate. The private insurers enjoy considerable operational flexibility. the general insurance sector had only four public sector players. leading to a near monopolistic environment. New India Assurance Company of India (NIA) United Insurance Company of India (UII).

PRIVATE SECTOR’S GROWING INFLUENCE Market Share – Redistribution A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 IFFCO-TOKIO General insurance Reliance General Insurance Co. BHARTI-AXA General insurance CHOLAMANDALAM . ICICI LOMBARDTATA AIG.General Insurance BAJAJ ALLIANCCE.AUTO INSURANCE PAGE 21 . FUTURE GENERALI Royal Sudaram General Insurance Universal Sompo General Insurance Shriram General Insurance The inherent operational flexibility of the private players – such as through aggressive pricing -.has allowed them to capture a greater share of large corporate accounts. Ltd.

In terms of overall business. fire. the market share of the private sector is catching that of the public sector and the two will likely converge over the medium term. Given a faster growth rate. Before the removal of tariffs. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Fire and engineering now broadly contribute a similar proportion of overall business for the private and public sectors. the market share of public insurers has consistently declined. where good growth is expected. engineering and motor own damage (OD) contributed a much greater proportion of business for private players than was the case for public firms.AUTO INSURANCE PAGE 22 . the focus has shifted towards the retail segments of motor and health.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Premium and volume public V/s private Due to the effectiveness of private marketing strategies.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Regional Focus Public insurers have traditionally focused at the regional level with one each in north. Client Servicing The public insurers have also been hampered in claims servicing by their process-oriented approach and limited operational flexibility. The private players by contrast have focused on account-level profitability for large corporations and have expanded their shares by crosssubsidizing tariffed products. east. They have A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. west and south India. Their limited capacity to innovate has impacted their ability to tailor and aggressively price products for large corporations.AUTO INSURANCE PAGE 23 . On account of their public charters and the absence of competitive pressures. Operational Flexibility In public entities there is lack the operational flexibility enjoyed as compared by the private players. these entities did not have to actively market their products and just wrote whatever business came their way.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 been unable to expedite claim settlements through out-of-court negotiations since a large proportion of their claims pertain to the third party motor segment. attributes vital to building franchises. On the other hand. which is subject to adjudication by the Motor Accident Claim Tribunal. something which could give them a strong pricing edge in a de-tariffed environment A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. They started with large investments in technology. and have not fully used their past claim experiences. such as moving from paper to paper-less systems.AUTO INSURANCE PAGE 24 . which helped them to build robust data management systems. public entities have only recently upgraded their systems and have to grapple with transition issues. They are encumbered by legacy systems and fragmented databases. The result is a time-consuming and involved process. The situation is not the same with the private player as they enjoy more operational flexibility which in turn saves a lot of time of both parties Strong Infrastructure and Systems Private players are not hindered by their charters or legacy systems and have constructed technologically advanced infrastructure. This characteristic enables in turn quick and effective decision-making for pricing and claims settlements.

They have drawn talent from public sector companies. Superior Claim Paying/Processing Capability The combination of superior technology and selective underwriting has allowed the private sector to set high standards for policyholder services. They benefit from the experiences of the public sector as well as their international joint-venture partners. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. thereby differentiating themselves from public sector insurers. Such claims normally take a longer time to settle. especially during their initial years.AUTO INSURANCE PAGE 25 . Focused Underwriting Strategy The private players. The claim settlement performance of the private sector has also been superior because of the limited amount of third party motor business that they have underwritten.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 . have selectively targeted the more profitable lines of the public sector companies for growth.

For example. through which 75% of total premium income is sourced. low cost channels like tele-sales and the internet are still not developed in India.AUTO INSURANCE PAGE 26 . A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Most insurers now have tie-ups with the banks.are gaining importance. which act as corporate agents and are remunerated on a commission basis. bank assurance. Bajaj Allianz General Insurance Company Limited (BAIL.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Distribution – Rise of Banc assurance The Indian general insurance industry has historically been dominated by the agency channel. direct marketing and direct sales channels -. which contribute a big share of its total premium income. Similarly. ICICI Lombard sources a major portion of its business from a tie-up with ICICI Bank. second largest private player) has tie-ups with large number of banks. But in recent periods other channels – for example. mainly due to relatively poor knowledge about insurance products and low internet penetration. At this time. corporate agents. brokers.

