PROJECT REPORT

ON
GENERAL INSURANCE &
AGENT ACQUISITION
IN

SOM-LALIT INSTITUTE OF
BUSINESS MANAGMENT

SUBMITTED BY
UJJAWAL C SHELAT

1
 CONTENT

CHAPTER Topic No. PARTICULAR

No.
CHAPTER- 1 1 Preface
CHAPTER- 2 2 Acknowledgement
CHAPTER- 3 4 Executive Summary
CHAPTER- 4 5 Introduction
6 Introduction of Insurance sector
7 Introduction of History
8 Life Insurance The Time Line
9 About Industry
10 Multiple Distribution Channel
11 Multi Channel Approach
12 Organization Chart
13 Role of Insurance
14 IRDA
15 About Co.
16 ICICI Group
17 Current Scenario
18 The Opportunity
19 About us
20 Product Basket
21 Rewards
CHAPTER- 5 22 Training
23 Responsibilities
24 Market Share
25 Awards
26 About the promoters
27 Distribution
28 Product
29 Board of Directors
30 Management Team
31 Target & Task
32 Recruitment Strategies
33 Strategies Adopted
34 Procedure of Recruitment

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 35 Analysis of Performance Vs. Target
36 Limitations
CHAPTER- 6 37 Learning at Executive Training
38 Purpose of agency development
39 Tied agency
CHAPTER- 7 40 Agent the process
41 agency channel
42 Scenario of Ahmedabad City
CHAPTER- 8 43 Findings and Solutions
CHAPTER-9 44 Conclusion
45 Executive Summary
CHAPTER-10 46 Bibliography

3
 PREFACE
India is on the threshold of being an open and liberated economy.
Globalization has changed the rules of competition, forcing Indian corporations
to expand beyond their traditional markets even as the face incursion of
foreign companies at home.

True learning is born out of experience and observation. There is a

large gap between theoretical knowledge and practical knowledge about
handling and managing a business. Only bookish knowledge cannot help me in
building up an effective administrator. So as a part of the syllabus of MBA
programmed, we all students are supposed to analyze the functional working
of any of the organization which gives us an opportunity to relate theoretical
knowledge with real corporate situations. A thorough and practical study,
knowledge and learning can only be useful to become more eligible and
competitive. It also helps to improve my analytical skill, communication skill
and knowledge.

This project is totally based on primary data and secondary data. Information
about Marketing and different organizational processes has been collected
from ICICI Lombard office.
In this project I have tried to analyze how to recruit agents in context of
general Insurance Industry and different organizational processes of ICICI
Lombard and sale policies of ICICI Lombard.

4
 Acknowledgement
“Project” words seem to be gigantic. It could not be completed on my own.
This is the proper time where I want to thank all of them who have directly or
indirectly help in carrying out the activities.

It’s my delight to use the opportunity for conveying my thanks to all, who
motivate and supported throughout the project duration.

I would like to say thanks to my company guide Mr. Parad Inamdar (Sales
Manager) for his constant support and his guidance, also I extent my gratitude
towards Mr. Abhishek Shah (Unit Sales Manager) for his constant effort for
making us better all the time, I would also like to thank all the staff of ICICI
LOMBARD, especially, Ajay Sir who was constantly inspiring us for incurring our
best performance, also to Rasesh Sir, Mr. Nikhil, and also to the security staff,
Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.

It’s my pleasure to say thanks to Ms. Rubi Saiyyed our SIP co-coordinator &
respected Principal Dr. Jagdish Joshipura, without help of whom I can’t see the
project to be completed. It’s their constant support and timely advises that
helped me in carrying out the project successfully.

I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun

Toliya, Ashok Chauhan, Divya Patel & Pooja Nair who have given their
constant support and motivation to do the task.

I don’t want to miss the opportunity to be thankful of the Almighty God, who
rules the world, & my family who were always been helping hand for me.
Hearty thanks to you all.

5
 EXECUTIVE SUMMARY
Insurance industry in India has undergone a sea change in terms of delivering
value added services to the rising consumerism in India. The insurers are
constantly adopting innovative distribution channels in alliance with other
financial counterparts. Also new custom made products are introduced in the
market after through assessment of current requirements of customer needs.
Insurance companies have realized the need for higher returns on life
insurance product, introduced by many insurance companies, have made
returns transparent.

Today insurance companies are getting larger share of their collection through
tied agency channel of distribution. The LIC has channel well developed and of
wide reach. The mentality of most of the people in India is that they are ready
to buy insurance from a person whom they know, who is also doing the
business for quite a time, who can give advise in financial planning, and also
collect the premium from them. This shows the importance of tied agency
channel. There is still a wide scope for private life insurers in selection of
agencies. The rural India is almost out of the private life insurer’s functional
area, though they are slowly, firmly and aggressively making their presence
felt.

The large part of the mobilization of the rupee by life insurers comes from
government employees. This is because of the fact that government gives tax
benefits if employees invest in life insurance. This is clearly reflected in the
study conducted about life time plan among the employees.

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ICICI Lombard General Insurance Company is a 74:26 joint venture between
ICICI Bank Ltd. & the $ 26 billion Canadian based company Fairfax Financial
Holdings Limited.

ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management
management and investment management.

Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of

the Canada’s oldest property and casualty insurer.

