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I hereby declare that the project work on Comparative and “MOTOR CLAIMS PROCESSING PROCEDURES IN A GENERAL INSURANCE COMPANY” submitted to the Guru Gobind Singh Indraprastha University is a record of an original work done by me under the guidance of Ms. JACK JILL, Faculty Member, Sri Guru Tegh Bahadur Institute of Management and Information Technology.


This to certify that , Enrollment no. , BBA student of Sri Guru Tegh Bahadur Institute of Management and Information Technology has done project work on “MOTOR CLAIMS PROCESSING PROCEDURES IN A GENERAL INSURANCE COMPANY” under the guidance of Ms. .


With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor Ms. for her valuable guidance and the

confidence she installed in me, that helped me in the successful completion of this project report. Without her help, this project would have been a distant affair. Her thorough understanding of the subject and the professional guidance is indeed of immense help to me is also thankful to the faculty member of our institute who cooperated with me and gave me their valuable time.


1. INTRODUCTION 1.1 Company profile 1.2 Product profile 1.3 Introduction 1. Insurance 2. Principles of insurance

6 6 9 13 14 15


OBJECTIVE 2.1 Objective 2.2 Situation & problem analysis METHODOLOGY 3.1 Research methodology applied DATA ANALYSIS 4.1 Corporate travel insurance 4.2 Analysis of results 4.3 Student travel insurance project

16 16 17 20 20 27 27 37 38 47 47 48 52

3. 4.

5. FINDING AND RECOMMENDATIONS 5.1 Corporate travel insurance 5.2 Student travel insurance ANNEXURE Questionnaire BIBLIOGRAPHY 53


This survey confirmed TATA AIG as the market leader among private players in the travel insurance business and bajaj allianz at second position. The PSUS have a strong foothold through they offer mediocre service. The chances of private players capturing the market are bright. What is certain is the fact that the winner of game will be the player providing the best service. Right from policy issuance to claim settlement, it will have to stand out. The customer is smart; he can distinguish good service from a mediocre one. The survey revealed the fine details that a customer keeps track of in assessing his insurance service providers. Certain very innovative recommendations came as suggestions from customers, for instance coverage for loss of valuables. In short nothing replaces good service, in fact lower premium rates. Next comes the distribution network, which also has the same backbone i.e., good service delivered. Working on this front with a little relationship building & product innovation will yield rich dividends. Good service comes with a good workforce, & investment in improving the quality of workforce both at the time of recruitment & also through continuous training is imperative. Also controls should be built in the system to better track the service record of the organization. Last but not least is marketing. Good marketing created coke, Pepsi & Levis. Certain recommendations that I„ve included in the report should affect the customer perception about the company for better.


HISTORY Bajaj Allianz General Insurance Co. Ltd. BAGIC is a joint venture between bajaj auto limited and Allianz AG of Germany. Bagic came in to existence on 19th sep. 2000 and received the insurance regulatory and development authority (IRDA) license on may 2nd, 2001 to conduct General Insurance business in India. Bajaj auto holds a majority stake of 74% and Allianz AG holds the balance 26 %. It is an attempt to combine the strong brand-equity, extensive distribution network and understanding of Indian market of Bajaj Auto with the international insurance expertise, product range, technology and global service standards of Allianz AG. PROMOTERS Allianz AG globally is in the business of general (property & Casualty) Insurance, Life & health insurance and asset management. Established in 1890, it is headquartered in Munich, Germany, with over 700 subsidiaries spread across 70 countries. It is ranked number one in the world, with gross written premium of US $71 billion & US $ 3.1billion net profit. Assets under management: US $ 1000 billion. Allianz is one of Europe‟s most highly valued stock corporations, being ranked number two by market capitalization. The group possesses an understanding of the insurance needs of over 60 million customers, including a majority of fortune 500 companies, across the world. Allianz has the highest rating of AAA from Standard & poor‟s and A++ from Bajaj Auto Limited is the largest manufacturer of two- wheelers & three wheelers in India and 4th largest in the world. Incorpated in 1945, it had a turnover of RS.50.70 billion, net profit of RS.5.38 billion and sales of 1.44 million vehicles (2002-03). It has a network of over 375 dealers‟ across 60 cities. The co. is rated AAA by crisil.