To ensure their stability. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. At the moment. transparency and financial strength. which do not have such restrictions. new entrants are subject to rigorous scrutiny and the conduct of their business is closely monitored.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 REGULATORY ENVIRONMENT Impact of Regulation – Emphasis on Policyholder Protection IRDA was set up with introduction of the IRDA Act in 1999. insurers have to invest a minimum 30% in government securities.AUTO INSURANCE PAGE 27 . It is responsible for protecting the interest of policyholders and promoting efficiency in the insurance business. particularly in relation to capital adequacy and prudent investment policies. Compliance with these relatively restrictive guidelines could limit insurers’ ability to diversify and build optimal portfolios. Its initial purpose was to bring about general discipline to the industry. The regulatory environment to date has attracted many insurers whose domestic partners are leaders in their chosen fields and their foreign counterparts are all well-established with considerable experience in developed and emerging markets. The regulator has laid down investment guidelines that limit exposure in certain class of assets and also sets threshold limits for some assets. in contrast to some of the more mature markets like the US and Australia.

supported by their strong investment portfolios and capitalizations.5 times. The investment in un-approved securities has been limited to 25% of total investment books. The Indian insurance regulator has set the minimum capital required at a level to ensure that all insurers -. may require capital infusions from time to time to maintain their solvency requirements.introduced in January 2007 -. General insurers must maintain a solvency ratio (available solvency margin/required solvency margin) of 1. calculated based on net premium earned and net claims incurred in various segments. The private players. Public sector entities have maintained comfortable solvency margins. In fact.have enough funds to meet their claim obligations and to limit their overall writings to the amounts supported by their capital bases. IRDA has enacted enabling legislation and issued guidelines to de-tariff various segments.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 The guidelines also stipulate a minimum 10% investment in the social and infrastructure sector. the discounting has been so extreme that A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. De-tariffing -. The need to manage capital to comply with IRDA’s solvency margin will induce insurers to be more risk conscious when taking on new business To ensure an orderly transition towards a deregulated insurance market and risk-based pricing. being in a growth phase.AUTO INSURANCE PAGE 28 .especially the start-ups -.has been well accepted and corrections to prices in profitable lines have been dramatic and have noticeably impacted premium growth rates.

The restrictions on price discounts during the initial periods were intended to ensure orderly price adjustments. The only segment that remains under a tariff regime is the third party motor business. the de-tariffing did not immediately allow for free pricing. They were removed in January 2008. which was then approved by IRDA. health.Fire. However.5% Three Phases of De-Tariffing India’s general insurance industry has undergone de-tariffing in three phases:  1994 -. Instead. although there has been a large upward revision in this A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. personal accident. whereby they were expected to file a charter of proposed rates. banker liability and aviation  2005-06 -.marine hull segment  2007 .AUTO INSURANCE PAGE 29 . insurers were required to follow the “file and use” method.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 the regulator intervened in September 2007 and capped maximum discounts at 52.marine cargo. engineering and motor own damage (OD).

policy holder servicing to record-keeping • Aggressive marketing strategies by private sector insurers will buy consumer awareness of risk and expand the markets for products • Competition in a deregulated environment will allow market forces to set premiums that are appropriate for exposures and push insurers to differentiate their products and services • Innovations in distribution and improvements in market penetration will follow as public and private insurers compete to market their products A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 area’s premium rates by regulators in recent times.AUTO INSURANCE PAGE 30 . from underwriting. Moreover. marketing. resulting in loss share OPPORTUNITIES AVAILABLE • The intense competition brought by deregulation has encouraged the industry to innovate in all areas. which has traditionally contributed to adverse claims ratios. has been moved to a common pool. commercial third party motor business.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 • Allowing insurers to issue their own policy wordings and set their own rates will enable underwriters to tailor products to meet client needs • The existence of stringent licensing requirements ensure that only adequately capitalized and professionally managed companies are eligible to carry out insurance and reinsurance • The Insurance Regulatory Development Authority of India’s (IRDA) emphasis on quarterly reporting/monitoring of insurer solvency will enhance capital adequacy and transparency.AUTO INSURANCE PAGE 31 . A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.

