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Project on the Performance of Oriental Insurance Company Ltd

1.0 The outlook for the general insurance industry in India is stable as

per the financial forecast that has been made. Over the medium and long term, Indias insurance market will continue to experience major changes as its operating environment increasingly deregulates. On the one hand, a mix of new products, new delivery system and a greater awareness of risk will generate growth. On the other hand, the competition is expected to remain intense as private sector insurers and those about to enter India seek to win market share from the more established public sector entities. In 2006-07, Indias general insurance market witnessed a variety of changes as deregulation continued at a hectic pace. With the removal of pricing controls on fire and engineering lies in 2007, insurers have since discounted their rates by 50% or more in their quest to retain or win market share. Furthermore, the number of private insurers is expected to grow as various foreign companies have announced intentions to establish joint ventures. 1.1 HISTORY OF INSURANCE INDUSTRY In some sense we can say that insurance appeared simultaneously with appearance of human society. In earlier economies, we can see

insurance in the form of people helping each other. For example, if a house is burnt, the members of the community help build a new one. Should the same thing happen to ones neighbour, the other neighbors must come to help? Otherwise, neighbors will not receive help in the future. Insurance in the modern sense, started as a methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants traveling treacherous river rapids would redistribute their cargo across many vessels to limit the loss due to any single vessels capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, C. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lenders guarantee to cancel the loan should the shipment be stolen. Greek monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. They invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinking of the vessel in the sea. The Greeks and Romans introduced the origins of health and life insurance C. 600 AD when they organized guilds called benevolent societies which cared for the families and paid funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose. Before insurance was established in the late 17th century, friendly societies existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Greeks rulers in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established Englands first fire insurance company, The Fire Office, to insure brick and frame homes. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. 1.2 EVOLUTION OF INSURANCE INDUSTRY IN INDIA IMPORTANT MILESTONES In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.



1818 1834 1850 1870 1907 1912 1928 1956

The advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. Oriental Life Insurance Failure The advent of General Insurance in India with the establishment of Triton Insurance Company Ltd in Calcutta The enactment of the British Insurance Act The Indian Mercantile Insurance Ltd was set up The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. The Indian Insurance Companies Act was enacted. Nationalization of Life Insurance Sector and Life Insurance Corporation .The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies. The General Insurance Corporation of India was incorporated as a company General insurance business was nationalized with effect from 1st January 1973. 107 insurers were amalgamated and grouped into four companies namely: 1) National Insurance Company Ltd., 2) The New India Assurance Company Ltd., 3) The Oriental Insurance Company Ltd 4) The United India Insurance Company Ltd. The Government set up a committee under the chairmanship of RN Malhotra former Governor of RBI to propose recommendations for reforms in the insurance sector

1971 1973



The IRDA was incorporated as a statutory body in April 2000.

Foreign companies were allowed ownership of up to 26%. 2000-01 Insurance Industry had 16 new entrants, 10 in Life and 6 in General Insurance 2001-03 Insurance Industry had 5 new entrants, 2 in Life and 3 in General 2003-04 Insurance Industry had 1new entrant, Sahara India Insurance Company Ltd. In Life Insurance category 2004-05 Insurance Industry had 1new entrant, Shri Ram Insurance company Ltd. In Life Insurance category 2005-06 Bharti Axa Life insurance company was granted Certification of 2006 Registration in July Bharti Axa Life insurance company commenced its operations the newest player in the insurance sector. 1.3 EVOLUTION OF NON-LIFE INSURANCE IN INDIA: The boycott of British goods and British institutions, which occurred because of the nationalist movement, encouraged formation of Indian-owned commercial and business houses. By 1907, the Indian mercantile the first of the long lasting general insurance companies to be established with Indian capital, had started functioning five offices, the New India, Vulcan, Jupiter, British India General and the Universal, were established in 1919 almost simultaneously for transacting general insurance business. In 1928, prominent insurance men of Bombay met and formed the Indian insurance companies association to protect the interest of Indian insurers. Leaders of the insurance industry began to organize conferences, educate public on the benefit of insurance, focus attention on the annual remove of national wealth through invisible exports, and arise public interest in favour of Indian insurance.

In 1950, the planning commission was set up to formulate plans for successive five years. This five year plan brought about large scale economic development and increased insurance consciousness among the people. As insurance business increased the number of claims for compensation against losses also naturally increased. Settlement of too many large claims meant a severe demand on the funds of insurance companies. So to prevent this situation the practice of Reinsurance was adopted according to which insurers themselves reinsured portions of the insurances they had undertaken. So Indian insurance companies with their expanding business wanted to reinsure for which they had to seek foreign reinsurance markets. Since the need for conserving foreign exchange was felt in India all the insurers in India as well as foreigners operating in India formed the India Reinsurance Corporation in 1956. This corporation provided reinsurance facilities. It was compulsory for insurers in India to reinsure a fixed percentage of their insurances with the corporation. The Insurance Amendment Act 1950 imposed certain limitations on expenses of management. The general insurance council constituted what was called the tariff committee to control and regulate terms and conditions of business. In 1972, the General Insurance Business (Nationalization) Act 1972 was passed under the provisions of this act. The general insurance corporation of India was established for the purpose of directing; controlling and caring on the general insurance business and all the 106 insurers were merged and grouped into four subsidiaries of the general insurance corporation of India namely: National Insurance Company Ltd., with its head office at Calcutta.

The New India Assurance Company Ltd., with its head office at The Oriental Insurance company Ltd., with its head office at Delhi. The United India Insurance Company Ltd., with its head office at