MISSION: As a responsible, customer focused market leader, the company will strive to understand the insurance needs of the consumers and translate it in to affordable products that deliver value for money. VISION:  To be the first choice insurer for customers  To be the preferred employer for staff in the insurance industry.  To be the number one insurer for creating shareholder value. FOCUS: At bajaj Allianz our guiding principles are customer service and client satisfaction .All our efforts are directed towards understanding our customers needs so that we can provide appropriate insurance solutions. An internationally experienced core team, majority with local background, backs our efforts. We are supported by the necessary international expertise from the Allianz group network .We have put in place a fast and decentralized decision making system to provide efficient services. SERVICE NETWORK It is our desire to bring service to the doorstep of our customer. Our network of branches spans the length and breadth of the country: Head office: PUNE Regional offices  Ahmedabad  Bangalore  Chennai  Delhi  Hyderabad  Kolkata


 Mumbai  Pune  Vadodara Branch offices  Aurangabad  Bharuch  Bhopal  Bhubaneshwar  Chandigarh  Coimbatore  Goa  Guwahati  Hubli  Indore  Jaipur  Jalandhar  Jammu  Kanpur  Kochi  Lucknow  Ludhiana  Madhurai  Mumbai  Nasik  Raipur  Rajkot  Silguri  Srinagar  Surat  Trivandru  Vashi  Vishakapatnam


PRODUCTS & SERVICES: Risk management services  Risk analysis  Risk grading & risk control  HAZOP studies  Safety Audit  Disaster management system  Risk management training  Development & monitoring of risk management programme  Insurance portfolio analysis  Accident investigations




CORPORATE PRODUCTS -:                 Fire & special perils policy Electronic equipment insurance policy Contractors plant & machinery policy Boiler & pressure plant insurance policy The public liability act Consequential loss (fire) insurance policy Money policy Erection all risks /storage-cum erection policy Workmen‟s compensation Insurance policy Machinery loss of profits insurance Composite public & product liability Motor vehicles insurance policy Machinery breakdown policy Marine cargo policy Marine hull & aviation policy

RETAIL PRODUCTS -:            Motor Health guard Hospital cash Critical illness Personal accident House holders Shop keepers Office package Travel companion Burglary Fire


Financial Highlights Year 2004 -05 Particulars 2004-05 Rs. Million 2003-04 2002-03 2001-02 Rs. Million Rs. Million (11 Months)* Rs. Million 4,798 2,998 1,420 2,864 2,306 (1,542) 231 (984) 11 285 22 318 (101) 217 67% -10% 42% 1,808 1,541 (1,072) 155 (689) (33) 207 (3) 171 (75) 96 70% -10% 43% 841 98 (127) 128 (370) (271) 143 (5) (133) 37 (96) 130% -130% 376%

Gross Written 8,560.7 Premium Net Written 4,792.9 Premium Net Earned 3,709.2 Premium Net Incurred (2,263.3) Claims Net Commissions 419.4 Management (1,455.9) Expenses Underwriting 409.4 Results Income from 388.8 Investments Others 28.6 Profit Before Tax 769.6 Provision for Tax (298.7) Profit After Tax 470.9 Claim's Ratio 61% Commission Ratio -11% Management 40%

Expenses Ratio Combined Ratio 90% Return on Equity 34% Shareholder's 1,824.1 Equity Assets Under 5835.5 Management Number of 924 Employees

99% 20% 1,380 3,486

102% 9% 1,095 2,709

376% -9% 997 1,688


The insurance market is now in an evolving phase where one can expect a lot of action in coming days. The game is old but the rules are new & still developing. Ensconced in a monopoly run from the nationalization days beginning in 1956, the insurance industry has indeed awakened to a regulated environment in which several private players have partnered with multinational insurance giants. One of such company is Bajaj Allianz General Insurance Company Ltd. (BAGIC) a joint venture between Bajaj Auto, India‟s leading two wheeler manufacturer, and the Allianz AG, the world‟s largest General Insurance company Ltd. Every asset has a value & a business of general insurance is related to the protection of economic value of assets. Assets would have been created through the efforts of the owner, which can be in the form of buildings, vehicles, machinery and other tangible properties. Since tangible property has a physical shape & consistency it is subject to many risks. Concepts of insurance have been extended beyond the coverage of tangible assets. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered .If a person judiciously invests in insurance for his property prior to any unexpected contingency than he will be suitably compensated for his loss as soon as the extent of damage is ascertained. A travel insurance policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc. This project deals with the travel insurance sector. It is part of an effort to devise strategies to increase the market share of bajaj allianz in the travel insurance market (corporate travel insurance & student travel insurance.