• Huge strides in Health Care opening up huge Health Insurance potential. • In Rural sector large number of Micro finance institutions. literacy. So the company can conduct mass campaign and educated the people more about the products and also about the risk covered and the various benefits which they can avail .AUTO INSURANCE PAGE 32 . • High growth in Automobile sector. disposable income. insurance awareness throws open huge opportunities on insurance.The Company can use various medium to increases the awareness • Increase in standard of living.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 FUTURE PROSPECTS • Huge market largely untapped especially in Rural & Urban regions can be targeted to increase the number of insurer in the market • As high as 70% of population is still not covered by insurance. Self Help Groups are setup who can be the major clients of this industry A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.

000 crores to 1lakh crore by 2015. • The Large part of growth is expected to come from come from retail and rural sectors. • General Insurance would grow at CAGR 17% next 5years. • More and more number of private players entering into this industry and along with foreign companies through joint ventures. • The premium is expected to grow from 28. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE PAGE 33 .FDI is also playing a major role in this industry as government has increased the level of investment by them.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 • The Government initiatives on Mass insurance.

Motor or Car insurance is categorized under General Insurance. domestic and pleasure purpose and for the insurer's business motor purpose should be insured.AUTO INSURANCE PAGE 34 . “Motor Policy A -Act Only Risk” (also known as third party insurance) "Motor Policy B" (also known as comprehensive insurance policy). Vehicle Insurance can be purchased from an insurance company or an insurer for the purpose of getting the loss compensated related to automobiles. The violation of this act is punishable Auto insurance is divided into three parts ➢ Two wheeler Insurance ➢ Car-Insurance ➢ Commercial Insurance There are two types of Auto Insurance. The main criteria that the insured wants to get fulfilled by purchasing a Motor insurance are to get compensation against any traffic accident or liability as a result of an accident or theft of the vehicle. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Any vehicle used for social. it is mandatory that every vehicle should have a valid Insurance to drive on the road.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 AUTO INSURANCE Auto Insurance often referred to as Vehicle. Under the provisions of the Motor Vehicles Act.

Personal Injury includes 1. Liability for death or injuries to third parties .AUTO INSURANCE PAGE 35 .THIRD PARTY INSURANCE COVERS Motor Policy A or Third party insurance covers unlimited pay compensation for death or bodily injuries to third Parties and damage to the property of the third parties other than insured. Third Party insurance covers Personal Injury and Property damage. This insurance protects the insured from legal liabilities following an accident involving his/her vehicle. Under this policy the insured is treated as the first party. the insuring company the second party and all others would be third parties. for unlimited amounts. up to a limit. Liability to employees connected with operation of the vehicle.this means that you are insured against death or injury (caused by your vehicle) to pedestrians.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 MOTOR POLICY A.this means you are insured against death or injury (caused by your vehicle) to the vehicle's A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Passengers of private vehicles and pillion riders are also deemed covered. occupants of other vehicles. The limit of third party property damage is limited to 7. 2. and outsiders other than passengers. It does not cover any damage to his/her vehicle.5 lakhs.

vehicle and third party with a single policy. A Comprehensive Auto Insurance Policy Includes 1. Burglary. Property damage covers the vehicle itself and you are insured against various damages that occurs to your vehicle on account of accidents and other instances. Liability to passengers carried in the vehicle for hire or reward . Normally it is advisable to get the Comprehensive insurance Policy because it covers insured.. Explosion. cleaners. Fire.. theft A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. and coolies. MOTOR POLICY B . house-breaking.employees used in the operation of the vehicle. you are insured against death or injury (caused by your vehicle) to the passengers.COMPREHENSIVE INSURANCE Comprehensive insurance covers third party liability as well as loss or damage to the insured vehicle itself by the way of accident. bus or auto-rickshaw. self-ignition. lightning 3. conductors.this means that as owner of a taxi.AUTO INSURANCE PAGE 36 .KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 drivers. theft etc and some other specified risks. Accident 2. 3.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 4. hurricane. air. Terrorism 9.for private vehicles and Rs. Flood. HOW THE POLICY CAN BE OBTAINED A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. 500/.for commercial vehicles) incurred due to accident to the vehicle. Also included is the towing charge (up to Rs. Malicious acts 8. Earthquakes 6. waterways 10. typhoon. 500/. storm.1.2. cyclones 7. Transit by rail/road.AUTO INSURANCE PAGE 37 . Riots & strikes 5.