Madras. 1.4 THREE PHASES OF DE-TARIFFING Indias general insurance industry has undergone de-tariffing in three phases: 1994 -- marine cargo, personal accident, health, banker liability and aviation 2005-06 -- marine hull segment 2007 -- Fire, engineering and motor own damage (OD). However, the de-tariffing did not immediately allow for free pricing. Instead, insurers were required to follow the file and use method, whereby they were expected to file a charter of proposed rates, which was then approved by IRDA. The only segment that remains under a tariff regime is the third party motor business, although there has been a large upward revision in this areas premium rates by regulators in recent times. Moreover, commercial third party motor business, which has traditionally contributed to adverse claims ratios, has been moved to a common pool, resulting in loss sharing. 1.5 INSURANCE SECTOR MOVING QUICKLY The Indian insurance sector is rapidly moving towards international standards of free (risk-based) market pricing and new/innovative product offerings. Big changes have occurred over the last seven years, during which the sector was opened to private participation, but with foreign direct

investment (FDI) capped at 26%. With the regulator possibly lifting the ceiling on foreign ownership to 49%, the capacities of domestic partners would no longer constrain capital levels for joint ventures. In the private sector, there were nine players with future generally the latest entrant as of September 2007. A number of potential new entrants await the necessary approvals. Most private players have tie-ups with international companies to compensate for their lack of experience in insurance. Within the private sector, ICICI Lombard (IL) leads with 12.4% market share for the period April-December 2007. Recently, Reliance General Insurance (RGI) as emerged as the fastest growing player, recording a 150% rise year-on-year in gross direct premium in the first nine months of 2007-08. 1.6 SIGNIFICANCE OF INSURANCE SECTOR As the industrial revolution comes with cut throat competition, the chances of uncertainty are also increasing day by day. Insurance plays significant role for not only an individual or for a family but it has spread over the entire nervous system of the nation. According to the famous philosopher J. Royce, Insurance Principles comes to be more and more used and useful in modern affairs. Not only does it serve the ends of individuals, it tends more and more both to pervade and transform our modern social order. It brings into new synthesis, not merely pure and applied sciences, but private and public interests, individual prudence and a large regard for. The general welfare theft and charity. Insurance is a method through which one can just spread over the risk. It is a way of reducing uncertainty of occurrence of an event. It is co-operative effort where in the loss occurred by a specific risk in spread over a large number of persons. Insurance is a

solution for reducing risk, large number of people collect small amount, known as premium and out of this losses are paid to the suffering persons. 1.7 ORIGIN AND DEVELOPMENTS OF INSURANCE No one know that when the insurance transactions started? The origin of insurance is lot in antiquity. However, there are certain evidences on the basis of which one can say that the earliest form of insurance was marine insurance. Evidences are also on record that arrangements embodying the ideas of insurance were being practiced in Babylone and India, centuries ago. References are also available in Hammurabi Manu (Manav Dharma Shashtra). The word Yogakshema used in Rig-Veda suggested that some form of community insurance was being carried on by the Aryans in our country well over 3000 years ago. The existence of burial society also acknowledge that insurance played significant role in Buddhist period when it used to help the family of a deceased person by building a house and protecting the widows. Marine insurance came earliest than fire insurance and life insurance came and lastly other forms of insurances were developed in the world. 1.8 MARINE INSURANCE Marine insurance was the first form of the insurance business. It is said that it probably began in north Italy by the end of 12 th century. The Italian merchants who came to England in 12 th or 13th century covered their risk of assets with insurance. The first marine policy called Polliza was issued in Italy in 1300. Charter of insurance was also established in 1300 in Belgium. Insurance was similarly developed in other European countries like Spain, France, Germany and Holland. Insurance sector was greatly developed in the time of Queen Elizabeth-I in England during the 14 and the 15th centuries. Lombards, the ex-communicated businessmen of Italy

captured the whole market of marine insurance business. They run the business along with other and settled docent the street of London which was later on famous by the name of Lombard Street a well known place for marine insurance transactions. The present form of marine insurance is developed by the Lloyds Association which was established in 1774 by a man Mr. Edward Lloyds, a coffee merchant with the publication of Lloyds News. The merchants gathered into the coffee house and took liability in marine insurance business as per their financial position. Even today, Lloyds Association is one of the leading firms transacting marine insurance in the whole world. Later on Marine Insurance Act was passed in 1906 in England. Other countries had also passed the marine insurance act nearly the same period. It was passed in 1963 in India. 1.9 FIRE INSURANCE The evidences of emergence of fire insurance can be seen in 16 century in Germany. There was a scheme made to spread over the fire risk a group of people in Oldenburg in 1609 by collecting the premium. The market of fire insurance was greatly developed after the great fire of London in 1666 in 25th which 85% of the houses burnt to ashes and property worth 10 crores sterling was completely destroyed. The first fire insurance office was established in London in 1680. Sunlife office was set up in 1710 in London. The industrial revolution gave impetus to develop the fire insurance business because there was great expansion of machinery used. The market for fire insurance expanded for protecting the highly cost machinery. Fire Insurance started in India with the establishment of Triton Insurance Company in Calcutta in 1850. The North British Mercantile company came into existence in 1861.Fire insurance has very slow trend for progress in India up to nationalization of general insurance.

1.10 LIFE INSURANCE The origin of Life Insurance business was not so earlier. There is no specific evidence available through which one can consider how the idea of life insurance developed. The first life insurance policy issued on the life of Mr. William Gybbons on 18th June, 1653 in England. It was issued for one year period. The first registered life office in England was hand in hand society which was established in 1690. Mutual Life Insurance Company came into existence later on in 1696. The first mortality table prepared in the 19th century gave impetus to the life insurance transactions. Life Insurance started in India by Europeans with the establishment of Oriental Life Insurance Company in 1818. Bombay Mutual Life Insurance came into existence in 1871. In 1874, the third company entered into the same business of life insurance called The Oriental Government Security Life Assurance. The life insurance act passed in 1956 in India. 1.11 MISCELLANEOUS INSURANCE The Industrial revolution gave impetus to certain miscellaneous insurance like accident insurance, liability insurance, theft and burglary insurance and fidelity insurance. There are certain latest forms of insurance like cattle insurance, crop insurance, profit insurance and consequential loss insurance. 1.12 ORIGIN OF GENERAL INSURANCE Insurance was a method of sharing of the losses, embodying the principle of co-operation existed in the early civilization. Evidences are available that proves loss of profits in industry was insured by the village cooperatives in India during the Aryan Civilization. Bottomary Bonds were the first plan, which considered insurance as a technique of providing

protection against the fortuitous events for a Consideration. The medilevaranean merchants as early as in the fourth century B.C issued the bonds. The Bottomary loan was an advance of money on a ship during the period of a voyage. It was repayable with the agreed rate of interest, on the arrival of the ship safely at destination. There were possibilities of losing the ship during the voyage; the obligation to repay the loan was extinguished in that case. The interest payable constituted a sort of premium for the risk of total loss. Similar loans were issued on the security of cargo and were called Respondentia bonds There are references found in Manav Dharma Shashtra, code of Manu which contained rules for sea form contracts observed by the traders from Broach and Surat who set sailed in Indian built ships with Indian merchandise to Lanka, Egypt and Greece. The other four-runner of insurance was the marine practice of general average whereby losses incurred to save the common venture, were shared by contributions from all the interests ship, freight and cargo all the things saved by the general average at. The Rhodians also practiced it in their Mediterranean trade in 916 B.C. The earliest transaction of insurance can be traced out to the beginning of the fourteenth century in Northern Italy. Some Italian merchants were engaged in the Mediterranean trade with India via Constantinople and with the European countries by land. It originated the practice of breaking of the botany bonds into two instruments covering separate transactions. 1. The advance of money, which was to be repaid on the safe arrival of the ship. 2. A policy of assurance, which paid the amount, stated, in the event of loss of sea. This was the beginning at marine insurance business.