Insurance is a contract where by the insurer in consideration of the premium agrees to indemnify the insured against the loss arising out of any of the insured perils.

2. PRINCIPLES OF INSURANCE 1. 2. 3. 4. 5. 6. Utmost good faith Insurable interest Indemnity Subrogation Contribution Proximate cause

1. UTMOST GOOD FAITH: An insurance contract is a legal agreement between the insurance company and the insured and it is a positive duty voluntary to disclose, accurately and fully, all facts materials to the risks being proposed, whether requested or not. As the underwriter knows nothing where as the man who comes for insurance knows everything, it is the duty of the proposer the disclose full facts to the underwriter without being asked. This is called the contractual duty of utmost good faith.

2. INSURABLE INTEREST: The owner of property has a right under law to effect insurance on the property if he is likely to suffer financially when the property lost or damaged. There must exist a financial relationship between the insured & the subject matter recognized under law. This legal right to insure is called insurable interest.


3. INDEMNITY: The object of principle of indemnity is to place the insured in the same financial position as far as possible, as he occupied immediately before the loss. The effect of this principle is to prevent the insured from making profit out of his loss.

4. SUBROGATION: Subrogation means the transfer of rights of the insured to the insurer after the payment of loss. The insured after being indemnified steps into the shoes of the insured and avoids the insured to make a profit out of the insurance contract.

5. CONTRIBUTION: An insured may have several policies on the same subject matter from different insurers. In the event of loss, if he recovers under all these policies, he will obviously make profit out of this loss. This is against the principle of indemnity. Hence as per the principle of contribution that has paid a loss under the policy has to recover a proportionate amount from other insurers who are liable for same loss.

6. PROXIMATE CAUSE: The object of insurance is to provide indemnity for such losses as are caused by insured perils. There is no liability for a loss caused by an uninsured peril such asAny accident outside the geographical area Consequential losses Driving without a valid license or driving under the influence of Alcohol


This project deals with the travel insurance sector .It is a part of an effort to device strategies to increase the market share of Bajaj Allianz in travel insurance market (corporate travel insurance and student travel insurance) A concerned effort was made to market bajaj allianz and its product to sample organizations to the greatest possible extent.

India with a population of 1 billion offers great potential and opportunity for the general insurance industry. The general insurance corporation commands the general insurance Sector along with four of its fully owned subsidiaries viz. National insurance company, new India Assurance Company, oriental insurance company and united India insurance company. Along the private players, ICICI Lombard is doing very well, followed by bajaj allianz & TATA AIG .the insurance business in India is pegged at $6.6 billion, where as insurance industry leaders feel the privatization will increase it to$ 40 billion with the next 3-5 years. Per capita insurance premium in India is one of the lowest in the world. Insurance premium in India accounts for a mere 2% of the GDP compared to the world average of 7.8% and G7 averages of 9.2 %. Insurance premium as a percentage of savings s barely 5.95 percent in India as compared to 52.5percent in U.K. Travel insurance constitutes a small percent of general insurance premium. This undeserved niche needs to be trapped by all players. The main private players, which provide travel insurance, are bajaj allianz (travel companion), TATA AIG (Travel guard), IFFCO Tokio (travel protector) and ICICI Lombard (globetrotter overseas individual travel insurance). In spite of the small contribution of the travel insurance business to the general insurance premium, it holds significant importance in the minds of

the strategy formulators. The reason is that the profit margin in a travel insurance product is higher than most other products in general insurance business. Today, competition among these private is not only rife but growing more intense every year. Because the market is so competitive, understanding customer is no longer enough. Companies must start paying keen attention to their competitors. There are frequent price wars, marketing battles, and new-product introductions, and this makes it expensive for these players to complete. TATA AIG which has been in the travel insurance market for a long time is the leading private player I this business. The challenge for bajaj allianz is to emerge as the market leader in the travel insurance business. With this context in mind, we define the management decision problem as:

What strategies should bajaj allianz adopt in order to emerge as the market leader in the travel insurance sector? The solution lies with the customer. Customers form service expectations from past experience, word of mouth, and marketing. Customers compare the perceived service with the expected service. If the perceived service falls below the expected service, customers are disappointed .if the perceived service meets or exceeds their expectation, they are apt to use the provider again .the model shown below identifies five gaps that cause unsuccessful delivery.

