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Company Profile


History and Overview of Non Life



SWOT Analysis




Research Methodology


Data Analysis


Findings and Conclusion


Executive Summary

Insurance is a protection against financial loss arising on the happening of an unexpected event.
Insurance companies collect premiums to provide for this protection. The opening up of the
Insurance Sector to Private Companies, has made available more products and world class
service to Indian Customer.
I, in order to get knowledge about General Insurance Policies and their performance, did study of
different Health Insurance Policies, their features, premiums and claims associated with it. TATA

AIG is the company which covers almost non life insurance policies. The Health insurance
policies considered for the study are of the different General Insurance companies. The Polices
have been compared in terms of features and various premium slabs.
This project is also deals with an objective to give an insight into various facts of General
Insurance sector in India. Also the market share of nationalized companies like National
Insurance Company Ltd, New India Assurance Company Ltd, Oriental Insurance Company Ltd,
United India Company Ltd. and private players into general insurance sector viz TATA AIG
General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz
General Insurance Company, Royal Sundaram General Insurance Company limited and ICICI
Lombard General Insurance Company have described in brief. I have also compared class wise
breakup of the gross premium underwritten and company wise market written of gross profit
The other objective of project is to compare policies of different companies on the basis of its
performance, market share etc.

Company Profile

Tata group profile

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India,
comprising over 100 independent operating companies. The group operates in more than 100
countries across six continents, with a mission 'To improve the quality of life of the communities
we serve globally, through long-term stakeholder value creation based on Leadership with Trust'.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixtysix percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support
education, health, livelihood generation and art and culture. In 2014-15, the revenue of Tata
companies, taken together, was $114.78 billion. These companies collectively employ over
600,000 people.
Each Tata company or enterprise operates independently under the guidance and supervision of
its own board of directors and shareholders. There are 29 publicly-listed Tata enterprises with a
combined market capitalisation of about $134 billion (as on March 31, 2015). Tata companies
with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power,
Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and
Indian Hotels.
Many Tata companies have achieved global leadership in their businesses. For instance, Tata
Communications is #1 international wholesale voice provider and Tata Motors is among the top
ten commercial vehicle manufacturers in the world. Tata Steel is among the top fifteen best
steelmakers and TCS is the second largest IT services company in the world by market cap and
profit. Tata Global Beverages is the second-largest tea company in the world and Tata Chemicals
is the worlds second-largest manufacturer of soda ash. Employing a diverse workforce in their
operations, Tata companies have made significant local investments in different geographies.
In tandem with the increasing international footprint of Tata companies, the Tata brand is also
gaining international recognition. Tata companies bring to their customers worldwide a whole
host of reputed brands which touch their lives every day. Brand Finance, a UK-based
consultancy firm, has valued Tatas multi-brand portfolio at over $23 billion in 2015.

With its pioneering and entrepreneurial spirit, the Tata group has spawned several industries of
national importance in India: steel, hydro-power, hospitality and airlines. The same spirit,
coupled with innovativeness, has been displayed by entities such as TCS, Indias first software
company, and Tata Motors, which made Indias first indigenously developed car, the Tata Indica
and the smart city car, the Tata Nano. Pursuit of excellence has similarly been manifested in
recent innovations like the SilentTrack technology developed by Tata Steel Europe and the nextgeneration Terrain Response, including infrared laser scanning to predict terrain, and Wade Aid
to predict water depth, by Jaguar Land Rover.
The Tata trusts, majority shareholders of Tata Sons, have endowed institutions for science and
technology, medical research, social studies and the performing arts. The trusts also provide aid
and assistance to non-government organisations working in the areas of education, health care
and livelihoods. Tata companies themselves undertake a wide range of social welfare activities,
especially at the locations of their operations, as also deploy sustainable business practices.
Going forward, Tata companies are building multinational businesses that seek to differentiate
themselves through customer-centricity, innovation, entrepreneurship, trustworthiness and
values-driven business operations, while balancing the interests of diverse stakeholders including
shareholders, employees and civil society.

AIG Americal Insurance Group

Were the worlds leading insurance organization, with more than 90 million customers around
the globe. Were leaders in property casualty insurance, life insurance, retirement products,
mortgage insurance, and other financial services. But were more than the sum of our parts.
Were a network of approximately 65,000 people in more than 100 countries and jurisdictions
who come together every day to take on the worlds new challenges. We believe that by striving
to provide the greatest value to our customers, we can deliver improved operating and financial
performance and sustainable, profitable growth. Our strategy is focused on enhancing the value

and competitive position of our insurance businesses and investing our capital where we can
achieve attractive risk-adjusted returns, while maintaining strong levels of liquidity and capital.
AIGs world class insurance franchises are leaders in their categories and are continuing to
improve their operating performance.
Commercial Insurance is a leading provider of insurance products and services for commercial
and institutional customers. It includes one of the worlds most far-reaching property casualty
networks, a leading mortgage guaranty insurer and an institutional retirement and savings
business. Commercial Insurance offers a broad range of products to customers through a
diversified, multichannel distribution network. Customers value Commercial Insurances strong
capital position, extensive risk management and claims experience, and its ability to be a market
leader in critical lines of insurance business.