1.13 COMPANY PROFILE Founded in 1947, [ORIENTAL LIFE INSURANCE COMPANY LTD] is one of India's leading finance companies. Quality in lending, transparency in transactions, outstanding customer care and an unyielding commitment to being the best, has made [ORIENTAL LIFE INSURANCE COMPANY LTD] one of the most respected finance companies in India. [ORIENTAL LIFE INSURANCE COMPANY LTD ] is part of the [ORIENTAL GOVERNMENT SECURITY LIFE ASSURANCE COMPANY LTD] The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 (till the General Insurance Business was nationalized in the country). In 2003 all shares of our company held by the General Insurance Corporation of India has been transferred to Central Government. The Company is a pioneer in laying down systems for smooth and orderly conduct of the business. The strength of the company lies in its highly trained and motivated work force that covers various disciplines and has vast expertise. Oriental specializes in devising special covers for large projects like power plants, petrochemical, steel and chemical plants. The company has developed various types of insurance covers to cater to the needs of both the urban and rural population of India. The Company has a highly technically qualified and competent team of professionals to render the best customer service. 1.14 REVIEW OF LITERATURE Oriental Insurance made a modest beginning with a first year premium of Rs.99, 946 in 1950. The goal of the Company was Service to


clients and achievement thereof was helped by the strong traditions built up overtime. Oriental with its head Office at New Delhi has 30 Regional Offices and nearly 900+ operating Offices in various cities of the country. The Company has overseas operations in Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+ employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores in 1973 and during 2010-11 the figure stood at a mammoth Rs. 5569.88 crores. Oriental Insurance is a professionally managed independent Boardrun Company. Illustrious personalities like Shri T.A.Pai ( who later became Cabinet Minister in the Union Government ), Shri K. R. Puri, who rose to be the Governor of RBI and Shri B.D.Pande (who later became the Governor of West Bengal) were among our past Chairmen. At present Dr.A.K.Saxena is Chairman-Cum-Managing Director of our Company. The Board of Directors of our Company includes eminent personalities in various fields. The insurance sector is sine-quo-non for development and economic growth of any economy and it has been recognized for many years. The significance of insurance was also acknowledged in the first conference of United Nations Conference on Trade and Development (UNCTAD) in 1964 by stating that a sound national insurance and reinsurance market is an essential characteristic of economic growth. It seems Insurance not only facilitates economic transactions through risk transfer and indemnification but it also promotes financial intermediation (Ward and Zurbruegg, 2000). More specifically, insurance can have effects such as promote financial stability, mobilize savings, facilitate trade and commerce, enable risk to be managed more efficiently, encourage loss mitigation, foster efficient capital allocation and also can be a

substitute for and complement government security programs (Skipper, 2001). Zurbruegg (2000) acknowledged Brown and Kim (1993) suggestion that total premium fail to account for different market forces in various countries and make comparisons difficult and fail for account for regulatory effects on pricing, but availability of data for longer period was stated as a reason for using total premium. In addition authors claimed: 1.14.1 The role of Insurance in Economic Growth and Development. Insurance is an important growing part of the financial sector in virtually all the developed and developing countries. A resilient and well regulated insurance industry can significantly contribute to economic growth and efficient resource allocation through transfer of risk and mobilization of savings. In addition, it can enhance financial system efficiency by reducing transaction costs, creating liquidity and facilitating economies of scale in investment. Ward and Zurbruegg (2000) examine the casual relationship between growth in the insurance industry and economic development by recognizing that the economic benefits of insurance are conditioned by national regulations, economic systems and culture. Further, Ward and Zurbruegg (2000) argue that an examination of the interrelationship between insurance and economic growth needs to be conducted on a country-bycountry basis. The study is important because in contrast to the available evidence on the importance of banks-typified by the work of Levine and Zervos (1998) little is known about Insurance. Philip Kotler has discussed the importance of channels partners. Better the channel partners better will be the delivery model. Detailed discussion about how to design the channel structure so that all the requirements could be fulfilled is provided. The various issues faced by the

organization while managing the channels are also given. When an organization has more than one channel it becomes very important that all the channels should be integrated in such a way that the organization get the best out of all. At times due to the conflicting benefit of the different channels the conflict arise so various strategies to manage these issues is also discussed in the chapter. Michael J. Etzel has written about the marketing of services. The marketing of services is different from the goods because of the characteristic of service like intangibility, inseparability, heterogeneity etc. Brief about pricing strategies is also given in case of services. The authors have also given the impact of technological development on the services marketing. The author has also given the importance of brand and after sales support in case of services as perception of the customers plays an important role. In other part of the book the authors has described the importance of distribution channels and designing of the same. A channel partner should be consider as partner according to discussion. The legal complications associated with channels are also discussed. These complications are necessary to take into the consideration while managing the channels. The conflicting interest of channels both horizontally and vertically are also taken into the consideration. Boone has discussed about the importance of personal financial planning. The concept of time value of money has also been elaborated. The importance of creating and implementing budget is given under money management. The other important concepts for financial planning like credit management and understanding taxes are also explained. In one section the authors have discussed the importance of investment and what should be the major considerations while making any investment. The considerations

include the risk associated with the investment, return on the investment etc. The importance and benefits of life insurance has also been given. The discussion also includes various legal aspects associated with life insurance. The overview of retirement planning is also given which includes importance and benefit of retirement planning. Various tools for proper retirement planning are also discussed. 1.15 PLAN OF THE STUDY The first chapter embodies a comprehensive introduction about the Oriental Insurance Company Ltd in India and also gives some important Review of Literature. The second chapter explains the Research Methodology. The role and performance of Oriental Insurance Companies Ltd in India is explained in the third chapter. The last chapter would provide a required findings and valid suggestions for further improvement in Oriental Insurance Companies Ltd in India.