accessories etc by paying an additional premium. IDV is based on the exshowroom cost of the vehicle. From April 2007 onwards the Insurance Industry in India is also under de tariff scenario. along with the usual norms of calculation. all the vehicles are insured at a fixed value called the Insured's Declared Value (IDV).AUTO INSURANCE PAGE 38 . mutilated or lost certificates can be obtained on payment of a prescribed fee and after production of an affidavit to that effect. PREMIUM As per the Indian Motor Tariff. published by IRDA. the calculation of IDV will take into account the gender of the owner and their age also. While giving insurance premium the insurer has to obtain a cover note from the insurance company and which is having the validity of 60 days only. But by the end of September 2007. On every renewal of policy the IDV is calculated after deducting the prescribed depreciation. Within this period the insurance company issue policy and which is known as Certificate of Motor Policy. Presently there is a provision for the Insuring Company to give some discounts of their own. according to a new resolution passed by the IRDA.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Approach the insurance company directly Apply through business partners of insurance companies The Insurance Policy can be obtained through an insurance agent or development officer of the insurance company. One can extend the coverage for Personal Accident. Duplicate Certificate instead of defaced. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 RENEWAL Usually the Insurance policy is valid for one year. So the insured must renew the policy before the expiry date. The only condition to avail of this discount is that you have to sell off your old vehicle. Even if you wish to retain your old vehicle. Any delay in the renewal will make the policy invalid. If you are carrying forward a no-claim bonus on any vehicle. For every renewal a fresh certificate should be obtained NO CLAIM BONUS The Policy holders who have not made any claim in the previous years will be rewarded by the insurers by giving a discount of a comprehensive insurance on a reducing balance basis in the future years. TRANSFER OF INSURANCE POLICY A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. you can get it transferred to a new vehicle of the same type (four wheeler to four wheeler ). you can get around this clause by gifting the old vehicle to a family member.AUTO INSURANCE PAGE 39 . It becomes active soon after the payment of premium is received by the insurance company and will end exactly a year later.

CLAIMING PROCEDURE Comprehensive Insurance Claim If an accident takes place. or a criminal offence.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 If you purchase a used vehicle. or if it caused third-party damage or resulted in injuries Fire brigade report. The documents to be submitted are Claim form Original / Copy of the insurance policy Copy of registration certificate of vehicle and driving license of the driver Copy of the estimated cost of repair given by the garage FIR or a police report if the accident is major.AUTO INSURANCE PAGE 40 . you must report to the insurance company as soon as possible and submit the claim forms. But. you must inform the insuring company within 2 weeks of purchasing the vehicle. you can transfer the existing insurance policy to your name. An estimate for repairs /replacements should also be submitted. the Insurance company will direct a person inspect the value of damage/replacement and genuineness of estimate A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. if the loss is due to a fire Submission of relevant documents.

In case of settlement of claim either for total loss of the vehicle or for replacement of certain items.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 submitted and according to his report the claim will be settled. payment be done either directly to the repairer in the form of a cheque or the companies may recommend preferred auto shops for repair. such damaged vehicle or parts thence belongs to the insurance company.AUTO INSURANCE PAGE 41 . According to the rule of some companies. Your Insurance Company will pay you A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. a case must be filed immediately with the police and at the same time a report should also be sent to the insurance company. a case must be filed immediately in the police station and a report also should be sent to the insurance company at the same time. a third party is involved in the accident. THIRD PARTY INSURANCE CLAIM In case. If your vehicle has been stolen. a third party is involved in the accident. file a police complaint and inform the insurer. obtain a "non-traceable report’ from the police submit to the insuring company to start the claiming process. If you don't get your vehicle within 90 days. a final bill of the repair and replacements and the stamped receipt for payment from the work shop should be submitted to the company to settle the claim. After repair. Only after the inspection of the repaired vehicle that you are allowed to take the vehicle home. In case.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Documents Required for Auto Insurance Claim For Accident Claims Claim form duly signed RC copy of the vehicle Driving license copy FIR on a case-to-case basis Original estimate Original repair invoice. payment receipt from the service center For Third Party Claims Claim form duly signed RC copy of the vehicle Driving license copy Original policy copy Original FIR copy RTO transfer papers duly signed.AUTO INSURANCE PAGE 42 . mentioning that the vehicle cannot be located A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 directly. The objectives are to:Exalt the sector as a lever of industrial growth and employment and to A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. phased. enduring and self-sustained growth of the Indian automotive industry.AUTO INSURANCE PAGE 43 . AUTO POLICY OF GOVERNMENT OF INDIA VISION TO ESTABLISH A GLOBALLY COMPETITIVE AUTOMOTIVE INDUSTRY IN INDIA AND TO DOUBLE ITS CONTRIBUTION TO THE ECONOMY BY 2010 Policy Objectives This policy aims to promote integrated.