Ranked among the top 10 most preferred commercial insurance carriers

#1 commercial insurer in the U.S., with an established and growing position in Latin

Largest nonlife insurer in the world by market capitalization

Consumer Insurance is a unique franchise that brings together a broad portfolio of retirement,
life insurance and property casualty products offered through multiple distribution networks. It
holds long-standing, leading market positions in many of its U.S. product lines, and its global
footprint provides the opportunity to pursue international growth opportunities selectively in
countries with attractive markets. With its strong capital position, customer-focused service,
innovative product development capabilities and strong distribution relationships across multiple
channels, Consumer Insurance is well positioned to provide clients with the products they need
delivered through the channels they prefer.
Market-leading positions in:
o Fixed


o Group














o Personal Insurance, U.S.: Private Client Group serves 40% of Forbes 400 Richest Americans

Personal Insurance, Japan: 2nd in Personal Accident with 20% market share; 4th in Personal

Property with 13% market share

Tata AIG General Insurance Company in India

Tata AIG General Insurance Company Limited is a joint venture between Tata Group and
American International Group (AIG). Tata AIG General Insurance Company Limited celebrated
15 years of service this year (2015) since it commenced operations in India on January 22, 2001.
The company offers a range of general insurance covers for businesses and individuals and has a
comprehensive range of general insurance products for Liability, Marine Cargo, Personal
Accident, Travel, Rural-Agriculture Insurance, Extended Warranty etc. Each product offering is
backed by professional expertise. Tata AIG General Insurance Company Limited has an asset
base of approximate 0.6 billion USD, a workforce of 2523 employees and 9446 agents. It is
present in 98 locations across India.

The company has made a mark in the industry by launching several innovative products and
services over the years. The companys products are available through various channels of
distribution such as Agency, Broking, Bancassurance & Affinity and Digital/Online. Tata AIG
General Insurance Company Limited is proud towards making a progress in going the digital
route. The company recently launched a strategic initiative called Go Digital that facilitates the
process of sales, till policy issuance.

Another milestone Tata AIG Academy was established in May 2014 with a vision to be a
centre of excellence in learning in the General Insurance domain. Its mission is to align the
training programs with the strategic business and developmental needs of Tata AIG General
Insurance Company Limited as well as to empower employees and partners to succeed in a fastchanging competitive environment. In the course of a year it has been able to spread insurance
awareness and knowledge to over 2500 employees and a vast majority of distribution partners

through mass based digital; learning platforms like Budhwaar ki Paathshala, eLMS, quiz,
creating top class academic books and organizing trainings and seminars for distribution
partners. It has also played a significant part in ensuring a greater number of employees get
professionally qualified from institutes like III, NIA in India and CII, London.

Our Vision
To be India's most preferred General Insurance Company.
Our Purpose
To create unmatched value for our customers, employees, business partners and shareholders by
delivering remarkable service that is consistent, fair and transparent.

1. Health and accidental Insurance
2. Car Insurance
3. International travel insurance
4. Student travel Insurance
5. Home Insurance
6. Lifestyle Insurance

History and Overview on Non

Life Products

Origin of Insurance
Whenever there is uncertainty there is risk. We do not have any control over uncertainties which
involves financial losses. The risk may be certain events like death, pension, retirement or
uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the
savings of the public and providing them with risk coverage. It comes under service sector and
while marketing this service due care is taken in quality product and customer satisfaction. The
main function of the Insurance is to provide protection against the possible chances of generating
losses. The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two

History of Non Life 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.

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 17 th 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 1913, 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 1 st January, 1973. 113 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 be 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 countrys 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.

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.
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, Workmens
Compensation Policy etc offer cover against legal liabilities that may arise under the respective

statutes Motor Vehicles Act, The Workmens Compensation Act etc. Some of the covers such
as the foregoing (Motor Third Party and Workmens 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 ones
property, which one might have acquired from ones hard earned income. A loss or damage to
ones 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.