1) Gap between consumer expectation and management perception: Management does not always perceive what customer want. Hospital administrators may think that patients want better food, but patients may be more concerned with nurse responsiveness.

2) Gap between management perception and service quality specification: Management might correctly perceive customers want but not set a Performance standard. Hospital administrators may tell the nurses to give

Fast service without specifying in minutes. 3) Gap between service – quality specifications and service delivery: Personnel might be poorly trained, or incapable or unwilling to meet the Standards or they may be held to conflicting standards, such as taking time to listen the customers and serving them fast.

4) Gap between service delivery and external communications: Statements made by company representatives and advertisements affect consumer expectations. If a hospital brochure shows a beautiful room, but the patient arrives and finds the room to be cheap and tacky looking, external communications have distorted the customer‟s expectations.

5) Gap between perceived service and expected service: This gap occurs when the consumer misperceives the service quality. The physician may keep visiting the patient to show care, but the patient may interpret this as an indication that something is really wrong. To ensure such gaps do not occur, marketing research needs to be conducted. My task was to carry out market research with corporates and students traveling abroad to understand their requirement from their travel insurance providers.


METHODOLOGY 3.1 Research methodology applied
PROJECT PLAN 1) Preparation of data collection questionnaire 2) Data collection through company visits for corporate travel insurance project  Selection of sample (IT organizations selected as they have substantial international travel  Selection of companies located in New Delhi, Noida & Gurgaon from the NASSCOM directory for company visits. This was done on the basis of total no. Of employees working in the companies. 3) Approaching the companies for data collection, scheduling appointments in bulk and visiting the companies area wise (appointments for all the located in a particular area were taken for the same day to minimize cost and time of research) 4) Data collection through company visits for student travel insurance project  Preparation of data collection questionnaire  Data collection from management and other institutes Data analysis & report compilation.

DATA SOURCES I had the choice of gathering secondary data, primary data, or both. Secondary data are data that were collected for another purpose & already exist somewhere. Primary are freshly gathered for a specific purpose or for a specific research project .I started my investigation by examining secondary data to see whether the problem can be partly or wholly solved without collecting costly primary data. Secondary data provide are starting point for research & offer the advantage of low cost & ready availability. When the needed data do not exist or dated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing


research projects involve some primary –data collection. The normal procedure is to interview some people individually or in groups, to get a sense of how people feel about the topic I in question, and then develop a formal research instrument, debug it, & carry it into the field. I used a combination of primary and secondary data for this research project. RESEARCH APPROACHES Primary data can be collected in five ways: through observation, focus groups surveys, behavioral data, and experiments. Observation research Fresh data can be gathered by observing the relevant actors & settings. The American Airlines researches might meander around first class lounges to hear how travelers talk about the different carriers and their features. Their research can fly on competitors‟ planes to observe their in- flight service. This exploratory research might yield some useful hypothesis about how travelers feel about different air carriers and their services .I did not go in for observational research approach since at no instance did I get a set up to carry out such a research. Focus-group research: A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service organization or other marketing entity. The moderator needs to be objective, knowledgeable on the issue, and skilled in-group dynamics. Participants are normally paid a small sum for attending .The meeting is typically held in pleasant surroundings & refreshments are served. Focus-group research is a useful exploratory step. Consumer-goods companies have been using focus groups for many years, and increasing number of newspapers, law firms, hospitals, and public-service organizations and discovering their values. However, researcher must avoid generalizing the reported feeling s of the focus group participants to the whole market, because the sample size is too small and the sample is not drawn randomly. With the development of the web, many companies are now conducting online focus groups.

I did use the focus group approach for this project to see extent. Although the meeting were not organized in advance, they ca be classified as focus group meetings. I planned to use this research methodology instantaneously for the student travel insurance marketing research on finding student groups with the required profile outside the USEFI building.

Survey research Surveys are best suited for descriptive research. Companies undertake surveys to learn about people‟s knowledge, beliefs, preferences and satisfaction and to measure these magnitudes in the general population. A company might prepare its own survey instrument to gather the information it needs, or it might add question to an omnibus survey that carries the questions of several companies at a much lower cost. It can also put the questions to an ongoing consumer panel run by itself or another company or it may do an intercept study by approaching people in a public place who might volunteer to answer questions. I planned to use this research methodology to a large extent for this marketing research project. This is mainly because this was a descriptive research to some extent and surveys are best suited for a descriptive research.