ICICI Lombard General Insurance Company received regulatory approvals to

commence general insurance
insurance business in August 2001

7
 INTRODUCTION

CONTENTS:

INTRODUCTION OF INSURANCE SECTOR

CURRENT SENARIO
New Idea of

MAIN INSURERS insurance

IRDA

8
 INTRODUTION TO INSURANCE
SECTOR

We face a lot of risks in our daily lives. Some of these lead to financial losses.
Insurance is a way of protecting against these financial losses. For a payment
(premium), an insurance company will take the responsibility of compensating
your financial losses.

Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against fire,
burglary etc.

Private Sector Market Share:

9
Take a look at these statements:

 You carry loan on your dream home than it is much important to

protect that house from any natural or manmade calamities by
insuring it on that home.
 You are securing it against the uncertainty which includes risk in it.
 You are carrying huge risk if you are driving car without insurance.
 Even your family and kids may be exposed to any risk factor which
may affect their future life and your savings too if you are not
having medical policy
 Medical policies are also useful for tax benefit.

If you identify any of the above need as a saving boon for you then, you shall
clearly understand the need of General insurance acts as a buffer against
uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of
your policy premium is eligible for tax rebate under section 80D.

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1. What is non-life insurance and why do you need it?
Whether it is your home, your health or your business, everything is
exposed to any danger in these times. Non-life insurances you for calamities
like these at a minimal amount.

2. In what manner is a non-life claim settled?

The following steps are carried out:
 The claim is filed by the person suffering the loss
 A preliminary survey is conducted
 The final survey report is submitted on receipt of all your documents
 The claim payment is released

3. Tax implications of taking an insurance cover

A percentage of the amount that you invested mediclaim policy is
allowed, depending upon your total premium, as a tax rebate under section 88
against provisions of the income-tax liability, subject to provision of the
income-tax Act. Presently, there is a 12.36%service tax is applicable on general
insurance premium.

4. How much insurance should you have?

Insurance companies often conduct a thorough personal finance review and
use the concept of Human Life Value to ascertain the correct amount of
insurance you should have. “Human life value” is the net present value of
your potential future earning for the rest of your working life span. This is
typically a factor of your annual income.

11
5. In what manner do you evaluate the policies?
Decide the type of policy you want after asking some basic questions.
 What are the returns offered by the policy?
 What is your risk profile?
 Can you sustain payment of the premium amount?
 Is there flexibility in premium payment?
 How good is the surrender value of the policy?
Once you decide on these, you will be able to select better.

What is insurance?
“Insurance is a financial service for the saving of the public and providing them
with risk coverage”

Thus in insurance,

The Risk

The Insured the Insurer

General definition: “insurance is a plan by which large number of people

associate and transfer to the shoulders of all risks that attach to individuals.”—
JOHN MAGEE

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Fundamental definition: “insurance is accumulated contributions of all parties
participating in the schemes”--- D. S. HANSELL.

Contractual definition: “insurance is a contract in which a sum of money is paid

to the assured as consideration of insurer’s incurring the risk of paying a large
sum upon a given contingency”--- JUSTICE TINDAL.

PRINCIPLES OF INSURANCE
 Principle of utmost good faith

 Disclosure of all facts

 Principle of Indemnity
 Loss indemnified
 Not to earn profit

 Doctrine of Subrogation
 Hold negligent person responsible for the loss
 Prevent the insured from collecting twice

 Principle of Causa Proxima

 Cause of loss must be direct and insured

 Principle of Insurable Interest

 Direct benefit to insured from the asset insured

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Why do you need insurance cover?

Insurance provides a protection to the customers from certain and uncertain

risks. Certain risk involves events like death, retirement, pension, education,
marriage, etc. uncertain risk includes events like theft, accidents, fire and
earthquake risks.

In general insurance fire, accidents, medical claim and because of that if

third party damages occur than it also covered in it. General insurance is only
for unexpected or uncertain risks. Now there are more than 14 companies
under it. Government is more giving priority on medical policies as now
medical expenses are more expensive and for that tax benefits also available
for this kind of policies.

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 History of insurance sector

History of Insurance Business

Insurance probably made a beginning in the ancient land of Babylonia In
the 18th century B.C., Babylonian king Hammurabi developed a code of law,
known as the Code of Hammurabi, which codified many specific rules
governing the practices of early risk-sharing activities. For instance, the code
dictated that traders had to repay merchants who financed trading voyages
unless thieves stole goods in transit, in which case debts would be cancelled.

This was similar to the system of insurance known as bottomry which

existed in Phoenicia in 1200 B.C. In this system, backers loaned money to
merchants to finance voyages. Merchants offered their ships (the hull was
known as the ship’s ‘bottom’) as collateral for such loans. When a trip
succeeded, the merchant would pay the trip’s backer the original loan plus
interest, the equivalent of a premium. If a ship went down on its voyage, the
trip’s backer would cancel the merchant’s loan. The Greeks and Romans
developed the earliest systems of life insurance. They formed societies which
paid dues that went toward paying for the burial of members. Sometimes
these societies also paid for the living expenses of deceased members’
families. During the Middle Ages (5th to 15th centuries A.D.), workers joined
together in craft. Many guilds, particularly in England and Italy, provided
benefits to workers and their families in the event of illness or death.