SWOT Analysis of Indian


The general insurance industry is in transition phase from regulated market to open market due
to opening of the sector for private players. There is tough competition in the market and in this
scenario only fittest will survive. In the changing scenario while formulating the market
objectives, the overall evaluation of the companys environmental factors, i.e. strength and
weakness and external environment i.e. opportunities and threats, should be carried out. This
overall evaluation of the company is called SWOT analysis.

External Environment Analysis

In general, an insurance company has to monitor key macro environment forces i.e.
demographic, economic, technological, political-legal and socio cultural. And significantly micro
environment factors like customers, competition, distributors, users that affect its ability to earn
profit. The insurance company should set up a marketing intelligence system to track trends and
important developments. For each trend of development, management need to identify the
associated opportunities and threats.
Marketing Opportunities

Competition will develop a better understanding of customer requirements leading to

more customized product for the market place. There will be world class technology with
new innovative product suitably fashioned to the Indian needs. The competition will
bring strong consumerism and will increase market size.

There will be inflow of managerial and financial expertise from the worlds leading
insurance markets. Further, the burden of educating customers will be shared among
many players.

Regulatory norms are compulsory. Social obligations will enhance the rural coverage at
affordable price. Otherwise, this is a vast potential market which competitors surely like
to capture.

Private players are likely to embark on client segmentation and product differentiation
strategies that should result in more innovation and flexible products. Bank entering in
the insurance territory would add another dimension of competition.

Insurance liberalization in India is expected to result in a wider choice of major

commercial insurance cover, such as fire, export credit and product liability etc.

Business Threats

The global bigwigs entering the insurance market have expertise in the field and are in a
position to drive the market through their core competence in insurance

Liberalization in this sector will cause market disorder because of the fierce competition
and domestic insurers will lost their base.

In recent years, in USA commercial insurers have lost up to 35% of their total insurance
premium to captive and other forms of risk retention.

New players are free to decide on the market segmentation area wise, product wise and
thereby they would have an edge.

Due to entry of banking sector to underwrite insurance business, it will pose a serious
challenge in the motor and personals lines of insurance with their wide network of
branches and their strong customer relationship.

Internal Environment Analysis


Wide organizational reach with a sound network consisting of 4200 offices spread all
over the country.

Huge basket of more than 180 products to suit needs of varied customer segments and
different target groups.

Large pool of technically skilled manpower with in-depth knowledge and understanding
of the market.

Well established training infrastructure and skilled faculties to take care of technical

Strong capital and reserve base.

Net retention capacity as high as 86% of its gross booking.

Solvency margin of more than 50 per cent in all public sector companies.

Uninterrupted record of profit.


Excessive manpower organization.

Long hierarchical organizational structure and cadres.

Operating offices do not function as profit centers.

Heavy management expenses and administrative costs.

Deficit product mix.

Huge third party losses in motor portfolio.


1. Proper understanding of general insurance sector in India.

2. To get information about the market share of different players in the market.
3. To study and compare various Health plans available in the market with various plans of
4. To study and explore features and premiums of different Health Plans available in the
5. To know what are the trends in General Insurance.
6. To understand the financial positions of different players in the market.

Research Methodology

Information required for the project was collected mainly from secondary sources. Information
from the sources was properly analyzed and systematically noted.
Secondary Sources:
Secondary data is available readymade, from various sources. It is second hand data, which is
generated for some other purpose, which can be used by anybody. The information available was
meant for general purpose, however it is stored and used for the purpose of project report.
Following are the secondary sources of data:

Reference Book
News Papers
News Channels.

The sources of secondary data are quite wide. Various medium were used to gather the
information, each of them were used for specific purpose which is discussed in brief as follows:

Reference Books:

These were used with a view to collect certain theoretical concepts and the theory part of the
project, as unless until one understands the theory one cannot go ahead.

Web-Sites :

In todays modern world the use of computers and internet is inevitable. Internet in the recent
past has become a primary source of information of any type. It is not only a quick but also very
economical source of information. The data which is collected from internet is very recent and

current of practical importance. The web-sites were used as a source of current information for
the project.

General Insurance Companies

in India


I. Oriental Insurance Company.

The Oriental Insurance Company Ltd. (OICL) is one of the leading General Insurance companies
in India and is a subsidiary of the General Insurance Corporation (GIC) of India. It is one of the
oldest Insurance. If companies and was established in the year 1947. The Company transacts all
kinds of non-life insurance business ranging from insurance covers for very big projects to small
rural insurance covers. OICL, is the First to have underwritten the biggest Grass Root Refinery
Project, Reliance Jamnagar Refinery.

