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In SHRIRAM GENERAL INSURANCE CO. LTD.
Submitted for The Degree of Bachelor of Commerce (I/B)
Submitted To Submitted By Dr. Ashok Kumar Mishra Narsinghani (Head of the Department) IIIrd Yrs.
Manish Kumar B.Com (I/B) Hindi Medium
A mammoth project of this nature calls for intellectual nourishment, professional help and encouragement from many quarters. This project is the culmination of a study into the wide gamut of activities carried on in the domain of Insurance especially SHRIRAM GENERAL INSURANCE COMPANY LIMITED.
I extremely thankful to Mr.Ashutosh Singh (Branch Manager of Shriram General Insurance Co. Varanasi.) for helping me to make this report more meaningful.
In my whole endeavor to complete this project, I own immense gratitude to my project Head of Department Dr. Ashok Kumar Mishra and my teachers Mr. Amit Singh and Mr. Yagvendra Pratap Singh for extending his guide cooperation through this project. Last but not the least, I express my sincere gratitude to All the Respondents who helped me in the project.
Manish Kumar Narsinghani
On the summer, Training is an integral part of the curriculum of” Department of Commerce, Mahatma Gandhi Kashi Vidyapith, Varanasi.” The main objective of summer training is as follow. To given clear understanding of the general insurance and their product (policies) and their market scenario. To implement theoretical knowledge practically and I got opportunity to do its training at “SHRIRAM GENERAL INSURANCE COMPANY VARANASI.” This project seeks to throw light on the functioning of the insurance industry in India. Further, this project also aims to clear most of the doubts that may be clouding the minds of an average Indian. It is an eye opener for layman in our country. It is individual effort after undergoing a month’s practical experience with SHRIRAM GENERAL INSURANCE COMPANY. Thus, it includes the detailed research and study done on market screening adopted by insurance industry for recruitment with illustrations of SHRIRAM GENERAL INSURANCE COMPANY and how it is useful.
1. Introduction to Insurance 2. History of General Insurance in India 3. Insurance Industry Classification 4. Insurance Regulatory and Development Authority 5. Introduction of Shriram General Insurance Co.Ltd. 6. Board of Directors 7. Management Team 8. Products 9. Changing Scenario of General Insurance Market 10. Methodology 11. Conclusion 12. Bibliography
INTRODUCTION TO INSURANCE
Successful financial planning is like a three-legged stool. One leg is investment planning, one is estate planning – and the third is insurance planning. Take one leg away, and your ability to achieve your financial goals is likely to be severely threatened. So, why is having the right level of insurance so important? Like people, insurance comes in many shapes and sizes. The purpose of this article is to help you understand why, when, what type and how much you should have. What is the role of insurance? Insurance has just one purpose – to ensure your ability to achieve your goals in life is not jeopardized should a specific event occur. Such events could include death, loss of an asset such as your home, or ability to earn an income. Contrary to popular opinion, insurance is not necessarily designed to put you back in the same financial situation you were in before the event occurred. That would be far too costly. However, it is there to protect you against the worst effects of the event. You should aim to have your insurance cover the most costly risks, and absorb the costs of those you can afford yourself. In this respect, it is wise to use ‘excesses’ wherever possible, as these can substantially reduce the cost of insurance. Fire and general insurance Sometimes called ‘property insurance’ or ‘house and contents insurance’, this is the sort of insurance most people are familiar with. It covers property, such as your house, car and contents. These days, the market is very competitive, so it pays to ‘shop around’. The higher the excess you can tolerate, the lower the
premiums will be. Also, by keeping all your insurance with the same company, you can often obtain
a discount, as well as ensuring there will be no dispute over past claims, if and when you come to make a claim. The most popular version is ‘term’ insurance, which (similar to house and content insurance) has no cash value until after death has occurred. Of course, the amount of life insurance needed (the ‘sum insured’) – if any – will vary widely from person to person, their assets and debts and the number of dependants they have. As a general rule when taking out insurance, you should look to have enough ‘sum insured’ to pay all your large debts (such as your mortgage), and to provide your family and dependants with enough extra money to provide for a reasonable standard of living. Income protection insurance Illness or injury can strike at any time. Your ability to earn an income is your greatest asset, so it makes sense to ensure you are insured in exactly the same way you would insure any other asset you own. What would happen to your mortgage repayments and your family’s other day-to-day living costs if your regular income stopped coming in. Income protection insurance is designed to protect you in these situations. Income protection insurance pays you a regular income in the event of sickness or accident, generally as a percentage of salary. Business Insurance The success of many small to medium businesses is dependent on its key people. Business insurance is designed to assist with the financial impact of the loss of any of these key people, by providing a lump sum or regular payment to assist with lost revenue or to fund temporary replacement resources. Medical insurance The State has long provided subsidized doctors’ visits, as well as freely available, high-quality hospital care. These days, the subsidies are smaller and the waiting lines for treatment are longer. Health insurance should be viewed as providing us with the financial means to access the private treatment and services we need if we have a significant health scare. In the past, many people have seen medical
insurance simply as a way of recovering their medical expenses and not as a critical element in their finances. Consider taking out medical insurance only to cover high-cost events such as major surgery. These policies, known as ‘major medical’ policies are usually far more cost-effective than the traditional all-inclusive ones. Getting professional advice As in most things financial, seeking out good advice is important – and can pay dividends in the form of better cover at cheaper rates. Fire and general insurance has traditionally been handled separately from life or income insurance, so you may need to talk to more than one specialist. A comprehensive review of your insurances is one of the vital areas in developing your financial plan. The comments in this article are general in nature, and should be treated merely as a guide. They should not be relied on when making financial decisions. Independent advice should always be sought. Any information about past performance is not necessarily an indicator of future performance. What is General Insurance? Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road.
Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a ratable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- (50% of the loss being borne by the insured for underinsuring the property by 50%). This concept is quite often not understood by most insured’s. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims. Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmen’s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes— Motor Vehicles Act, The Workmen’s Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmen’s Compensation policy) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well.
There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones. Suitable general Insurance covers are necessary for every family. It is important to protect one’s property, which one might have acquired from one’s hard earned income. A loss or damage to one’s property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industries that are self-financed should ensure that they are protected by insurance. Most general insurance covers are annual contracts. However, there are few products that are long-term. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.
HISTORY OF GENERAL INSURANCE IN INDIA
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 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, 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. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies are allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country’s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.
INSURANCE INDUSTRY CLASSIFICATION
GENERAL INSURANCE COMPANIES: ➢ ➢ ➢ ➢
➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢
New India Assurance Co. Ltd. National Insurance Company Ltd. Oriental Insurance Co. Ltd. United India Insurance Co. Ltd. Bajaj Allianz General Insurance Co.Ltd. Reliance General Insurance Co.Ltd. IFFCO Tokyo General Insurance Co.Ltd. Tata AIG General Insurance Co.Ltd. ICICI Lombard General Insurance Co.Ltd. Shriram General Insurance Co.Ltd. Royal Sundram Alliance Insurance Co.Ltd. Cholamandalam General Insurance Co.Ltd. HDFC-Chubb General Insurance Co.Ltd.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY Insurance Regulatory and Development Authority Act, 1999, came into being from 19/04/2000. Objects are stated in Act are as follows: "An Act to provide for establishment of Authority to protect interests of holders of insurance policies to regulate, promote and ensure orderly growth of insurance industry and for matters connected there with and further to amend Insurance Act, 1938, Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972". Composition:
IRDA will consist of a chairperson and not more than Five whole time members and not more than four part time members. Whole time members shall hold office for 5 years or until age of 62 (65 in case of chair person) whichever is earlier. Part time members shall hold office for not more than 5 years. Powers and Function of Authority: 1. To regulate, promote and ensure orderly growth of insurance and reinsurance business. 2. To issue a certificate of registration, renew, modify, withdraw, suspend or cancel such registration of applicant, i.e. insurance company.
3. To prepare a code of conduct for agents, surveyors and loss accesses and other intermediaries who take part in insurance business. 4. To exercise all powers and perform all functions of controller of Insurance under Insurance Act, 1938. 5. To protect interest of policy holders in matters concerning assignment of policy, settlement of claims, terms and conditions of contract etc. 6. To promote efficiency in conduct of insurance business. 7. To promote and regulate professional organizations connected with insurance business. 8. To regulate investment of funds of insurance companies. 9. To regulate maintenance of margin of solvency.
10. To adjudicate disputes between insurers and intermediaries. 11. To call for information from" undertake inspection and conduct enquiries and investigations including audit of insurers, intermediaries etc. 12. To control and regulate rates', advantages, terms and conditions offered by Insurers in respect of general insurance business riot so controlled by Tariff Advisory committee. 13. To prescribe manner and forms in which books of accounts is to be maintained. 14. To exercise other powers as such may be prescribed by central government.