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 Lloyd’s
Insurance as we know it today took its shape in 17th century England.
There was a place called Lloyd's Coffee House in London, owned by Edward
Lloyd, where merchants, ship-owners and underwriters met to discuss and
transact business. The Lloyd’s Act was passed in 1871 incorporating the
members of the association into a single corporate body with perpetual
succession and corporate seal. It extended from marine insurance to other
insurance and guarantee business. Today, Lloyd's has become the world's best
known insurance brand. It is commonly misunderstood that Lloyd's is an
insurance company. Actually, it is a society of members, known as
‘underwriters’, both corporate and individual, who underwrite in syndicates on
whose behalf professional underwriters accept risk. Thus, supporting capital is
provided by investment institutions, specialist investors, international
insurance companies and individuals.

Any insurer who wants to become a member of the association has to

deposit a certain fee as security for the regular payment of his liabilities. The
association will inquire about the financial position of the concern, business
reputation and experience. The business is conducted by these insurers called
underwriters, syndicates etc. Anybody desirous of taking insurance will
approach the ‘underwriters’ and not the ‘association’. Each underwriter will be
responsible for his business underwritten. Usually, the policy is underwritten
by several underwriters and their share or portion is fixed individually. If there
is claim on the policy, the insured gets the money from all the underwriters
according to their respective shares. If an underwriter fails to pay, the amount
is realized from the security taken at the time of enrolment from the
underwriter. Lloyd’s as a corporation is never liable on any policy.

Lloyd’s brokers bring business to the market. The risks placed with
underwriters originate from clients and other brokers and intermediaries all
over the world. Together, the syndicates underwriting at Lloyd's form one of
the world's largest commercial insurers and a leading reinsurer.

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 History of India’s Insurance Business
We find the term ‘Yogakshemam Bahamayam’ in our ancient texts. This
suggests that a form of "community insurance" was prevalent around 1000 BC
and practiced by the Aryans. In modern times, Triton Insurance Co. Ltd. was
the first general insurance company to be established in India in 1850. The
Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880. Thereafter, many
players emerged. By 1956, there were around 240 private life insurers and
more than 100 general insurers. The Government of India, concerned by the
unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The
government brought together life insurers under one nationalized monopoly
corporation and LIC was born. The general insurance business remained in the
private sector till 1972. Then, nearly 107 insurers were amalgamated and
grouped into four companies- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance
Company. They were subsidiaries of the General Insurance Company (GIC).

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 Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and
RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance
industry and recommend its future direction. Financial sector reforms were
initiated and it was felt that insurance is an important part of the overall
financial system where it was necessary to address the need for similar
reforms. Some of the recommendations of the Malhotra committee included:

Government stake in the insurance Companies to be brought down 50%.

Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations

All the insurance companies should be given greater freedom to operate

Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry

No Company should deal in both Life and General Insurance through a
single entity

Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.

The Insurance Act should be changed. An Insurance Regulatory
body should be set up.

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Investments-

Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company

Customer Service

LIC should pay interest on delays in payments beyond 30 days

Computerization of operations and updating of technology to be carried
out in the insurance industry.

The committee emphasized that it was essential that the sector was
open to competition to improve the customer services and increase the
coverage of the insurance industry. However, enough precaution should be
exercised to prevent failure of the new entrants .Hence a minimum capital
requirement of Rs.100crores was stipulated. To provide greater autonomy to
insurance companies and enable them to act as independent companies, it
proposed setting up an independent regulatory body.

19
 About Industry

INSURANCE INDUSTRY AT GLANCE

Many may not be aware that the life insurance industry of India is as old
as it is in any other part of the world. The first Indian life insurance company
was the Oriental Life Insurance Company, which was started in India in 1818 at
Kolkata. A number of players (over 250 in life and about 100 in non life) mainly
with regional focus flourished all across the country. However, the Govt. of
India, concerned by the unethical standards adopted by some players against
the consumers, nationalized the industry in two phases in 1956(life) and in
1972(non-life). The insurance business of the country was then brought under
two public sector companies, Life Insurance Corporation of India (LIC). In line
with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on (popularly called the Malhotra

20
Committee) in April 1993 to suggest reforms in the insurance sector. The
Committee recommended throwing open the sector to private players to usher
in competition and bring more choice to the consumer. The objective was to
improve the penetration of insurance as a percentage of GDP, which remains
low in India even compared to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and

Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent
regulatory authority, which has put in place regulations in line with global
norms. So far in the private sector, 12 life insurance companies and 9 general
insurance companies have been registered.

21
 ROLE OF INSURANCE

 The companies conducting business of insurance are referred to as `Insurers’. The

terms `insurance company' and `insurer' are interchangeable.

 Various groups of people are exposed to different types of risks, such as:

• People engaged in marine trade are exposed to the risks like damage to
goods, sea piracy, sinking of ship, vessel colliding with another vessel etc.
• Factory owners are exposed to different type of risks like fire, lightning,
hailstorm, flood, earthquake, burglary, etc.

 Insurers form a `group' of those persons who are exposed to the same risks. The
shares/contributions (called premium) collected from each of them, are pooled
together to create a common fund. Every premium represents a corresponding risk,
which it seeks to cover. These funds are held in trust for the benefit of the
policyholders. Compensations (claim) to those, who suffer, are paid out of this fund.
 Insurer's role is that of a trustee and it has to ensure that nobody takes undue
advantage. The insurer does this by:
• Preventing entry of people carrying higher risks through the process of
underwriting of risks
• Preventing payment of claims on losses that are not accidental.