The Oriental Insurance Company' Ltd. (OICL) is one of the leading General Insurance
companies in India and is a subsidiary of the General Insurance Corporation (GIC) of India. It is
one of the oldest Insurance companies and was established in the year 1947. The Company
transacts all kinds of non-life insurance business ranging from insurance covers for very big
projects to small rural insurance covers. OICL has its Head office in New Delhi, the capital of
India. The Company has 21 Regional Offices, 311 Divisional Offices and 635 Branch offices in
various cities of the country.
Reinsurance connections are spread all over the world. The Company has a very high reputation
in the Reinsurance market. OICL specializes in devising special covers for large projects like
Power Plants, Petro-chemical, Steel Plants and chemical plants. It has a highly technically
qualified and competent team of professionals, to render the best customer service. The
Company has a dedicated project cell at the Head Office as well as major cities of India. A
special R & D team has been dedicated to bring out special innovative covers like StockBrokers' Policies, Special Package Policies etc.

II. The New India Assurance Company.

Established by Sir Dorabji Tata in 1919, New India was the first fully Indian owned insurance
company in India. There were nearly 150 insurance firms in India including ones from France,
the UK and America. These were operated through managing agencies in India largely held by
Indian business houses. New India is a leading global insurance group, with offices and branches
throughout India and various countries abroad. The company services the Indian subcontinent
with a network of 1,130 offices, comprising 26 Regional offices, 366 Divisional offices and 738
Branches. With approximately 25,000 employees, New India has the largest number of specialist
and technically qualified personnel at all levels of management, who are empowered to
underwrite and settle claims of high magnitude New India has historically been a frontrunner in
several diverse fields of business and industrial activity. New India are lead underwriters of
India's Space programn1e having insured several INSAT and other, satellites. New India are
pioneers in Engineering insurance, Financial risks insurance and are now offering customized
Risk Management solutions to our: corporate clients in the Private and public Sectors in Power,
Telecom, Petrochemicals, Steel and Automobile industries New India's foreign operations started
with the establishment of an office in London in 1920. An international presence was built up by
New India as a direct writing Company in 23 countries spanning 5 continents.

III. The National Insurance Company

Since incorporation in the year 1906, National Insurance~ Company has been carrying out
general insurance business under private management until 1972, the year of its nationalization.

In the same year 22 foreign and 11 Indian Insurance Companies were amalgamated with
National Insurance Company Limited, as a subsidiary company of General Insurance
Corporation of India Headquartered in Calcutta it has an organizational network of over 964
offices with around 20,137 trained workforces. The company also has operations in Hong Kong
and Nepal and ranks among the top global business insurers. Later on in 2002, with the passage
of Insurance amendment Bill (2002), National Insurance Company has been delinked from GlC
and. has been functioning as an independent company Its product range includes motor vehicle
insurance; fire insurance on buildings and other assets; various crime covers like burglary and
theft of cash; machinery breakdown cover for industrial equipment; transit damage cover for
imported or exported goods; as well as legal liability cover. Professional indemnity and directors
and officers liability covers are some of the new covers. NICO General Insurance seeks to
attract clients and intermediaries and flexibility in claims settlements, and at the same time
ensuring that we do not erode shareholder value. The objective is to add value to the
shareholders' funds whilst ensuring customer satisfaction? The strength of NGI is in its balance
sheet. NICO General Insurance views the future and its prospects as extremely bright, exciting
and rewarding for staff, clientele and shareholders alike.

IV. United India Insurance Company

United India Insurance is one of the four subsidiaries of the General Insurance Company
carrying on general insurance business with its head office at Chennai. Later on in 2002, with the

passage of Insurance amendment Bill (2002), United India Insurance has been Del inked from
GIC and has been functioning as an independent company

UI spans the country with a network of 1123 offices and manpower of Over 21,000 employees.
The organizational structure comprises 22 regional offices, 327 divisional offices.., and 777
branch offices, supported by 21,505 employees. ICRA has maintained the iAAA rating,
indicating the claims paying ability of United India Insurance (UII) to be of the highest order.
The rating takes into consideration the favorable prospects for the domestic general insurance
industry following the deregulation of the sector.

UII continues to be a dominant player in the Indian insurance industry, with an overall market
share of 25% and a leadership position in the southern markets. UII is a Pioneer of Personal
Insurance Products in India who specializes in non-life insurance products including Medical and
Accident Insurance. It enjoys a market share of over 25 percent of the non-life insurance sector
in India.