Insurance Advisory Committee: Authority has power to appoint a committee to provide guidance to Authority and committee is called Insurance Advisory Committee. This committee contains not more than 25 members excluding ex-officio member representing interest of commerce, trade industry, agriculture, surveyors, agents, intermediaries etc. Chairperson and members ~f Authority is ex-officio members of Insurance Advisory Committee. Code of conduct for insurance agent: Every insurer agent shall, • Identify himself and insurance company of whom he is an agent • Disclose his license to prospect on demand • Give requisite information in respect of insurance product offered for sale by his insurer and into account needs of prospect while recommending a specific 'plan. • Disclose scales of commission payable to him if asked by prospect.
• Indicate premium to be charged by insurer on insurance product • Explain to prospect nature of information required in proposal from and also importance of disclosure of material information • Bring to notice of insurer any adverse habits or income inconsistency of Prospect. • Inform promptly about acceptance of rejection of proposal by insurer. • Render necessary assistance to policyholder or claimant in complying with, requirements of settlement of claims.
SHRIRAM GENERAL INSURANCE
Shriram General Insurance Company Limited is a Joint Venture between Shriram Capital Limited (Part of Shriram Group) and Sanlam Limited. In this Joint Venture, Shriram Capital Limited holds 74% of Equity and Sanlam Limited holds the balance 26% of the equity. Sanlam is the largest General Insurance Company in South Africa. Sanlam Limited was established in 1918, demutualised in 1998 and is a leading financial services group in South Africa engaged in the business of general insurance, life insurance, investment and independent financial services. The market capitalization of Sanlam is approximately USD 6 billion and has over USD 60 billion of assets under management. Shriram Group, established in 1974, having a turnover of USD 8 billion is among the leading corporate houses in India and is a major player in the
Indian financial services sector. Shriram Group’s focus is on financial services that reach out to a large number of common people – providing them opportunities to improve their prosperity. Shriram Group has 5 million customers, 80,000 Agents / Associates, 30,000 Employees, and 1300 branches spread all over the Country. Financial Services constitute the core business of the Group, with Shriram being a clear leader in the truck financing and chit business. Shriram Transport Finance Company is the largest Commercial Vehicle Financing NBFC in the country and Chit Fund Business of the Group is Numero Uno in the industry across India. In Consumer Finance, Shriram has presence all over India. Shriram Group has been pursuing diversification in areas other than financial services. Currently the group has presence in project engineering, property development, auto ancillaries and software services and is also looking to enter other industries.
Shriram Capital Limited (Formerly Shriram Financial Services Holdings Pvt. Ltd.) is the holding arm of the financial services activities of Shriram Group, Chennai. It has promoted a number of companies engaged in diverse financial services activities such as truck finance, consumer finance, chit business, Life Insurance business, etc BOARD OF DIRECTORS:Shri P.S. Gopalakrishnan, Chairman: Sri P.S. Gopalakrishnan, B.Com., LLB, Associate member of Institute of Banks, London and Fellow of Economic Development Institute of IBRD, Washington D.C. (U.S.A.). Gopalakrishnan had also been associated with various organizations in different capacities: Unit Trust of India Executive Trustee Chairman Oriental Bank of Commerce - Chairman & Managing Director Indian Overseas Bank - Chairman & Managing Director Indian Banks Association - Chairman & Managing Director
Industrial Finance Corporation of India Tourism Finance Corporation of India Management Development Institute Labour Development Institute Shriram Group Companies
Chairman Chairman Chairman Chairman Executive Chairman
Shri R. Thyagarajan, Director Sri R. Thyagarajan, M.A., M. Stat., ACII, is the Chief Mentor and Promoter of Shriram Group. He started his career with New India Assurance Company Limited and in 1974, promoted the Shriram Group. Over the years, he has gained vast experience in the Insurance and Financial Services Industry and has developed the profound understanding of the business. Today he is regarded as one of the foremost corporate leaders of contemporary India.
Shri Jasmit Singh Gujral, Managing Director: Sri Jasmit Singh Gujral, Managing Director & CEO is B-Com honors from Aligarh Muslim University and a rank holder in P.G.D. from FCI, AMU. He has also participated in management Programmers’ Conducted by I.I.M., Ahmadabad, Advanced Management Programme, ISB, Hyderabad and Global Advance Management Programme from Kellog School of Business Management, Chicago. He has more than 23 years of experience in Financial Services, Marketing and General Business Management. He has been with Shriram for over 2 decades. Prior to becoming the MD & CEO of Shriram General Insurance, he was the CEO of Shriram Overseas Finance Ltd. Shri G. Anantharaman, Director: Sri G. Anantharaman, Director joined the Board of Shriram General Insurance Company Limited in the year 2008 and is also the Chairman of Audit Committee of the Board. He belongs to Indian Revenue Services (Income Tax) and before retiring as a Chief Commissioner Income Tax. He was also an Ex SEBI whole time Member.