22
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.

Mission

To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act'
Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority.
The Authority is a ten member team consisting of
(a) a Chairman;
(b) five whole-time
whole time members;
members

23
 (c) four part-time members,
(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

• Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration;
• Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;
• Specifying the code of conduct for surveyors and loss assessors;
• Promoting efficiency in the conduct of insurance business;
• Promoting and regulating professional organizations connected with the
insurance and re-insurance business;
• Regulating investment of funds by insurance companies;
• Regulating maintenance of margin of solvency;
• Adjudication of disputes between insurers and intermediaries or
insurance intermediaries;
• Supervising the functioning of the Tariff Advisory Committee;
• Specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations
referred to in clause above;

24
 • Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or social
sector; and
• Exercising such other powers as may be prescribed.

About company

ICICI Lombard General Insurance Company Limited is 74:26 joint ventures

between ICICI Bank Limited and the Canada based $26 billion Fairfax Financial
25
Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax
Financial Holdings is a diversified financial corporate engaged in general
insurance, reinsurance, insurance claims management and investment
management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is

one of Canada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general
insurance business in August 2001. Also ICICI Lombard is No. 1 insurance
company as far as private sector is concerned. Its core competency is in highest
and fastest claim settlement which attracts most of the customers. As far as
insurance sector is concerned all the insurance companies are under common
General Insurance Company limited same as Life Insurance Corporation. There
is cut throat competition in the market as there as more than PSU as well as
private sector player in the field of insurance. Also still on 0.68% in penetrated,
so there are lots of opportunities for companies to grow and perform well with
its core competencies. Its still long way to go, because there is need of
customized insurance that will really be a boon for customer, still we can see
that there is lack of decentralization as underwriter approval are to be taken
each and everywhere. But ignoring that we can say that insurance sector is
booming like anything. And ICICI Lombard is a key player in private sector
which is capturing huge part of market. It is following various marketing

26
Strategies and huge advertisement campaign that always keeps aware to the
people about its existence and its products.

Thus there is still long way to go, also various foreign companies are yet to
come, as they seek lots of business opportunities as there is so much yet to be
explored in India.

27
(ICICI GROUP)

28
ICICI LOMBARD CORE VALUES
• INTEGRITY
• HUMANITY
• POSITIVITY
• SENSIVITY
• PASSION

Why ICICI Lombard

India's
's number one private general insurance company
First general insurance company in India to be ISO 9001:2000 certified
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit
128 bit encryption in case of
online data exchange
First company to provide digitally signed documents through an online
interface
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations

29
Adjudged as the 'General Insurance Company of the Year' at the 11th
Asia Insurance Industry Awards 2007
Awarded the NDTV Profit Business Leadership Awards 2007 in the
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
2006
Awarded the Best Housing Insurance in the
the Smart Living Awards by 360
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
March 31, 2006
Adjudged amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005

30
 About ICICI Lombard

• Young Company - August 2001

• Largest private sector Insurer
• Largest Capitalization in private sector
• Financial & Underwriting Breakeven in 1st & 2nd year
• Pan India presence – Over 227 branches, 176 locations, and 5349 full
time employees on 30 June’07
• ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007
& Avaya Global Customer Responsiveness Award
• International operations – UK since May’06

Organizational Structure

ICICI Lombard’s organizational structure is designed to be flexible and

responsive with the ability to evolve and re-orient
re orient towards market
opportunities, while maintaining the required degree of risk management and
controls.
There are four principal groups:
group

Wholesale Business,

Banassurance & Retail Business,

31
Rural and Agricultural Business &

Shared Services.

• The Wholesale Business Group

Focuses on large corporations
corporations and also on small and medium
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
personal accident schemes

The Bancassurance and Retail Business Group

Delivers
elivers products through multiple channels including bancassurance,
agents, feet-on-street,
feet street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.

The Rural and Agricultural

Agricultural Business Group
It is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
covers.

32
 Shared Services
It provides support services to the business verticals.
These services include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Marketing communications.

Product Range
Business Solutions

Burglary Insurance

Industrial All Risk

All Risk Insurance

Consequential Loss(Fire) Insurance

Electronic Equipment Insurance

Fidelity Insurance

Fire and Special Perils

Tea Corp Insurance

Marine export import

Machinery

Boiler Insurance

Inland Transit Insurance

33
Project Solutions

Contractors’ All Risk

Contractors’ Plant & Machinery

Erection All Risk

Performance Guarantee

Liability Solutions

Director’s & Officers Liability

Event Insurance

Product Liability

Public Liability

Workmen’s Compensation

Professional Indemnity

Export Solutions

Export Import Transit

Export Credit

34
Rural Solutions

Weather Insurance

Janata Personal Accident

Tractor

Farmer’s Package

Personal Solutions

Health Insurance

Health

Personal Accident

Group Personal Accident

Group Health

Travel Insurance

Domestic Travel

Individual Overseas Travel

Student Overseas Travel

Senior Citizen Overseas Travel

Corporate Overseas Travel

Pravasi Bhartiya Bima Yojana

35
Motor Insurance

Two Wheeler

Four Wheeler

Home Insurance
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
So ICICI Lombard general insurance company has variety of cover for
your dream home

36
Key Products

37
Motor Insurance

• What is motor insurance?