1. Bajaj Allianz General Insurance Company:

Allianz group was founded in 1890 and is one of the world's leading insurance companies with
over 100 year's experience in insurance and related services. It is also the largest insurer in
Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine, motor,
casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance, Asset
Management and Pension Funds Management.
Bajaj Auto Ltd.
Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj
Trading Corporation. Initially it started by assembling two and three wheelers in collaboration
with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers
acquired the brand name of Bajaj. The strength of the company lies in its strong brand image and
ability to offer value for money products leveraging on its large-scale operations.
The Joint Venture
Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by Bajaj Auto
and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in the Joint
Venture, and has an authorized and paid up capital of Rs. ll00 millions. Mr. Graham Norris is the
CEO of the company. Bajaj Allianz General Insurance will leverage the customer base and
expertise of Bajaj Auto Ltd and Allianz.

2. Royal Sundaram General Insurance Company Limited:

Sundaram Finance Limited (SF) was established In 1954 with a paid-up capital of Rs. 0.02
million, primarily to assist the development of Road Transport Industry. SF has been providing
financial assistance to road transport operators for acquiring commercial vehicles under hire
purchase system. Emerging as the leader in the industry, SF has been staying at that position for
over four decades. SF diversified into equipment leasing in 1981.
Royal & Sun Alliance
Royal & Sun Alliance is one of the world's leading international Insurance companies. The Sun
was established in 1710 and is the oldest. Insurance company in existence still trading under its
original name. The Alliance was founded in 1824 and the Royal in 1845. The Group's
international presence began to emerge in the 18th century with business ventures in mainland
Europe. Forays into the US and Canadian markets followed in the 19th century, and in 1998,
Royal & Sun Alliance became the first UK insurance company to be granted a license to operate
in China.
The Joint Venture
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance
Limited started its operations from March 2001. The company is Head Quartered at Chennai, and
has two Regional Offices, one at Mumbai and another one at Delhi. The venture is aiming at Rs.
1200 millions in revenue during first year of its operations and is confident of breaking even by
fifth year.

3. ICICI Lombard General Insurance Company:

ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the Indian
Industry, to promote industrial development of India by .Providing project and corporate finance
to Indian industry.
Since inception, ICICI has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI has thus far financed all the
major sectors of the economy, covering 6,848 companies and 16,851 projects.

Lombard Canada Ltd., is a leading insurance management company responsible for providing
insurance management services for all of the Lombard group's commercial, personal, and
specialized insurance companies. Canadian owned and operated, Lombard Canada Ltd. has its
head office in Toronto and has annual sales in excess of Rs 2500 millions and is a wholly owned
subsidiary of Fairfax Financial Holdings Limited (FFH on the TSF Lombard Canada Ltd. has
achieved a reputation for providing solid underwriting performance, diversified books of
business and strong capital positions.
The Joint Venture

ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv Kerkar. ICICI would hold
about 74 percent stake, while Canadian insurer Lombard would hold the maximum permissible
26 percent and commence business with a start-up capital of Rs.1000 millions. ICICl Lombard
has plans to sell covers to the corporate clients of ICICl. St the same time it will sell property
insurance for ICICI home loan seekers and auto insurance for those availing of car finance.
4. Tata AIG General Insurance Company Limited:

American Insurance Group is the leading U.S. based international insurance and financial
services organization and the largest underwriter of commercial and industrial insurance in the
United States. Its member companies write a wide range of commercial and personal insurance
products through a variety of distribution channels in over 130 countries and jurisdictions
throughout the world. AIG's global businesses also include financial services and asset
management, including aircraft leasing, financial products, trading and market making, consumer
finance, institutional, retail and direct investment fund asset management, real estate investment
management, and retirement savings products.

The Joint Venture

Tata AIG General Insurance Co. Ltd. has a start-up capital of Rs. 1250 millions of which
74 percent has been brought in by Tata Sons and American partner brings in the balance 26 per
cent. Tata -AIG plans to be the first Indian insurance company to offer a comprehensive policy to
cover various risks in the IT sector, risk arising out of virus, cyber crime, negligent acts, errors
and omissions and third party liability from a security failure. Other products on offer are
property, casualty, marine, directors and officers liability, accident and health, homeowners and
automobile insurance.

Data Analysis


Plan: The National Health Plan

Family floater coverage available up to 6 members of a family including dependent

children and dependent parent.

Cashless hospitalization facility

Wide age band width between 3 months to 65 yrs

No medical test required up to 65 yrs

Pre-existing disease covered immediately on issuance of policy, except for treatment of

Chemotherapy, Radiotherapy, and Dialysis.

Maternity coverage of Rs 25000 for cesarean and Rs 15000 for normal delivery, with 9
months waiting period.

Additional Critical illness buffer of Rs 75000 for treatment of :

Heart surgery
Neuro surgery
Organ transplant
Road traffic accidents

Income tax benefit under section 80D of the income tax act to extent of :
Rs 15000 for covering self, spouse and dependent children.