SIAM welcomed the announcement of Auto Policy. Promote a globally competitive automotive industry and emerge as a global source for auto components.AUTO INSURANCE PAGE 44 . Conduce incessant modernization of the industry and facilitate indigenous design. includingPromotion of R&D in the automotive sector to ensure continuous technology up A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Development of domestic safety and environmental standards at par with international standards. Steer India's software industry into automotive technology. and feels that the policy would serve as a reference document for all stake holders and other interested parties. Establish an international hub for manufacturing small.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 achieve a high degree of value addition in the country. Assist development of vehicles propelled by alternate energy sources. research and development. The Auto Policy has spelt out the direction of growth for the auto sector in India and addresses most concerns of the automobile sector. Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry. affordable passenger cars and a key center for manufacturing Tractors and Twowheelers in the world.

Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to facilitate their acceptance. Emphasis on low emission fuel auto technologies and availability of appropriate auto fuels and encouragement to construction of safer bus/truck bodies . building better designing capacities to remain competitive. SIAM has always been advocating encouragement of value addition within the country against mere trading activity.AUTO INSURANCE PAGE 45 sector also to 16% excise duty on body building activity as in case of .8 meters through excise benefits is not in line with the free market concept and may lead to market distortion. The Auto Policy allows automatic approval for foreign equity investment upto 100% in the automotive sector and does not lay down any minimum investment criteria. The industry would get the required A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. The recommendation of promoting passenger cars of length upto 3. the automotive industry would get further fillig to become vibrant and globally competitive.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 gradation. with the Auto Policy in place. are steps in right direction. However. However. this aspect has not been fully addressed. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles.subjecting unorganised OEMs The policy has rightly recognised the need for modernising the parc profile of vehicles to arrest degradation of air quality.

AUTO INSURANCE PAGE 46 . otherwise growth could be A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 support from other Ministries and departments of Government of India in achieving the goals laid down in the auto policy.is likely to drive down profits Public and private sector insurers’ greater reliance on their investment portfolios to generate sufficient income and gains for net profits would subject them to the volatility of the financial markets Private insurers need to raise more capital. CHALLENGES Premiums rates remain under pressure due to intense competition on the more profitable lines Falling premium income without a corresponding reduction in claims -.

the shortage of trained insurance professionals and technicians at all levels cannot be remedied in the short term INDIAN AUTO INSURANCE INDUSTRY .KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 constrained since reliance on reinsurance for capital relief is not always viable or available Traditional distribution channels. need to be improved to match the new product offerings There is general lack of transparency as financial and operational data for insurers are not readily available as none of India’s insurers are directly listed on stock exchanges Like all developing economies on a fast track. market pricing and new/innovative product offerings. The major part of the revenue earned by general insurance is from auto insurance sector A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE PAGE 47 . Big changes have occurred over the last decade. especially tied agents.MARKET OVERVIEW The Indian auto insurance sector is rapidly moving towards international standards.

AUTO INSURANCE PAGE 48 . rising foreign exchange reserves. a booming capital market and a rapidly expanding FDI inflows. instant updates towing facility in Auto Insurance is one major sector which has been on a continuous growth curve since the revival of Indian economy. With factors like a stable 8-9 per cent annual growth. their Auto insurance has started special services like 24/7 service by phone and provides online assistance on all days. it is on the fulcrum of an ever increasing growth Most auto insurance companies in India have comprehensive policies to help customers. Indian A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. has created huge opportunity for the auto insurance With the entry of private sector players backed by foreign expertise. Check of their claim status through mobile messaging.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Indian economy is the 12thlargest in the world. Some of them have also tied up with top automobile manufacturers fast insurance process. The huge population and growing per capita income besides several other driving factors. including national holidays. offers case of a breakdown or accident.25 trillion and 3rd largest in terms of purchasing power parity. with a GDP of $1.