• How is motor insurance different from other forms of general insurance?
• Why do I need motor insurance?
• What is the kind of emergency that can strike?
• What are the exclusions under the policy?
• What is the maximum cover that can be availed for occupants of vehicle?
• What is compulsory deductible under Motor insurance?
• What is the difference between private motor insurance and commercial
motor insurance?

What is motor insurance?

Motor insurance protects you and your vehicle against every comprehensible
risk related to your vehicle – theft or damage to it, death of the driver and
passengers in an accident, and damage caused by your vehicle to another
person or property (Third Party Liability).

38
How is motor insurance different from other forms of general
insurance?
A motor insurance policy (Third Party Liability) is mandatory under the Motor
Vehicle Act, while other forms of general insurance are optional. The law
mandates that every owner of a motor vehicle must have a motor insurance
policy.

Why do I need motor insurance?

You need motor insurance for the following reasons:

• Third Party Liability (injury, death or property damage) is mandatory as per

the Motor
Vehicle Act
• Your car is one of your most coveted possessions
• Passengers in your car are mostly your near and dear ones
• Accident, theft, damage and third party liability can arise unexpectedly

What is the kind of emergency that can strike?

• Loss or damage to the vehicle insured

• Own damage
• Partial theft
39
• Total theft
• Third party injury
• Third party death
• Third party property damage
• Personal accident of owner-driver and other passengers

What are the exclusions under the policy?

The following are the specific exclusions under the policy:-

• Mechanical breakdown
• Wear & tear
• Consequential loss
• Depreciation
• Deliberate accidental loss
• Intoxicated driving
• Any contractual liability

What is the maximum cover that can be availed for occupants of

vehicle?

Under a package policy, the maximum cover that can be availed for the driver
and each passenger is Rs 1lakh and Rs 2lakh respectively.

40
What is compulsory deductible under Motor insurance?

Motor insurance policies have a compulsory deductible, wherein the claim

amount has to be borne by the insured.

• For private cars up to 1,500 cc – Rs 500

• For private cars above 1,500 cc- Rs 1,000
• For two wheelers – Rs 50

What is the difference between private motor insurance and

commercial motor insurance?
Vehicles owned by individuals and used for their personal purpose fall under
the category of private vehicles However, vehicles owned by companies or
individuals used for public utilities fall under the category of commercial
vehicle. The insurer’s liability is lower in private vehicles than in commercial
vehicles, where the third party liability is huge.

41
Home Insurance - Introduction

It is imperative that you secure your home from natural and man-made
catastrophes. Our Home Insurance Plan ensures you peace of mind by
protecting the structure and the contents of your home.

Policy Details

There is wide range of policy details regarding the hypothecation with bank,
and what kind of documentation is needed in acquiring of policy.

42
Policy Coverage

You can choose to buy insurance for only the building (structure) of your

home, or only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to
any natural and man made calamities.
calamities

The calamities covered are:

- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood & inundation
- Damage due to impact by vehicles
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installations
- Aircraft damage
- Bursting and/or overflowing of water tanks, apparatus and pipes

43
 Burglary cover (only for contents):
The contents of your home are also covered against loss due to
burglary or an attempted burglary.
burglary. It also covers loss of jewelry
jewelry,, silver
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.

Optional covers:
covers
Terrorism cover - Covers any damages and losses to the structure and / or
contents of your home due to acts of terrorism.

Additional expenses of rent for alternative accommodation –

If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
you against the additional rent.

The maximum coverage is up to Rs. 1,

1 00,000
00 for up to 6 months. The cover is
available only if you are insuring the structure of your home.

44
Key Benefits

Comprehensive cover - Covers both structure and contents of your home.

Avail 15% discount on a 3 years home insurance policy and 25% discount on 5
years policy.
Optional covers available - Terrorism and Additional expenses of rent for
alternative accommodation.
Alternate Covers - A Home Insurance cover allows you to avail an optional
cover for alternative rent & Terrorism cover.
cover.

Need for Policy

FICCI surveys show that realty rates may escalate 10%-15%

10% 15% in next 6 months
of 2007
According to official statistics, the Maharashtra floods on July 26, 2005, has
led to damages to over 1,
1, 87,000 houses all over the State, affec
affecting
ting eight lakh
families
Protect your single largest investment against losses due to natural or man-
man
made calamities like fire, floods, burglary, and earthquake
Cover your household contents including furniture, durables, clothes,
utensils, jewelry, at market value to accommodate inflation

45
Sum Insured
How to calculate the sum insured for the risk to be covered, also what is to be
excluded and what is included.

Home Structure:
The home insurance policy insures the structure of your home for its
reconstruction value (and not for market value). Reconstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. On the
other hand market value is a combination of cost of land, demand & supply
scenario, etc.

Sum insured is calculated by multiplying the built up area of your home with

the construction rate per sq. feet, e.g. if your built up area of your home is
1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum insured
for your home structure is Rs. 8, 00,000.

We recommend the rate of construction for your location when you are buying
online. However, this value can be revised appropriately if expensive material -
like marble flooring, etc. – has been used in construction. If your home has
lawn / garden surrounded by a perimeter wall, the construction rate can be
revised to include the cost of construction of this wall in home structure sum
insured.