Insurance is an important growing part of the financial sector in

virtually all the developed and developing countries. A resilient and well regulated insurance industry can significantly contribute to economic growth and efficient resource allocation through transfer of risk and mobilization of savings. In addition, it can enhance financial system efficiency by reducing transaction costs, creating liquidity and facilitating economies of scale in investment. The objective with which this study is taken up and the methods by which the secondary data is required to be collected are discussed in this chapter. 2.1 OBJECTIVES OF THE STUDY The objectives of the study are three in number they could be stated as follows 1. To study the performance of Oriental Insurance Company Ltd. 2. To identify the various insurance policies available in Oriental Insurance Company Ltd. 3. To find out the customers benefits from the various products introduced by Oriental Insurance Company Ltd.

2.2 HYPOTHESIS The two hypothesis which are proposed to be verified are


i) The new insurance products introduced Oriental Insurance Company Ltd in India acts as a tool for improving the performance of Oriental Insurance Company Ltd in India. ii) The Oriental Insurance Company Ltd has been successful in providing insurance facilities to the public in various areas. 2.3 METHODS OF STUDY Though this study is purely fact finding in nature, a lot of secondary data are required for its successful completion hence it is necessary to explain in details the methods by which these data are sought to be collected. 2.4 COLLECTION OF SECONDARY DATA This research study is purely relied on the secondary data. The secondary data required for the study could be obtained mostly form books, journals, officials reports; periodicals brought by the Government of India in addition to these, efforts would be made to collect as much information from the internet about the performance of Oriental Insurance Company Ltd in India. These information would make the analysis exhaustive and through going in every respect. 2.5 THE USE OF THE STUDY Though this study is apparently elementary in nature, it would be of numerous uses for the researchers in the days ahead. 1) It would be of very great use to understand the role played by Oriental Insurance Company Ltd for overall development of the economy by mobilizing the funds.


2) The study would give any casual reader of the project an exposure to the ways and means of enhancing various insurance policies of Oriental Insurance Company Ltd. 3) Numerous innovative studies would speak off in the days ahead about the performance of Oriental Insurance Company Ltd. 2.6 SCOPE OF THE STUDY Though this study is purely explorative in nature, it cannot be denied that it could be of numerous uses to researchers and enthusiasts. This study has a wider scope among the insurance sector. The study which focuses on various aspects such as competitive position of Oriental Insurance Company Ltd, strengths and weaknesses of insurance covers, customers perception, etc also holds good for other companies in the life and non-life insurance segment. The outcome of the study, which are based on the above aspects can be utilized by the marketing department of both life and non-life insurance companies. 2.7 NEED OF THE STUDY This study helps the company to identify its competitive position among its industrial competitors by which the company can further improve its performance to enjoy high reputation among clients. This study also helps in making necessary changes in the attributes of the insurance cover offered by the company so that the customers can enjoy the benefits of the insurance cover. The need for the study also arises to identify and offer additional insurance products according to the expectations of the customers.


2.8 LIMITATIONS OF THE STUDY There were certain limitations in undertaking this research work. As it is understood that the limitations are a part of the project, they have been overshadowed by the benefits of the study. 1. Adequate secondary data are not available regarding the various insurance policies of Oriental Insurance Company Ltd. 2. The study mainly based on secondary data.




The Oriental Insurance Company Ltd was incorporated at Bombay on

12 September 1947. The Company was a wholly owned subsidiary of the Oriental Government Security Life Assurance Company Ltd and was formed to carry out General Insurance business. The Company was a subsidiary of Life Insurance Corporation of India from 1956 to 1973 (till the General Insurance Business was nationalized in the country). In 2003 all shares of the company held by the General Insurance Corporation of India were transferred to Central Government. Oriental Insurance with its head Office at New Delhi, India has 23 Regional Offices and nearly 1000 operating Offices in various cities of the country. The Company has overseas operations in Nepal, Kuwait and Dubai. The Company has a total strength of around 16, 000 employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores in 1973 and during 2006-07 the figure stood at a mammoth Rs. 4020 crores.

3.1 CORPORATE VISION To be the most respected & preferred non-life insurer in the markets we operate.

3.2 CORPORATE OBJECTIVES 1) Act as a financially sound corporate entity with high business ethics. 2) Implement best human resource development practices to build a highly efficient, dedicated and motivated workforce with high morale and moral values. 3) Optimally utilize the information technology infrastructure. 4) Provide excellent customer service. 5) Run the business profitably through prudent underwriting and efficient & proper claim management. 6) Effectively manage our reinsurance operations. 7) Effectively manage our investments for optimizing yield. 8) Have effective risk management systems. 9) Improve the penetration of non-life insurance by proper underwriting, innovation & marketing.

3.3 MANAGEMENT Oriental Insurance is a professionally managed independent Boardrun Company. Illustrious personalities like Shri T.A.Pai ( who later became

Cabinet Minister in the Union Government ), Shri K. R. Puri, who rose to be the Governor of RBI and Shri B.D.Pande (who later became the Governor of West Bengal) were among our past Chairmen. At present Dr.A.K.Saxena is Chairman-Cum-Managing Director of our Company. The Board of Directors of our Company includes eminent personalities in various fields.