An additional Rs 15000 ( Rs 20000 in case of senior citizen ) for covering

dependent parents.

Premium Table

For Policy Covering ( in Rs )

Sum Insured
value ( in Rs )

Self +


Self +
Spouse + 2

Self + Spouse + 1


























Table 1: Premium Table of National Health Plan.

Plan: Health Care+
Key Benefits:

Sickness Hospital Cash - takes care of hospitalization expenses due to sickness; available

in Rs. 500/day, Rs. 1000/day, Rs. 2000/day, Rs. 3000/day & Rs. 5000/day
Accidental Hospital Cash - You can also opt for accident hospital cash benefit which
takes care of incidental expenses while in hospital due to accidents; available in Rs.
1000/day, Rs. 2000/day, Rs. 4000/day, Rs. 6000/day & Rs. 10000/day

Accident Medical Expense Reimbursement - This benefit takes care of reimbursement of

day to day medical bills due to accidental injuries with or without hospitalization.

Additional Features

Hospitalization Cash up to 180 days.

Guaranteed issuance.

Flexibility in choosing options; 5 convenient offer different levels of protection against

hospitalization expenses.

Renewal benefit: On renewal of policy, additional 5% on the original benefit amount up

to max 5 yrs.

Waiting period of 90 days for Sickness Hospital Cash.

Premium paid is eligible for tax exemption under Sec 80D of IT Act.

Eligibility Criteria

Any individual between the age of 18 to 59 years and 364 days can take this cover
(Dependent children between the age of 6 months and 18 yrs or upto 23 yrs if studying in

an accredited institution of higher learning and is unmarried).

The coverage can be renewed till the age of 54 years.

Premium table
Sum Insured

For Policy Covering ( in Rs )

value ( in Rs )


Self +

Self + Spouse + 1

Self + Spouse + 2


748 N.A.




1482 N.A.




2821 N.A.




4162 N.A.




6711 N.A.



ICICI Lombard
Plan: Family Floater Health Plan

Avail Cashless Claim facility at 3,500+ hospital network across India.

No health check-up up to the age of 55 years (age as on last birthday).
Cover your family under a single policy.
Now get additional Sum Insured for every claim free year.
Secure your family against terrorist activities.
Free health check-up coupon for any one insured family member.
ICICI Lombard Family Floater health insurance policy has no sub-limits on room rent,
Table 2: Premium Table Of Health Care+

doctor fees, and hospital

charges or for any disease except Cataract (INR 20,000 per eye applicable.
ICICI Lombard Family Floater health insurance policy has no co-payments for any

disease or any Hospital usage.

Options for one or two year covers available.
Buy Online through ICICI Bank, HDFC Bank and Citibank Credit card and pay in

instalments without any extra charges.

Pre-existing diseases can be covered after 4 continuous years## of coverage with the

This policy also covers you for hospitalization in case of Swine Flu / H1N1 influenza.


The customer can buy the policy for any family member(s) children and/or

dependent parents.
The senior most person to be insured should be between 5 to 60 years of age.

The Proposer needs to be aged above 18 years

To cover children aged between 91 days to 5 years, the policy must also cover at

least 1 adult under the same policy.

Children under less than 91 days old cannot be covered.

Individual(s) proposed for Insurance whose age is 56 years & above have to

undergo medical tests at ICICI Lombard designated diagnostic centres.

The policy cover is renewable till the age of 70 years.

Income Tax benefits u/s 80D can only be availed for policies bought for Self,

Spouse, dependent children or dependent parents.

Floater benefit under the policy is available up to the age of 60 years. All floater

policies thereafter will be renewed under individual plan up to the age of 70 years.

Premium table

Royal Sundaram

Plan: Family Health Insurance Online


Sum Insured under the policy shall be progressively increased by slab of 5% for every
claim free year of the policy subject to a maximum of 50%. Cumulative bonus will be
reversed to 2 slabs in case of any claim.

Cumulative Bonus will not be considered while admitting liability for pre existing disease
after 4 continuous years of insurance.

Expenses incurred towards inpatient hospitalization for a period more than 24hrs, for the
illness diseases contracted or injury sustained by the insured person during the period of

Pre hospitalization and Post hospitalization expenses for 30 days and 60 days

Ambulance charges in an emergency subject to a limit of Rs.1000/- per claim.

Master Health Check up charge reimbursement to a maximum of Rs1500/- per Insured

person after each 4 consecutive claim free year. This benefits hall not be available even if
any one individual insured person makes a claim during the 4 consecutive period of


Renewals will be accepted up to the age of 70 years for adults and up to the age of 21 years
for dependent children
The Proposer needs to be aged above 18 years

To cover children aged between 91 days to 5 years, the policy must also cover at least 1 adult
under the same policy.
Children under less than 91 days old cannot be covered.