46
Home Contents:
The contents of your home - furniture, durables, clothes, utensils, jewelry, etc.
- are to be valued on market value basis i.e. the current market value of similar
items after depreciation. Depreciation
Depreciation does not apply for jewelry.
jewelry.

47
ICICI Lombard presents a completely new look to the Mediclaim concept.
Health Insurance (popularly known as Mediclaim) offers protection in case of
unexpected medical emergencies. In case of a sudden illness or accident, the
health insurance policy takes care of the hospitalization, medical and other
costs incurred.

We offer a range of innovative policies to choose from. Each plan offers

something unique (in addition to the usual mediclaim policies) to suit your
specific needs.

Buy insurance policy online with your ICICI Bank & Citibank Credit Card and pay
premium at interest free installments.

48
Health Plans

Critical Care

Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and

Procedures, Personal Accident and Permanent Total Disablement (PTD)

Health Advantage Plus Insurance

A unique policy that covers hospitalization and Outpatient Department

Expenses (including Dental treatment, cost of medicines and drugs) and
enables optimum tax savings of up to Rs. 5099 u/s 80D.

Family Floater Plan

A single policy that secures the hospitalization expenses of your entire family.

Personal Accident Insurance

A Policy that covers personal accident, permanent total disablement (PTD) and
loss due to terrorism.

49
Travel Plans

Individual Overseas Plan

All overseas travel policies charge premium on a slab basis. Which means if you
are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days.
But with us you ‘pay per day’. (Code: Misc 4030)

Student Medical Insurance

A comprehensive cover, which insures you against unfortunate incidents or

unexpected expenses abroad and provides timely assistance and support when
you need it the most. (Code: Misc 4050)

50
Achievements & Ratings

Best Customer Responsiveness:

Awarded the Economic Times Avaya Global Connect Customer Responsiveness
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
the Insurance category.

Best Housing Insurance:

Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary, in Nov 2006.

Excellence in Financial Reporting:

Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
2006.

Top Insurers of Asia:

Among the top three General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Awards.

Insurance Website of the Year:

Among the top three to be awarded at the 9th Asian Insurance awards 2005
for the 'Insurance website of the Year' category.

51
 iAAA Rating by ICRA:
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services.

Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
cost-effective
effective settlement of motor claims.

52
ICICI LOMBARD - Awards & Reputation’s

ICICI Lombard awarded the ‘General Insurance company of the year’

 ICICI Lombard has been awarded as the 'General Insurance Company of

the Year' at the 11th Asia Insurance Industry Awards 2007 held in
Singapore on November 5, 2007. ICICI Lombard becomes the first Indian
insurance company to win this prestigious award.

It was ICICI Lombard’s innovation that caught the eyes of the judging
panel. The innovations credited to ICICI Lombard include introduction of
biometric smart cards to rural customers for availing health insurance,
pioneering weather insurance along with the World Bank for farmers in
India and introducing online insurance for the customers.

 With more than 700 nominations received across 15 award categories

from various regions, the submissions of the short-listed candidates
were thoroughly scrutinized by the eminent judges. Audited by KPMG,
the distinguished panel of 20 judges comprised of regulators, industry
leaders, practitioners and association heads.

53
Financial Highlights
Financial Year 2006-07 2005-06

Figures in nos.

No. of policies sold 3,136,393 1,461,039

No. of claims handled 642,777 243,951

No. of employees 4,770 2,283

No. of offices 220 154

Rs. in Million

Gross Written Premium 30,035 15,920

Net Written Premium 14, 508 7,339

Net Earned Premium 10,667 5,277

Profit before Tax 801 545

Profit after Tax 684 503

Share Capital 3,357 2,450

Net Worth 9,427 3,729

Investments 17,105 9,065

Total asset 29,540 16,391

Ratios in %

Claim Ratio 76% 74%

Commission Ratio (13%) (17%)

54
Expense Ratio 34% 41%

Combined Ratio 97% 97%

Overview of Operations

• Only General Insurance company having an ISO certification

• Product delivery – automated
o Web (remote access, anytime, anywhere)
o ILPOS (Point of Sale)
• Number of policies
policies issued : 3.2 million p.a.
• Total claims initiated : 11,87,430
• Servicing 300 of top 1000 corporate customers,
• 4 million retail customers and 100 million rural customers

55
• Customer service
o 24x 7 call centre, branch contacts
o Loss assessment and approval decentralized for faster delivery

56
About Competitor

The general insurance industry grew 12 per cent till February in 2007-08 with
robust performance by private players including Reliance General, which
continues to be the fastest growing insurer. So Reliance General Insurance
Company is the main competitor in this sector as far the privet players are
concerned.

The 14 non-life insurers collected Rs 25,470 crore in premium till February in

FY'08, against Rs 24,998 crore collected in the last fiscal, according to the
industry data.

During the period, the four public sector non-life insurance companies
collected Rs 15,280 crore, as against Rs 14,686 crore in the same period last
fiscal. From this data we can say that public sector companies have greater
market share but because of cut throat competition in the sector they are not
growing as per industry rate.

The private players increased their business from Rs 7,981 crore to Rs 10,190
crore during the period. The growth in privet sector is much higher than
industry average

In percentage terms, while the public sector could increase their premiums by
just 4 per cent, nine private sector players clocked premium growth of 28 per
cent.