AUTO INSURANCE PAGE 49 . New India Assurance Company of India (NIA) United Insurance Company of India (UII) . National Insurance Company of India (NIC).KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Auto insurance market has become more vibrant. Competition in this market is increasing with private companies entering into this business Due continuous competition companies are making effort to lure the customers with new product offerings. PRIVATE SECTOR A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Companies are also using Information/communication technology extensively and appropriately to reach out to the whole population MAJOR PLAYERS IN AUTO INSURANCE INDUSTRY PUBLIC SECTOR Oriental Insurance Company of India (OIC).

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 HDFC Insurance Kodak Mahindra General Insurance Bajaj Allianz General Insurance company Reliance General Insurance company SBI General Insurance IFFCO-TOKIO General insurance ICICI Lombard General insurance BHARTI-AXA General insurance TATA AIG.General Insurance OPPORTUNITIES Continuous growth in Auto industry Growing demand from semi-urban population A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.AUTO INSURANCE PAGE 50 .

literacy.AUTO INSURANCE PAGE 51 . FUTURE PROSPECTS High growth in Automobile sector.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Entry of private players following the deregulation Rising demand for retirement provision in the ageing population Rising per capita incomes among the strong middle class. and insurance awareness throws open huge A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. Increase in standard of living. and spreading affluence Growing consumer class and increase in spending & saving capacity Public private partnerships infrastructure development Dearth of innovative & buyer-friendly insurance products New players entering into this sector along with FDI investment in this sector.

KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 opportunities on insurance.AUTO INSURANCE PAGE 52 . Increase in disposable income of population of middle class society More and more number of private players entering into this industry and along with foreign companies through joint ventures. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. FDI is also playing a major role in this industry as government has opened up investment upto 49% from 26% FINDINGS The Indian insurance sector is rapidly growing for last few years.

The number of private insurers is growing and they continue to capture market share at the expense of public enterprises on a mix of aggressive distribution and service. along with foreign direct investment. India’s general insurance market witnessed a variety of changes as deregulation continued at a hectic pace. Majority of the revenue is earned by the motor vehicle segment of the general insurance SUGGESTIONS • Create awareness among the people of the various insurance products available PAGE 53 A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. It also has one of the lowest penetration rates for property and casualty insurance in Asia in terms of premium as a percentage of GDP.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 Big changes have occurred over the last few years. The industry forecasts for a continuous growth and rise domestic demand. during which the sector was opened to private participation. but this is also leading to the greater sales of existing and new products. With the increasing number of insurers in the private sector. Rate reductions in the recently de-tariff corporate portfolio (fire & engineering) has impacted the premium growth.AUTO INSURANCE .

with reasonable price. going forward adjustment in premium rates would occur when the industry matures and consolidation takes place.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 in the market • Capture the untapped population residing in the rural and sub urban parts of the country • • Spread the message of benefits of insurance through mass campaign The industry needs innovative low cost distribution and servicing Strategies • The company should hire more agents with more knowledge about the products with proper training • The company can have an effective Bancassurance /NBFC tie ups so that the entire Banking infrastructure is utilized for distribution of insurance products • The insurance policies should be simple & less legalistic. The ability to price effectively will also imply an increased focus on risk management A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. hassle free policy issuance and claim process more package policies • The companies should also introduce short term policies CONCLUSION Considering the high level of underwriting losses.AUTO INSURANCE PAGE 54 .

BIBLIOGRAPHY “Indian Insurance: The Way Forward”.AUTO INSURANCE PAGE 55 . while short term scenario for the general insurance sector appears to be challenging the long term prospects definitely present ample opportunities for growth. A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY. On the whole.G Srinivasan. The continual entry of new private players coupled with the intense competition sparked off by the detariffication of general insurance sector has also resulted in strengthening the bargaining power of the customer and development of customer centric insurance products.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 by the insurance companies. While the government’s plan to raise FDI cap in insurance companies from 26 to 49 per cent will lead to more capital flowing in. the untapped market potential holds the opportunity to grow faster.

com –Indian General insurance outlook www.generalinsuranceindia .reliancegeral.siam.AUTO INSURANCE PAGE 56 .Auto Insurance Companies www.com .auto. www.in A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY.com.co.KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION 2009 India: The Next Insurance Giant India by PRwire Pvt.auto insurance in India www.automobileindia.moody.com -Insurance in India www. Ltd.com annual report 2007-08 – www.tourindia.com www.auto policy govt of India www.IRDA.com .webindia123.

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