RESEARCH INSTRUMENT Marketing researchers have a choice of three main research instruments in collecting primary data: questionnaires, psychological tools and mechanical devices. 1. Questionnaires A questionnaire consists of a set of questions presented to respondents. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested & debugged before they are administered on a large scale . In preparing a questionnaire, the researcher carefully chooses the questions and their form, wording & sequence. The form of the questions asked can influence the response. Marketing researchers distinguish between closed-end and open- end questions. Closed –end questions specify all the possible answers and provide answers that are easier to interpret and tabulate. Open-end questions allow respondents to answer in their own words and often reveal more about how people think. I planned to use a combination of open & closed ended questions in a structured questionnaire as a research tool for both my marketing research surveys (corporate travel insurance & student travel insurance).

2) Psychological tools Marketing researchers can probe a buyer‟s deeper beliefs & feelings using psychological tools such as laddering techniques, depth interviews, and Rorschach tests. Laddering involves asking a male consumer, for example, „why do you want to buy an SUV?‟ He may answer, „it is a good looking car.‟ He is asked to follow up question: „why do you want a good looking car?‟ upon receiving his answer, another question is put: „why is this important to you?‟ this continues until the researcher arrives at a deeper reason, such as „people will be more impressed with me” i.e. an aspirational reason for owning an SUV.


Depth interviewing involves going deeply into the thoughts that an individual may have about a product or service. The late earnest Dichter was a master of depth interviewing and came out with many surprising findings. People do not like prunes because their wrinkled appearance makes them think of old age, and women do not respond to cake mixes that do not include adding egg because they see baking as a art of giving birth. Whatever the validity, his finding gave his corporate clients many ideas. Dichter held the qualitative research gave far more inside than quantitative research (“nose counting”). I read up in detail about this psychological tools before starting with data collection planed to used tools like depth interviewing & laddering spontaneously while getting the questionnaires fill, particularly with the open ended questions.

SAMPLING PLAN After deciding on the research approach & instruments, the marketing researcher must design a sampling plan. This calls for 3 decisions:

1. SAMPLING UNIT: Who is to be served? The marking researcher must define the target population that will be sampled Sampling unit for corporate travel insurance projects The survey was aimed at the IT and software companies of Noida, gurgaon &New Delhi. These companies were chosen for this survey because a large no. of their employee travels to foreign countries like USA, GERMAN, FRANCE, etc. for the purpose of training & projects. This corporate, when sending their employees abroad, are hence the customers of any general insurance co. offering a travel insurance policy Hence, the entire population of employees of IT & software co. who were organizing overseas travel for world force served as the sampling unit for our survey.

Sampling units for student travel insurance project The survey was aimed the students who travel abroad for education. These students wish to get insured before leaving for their education abroad.

2) SAMPLE SIZE: How many people should be surveyed? Large sample give more reliable results then small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than one percent of a population can often provide good reliability, with a credible sampling procedure. Sample size for the student travel insurance project The sample size was chosen to be 125 Sample size for the corporate travel insurance project Keeping in the time frames and the kind of data required from the survey, a sample size of 75-80 organizations was considered ideal for the purposes of the survey. Finally 83 organizations were surveyed.

3) SAMPLING PROCEDURE: How should the respondence be chosen? Sampling procedure for the corporate for the travel insurance project The respondence was chosen with the help of the NASSCOM directory. This directory contains a list of all software related companies of India along with company detail. Companies from New Delhi, gurgaon and


Noida having a certain minimum number of employees were chosen for the survey. Sampling procedure for the students travel insurance project The respondence was chosen with the help of the US educational foundation in India (USEFI) and some of the educational institutes of the NCR region. USEFI, created by a treaty on educational exchange between the government of India and the USA in 1950,is a binational organization promoting mutual understanding of Indian and American through higher education. CONTACT METHODS Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contacted: mail, telephone, personal, or online interview. The mail questioner is the best way reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questioners requires simple and clearly and worded questions. Unfortunately, the, the responses rate is usually low or slow. Telephonic interviewing is the best method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them. The response rate is typically higher then in the case of mailed questionnaires. The main drawback is that the interviews have to be short and not too personal. Telephone interviewing is getting more difficult because of voice mail and people becoming suspicious of telemarketing.