MANAGEMENT TEAM:Jasmit Singh Gujral Chief Executive Officer (CEO)
Neeraj Prakash Anil Kumar Aggarwal Sudhakar Raja Farhat Hussain
Chief Marketing Officer (CMO) Chief Financial Officer (CFO Chief Information Officer (CIO) Assistant General Manager
FIND A BRANCH
SL. NO .
ADDRESS Shriram General Insurance Co. Ltd, No 23, JDA Market, Link Road, Manasarovar, Jaipur Shriram General Insurance Co. Ltd 1001, GF, Arya Samaj Road, Naiwala, Karol Bagh, New Delhi . Shriram General Insurance Co. Ltd, 901, Popular House, Near Income Tax Circle, Ashram Road, Ahmedabad-380009. Shriram General Insurance Co. Ltd, House No.308/10, Old 698, Gulab Bagh, 3rd Floor, Ajmer, Rajasthan. Shriram General Insurance Co. Ltd, S-5, 2nd Floor, Monarch Chambers, Infantry Road, Bangalore – 560 001 Shriram General Insurance Co. Ltd, Ist Floor, Plot No.48, M P Nagar, Zone-II, Bhopal 462011.(MP) Shriram General Insurance Co. Ltd, SCO178, Ist Floor, Sector38C, Chandigarh, PIN 160038.
OFFICE TEL NO.
0141 – 2760353
KAROL BAGH (DELHI)
011 - 32437840
0145 - 3208365
080 - 32537328
0755 - 3206526
0172 - 3241941
PRODUCTS Motor Insurance:
Shriram Motor Package Policy provides: • Protection from a financial loss arising out of loss or damage to your vehicle. • Protection from liability towards third parties for personal injury. • Compensation for death and property damage on account of any accident involving your vehicle. What does the Policy Cover?
Loss or damage to your vehicle: The policy covers you against any loss or damage caused to the vehicle due to the following natural and man made calamities.
Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made Calamities: Burglary, theft, riot, strike, malicious act, and accident by external means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air. Personal Liability: Unlimited coverage i.e. whatever the court awards as your liability to the “Third Party” due to accidental death or injuries caused by your vehicle will be met by Shriram General Insurance Company Ltd. Property Liability: In case of your vehicle causing “Third Party” property damage, Shriram General Insurance Company will offer to compensation up to Rs. 100,000/- in case of 2Wheelers and Rs. 750,000/- in case of Private Cars/Commercial Vehicle.
What does the Shriram Policy not Cover? • Accidental loss or damage suffered whilst the insured or any person driving with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs • Accidental loss or damage caused due to Willful Negligence • Loss or Liability while the vehicle is used outside the scope of limitations of use and / or being driven by a person not duly licensed. • Consequential loss, depreciation, wear & tear, mechanical and electrical breakdown/failure or breakages • Loss connected to nuclear or radioactivity or nuclear weapons • Loss connected with war and related activities • Policy deductibles: The first amount of each and every claim which you should bear. You can choose this amount as per the limits. The higher limit you choose, the greater the discount on the premium.
Additional Features: To further protect you and your near and dear ones commuting in the vehicle with you, we offer a range of value added extensions to your Motor Insurance Policy at a nominal additional premium.
Electrical & Electronic Accessories: Your electrical & electronic accessories can also be covered. Your electrical & electronic accessories can also be covered. Bi-Fuel System (CNG/LPG Kit): Your CNG/LPG Kit can also be covered.
Personal Accident: You can avail of this cover for yourself (as the insured), for the driver of your vehicle (in case you have a paid driver) and unnamed passengers as per the seating capacity of the vehicle. Unnamed passengers can include your spouse, children, parents, etc.
The Personal Accident cover is available from Rs. 10,000/- to a maximum of Rs. 200,000/- (in multiples of Rs. 10,000/-). Legal liability towards your employees: Through this extension, you will be compensated for any legal liability towards your employees that may arise due to an accident involving the vehicle. Towing Charges: Reimbursement of towing charges as per policy wording.
Claim Service: • • • • We will take 24X7 claim notification service Timely customer contact and assistance Survey and assistance within a day We shall ensure that quality of claim settlement and customer satisfaction are taken care of in each and every step of claim settlement. • Simple Claims Procedure – Hallmark of our corporate philosophy and approach. • Claimant can know his claim status at any time from us.