3.4 APPLYING FOR HEALTH INSURANCE With rising medical costs, it has now become imperative for everybody to get Health Insurance coverage. Here are the Top 6 factors to keep in mind: 3.4.1 Adequate Coverage Amount Take an adequate cover to protect yourself and everyone who is dependent on your income - e.g. your family members. Hospitalization costs are higher in metros; people living in metros typically should opt for a higher coverage amount. 3.4.2 Re-imbursement or Cash Allowance? Health Insurance comes in various flavours. It is imperative that you understand the difference between re-imbursement plan and a cash

allowance plan. A cash allowance plan cannot replace a re-imbursement plan (often referred to as "Mediclaim" - because here the amount you get is based on the actual amount of expense incurred whereas in a cash allowance you get a fixed lumpsum for every day you spend in the hospital - no matter how expensive the treatment might be. 3.4.3 Cashless Facility Imagine having to run around to arrange for cash in an emergency situation for getting admitted to the hospital of your choice! Most insurance companies had launched cashless cards for re-imbursement based plans - so that you could simply present the card at the time of admission and an administrator would take care of settling your hospital bills directly from the insurance company. However in mid-2010, several public sector insurers withdrew support for the cashless facility. Before buying your Health Insurance, you may want to check with your insurer how many hospitals does he offer support for the cashless facility and especially about the hospitals in your area. But please remember that just because a hospital is in the cashless network at the time of taking your first policy it may not remain in the cashless network when your claim arises. So this cannot be the sole factor for deciding about the health insurance company. 3.4.4 Age until Renewals allowed Most of us will certainly fall ill at some point of our lives - and the chances are that we will fall ill when we are older. Entering into a new Health Insurance plan is significantly cheaper and easier when one is young & healthy. The chances of having any major pre-existing disease is lower so

most plans are available and also the insurance company must disclose today the premiums applicable today as well as the premiums applicable at an older age Ensure that your health insurance plan is renewable after 65 because at that age, you don't want to discover that health insurance is difficult to get when you need it the most. 3.4.5 Co-pay One of the fears insurance companies nurse is that the customer might opt for unusually expensive hospital rooms or procedures than are warranted. To overcome this, some insurance companies introduce a co-pay or sub-limits. In a co-pay you are required to share some of the expenses incurred-regardless of the amount covered. E.g. say you have a 3 lac cover and the bill you want to be reimbursed amounts to Rs. 2 lacs. With a plan that has a 20% co-pay, you will only get 80% of the bill re-imbursed by the insurer - i.e. Rs. 1.6 lacs and you will have to bear the rest). For the same coverage amount, a plan with a copay should come with a much lower premium than one without a co-pay. Sub-limits simply restrict the amount of re-imbursement for individual bill items - e.g. even a Rs 1 lac bill may not be fully re-imbursed for a Rs 3 lac coverage amount, if say the sub-limits set on room rentals/ doctors fees/ OT charges - or even a specific procedure (e.g. cataract/ knee replacement) is exceeded. Again a plan with sub-limits should have a lower premium for it to be worth considering. 3.4.6 Temporary and Permanent exclusions


Normally most policies provide coverage for pre-existing diseases only after a waiting period. Remember pre-existing disease is not just the disease you are suffering from at the time you took the first policy but also any other disease that is caused due to such pre-existing disease. A common example is that heart illness will also be treated as pre-existing (even though at the time you took the first policy you had no heart disease) if you had diabetes when you took the first policy since the heart illnesses is caused by Diabetes. This single item is responsible for most of the disputes between insurance companies and consumers. So make sure you disclose everything that is required in the form. Please do not sign a blank form and leave it to the agent to fill the form later. This will ensure that at least at the end of the waiting period you will get the disease covered. If you do not disclose the disease then you run the risk of your policy being cancelled or a renewal being denied if this fact is discovered later. Apart from the above illness contracted during the first 30-90 days of the first policy is normally not covered. Some specific diseases/treatment such as cataract , knee replacement, etc. may also be covered only after a waiting period. There are permanent exclusions as well such as beauty treatment, sexually contracted diseases, non allopathic hospitalization expenses , etc. Always read the policy brochure carefully and also look at the section dealing with permanent exclusions in the policy document. Keep a copy of all documents submitted to the insurance company for your future reference. Any promise made by the agent or even an official of the insurance company has no value unless it is in writing or at least on email. So if you are basing

your decision on any such promise make sure you get it in record in some form. Oriental health insurance family floater policy is issued for a period of one year and it offers two plans:3.5 Silver plan Sum insured in multiples of Rs.1,00,000/- and up to Rs.5,00,000/- per person aged 18 years and above . 50% of this limit for persons less than 18 years. 3.6 Gold plan Sum Insured in multiples of Rs. 2,00,000/-, and up to Rs.10,00,000/- per person aged 18 years and above. 50% of this limit for persons less than 18 years. 3.7 Oriental Health Insurance Eligibility The Entry age limit of the proposer is maximum 55years Continuous renewals will be accepted till the proposer is 65years old. 3.8 Oriental Health Insurance - Coverage Benefits The following reasonable and necessary expenses (subject to limits) are payable under the policy for various benefits:BENEFIT Room, Nursing provided Boarding Expenses by and asNot exceeding 1 % of theNot exceeding 1 % of the theSum Insured per day Sum Insured per day SILVER PLAN (Limit ofGOLD PLAN (Limit of Reimbursement) Reimbursement)

Hospital /Nursing Home Intensive Care (IC) UnitNot exceeding 2% of theNot exceeding 2% of the Expenses as provided bySum Insured per day. the Hospital/Nursing

Sum Insured per day.

Home Surgeon, Medical

Anaesthetist, Practitioner,As per the limits of theAs per the limits of the sum insured

Consultants, Specialistssum insured Fees Anaesthesia, Oxygen, Theatre Surgical Medicines X-Ray, Chemotherapy, Radiotherapy, Cost of Pacemaker, expenses Rs.1,000/- per illness and limited to maximum 1% of the sum insured or Ambulance charges DAILY servicesRs.3,000/- whichever is less, for the entire policy period HOSPITALNIL Artificial Limbs & and similar & Blood, Operation Charges, Appliances, Drugs, Dialysis,sum insured

Diagnostic Material andAs per the limits of theAs per the limits of the sum insured

Rs.2,000/- per illness and limited to maximum 1% of the sum insured or Rs.6,000/- whichever is less, for the entire policy period 0.1% of sum insured per day per illness subject to a maximum compensation for 10 days per illness. The







Company during the policy period will be limited to 1.5% of the sum insured Rs.500/per day of hospitalization per illness and up to 10 days per Attendant allowance NIL illness. The overall liability of the Company during the policy period will be limited to compensation for 15 days of hospitalization DOMICILIARY HOSPITALIZATION Surgeon, Medical Practitioner, Consultants, Specialists Fees, Blood, Oxygen, Drugs, Surgical10% of Sum Insured, Rs.25000/Diagnosticduring policy period Appliances, Medicines &Maximum Material and Dialysis, Chemotherapy, Nursing expenses Treatment for Dog bite (or bite of any other rabid animal like monkey, cat etc.) Reasonable actually expenses for limited up to Rs.5,000/incurred immunization injections in any one policy