4.1 CORPORATE TRAVEL INSURANCE PROJECT Data was collected from 83 companies, which were selected from NASSCOM directory. The following is a representation of data that was collected from 83 companies during the survey. 1. No of employees who travel abroad every year: This figure ranged from very low to very high. For some Companies this figure was variable depending on overseas Project and other factors. For these companies, the average Figure for the previous year was collected. The maximum figure was obtained for CMC limited: 2340 employees traveling abroad every year. The minimum figure was obtained for Info edge Solutions Pvt Ltd: 2 employees traveling abroad in a year. The mean figure obtained for 83 companies is: 180 employees traveling in a year.
Travellers abroad in a year
2500 2000 NUMBER 1500

1000 500 0 maximum mean DATA POINT minimum


2.Time spent abroad by each employee: This figure was also variable for different companies. The average figure for the previous year was collected for these companies. The maximum figure was obtained for cressada solutions limited: 120 days The minimum figure was obtained for lucent technologies: 2days The mean figure was obtained for 83 companies are: 26 days
Time spent abroad in a year
140 120 Time in days 100 80 60 40 20 0 maximum mean Data point minimum

3. No. Of man – days spent abroad every month The number of man-days spent abroad was calculated as the product of the number of employees traveling abroad every month and the average time spent abroad by each employee. No. Of man days = (no. Of employee who travels abroad every month) * (average time spent abroad by each employee) The maximum figure was obtained for Scicom InfoTech. PVT. LTD: 3760 man-days per month. The minimum figure was obtained for Infoedge Solutions private ltd: 2 an days per month. The mean figure obtained for 83 companies: 498 man days per month

Man-days spent abroad every month
4000 3500 3000 Man-days 2500 2000 1500 1000 500 0 maximum mean Data point minimum

4.What percentage of this travel is to US or Canada? 1) Companies that send their maximum employee (85%) to the USA: 33 2) Companies that send some of their employees to USA (30%- 40%): 20 3) Companies that do not send their employees to USA (or send a very few of them to USA). These companies send their employees to Belgium, Australia, Kenya, Thailand, Saudi Arabia, European Union, Germany, Spain, Bangladesh, Japan, France& Sri Lanka: 28 4) Companies that send their maximum employees to Canada: 3

Percentage Break-up of Traffic to the US & Canada

85% to the US



30-40% to the US 85% to Canada Non US Non-Canada




5. Out of the total employees traveling what percentage is below 40 years of age? On an average 90% of employees traveling abroad are below 40 years of age.




6. Is the company using a travel insurance policy? All the 83 companies were using a travel insurance policy. 7. Which company is providing services to the company? The 83 companies were using the services of various insurance companies. The break up was as follows:

Provider TATA AIG United India Insurance Bajaj Allianz ICICI Lombard Oriental India Insurance National Insurance Company

No of Companies 32 24 20 12 4 4

Service Providers
35 30 25 20 15 10 5 0 TATA AIG United India Insurance Bajaj Allianz ICICI Lombard List of Companies Oriental India Insurance National Insurance Company

NOTE: THE FIGURES ABOVE INCLUDE SOME COMPANIES, WHICH WERE TAKING INSURANCE POLICIES FROM MORE THAN ONE ISURANCE COMPANY 7. How did you avail the services of this insurance company? a) Through travel agent b) through insurance agent c) directly through the company d) through corporate contacts e) any other. Source Through Travel Agent No. of Companies 61

Directly through the 17 company Through Insurance 5 Agent




20% 74%


8. Since when has your company been using the services of this insurance provider? THE AVERAGE PERIODS OF USE FOR DIFFERENT COMPANIES ARE AS FOLLOWS: Company National Insurance Company United India Insurance Oriental India Insurance Tata AIG ICICI Lombard Bajaj Allianz No. Months 72 60 60 21 8 7.5 of


Average periods of use of service providers
80 60 40 20 0 ICICI Lombard No. of Months Bajaj Allianz National Insurance Company United India Insurance Oriental India Insurance Tata AIG

1. What is the USP (unique selling proposition) of the insurance policy that you’re presently using? THE USP’S FOR DIFFERENT INSURANCE COMPANIES ARE AS FOLLOWS: COMPANY Bajaj Allianz ICICI Lombard USP Low premium rates ICICI Brand name Good coverage & better service TATA AIG response National insurance Government company (perception company of reliability) Oriental India Government company (perception Insurance of reliability) Government company (perception United India Insurance of reliability)

2. What is the nature of the insurance product that your company is using? a) Corporate Blanket (per day rates) b) Individual policies for employees

47 companies were using individual policies for employees 36 companies were using the corporate blanket


43% 57%



12. What are the features that you expect from your insurance Provider if you want to undergo a change? These features are too many and too varied to be covered here and have been included in the recommendation section.