Every individual want to fulfill his dreams, see his family happily grow with the prosperity but life is full of unforeseen events, which can change the life of any person forever. No one can predict the future but everyone can buy protection against such uncertainties. Standard Fire and Special Perils Insurance Policy of Shriram General Insurance offers you the protection for your assets. So, if you are insured with Shriram General Insurance, you will get the best services and fast claim settlement.
This policy covers loss or damage due to the following: • Fire, Lightning, Explosion / Implosion. • Aircraft Damage,Riot, Strike & Malicious Damage.Storm, Cyclone, Tempest, Hurricane, Tornado, Flood and Inundation. • Impact Damage, Subsidence and Landslide including Rockslide.Bursting and/or overflowing of Water Tanks, • Apparatus and Pipes. • Missile testing operations. • Leakage from Automatic Sprinkler Installations and Bush Fire. • Upto 3% of the claim amount to cover the Architects, Surveyors and Consulting Engineer’s Fees. • Upto 1% of the claim amount to cover the Debris Removal. Add-onCoverage: The Add-on covers offered are as follows: • Terrorism. • Fees for Architects, Surveyors and Consulting Engineers are beyond 3% of the claim amount. • Expenses for removal of Debris beyond 1% of claim amount. • Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril. • Forest Fire.
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Impact Damage to the property due to Insured’s own Vehicles. Spontaneous Combustion. Omission to insure additions, alterations or extensions. Earthquake damage caused by Fire and Shock. Temporary removal of stocks is covered to any other premises for the purpose of production or processing or finishing or similar purposes. • Loss of Rent and / or additional expenses of rent for alternative accommodation.
Excess/Deductible: 5% of each claim subject to minimum Rs. 10000/arising out of “Act of God perils” and Rs. 10000/- for other claims arising out of other perils under this Policy. EXCLUSIONS: The General Exclusions for Loss, Damager and destruction caused by / to be listed below: • War, Civil War, Nuclear Risk, Pollution and contamination. • The stocks in Cold Storage premises caused by change of temperature. • Any electrical and / or electronic machine, apparatus, fixture, or fitting arising from over-running, excessive pressure short circuiting, arcing, self heating or leakage of electricity from whatever cause (lightning included). • Money and valuables unless specifically mentioned. In Case of Claim: Inform the 24x7 Call Centre about your Policy details. Get a Claim Registration No. while confirming the Policy details. Appointment of Surveyor at the time of Claim Registration. Fast settlement of claims after submission of all the relevant documents. Strengths of Shriram General Insurance Co. Ltd.:
Shriram General Insurance Company Limited is a part of Shriram Group - A multi- dimensional, multi-locational organization with interests in the fields of Truck Financing, Life Insurance, Share Trading, Bulk Drugs, Software Consultancy, and Project Engineering & Real Estate. The Group companies have equity participation from Citicorp (subsidiary of Citi Bank), UTI Bank, Chrys Capital – USA, New Bridge Capital–USA.
Shriram General Insurance Company Limited has set up a joint venture with SANLAM, South Africa. SANLAM Limited is a major financial services company in South Africa, listed in the Johannesburg Securities Exchange and Namibian Stock Exchange. SANTAM is a part of SANLAM Limited, which is engaged in General Insurance business and ranked as the best Insurance Company in South Africa as per the recent study conducted by Pricewaterhouse Coopers.
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Boiler and Pressure Plant Insurance Machinery Breakdown Insurance Contractor’s Plant and Machinery Insurance Electronic Equipment Insurance Erection All Risk Insurance Contractor’s All Risk Insurance
CONTRACTOR’S ALL RISK INSURANCE
Scope of Cover: The Policy covers civil construction projects, such as residential / commercial buildings, theatres, factory sheds, warehouses, roads, bridges, dams, reservoirs, tunnels, oil / gas pipelines, water / sewage disposal works, airports, flyovers, etc.
Following perils covered under this Policy: Fire and allied perils. Flood, storm, tempest, cyclone. Earthquake, fire & shock.
Collapse. Water damage for wet risks. Theft, burglary and house breaking. Bad workmanship, lack of skill, human error, negligence, fault in erection. Significant Extensions: Breakage of Glass. Terrorism. Clearance and removal of debris. Third party liability, surrounding property. Escalation. Express freight, holiday & overtime rate for wages. Air Freight, Additional custom duty. Construction, Plant and Machinery. Extended maintenance cover. Exclusions: War and nuclear risks. Willful act / negligence. Partial / total cessation of work. Normal wear & tear.
Gradual deterioration due to atmospheric conditions. Loss or damage due to faulty design. Contractual liabilities. Consequential losses. Cost of replacement / repair or rectification of defective material and / or workmanship.