Premium Table
For 1 Year
Sum Insured
value ( in Rs )

For Policy Covering ( in Rs )


Self +

Self + Spouse + 1

Self + Spouse + 2

200000 .




300000 .




Table 3: Premium Table for Family Health Insurance Online For 1yr

For 2 Years
Sum Insured
value ( in Rs )

For Policy Covering ( in Rs )


Self +

Self + Spouse + 1

Self + Spouse + 2

200000 .




300000 .




Table 4: Premium Table for Family Health Insurance Online For 2yr

Oriental Insurance

Plan: Happy Family Floater Policy Prospectus


A floater covering the proposer and his / her family under one sum insured under one

The sum insured floats over all the beneficiaries under the policy.
No medical examination for person up to the age of 60 years.
Pre-existing conditions cover after four consecutive renewals with the Company.
Coverage under two options SILVER and GOLD Covers.
SILVER offers sum insured slabs of 1 to 5 lacs.
SILVER is subject to 10% Co-pay.
GOLD offers sum insured slabs of 6 to 10 lacs.
Policy covers the hospitalization expenses for the covered diseases / accident up to

specific limits.
GOLD plan offers as an inbuilt cover daily cash allowance and attendant allowance up to

limits specified.
Personal Accident cover is offered as add on cover under both the covers. In addition

GOLD over offers add on cover of life hardship survival benefit.

No Health check up to 60 yrs of age.

Entry age limit for the proposer is maximum 55years on the time of initially taking the policy.
However, continuous renewals will be accepted up to 65years.
Premium Table

Sum Insured

For Policy Covering ( in Rs )

value(in Rs )


Self +

Self + Spouse + 1

Self + Spouse +
2 Dependent


























Table 5: Premium Table For Happy Family Floater Policy Prospectus

Accident Rider
Sum Insured






Premium Per






Table 6: Premium Table for Accident Rider


Premium for Rs 100000

4000 3711







National In Association With Karvy

ICICI Lombard

Oriental Insurance

For Policy Covering ( in Rs ) Self

For Policy Covering ( in Rs ) Self + Spouse
For Policy Covering ( in Rs ) Self + Spouse + 1 Dependent
For Policy Covering ( in Rs ) Self + Spouse + 2 Dependent

Histogram 1 : Comparision of Premium Slabs For Rs 100000


From the data it is found that national health plan provide cover at individual level for Rs.
100000 premium slot which is a positive it has achieved over ICICI Lombard and Royal

When compared with TATA AIG and oriental insurance the premium amount of national
health plan is almost triple the amount.

Premium Table for Rs. 200000/-





7000 6442









National In Association With Karvy

ICICI Lombard

Oriental Insurance

For Policy Covering ( in Rs ) Self

For Policy Covering ( in Rs ) Self + Spouse
For Policy Covering ( in Rs ) Self + Spouse + 1 Dependent
For Policy Covering ( in Rs ) Self + Spouse + 2 Dependent

Histogram 2: Comparison of Premium Slabs For Rs 200000


When compared with others, the premium amount of national health plan is too high.
Again when compared with Royal Sundaram national health plan provides the cover at
individual level which the former doesnt.

Premium Table for Rs. 300000/-




10000 8836











National In Association With Karvy

ICICI Lombard

Oriental Insurance

For Policy Covering ( in Rs ) Self

For Policy Covering ( in Rs ) Self + Spouse
For Policy Covering ( in Rs ) Self + Spouse + 1 Dependent
For Policy Covering ( in Rs ) Self + Spouse + 2 Dependent

Histogram 3: Comparison of Premium Slabs For Rs 300000


When compared with others, the premium amount of National Health Plan is too high.
When compared with Tata AIG the difference between premium for individual and
individual+ spouse for National Health Plan is less, which in turn would lure a customer
away from TATA and towards National (or much better towards oriental insurance).

Premium for Rs 400000





12000 11008








National In Association With Karvy

0 Lombard

Oriental Insurance

For Policy Covering ( in Rs ) Self

For Policy Covering ( in Rs ) Self + Spouse
For Policy Covering ( in Rs ) Self + Spouse + 1 Dependent
For Policy Covering ( in Rs ) Self + Spouse + 2 Dependent

Histogram 4: Comparison of Premium Slabs For Rs 400000


When compared with others, the premium amount of national health plan is too high,
especially in the individual and individual+ spouse level is almost double the other

closest rivals.
The premium for Individual + spouse level for National Health Plan is lesser than that of

The premium rates for TATA AIG appear to be rigid in structure.
The premium rates for Oriental Insurances full family coverage are almost 60% of
Nationals individual plan.