13. What has the past claim experience been? a). How many claims 48 companies had no recent claim experience 35 companies had a single recent claim experience



42% 58%


b. Nature of claims 27claims were related to health, hospitalization and illness 3 claims were related to baggage delay 5 claims were related to personal accident
30 25 20 15 10 5 0 1 BAGGAGE DELAY


C. Claim handling by the insurance company 22 companies were satisfied with the way their claims were handled. 10 Companies were not satisfied with the way their claims were handled (included in the recommendations section).



37% 63%



4.2 ANALYSIS OF RESULTS 1. The results indicate that the travel profile of companies (no. of employees travel abroad every week & time spent abroad by each employee) varies from one company to another. 2. For the majority of companies, most of their overseas travel is to the USA, though a substantial no. of companies are those whose overseas is to other countries. 3. Most of the employees traveling abroad are less than 40years of age. 4. All the companies use a travel insurance policy. TATA AIG is the most popular company with the corporate followed by united India Insurance, BAJAJ ALLIANZ, ICICI LOMBARD, NATIONAL INSURANCE COMPANY AND ORIENTAL INDIA INSURANCE. 5. Most of the companies get their insurance policies from travel agents. 6. The companies using government insurance policies have been using them for the past 5to 6 years. The main USP of government policies is the mindset that the government insurance companies are more reliable as compared to private ones. The private ones have their individual USPs already mentioned above. 7. Most of the companies use the individual policies for employees though the corporate blanket policy also quite popular. 8. Majority of the companies have had no recent claim experience. For the companies, which have had a recent claim experience, the majority has had claims related to health, hospitalization & illness, followed by personal accident & baggage delay.


Data was collected from 125 students who I met at USEFI and some coaching centers (SAT, TOEFL, GRE & GMAT) Most of these students were school & college students. The school students belonged to prominent & established schools of Delhi. 1. RESPONDENTS PROFILE:  School students: 54  College students: 71

43% 57%

school students college students


STREAM WISE BREAK UP OF COLLEGE STUDENTS  Engineering stream: 13  Commerce stream: 28  Science stream: 19  Arts stream: 1






27% 40%


3. DESTINATION COUNTRY: The entire population of students surveyed planned to go to USA for their education. 4. MOST PREFERRED BENEFIT: No. Of votes  Medical expenses: 58  Personal accident: 35  Tuition fee: 19  Family visit: 10  Personal liability: 3  Loss of checked baggage:0

70 60 50 40 30 20 10 0 Medical expenses Personal liability Family Visit


5. MOST PREFERRED BAJAJ ALLIANZ PRODUCT: No of votes >  Gold: 63  Silver: 49  Standard: 13






6. HOW IS YOUR EDUCATION BEING FINANCED  Loan (specify the bank)  Scholarship  own money  or a combination of these?

Loan &scholarship Loan &self financed Scholarship & self financed Self financed

NUMBER 11 83 5 26



9% 21% 4%






NUMBERS 15 19 46 14






20% 46%


7. HOW WILL YOU BOOK YOUR TICKETS FOR YOUR DESTINATION COUNTRY?  through travel agent  on your own  Undecided

OPTIONS Through travel agent On your Own Undecided

NUMBERS 84 19 22



Through travel agent

15% 67%

On your Own Undecided

8. WHAT IS THE COURSE THAT YOU’LL BE STUDYING ABROAD?  Graduation 1. Engineering 2. Science 3. Commerce 4. Arts 5. Medicine.

COURSE Engineering Science Commerce Arts Medicine

NUMBERS 19 7 2 12 8



17% 39% 25% 15% 4%


POST GRADUATION: 1. M.B.A 2. MS 3. IT Diploma courses 4. Specialized technology diploma courses 5. Masters in arts or equivalent 6. PhD

post graduate course MBA MS IT Diploma Courses Specialized technology diploma courses Masters in arts or equivalent PhD

Numbers 29 18 12 7 2



3% 10%


IT Diploma courses

41% 17%
Specialized Technology Diploma Courses


Masters in arts or equivalent


9. HOW DID YOU COME TO KNOW OF THIS COURSE? 1. Internet 2. Friends & Relatives 3. Newspaper Ads 4. University Brochures 5. School & college notice boards