Sum Insured: The sum insured shall include landed cost at site of imported / indigenous materials, construction cost (including visits of specialists / experts, supervision charges). It is the completely erected value of property inclusive of freights, custom duty, erection cost adjusted to fluctuations in wages / prices. Premium Rate: The Policy is subject to Contractor’s All Risk Insurance Tariff and the Premium Rate is based on the type of project, nature of the construction period of project, EQ Zone and voluntary excess. In Case of Claim: Inform the 24x7 Call Centre about your Policy details. Get a Claim Registration No. while confirming the Policy details. Appointment of Surveyor at the time of Claim Registration. Fast settlement of claims after submission of all the relevant documents.
Liability Policy for Medical Establishments Insurance Professional Indemnity Insurance Workmen’s Compensation Liability Insurance
Claim procedure: • Policy Number. • Estimated Loss/ Description. • Date & Time of Accident. • Place where Vehicle can be surveyed/ loss location • Your Contact Details.
• Call on Claims help Desk (CHD) - Toll Free No. for registration of claim.1800-180-7474, 1800-300-30000 • Note down the Claim Number and Surveyor Details provided by our Claims help Desk (CHD) for future reference • Surveyor will ask you for all required documents (mentioned in documents section) therefore keep Documents ready for submission. • Contact us /Surveyor when the vehicle is ready for re-inspection after repair of the vehicle or Property. SERVICES Shriram Vyapar: A portal where dealers, agents and customers can buy and sell vehicles. Users can also find out the Blue Book Value of their vehicle i.e. recommended price at which one can buy/sell cars. Fraud and Claims: Shriram General Insurance takes fraud very seriously. SGI will publish on its website fraudulent parties to ensure that such acts are not repeated. Click here to read more about Fraud and Claims. Training: Shriram General Insurance takes pride in its world class training facility. SGI believes that a knowledgeable agent will be able to make the right choice of
product and ensure customer satisfaction and there by reduce hassles should a claim arise. Click here to learn about our training facility.
Loans and Finance: • Commercial Vehicle Finance: Shriram Transport Finance Company Limited (STFC), India's largest player in commercial vehicle finance, was established in the year 1979. The company has a network of 450 branches and service centers. Click here to visit www.stfc.in • Consumer Finance: Shriram City Union Finance Ltd.,set up in 1986 is a leading provider of retail loans. The company has a footprint of 633 Business Outlets across India. It is active in the areas of Consumer Durable Finance, Auto Finance, Personal Finance, Small Business Loans and Retail Gold Loans. Click here to visit www.shriramcity.com AGENTS: Becoming an Agent of Shriram General Insurance: Shriram considers Agents to be the assets of its organization. We try to create and protect these assets (agents) by providing proper training and ensure that they succeed in the market place. Shriram Groups 3, 00,000 strong agent bases is testimony to our success in working with agents.
TRAINING SPECIALITIE Flexibility: Best ideas have always come from independent thinkers. We believe, that maxim holds true for training and education as well. The most thought-provoking, startling and original continuous professional development in insurance today can be found in our training programmes designed after thorough market research. Our company, have the freedom and flexibility to
respond to the needs of our executives at work place through the structured training programs.
Environmental Quality: Knowledge Center provides quality acoustics so as to enhance learning and productivity. Changes in the business environment, challenges faced, shifts in mindset and strategy of the company and industry as a whole have subtly been instrumental in shaping the courses of the center. Space: Depending upon seating configuration, the rooms are accommodated in a way to encourage interaction among small number of people within close proximity. Nature and Methodology of Training: SGI has different perspective of training. We differentiate the training with development. In our organization training is meant for operatives and development is meant for managers.SGI has different perspective of training. We differentiate the training with development. In our organization training is meant for operatives and development is meant for managers. TRAINING COURSES: SGI provides three tier training to its trainees. On The Job Training: Meant For- Fresh recruits in operations, executives or respective departments Duration- Two weeks Syllabus- Learning procedure, documentations, company profile, practice on premia software. Product awareness. Induction Course: Meant For- Sr. Executives and Assistant Managers in operation and sales. Duration-One week Syllabus: Company profile, Principles & Practice of insurance, Product knowledge. Refresher Course: Meant For- Sales and marketing, System team. Duration:-1-7 Days Syllabus- Product Knowledge, Sales Techniques, Communication Skills, Software operations.