Private sector players' market share has grown to about 40 per cent in FY'08 so
far as compared to the public sector's 60 per cent share.

Reliance General Insurance continues to be the fastest growing insurer with a

premium collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in
the same period last year.

During the period, market leader New India Assurance premium collection
grew by six per cent to Rs 4,760 crore.

In the private sector space, the largest player - ICICI Lombard - collected nearly

57
12 per cent higher premium at Rs 3,143 crore. But still ICICI Lombard is
managed is No.1 position in spite of high competition.

In future also there are more upcoming players in this industry so competition
might increase further and because of D-Tariff the insurance might get chipper
further. New players like Apollo General insurance company and Future Group
are already started their products in General insurance field.

THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the
industry’s growth and imperil balance sheets of insurers. In the scramble to get
new clients and retain the existing ones, companies are offering to cut old
tariff rates by up to 75%. While discounts are squeezing margins at one end,
the increase in rates by re-insurers is pushing up costs for insurers.

Existing Players: (Government non life players)

Oriental Insurance Company Limited

New India Assurance Company Limited
National Insurance Company Limited
United India insurance Company Limited

58
Non life insurers (Private Players)

Baja Allianz General Insurance Company Limited

IFFCO- Tokyo General Insurance Company Limited
National Insurance Company Limited
New India Assurance Company Limited
Oriental insurance Company Limited
Reliance General Insurance Company Limited
Royal Sundaram Insurance Company Limited
Tata AIG General Insurance Company Limited
United India Insurance Company Limited
HDFC Chubb General Insurance Company Ltd.

59
 Customer
ICICI LOMBARD General Insurance segment serves a wide range of customers,
from individuals to small and medium-sized businesses, commercial
enterprises and major multi-national corporations. This subsidiary of ICICI bank
focuses on customer segments and key markets that present the best
opportunities for sustained and profitable growth.
Individual customers may take insurance for their Home Insurance, Health
Insurance, Motor insurance, Student medical insurance and Domestic travel
insurance. So they are the main focus area as far as the customer is concerned.
ICICI Lombard is also providing the business products also so corporate is also
a one of the major area for customers. In business segment Fire insurance,
Marine insurance, Industrial insurance, corporate insurance is the main
insurance service is mainly use by clients in corporate segment.
ICICI Lombard is also providing service to the NRI they are also contributing
very high to Lombard’s revenue. In NRI service main focus area of the products
are Health insurance, Parents’ overseas insurance, Student medical, Home
insurance, and Motor insurance. ICICI has major market share of 25% in Travel
insurance.
ICICI Lombard is providing services to rural area and for them also Home
insurance, Health Insurance, Tractor insurance, Weather insurance and Shop
insurance are available.
Corporate agents are also plying the major role in Motor insurance to increase
the customers and increase the market share in the sector.

Customer support

Wherever you are, we strive to provide excellent service to you. We welcome

you to Customer Service, our single point-of-contact for all your service
requests/needs. We are committed to resolving your concern fairly and
quickly.

Now reaching us has become a whole lot easier. Choose the channel suited to
your convenience and get an instant access to our services.

60
 Self-Help

Choose the products, service request and we will contact you. Click here

Track Your Interaction Status

Enter your Request/Complaint No. or Policy Number to track your previous

interaction status. Click here

Email Us

Click here to e-mail us

24x7 Insurance Helpline

Call Toll free at 1800 209 8888 for your insurance needs.

Letters

send us a letter

All India Branches

ICICI Lombard has over 257 offices across 196 locations. Find one near you.

61
 Grievance Reddre
Re ressal

If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance reddres
re ressal.

Compliments

If you are happy and satisfied with our service and products, Please provide
feedback.

Corporate Profile
Genesis
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
Holdings Limited; a Canada based $26 billion diversified financial services
company engaged in general insurance,
insurance, reinsurance, insurance claims
management and investment management.

Lombard Canada Limited, a group company of Fairfax Financial Holdings

Limited, is one of Canada's oldest property and casualty insurers.

ICICI Lombard Corporate Highlights

Strong Perc
Pe centage:
entage:
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological infrastructure to service

62
Customer needs. Lombard Canada assists on domain knowledge, product
innovation, business processes
processes based on cutting edge technology and
international best practices in the insurance business.

Resourceful Customer Service:

ICICI Lombard services a wider foot-print
foot print of customers with its offices
located in 127 cities across India. With a network of 3500 hospitals in 200
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
quick response to service requests. Click here

Highest Levels of Security:

Security and privacy for customers remain our highest concern.

Click to view our security certifications:

certificati
- TRUSTe Privacy Seal Program
- VeriSign Certification

Strong Claims paying ability:

We have been assigned the iAAA rating, indicating highest claims paying
ability. As of 2005-06,
2005 06, over 14,
14, 51,000 policies have been issued across India
and over 2.4 lakh claims settled.

63
Comprehensive Products:
We have over 32 customized and innovative insurance
urance solutions which are
offered to the customer for their best insurance solution.