Rs.50000/-,during period


Reasonable expenses limited up to Rs.5,000/- actually incurred for immunization injections in any one policy

3.9 ADD ON COVERS (OPTIONAL, SUBJECT TO EXTRA PREMIUM) Benefits Silver Plan Gold Plan Sum insured in multiples Sum Insured in multiples of of Rs.1,00,000/- and up Rs.2,00,000/- and up to to Rs.5,00,000/- per Rs.10,00,000/- per person Personal Accident person aged 18 years and aged 18 years and above. above . 50% of this limit 50% of this limit for persons for persons less than 18 less than 18 years years Plans of benefit AS NIL Life Hardship Survival DEFINED HEREINAFTER 3.10 ORIENTAL MEDICLAIM INSURANCE - Pre-existing Exclusions Pre-existing health condition or disease or ailment / injuries Any ailment / disease / injuries / health condition which are preexisting (treated / untreated, declared / not declared in the proposal form), in case of any of the insured person of the family, when the cover incepts for the first time, are excluded for such insured person up to 4 years of this policy being in force continuously. For the purpose of applying this condition, the date of inception of the policy taken from the Company, for each insured person of the family, shall be considered, provided the renewals have been continuous and without any break in period. This exclusion will also apply to any complications arising from pre existing ailments / diseases / injuries. Such complications shall be

considered as a part of the pre existing health condition or disease. To illustrate if a person is suffering from hypertension or diabetes or both hypertension and diabetes at the time of taking the policy, then policy shall be subject to following exclusions. Diabetes Hypertension Vascular Diabetic Retinopathy Diabetic Nephropathy Bleed/ Artery Diabetic Foot Diabetic Angiopathy Diabetic Neuropathy Hyper / Hypoglycaemic shocks Coronary Disease Cerebro accident Hypertension Nephropathy Internal Haemorrhages Bleeds/ Artery Vascular &

Diabetes Diabetic Retinopathy Diabetic Nephropathy Diabetic Foot /wound Diabetic Angiopathy Diabetic Neuropathy Hyper / Hypoglycaemic shocks

Hypertension Cerebro accident Hypertensive Nephropathy Internal Haemorrhages Coronary Disease

Expenses incurred on any disease, except as specified under the following table, contracted by the Insured person during the first 30 days from the

commencement date of the policy except treatment for accidental external injuries. The expenses on treatment of following ailment / diseases / surgeries for the specified periods are not payable if contracted and / or manifested during the currency of the policy. If these diseases are pre-existing at the time of proposal the exclusion for pre-existing condition shall be applicable in such cases. Benign ENT disorders and surgeries i.e. Tonsillectomy,

1 Year Adenoidectomy, Mastoidectomy, Tympanoplasty etc. Polycystic ovarian diseases 1 Year Surgery of hernia 2 Year Surgery of hydrocele 2 Year Non infective Arthritis 2 Year Undescended Testes 2 Year Cataract 2 Year Surgery of benign prostatic hypertrophy 2 Year Hysterectomy for menorrhagia or fibromyoma or myomectomy 2 Year or prolapse of uterus Fissure / Fistula in anus 2 Year Piles 2 Year Sinusitis and related disorders 2 Year Surgery of gallbladder and bile duct excluding malignancy 2 Year Surgery of genito- urinary system excluding malignancy 2 Year Pilonidal Sinus 2 Year Gout and Rheumatism 2 Year Hypertension 2 Year 2 Year Diabetes

Calculus diseases 2 Year Surgery for prolapsed inter vertebral disk unless arising from 2 Year accident Mediclaim Insurance is a cover for reimbursement of medical expenses following Hospitalization/Domiciliary Hospitalization of the Insured in respect of the following situations: (A) In case of a sudden illness (B) In case of an accident (C) In case of any surgery which is required in respect of any disease which has arisen during the policy period. The major benefit for taking a Group Mediclaim policy is that the insured gets a Group discount, hence the premium per person is lower. 3.10.1 Covered Risks It is a hospitalization cover for reimbursement of the medical expenses incurred in respect of covered disease /surgery while the insured was admitted in the hospital as an in-patient. The cover also extends to prehospitalization and post- hospitalization for periods of 30 days and 60 days respectively. 3.10.2 Salient Features Product name - Individual Mediclaim Policy. Coverage amount - Rs. 1,00,000. Premium (cost of coverage) - Rs. 5,196/-. Policy term (years) 1 year. Cashless facility Yes. 3.10.3 Coverage Hospitalization expenses Yes. Daycare hospitalization Yes Pre hospitalization expenses 30 days

Post hospitalization expenses - 60 days Cost of health check up Yes 3.10.4 Eligibility Medical test - After 45 years Max. entry age (years)- 55 years Eligibility conditions - Indian National only. No coverage for treatment outside India. 3.10.5 Benefits Income tax benefit Yes Sub-limits applicable- Yes Sub-limits description - The following provisions for reasonable & customary expenses, which are reimbursable under the policy have been introduced: Room, Board and Nursing Expenses as provided by the Hospital Nursing Home not exceeding 1 % of the Sum Insured or Rs. 5000/- per day whichever is less. ICU expenses not exceeding 2 % of the Sum Insured or Rs. 10,000/- per day whichever is less (Room stay plus I.C.U. stay should not exceed total number of admission days). Ambulance services - 1% of the sum insured or Rs 2000/- whichever is less shall be reimbursable where the patient has to be shifted from residence to hospital in case of admission in Emergency Ward / I.C.U. or from one Hospital / Nursing home to another Hospital / Nursing Home for better medical facilities. These expenses are payable only when registered ambulance is used. 3.10.6 Pricing Family discount Yes Cumulative bonus Yes No Claim bonus Yes

3.10.7 Other Details Provider type - PSU Companies List of permanent exclusions - i-Benign ENT disorders and surgeries i.e. Tonsillectomy, Adenoidectomy, Mastoidectomy, Tympanoplasty etc. 1 year Polycystic ovarian diseases - 1 year Surgery of hernia- 2 years Surgery of hydrocele- 2 years Non infective Arthritis- 2 years Un-descended testes-2 Years Cataract.2 Years Surgery of benign prostatic hypertrophy- 2 Years Hysterectomy for menorrhagia or fibromyoma or myomectomy or prolapsed of uterus -2 Years Fissure / Fistula in anus-2 Years Piles- 2 Years Sinusitis and related disorders-2 Years Surgery of gallbladder and bile duct excluding malignancy- 2 Years Surgery of genitor- urinary system excluding malignancy-2 Years Pilonidal Sinus-2 Years Gout and Rheumatism-2 Years Hypertension - 2 Years Diabetes-2 Years Calculus diseases-2 Years Surgery for prolapsed inter vertebral disk unless arising from accident-2 Years Surgery of varicose veins and varicose ulcers - 2 Years Congenital internal diseases -2 Years