SOURCE OF INFORMATION Internet Friends & relatives Newspaper ads University brochures School & college notice boards

NUMBERS 57 8 12 26 22




18% 45% 21%

Friends & Relatives

Newspwper Ads

University Brochures

10% 6%

School & college notice Boards


5.1 CORPORATE TRAVEL INSURANCE Service  One Company I visited had a suggestion related to the list of hospitals and medical institutions where the insurance company can reimburse the expenses for treatment there should be a list of hospitals provide in the very initial stages of policy issuance. It often happens that after the sickness or accident the employee dials a toll free number and contacts the company which then gives the employee a list of hospitals and medical institutions that are covered by the insurance policy.carrrying such a list before hand will reassure the customer much more and would differentiate BAJAJ ALLIAZ policies from the other insurers.  Many companies suggested that there should be coverage for loss of valuables (e.g. laptop of the employees) like there is coverage of loss for loss of checked baggage.  More branding and promotion on electronic media  Many companies suggested that there should be coverage for loss of valuables (e.g. laptop of the employees) like there is coverage of loss for loss of checked baggage.  The best way to score over the competitors is to provide a better service and to market it suitably  Payments and commissions could be both centralized or decentralized

Marketing A product or service, which is marketed well, sells better that one which is not. Marketing gives birth to brands like Coke, Adidas, Levis, and Mc Donalds.what kid of a marketing strategy should be devised for a general insurance company? Having already discussed the product and

distribution, promotion will be taken up as the next set of recommendations. Bajaj Allianz can be promoted through: Tie ups with the foreign embassies Generally, people leaving for foreign countries for a long period of time, visit the embassy of the destination country to gather more information about that country, these embassies can act as an interface between the customers and the insurance company. Tie-ups with airlines, hotels, and tour operators can also be used to market travel insurance products.

5.2 STUDENT TRAVEL INSURANCE: Recommendations for service are the same as those for corporate travel insurance. However, certain innovative marketing strategies can be added for student travel insurance. Tie ups with schools and colleges I visited various management institutes during this summer training project in order to promote the student travel insurance product (student companion) from Bajaj Allianz.the response from these institutes was very positive and they offered their full support for the promotion of this product. Delhi has a large number of schools and colleges from where students go abroad I large numbers for the purpose of higher education. Tie-ups with these schools and colleges can used to promote this product.

Tie ups with coaching centers Students secure admissions to foreign universities after clearing exams like GRE, GMAT, SAT, TOEFL etc.students prepare for these tests and


exams with the help of coaching centers. These can form a effective interface between the students and the insurance company. Tie ups with banks Students approach banks and financial institutions to take loans for their education abroad. Bancassurance can prove to be a very effective way to market and sell travel insurance for the students. These banks include names like ICICI Bank, SBI and HDFC.


This project made it very clear that the travel insurance business has a lot to do with customer interaction. The customer if he gets a good service will definitely stay with it. It also confirmed the importance of the distribution network in selling travel insurance. To summarize-

Main findings The most important parameters that judge the success of a general insurance company are. 1. Quality of service provided (claim settlement & flexibility) 2. Strength of the distribution network.


The sample size for the corporate travel insurance project was kept at 83 to get the best possible data within the limited time frame. it took many visits and telephone calls to the companies before getting to meet the relevant person for the survey.hence,the sample size was kept manageable in order to get correct and relevant information.

Recommendation to intended audience I would definitely recommend constant product improvement, price control, maintaining the quality of service, establishing and developing a strong distribution network and marketing the product effectively as the keys to attaining competitor edge and market leadership.




STUDENT TRAVEL INSURANCE 3. 4. 5. 6. Name of the student. Name of the education institution last attended Destination country Most preferred benefit: a) Medical expenses b) Personal accident c) Loss of checked baggage d) Tuition fee e) Family visit f) Personal liability

7. Most preferred bajaj Allianz product: a) Standard b) Silver c) Gold 8. How is your education being financed a) Loan (specify the bank) b) Scholarship c) Own money d) A combination of these 9. How will you book your tickets for your destination country? a) Through travel agent b) On your own c) Any other (please specify) 10.What is the course that you‟ll be studying abroad? 11.How did you come to know of this course?


BIBLIOGRAPHY  Bajaj Allianz Site (www.bajaj  Other sites i.e. (  Insurance broachers.