Intensive Course: Meant For- Branch Heads, senior officers and Departmental Heads. Duration: 3-7 Days Syllabus: Specialized subjects of management. Implementation parameters, Knowledge sharing, Enforcement guidelines TRAINING RESOURCES: SGI’S knowledge Center provides a good collection of sources and resources providing information and ideas in terms of insurance and other related areas to acknowledge the employees. Class Room: Knowledge center is a well furnished class room with ample space and is designed for lecture style instruction provided to trainees. Here we develop our learners who demonstrate leadership at any level. Library: Keeping in view our international presence, we have the library and reading room facilities at par with any international center of excellence with added advantage of 24x7 Internet facilities. Technology: Technology has become an indispensable tool for business, industry and education. The training schedule is so designed in SGI to enhance trainee’s competency with new hardware /software. SGI is providing an improved access to IT infrastructure so as to accommodate for software technologies in relation to training programs. The Center also involves media based audio / visual facilities. GYM: Knowledge Center has an attached gym equipped with Billiard table, Tennis Table indoor games and a luxurious environment for music and plays. Integrated Programs: Collaborative programmers are intended to be held with institutions of repute, with the purpose of enhancing the quality and content in advanced technical and general management areas.
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CHANGING SCENARIO OF GENERAL INSURANCE MARKET
'Looks to the future with confidence and optimism’ Brief the history of general Insurance. In India General Insurance business started, Marine Insurance started on later part of the 17th century. Before nationalization in 1947 we have 147 insurance companies, foreign and Indian both. But during there nationalization, in 1973 we have 107 companies that merge into four companies, i.e. taken over by Government. General Insurance Corporation of India (GIC) was set up in 1973 as a holding company, with four subsidiary operating companies - National Insurance co Ltd., New India Assurance Co. Ltd., Oriental Insurance co Ltd., and United India Insurance Co Ltd., with a clear cut mission as set out in the Act. The overall scenario in the insurance market in India after nationalization. GIC and its subsidiaries function through a vast country - wide network of around 4100 offices spread across the length and breadth of the country, GIC has taken the benefit of insurance to almost every district, across hilly terrain and often inaccessible areas of the country. The customer interface is made easy through a network of agents, development officers and employees at Branch, Divisional and Regional offices as well as at the corporate level. The GIC and its subsidiaries have a workforce of approximately 86,000 In 1973 tainted at various levels through in house training institutions. Now the total number of employees went up.
The industry has also promoted the National Insurance Academy (NIA), which is the premier training institute in insurance, catering not only to Indian Nationals but also to select foreign nationals. The industry issues around 23 million documents and settles 2 million claims every year. Country wide computerization in the recently past has made the task of policyholder's servicing easier and rapid. At the same time, profitable lines and premium components increases and we became a investment company. Where does Indian Insurance sector stand compared to International Insurance Sector? Technologically, Indian insurance sector is quiet comparable with the international sector. Our vast resources of skilled and technical manpower, huge market potentiality and technical know-how - all are comparable with the international market. But lacking in the process of computerization and in pricing (premium rate) is also seen. In product, we have demand in less because lack of awareness for adequate insurance cover in India with insuring public. Our marketing strategy is not very modern. But we are trying to rectify both these (Technology and Marketing) areas. The problems faced by Indian Insurance Sector Today: The main problems are: • Lack of awareness for insurance needs. • Lack of penetration due to inadequate marketing/delivery system. • Total computerization still in the process of implementation. • Sophisticated covers do not have adequate demands because of General attitude to insurance in India.
The Schemes Recognizing its organizational strengths, the Govt. of India has also entrusted the corporation with the administration of various schemes for social melioration and public welfare. Social security schemes benefiting millions of Citizens below the poverty line. Personal Accident Insurance and Hut Insurance are operated all over the country for which the premiums are paid by the Government. The GIC administers on behalf of Government, the crop Insurance scheme for areas and crops notified under the crop Insurance Scheme. Various low cost mass insurance policies have been evolved over a period of time, e.g. 'Jan Arogya Bima Policy'. Role General Insurance Industry is playing in the growth of economy of the country: The General Insurance Industry has an enviable track record among public sector units. It has a consistent profit and dividend paying record accompanied by a steady growth in its financial resources. Through investments in the- Government sector and: socially - oriented Sectors the Industry has contributed immensely to the nation's development. The industry is recognized as one of the largest financial' Institutions in the Country. The ventures initiated by the industry in the areas of Mutual Fund, Housing Finance have done exceedingly well in recent years. To protect the country's foreign exchange reserves, the reinsurance arrangement are so organized that maximum retention is made possible within the country while at the same time protecting interests of the policy holders. The GIC'S inwards reinsurance wing, called the SWIFT, maximizes the foreign exchange balance by acting as an international Insurer-accepting risk from all over the globe.