Joint Replacement due to Degenerative condition - 4 Years Age related osteoarthritis and Osteoporosis - 4 Years 3.11 PRODUCT PROFILE Oriental's vast product portfolio has been specially designed to cater to the needs of consumers in India. We develop general insurance plans in the best interests of our customers. Oriental Insurance continues to provide customized insurance products for all sections of the society at affordable prices. Now we can buy and renew policies Online. Buy a new Insurance policy, Renew an existing Oriental Insurance policy or renew policies bought from any other general insurance company by registering yourself on our Portal and paying online through your debit card / credit card or Netbanking. To check out various online facilities available, you may login on the Portal. The various insurance product types are given below: 3.11.1 Marine Insurance Oriental insurance company ltd brings to India a wide range of marine cargo products from various international markets. Their products considerably widen the scope of coverage presently enjoyed by the insured population without necessarily involving a high premium. 3.11.2 Burglary insurance Burglary Insurance for machinery, stock in trade, furniture, fixtures & fittings and for goods held in trust or on commission for the insured is responsible. Burglary Insurance covers burglary or housebreaking


accompanied by either forcible or violent entry into/exit from the premises and hold-up. 3.11.3 Engineering Insurance: Erection All Risks Insurance The Erection All Risks policy is a comprehensive insurance, which provides complete protection against all types of risks associated with erection, testing, commissioning of machinery, plant and equipment during constructional stage.

Boiler & Pressure Plant Insurance

It covers the risk of explosion and collapse of any boiler or other pressure plant in the course of ordinary working. Contractor's All Risks Insurance All types of civil engineering works, ranging from small buildings to massive dams are exposed to damage from a wide range of causes such as fire, lightning, flood, inundation, storm, cyclone and other accidental damages. It is a comprehensive insurance which provides complete protection against all types of civil construction risks. Machinery Breakdown Insurance Oriental insurance company ltd extend its hand offering Machinery Breakdown Insurance Cover ably supported by most capable technocrats to throw more light about the mechanical side of all machines. Marine-Cum-Erection Insurance It is developed as a comprehensive product to manage the risk and insurance needs in course of erection as well as during transit. It is a combination of

Erection-All-Risks and Marine Insurance to cater to the needs of the client where Marine/Transit insurance is connected with Erection All Risks Insurance of any project. Contractor's Plant & Machinery Contractor's Plant & Machinery is an exclusive all risks policy covering the plant & machinery used by the contractors at the site for various projects. It covers the property whether they are at work or at rest or being dismantled for the purpose of cleaning or overhauling, or in the course of operations or when being shifted within the premises or during subsequent re-erection, but in any case only after successful commissioning. 3.11.4 Liability Insurance: Product Liability Insurance Liability arises from a civil wrong or breach of personal duty imposed by law on a person and owed to his/her fellow citizens. In some countries legal rights and duties are framed in a Civil Code. In others they are not codified but drawn from the precedent of decisions handed down in the courts over the centuries; this is known as "Common Law". Workmen's Compensation Insurance It provides Insurance against occupational accident or disease to an employee whilst in course of his employment. Public Liability Act It provides indemnity against the Insured's liability at law to the public in general (excluding employees) for bodily injury and loss of or damage to property due to the business activities carried on in insured's premises. 3.11.5 Business solutions:

Industrial All Risks Policy

Its a wide and comprehensive cover for the large sized business where the assets at all locations of the insured exceed Rs.100 Corers. It is an All Risks Policy covering a wide range of perils such as fire and allied perils, burglary, accidental damage, breakdown as well as business interruption. Office Shield A flexible policy specifically designed to meet the insurance needs of your modern office, irrespective of the number of locations. Hotel Shield Tailor-made cover designed to suit the specific needs of the Hotel Industry.

Enterprise Shield.

It is a newly devised package providing total insurance solutions for industries. You do not need to analyze and evaluate a large number of insurance policies to insure your business completely. Education Shield Traders Shield Tailor-made cover designed to suit the specific needs of Education Industry. It is an attractive policy that provides shopkeepers with a basic insurance package and a further range of optional covers. All Risks Policy for Portable Equipments It offers an overall solution to cover portable items like laptops, mobiles, cameras and projectors. Standard Fire and Special Perils Policy


It offers cover against fire and allied perils and the perils of nature. The policy can cover building (including plinth and foundation), plant and machinery, stocks, furniture, fixtures and fittings and other contents. Consequential Loss (Fire) Insurance It provides protection against loss of profits in business due to an interruption in business consequent upon an insured peril covered under the material damage policy. 3.11.6 Employee solutions: Group Personal Accident Policy It is a worldwide cover providing protection for the employees against any accidental injuries sustained by the individuals resulting in death and disablement.

Group Health

Health Premium Platinum is a comprehensive health insurance package, designed for the employees of company and their family members. Workmen's Compensation Workmen's Compensation provides cover to target clients as required by law in support to project insurances or property insurances. 3.12 FAMILY FLOATER 3.12.1 FEATURES This is a Health Insurance Policy. FloaterImplies single Sum Insured for entire family. Family includes Self ,Spouse,Children,Parents,and Parents in Laws. Available in two plans-Silver and Gold.

3.12.2 PLANS PLAN-SILVER PLAN-GOLD 10% compulsory coBASIC Without co-pay.Sum Insured choice Rs-6pay,Sum Insured PLAN 10lakhs. choice Rs-1-5 lakhs Cash Allowance for the days addmitted. Inbuilt Attendance allowance-If a child between 3m to 10 yrs is admitted. Personal Accident Personal Accident cover for self and Add On cover for self and dependants. dependants. Life Hardship(Survival Benefit),diseases like cancer(IV) stage,End stage Renal Add On NIL Disease,Stroke leading to Paralysis or paralegia.