Premium for Rs 500000


15000 13180




National In Association With Karvy

ICICI Lombard

Oriental Insurance

For Policy Covering ( in Rs ) Self

For Policy Covering ( in Rs ) Self + Spouse
For Policy Covering ( in Rs ) Self + Spouse + 1 Dependent
For Policy Covering ( in Rs ) Self + Spouse + 2 Dependent

Histogram 5: Comparison of Premium Slabs For Rs 500000


When compared with others, the premium amount of National Health Plan is too high.
Again the rigidity of TATA Aig plan is prominently seen.
The premiums of Oriental again turn out to be the lowest of all.
The individual plan of national though costliest of all, it scores over the plans of Tata AIG

when it comes to a family plan.

ICICI Lombard and Royal Sundarams competition in this category is completely


As by this time we are well versed with all the General Insurance companies both Public and
private we know how each company contributes serving the customers and also generating
revenue through it. We also know that General Insurance contributes towards the Gross Domestic
Profit, but now let us see how these companies individually contribute towards the Gross
Domestic Profit through the way of Market Share of each company both Private & Public. As we
can see in the Pie Charts a comparison of 3 consecutive years have been taken which are 201213, 2013-14 & 2014-15. Public Companies have been dominating the General Insurance Market
since a long time, the market share of Private companies have been improving in the last few
years by approximately 6 % each year, but then too Public sector companies capturing the major
market. But also in Public sector companies New India Assurance is been leading the way which
is been closely followed by the remaining. Among the private players we can note that ICICI
Lombard is leading the way. By considering 2014-15 as the base year, we can note that the
market share of Public companies have been deteriorating having 73.43% of the market share
from 85.54% in the year 2012-13.

Company wise Market Share of Gross Profit Underwritten



ogram 6: Company Wise Market Share of Gross Profit Underwritten


The Market share of the big players have came down over the span of two years, which in

turn may be due to the rise of the new smaller general insurance companies.
The rise of BAJAJ, TATA AIG and Royal Sundaram shows the flow of tide from

nationalised insurance companies to the private players.

The market share of public sector general insurance companies have reduced from almost
80% to approximately 70% over the period.

Class Wise Break up Of Gross Premium Underwritten




INR in
Histogram 7: Class Wise Break up of Gross Premium Underwritten


It is seen that the revenue generated from the general insurance premiums is on a rise.
The steep rise in the revenue from motor insurance portrays the increased spending

power of people, both in buying vehicles as well as insuring them.

The aviation insurance premium has on the other hand reduced over the span of three

The rise in the marine related insurances is miniscule.

Findings and Conclusion

The market for general insurance is on a continuous rise.

The people are turning towards the private sector companies, and the share of the public
sector general insurance companies is on a decline.

The premium rates for the policy at individual level are among the highest in the industry.
The premium rates though high at individual level are quiet competitive at a family level

The premium rates of oriental insurance are the lowest, but the facilities covered in those

policies are not up-to the mark when compared with the other market players.
TATA AIG has over the years developed a god consumer base courtesy of the great

business in the mutual fund industry.

Competition in the general insurance sector is on a rise.
The facilities like No medical check up requirement till age of 65yrs., immediate cover
for pre-existing diseases and additional critical illness buffer of Rs.75000 are only
covered by National health plan.


1. Since last three years strong growth for public as well as private players in the Indian
general insurance segment has occurred, mainly due to increased spending capacities of
2. There are two key drivers for the growth in this business. First, the enhanced capability of
the Company to deliver services on a domestic basis is attracting new customers and

opening up new markets. Second, there is significant growth in the purchasing power of
the customers hence the security has become major conscious issue.
3. The market share of nationalized companies is massive as compared with that of private
companies; though in the recent years the change from public sector to private sector has
4. According to current market scenario, market share of private players like Bajaj Allianz,
Tata AIG etc. have increased drastically.
5. Considering the high premium rates, it is seen that if the rates are reduced by a certain
level, it could lead to increased subscription of National health plans.
6. TATA AIG has a tie-up with many private companies for group mediclaim. If it constructs
collaborations with some more private and national companies, the revenues generated
would be enhanced.


The analysis is based on historical data and thus indicates the past performance which

may not always be indicative of the future performance.

The time period considered by the study is only three years; a larger period could have
ensured coverage of a full market cycle, thus giving a more real picture of the
performance of the policies.



Insurance- Theory And Practice
By Nalini Tripathi and Prabir Pal.
Research Methodology
By Dr. Shailesh Kasande.