GIC'S International operation: GIC'S international operations span over 31 countries around the globe. The reinsurance expertise built over a long period has made the Indian Insurance Industry a globally acknowledged reinsurer of repute GIC'S risk management skill has been backed by specialists with a vast insurance experience. Thus, the technical and underwriting skills have been acknowledged in the international market. The corporation operates in 17 countries through branches and agencies, whereas in another 14 countries, it has subsidiaries and associate companies. The GIC has a subsidiary company known as 'India International Pvt, Ltd.,' operating in Singapore and a joint-venture company, Kenindia Insurance co. Ltd. The impact of liberalization of economy in the activities of GlC. With the liberalization of economy, General Insurance in India is poised for a quantum jump, both in quality and quantity. Vision for the future: It is estimated that the industry will outstrip the present rate of growth and reach a premium value of over Rs. l,20,000 millions by taking advantage of the extra-large megarisk and social awareness of insurance in general, even as . a developing country turns into a developed country. The task before the industry to service the growing number of policy-holders would equally see a quantum jump in issuance of documents and settlement of claims. Matching reserves and consequent investment will be a natural corollary. It is expected that the investment portfolio will touch around Rs. 2,50,000 millions by the end of the next decade, with the strength built up over the years since nationalization, GIC new looks to the future with
confidence and optimism, takes on global chal1enge with its high standard of service, innovative initiative and a compelling social perspective. GIC's plan - in new business areas: The two new areas that GIC is getting into are the areas of health care and crop insurance. For the health care business, the corporation has received permission to set up a separate management services company. GIC has plans to increase the scope of coverin health care, personal accident and crop insurance and will require expertise in pricing the products. The Research & Development activities: They have just entered these areas and for the coming five years we are investing approximately 500 crores. GIC'S R & D cell is created backed up market research data. The subsidiaries of GIC are becoming an autonomous body. Privatization in the insurance sector of India - Is it in the right direction It's purely a government decision and the nationalized sector is ready to face the challenge. And have taken the challenge to stand in the stiff competition. And now, many private companies have entered the market. These companies are a result of merger of Indian companies with foreign companies.
RESEARCH DESIGN:Since the problem relates to behavioral aspect of consumers, the researcher choose the conclusive research design to be specific, the researcher though it proper to have descriptive cross sectional analysis design.
RESEARCH APPROACH: Primary data can be collected in four board
ways: • • • • Observation Focus groups Survey Experiments
Under the OBSERVATION METHOD, the information is sought be way of investigator’s own direct observation without asking from the respondent. The main advantage of this method is that subjective basis eliminated, if observation is done accurately. A FOCUS GROUP is a gathering of six to ten persons who spend a few hours with a skilled interviewer to discuss the project, service, organization and other marketing entity. SERVEY RESEARCH stands midway between observational and focus group research on the one hand and experimental research on the other hand. Observation and focus group are best suited for descriptive research and experiments are best suited for casual research.
SURVEY RESEARCH method is more accurate feasible because it has grater scope and researcher can easily know and describe the attitudinal aspect
of buying behavior of respondent, which was not possible by using other method with constraints.
RESEARCH INSTRUMENTS:There are four main research instruments available for data collection. • Interviews • Observation • Questionnaires • Schedules The interview method of data collection in values presentation of oral verbal response. The questionnaire is the most common instrument in collecting primary data.
DURATION OF STUDY:Four Weeks Worked Planned In The Following Manner:
• • • •
Parameters, in depth interviews, FGD Questionnaire week Data collection Data analysis and final report preparation -
1 week 1week 1week 1week
The research project filled as “STUDY OF GENERAL INSURANCE COMPANY” enabled to understand the competition among the various general insurance companies which have entered Indian market of general insurance after 2000 when private general insurance companies were allowed to enter the general insurance sector in India. General insurance companies in the private sector which are doing exceptionally good in this sector due to their policies to which people fine very weracting according to their needs. When people were interviewed about the first preference among the private general insurance companies. The market share of Shriram general insurance also around 25% among private general insurance companies. Which is quite high among private general insurance companies. But if there are people accepting Shriram general insurance, there are people who are still hesitant to take up private insurance company’s policy. It can be seen from the study that people have starter recognizing Shriram general insurance as a general insurance and hence it will grow at a much faster pace in the feature.
➢ The study was carried out in Varanasi.
➢ Various Websites were referredwww.google.com www.sramg.com www.scribd.com ➢ Primary data was collected through interviews. ➢ Various books and magazines have been referred.
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