3.12.3 NEW FEATURES Daily Hospital Cash -Benefit in Gold Scheme -Limit 0.1% of Sum Insured Max.10 days Attendant Allowance -Benefit in Gold Scheme,if child below 10 yrs admitted. -Rs-500 per day max.10 days. 3.12.4 OTHER FEATURES Ambulance charges

Rs.1000 or 1% of Silver Rs.2000 or 1% of S.I in Gold

Discount on OMP Premium

Discount of 15% on OMP policy


Family Floater Policy is suspended, if OMP taken


Option to avail services or not 5% discount if opted out

3.12.5 NEW FEATURES with Extra Premium Personal Accident -Available in Silver and Gold plans. -In Silver up to Rs.5 lakhs. -In Gold up to Rs.10 lakhs. Life Hardship -Benefit in Gold scheme with Extra Premium -Plan-A with 15% of Sum Insured -Plan-B with 25% of Sum Insured -Benefit given, if Insured person survives for 180days or 270days after discharge 3.13 HAPPY FAMILY FLOATER POLICY 3.13.1 PROPOSAL FORM

Proposal form and self declaration form to be filled in block letters

and in duplicate.

Please attach two stamp size photographs of each insured person. The company will not be on risk until the proposal has been accepted

by the company and communication of the acceptance has been given to the proposer in writing on receiving full payment of premium.

The insured above 60 yrs. Of age has to undergo pre insurance health

check up through companys authorised diagnostic centre and cost of such expenses to be borne by him.


3.14 ORIENTALTRAVEL INSURANCE Oriental Overseas Travel Mediclaim Insurance is available to Indian Citizen between 6 months and 70 years of age who are undertaking bonafide trips outside India which will not involve any form of manual work and do not exceed 180 days duration unless specifically extended. The overseas mediclaim policy provides indemnity for expenses necessarily incurred for immediate treatment of illness, diseasescontracted or injury first sustained (during the period of insurance of overseas travel subject to policy terms and conditions.) and in addition also personal accident, total loss of checked baggage, delay of checked baggage, loss of passport and personal liability covers. (during the period of insurance of overseas travel subject to policy terms and conditions.) 3.15 HEALTH INSURANCE Oriental health insurance family floater policy is issued for a period of one year and it offers two plans - Silver plan Sum insured in multiples of Rs.1,00,000/- and upto Rs.5,00,000/- per person aged 18 years and above. Gold plan Sum Insured in multiples of Rs. 2,00,000/-, and upto Rs.10,00,000/- per person aged 18 years and above. 50% of this limit for persons less than 18 years. 3.16 HOME INSURANCE 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. Section 1 : Fire and Allied Perils. Section 2: Burglary.

Section 3:All risks. Section 4 : Plate Glass. Section 5 : Breakdown of domestic appliances. Section 6: T.V. Set. Section 7 : Pedal Cycles. Section 8 : Baggage Insurance. Section 9: Personal Accident. Section 10: Public Liability.

4.0 Insurance covers many risks and uncertainties in the world of

business and act as a boon to the industrial or commercial concerns and general public. Businessman can easily and confidently transfer the risk of loss of insurance. It also safeguards the interest of individual and public. Businessman does not have to worry about losses or damage when the risk of loss to their property is duly insured. They will receive compensation against actual loss takes place. In life insurance, life policy gives financial protection to the dependents to the extent of the assured who may be the only breadwinner initially. An insured businessman or policyholder can

enjoy normal expected profits. As the property of the businessman is duly insured and he can get a normal profit margin, he can change lower prices to consumers. Insurance has the effect of improving credit standing of businessman, commercial banks and financial institutions insisted for insurance of articles, which are kept as security for loans. Therefore, Researcher has conducted a study of financial performance of Oriental Insurance Companies Ltd in India. Researcher has collected secondary data for the major part of the study. Secondary data have been collected with published material.

4.1 FINDINGS 1. Introduction chapter explained the history, review of literature, fundamental principles of Oriental Insurance Company Ltd in India and the methods by which the study sought to be undertaken are discussed in this chapter. 2. The methodology chapter gave the essential hypotheses, objective and techniques which are used to prove the statement of the research study and also analyzed in detail about the role and performance of Oriental Insurance Company Ltd in India. 3. The third chapter gives the essential of various insurance products introduced by Oriental Insurance Company Ltd in India to promote financial security of the people.


4.2 SUGGESTIONS 1. Oriental Insurance Company Ltd should give more advertisement to attract the people. 2. Oriental Insurance Company Ltd should simplify the procedure for the convenience of customer. 3. Oriental Insurance Company Ltd should simplify the claim settlement procedure. 4. To create goodwill through good customer satisfaction. 4.3 CONCLUSION Despite Indias vast population, rural poverty and lack of awareness about insurance products have constrained the growth of insurance business in the past. This is expected to change with the recent deregulation and liberalization of the insurance sector. The Indian insurance industry undoubtedly displays great potential. Indias high saving rate, customary lack of social security nets and a tradition of frugality are expected to be key growth drivers. Improved nutrition and medical standards have improved the life expectancy necessitating the provision comfortable standard of living to the retires. Another factor closely related is the rising middle class that will encourage increased insurance spending and their growing risk awareness. India is poised to experience major changes in its insurance market. Insurers will operate in an increasingly deregulated and liberalized environment. However, in spite of the liberalization, Oriental Insurance Company Ltd will continue to maintain their dominant position in the market, at least in the foreseeable future. However given the enormous potential of the Indian market, it is for the insurers to come out with new product, better packaging and improved customer service. Product


innovation and channel diversification will gain momentum, in line with global trend of financial service convergence.

1. Agrawal Raj, Business Environment, Excel Books, New Delhi, Second Edition 2002. 2. Agrawal Raj and Diwan, Parag, Business Environment, First Edition, Excel Books, Delhi 2000 3. Insurance Institute of India Principals of General insurance, Bombay. 4. Insurance Institute of India, General insurance Institute of India, Bombay. 5. Mishra M. N. (2004), Insurance Principles & Practice, S.Chand & Company Limited, New Delhi. 6. Periasamy P. (2008) Principles and Practice of Insurance Himalaya Publishing House, Mumbai.

7. Ravichandran K. (2007) Recent Trends in Insurance Sector in India, Abijeet Publications, Delhi. JOURNALS AND PERIODICALS 1. Insurance watch 2. Fortune India 3. Business today. 4. Journal IRDA 5. Journal Insurance Institute of India WEB SITES 1. 2. 3. 4.