64
S.W.O.T. ANALYSIS OF ICICI Lombard
GIC Ltd.

Strength
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128-bit
128 bit encryption in case of
online data exchange
First company to provide digitally signed documents through an online
interface

Weakness
• Have to take underwriters approval for every process
rocess
• Less agent payout that is (10 %to15%)

65
Opportunity
• 95% 2-wheelers are not insured
• Beneficial in business sector because of corporate growth
• Low market share in insurance sector
• There is lots of innovation to be done
• Customized insurance solution
• Getting Fleet owners

Threats
• There will be too many competitors in future
• Because of d-tariff margin may further shrink
• Threat of new entries
• Threat of substitute products
• Government Policies
• PSU Companies

66
67
MARKET SHARE
ICICI is holding 36% market share of insurance industry and other 13
insurance companies are with 66% market shares.

36%
1
2
66%

Increasing market share year-on-year

1% 2% 5%
100% 1% 4% 9% 11%
9%
17%
80% 20%

60%
98% 94%
87%
40% 75% 69%

20%

0%
2001-02 2002-03 2003-04 2004-05 H106

LIC Private Others ICICI Pru

68
About the Promoters

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector
bank with assets of Rs. 2958.32 billion as on December 31, 2006. ICICI Bank
provides a broad spectrum of financial services to individuals and companies.
This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base
through a multi-channel access network which includes over 695 branches and
extension counters, 3051 ATMs, call centers and Internet banking.

Established in London in 1848, Prudential plc, through its businesses in the UK

and Europe, the US and Asia, provides retail financial services products and
services to more than 21 million customers, policyholder and unit holders
worldwide. Today, Prudential has millions of customers worldwide and over
£238 billion (as of 30 June 2006) of fund under management. In Asia,
Prudential is the leading European life insurance company with a vast network
of life and fund management operations in thirteen countries - China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore,
Taiwan, Thailand, Vietnam and United Arab Emirates.

69
Distribution
ICICI Lombard has one of the largest distribution networks amongst private
general insurers in India. As of January 31, 2007 the company has over 200
offices across the country and over 16,000 agents.

Thus this is the short and brief history of the ICICI Lombard as No1 private
company. It awareness amongst the customer is rated quite high, as its
marketing vertical is quite advance also they carry on large advertisement
campaigns. Through advertisement it is creating its brand value in the mind of
customer. As we can clearly see from the chart that ICICI Lombard grabs huge
amount of market share and its Product Bouquet is of wide range with meets
the customer requirement to its solutions, which the customer appreciates by
buying the product with faith in the company. Also its core competency of
fastest claim settlement makes customer to prefer ICICI Lombard as their first
choice. We can find n number of hoarding, banners, sign board which reflects
the brand image of ICICI Lombard.

70
 Management Team

“The ICICI Lombard General Insurance Company Limited

Management team comprises very young and energetic people
in its management team.”

71
Mr. Sandip Bakshi – M.D & CEO

Mr. Rakesh Jain – CFO

Mr. B. Anant - Head HR

Mr. Ritesh Kumar - Head-Retail, Rural

and Reinsurance

Mr. Neelesh Garg - Head-Retail and

Bancassurance

Mr. Bharathan K - Head GCG

Mr. Alok Agarwal - Head Corporate

Business

72
 OBJECTIVES OF MY SIP TRAINING IN ICICI
LOMBARD
As far as my objective of doing my SIP in ICICI Lombard was concerned, I was
always keen to know how the Insurance Company actually works, how the
funda of minimizing loss due to risk is works, also I was eager to know
Corporate Culture, and ICICI Lombard is much reputed firm as far as Insurance
Sector is concerned.

My basic objective was to apply my theoretical knowledge into practical

aspects; it was time to convert the 1year MBA programme into reality. As it
was time take the real corporate experience for my future career is concerned.

Other than this I was also interested to know how the Agent Acquisition helps
the company to generate business for them. What are the criteria of making
agents, what is process of making the Agent, how to attract an agent and
convince him for doing business with the company. Also I wanted to explore
the convincing skill which is very much important criteria as far as my
marketing career is concerned.

Thus with the blend of constant support of our company guide and my hard
work I think I was quite successful in achieving my objective. I acquired
valuable knowledge of marketing skills, and also I came across to the various
product line knowledge of ICICI Lombard and also how to survive in cut-throat
competition.

My study and research under the topic Agent Acquisition is very wide topic,
but still I managed to take the crux of the study, as the greatest limitation of
the study is the time duration of my SIP which was for 2months.

Now I shall discuss the details of my study under the topic I have chosen as
Agent Acquisition. I would like to start for the beginning of the topic. The
knowledge I acquired during my SIP is shown below.

73
 SCOPE
Purpose of Making of agents

Expansion of business has always proved as a sign of profit, same is in the

business of insurance. Agency development means recruitment of educated,
aware individuals with marketing flair, an elite group. In short companies are
recruiting an advisor who comes with a handsome business; in return they get
commission, incentives, and other benefits also.

The targeted segments are:

• LIC Agents
• R.T.O agents
• Stock Brokers
• Tax consultants/CA
• Fleet Truck Owners
• Education consultants
• Financial service executives (Savings account etc.)
• Tour & Traveler
• Global consultant
• Auto Dealers
• Used car dealers
• Overseas consultant
• Earth movers
• Contractors
• Labour Union leader

74
And there are many other upcoming segments in which agent acquisition is
proving to be boon for the company for generating more and more business.

Tied agency channel

An Agent
Today’s insurance agent has to know which product will appeal to the
customer, and also know his competitor’s products in the same space to be an
effective salesman who can sell his company’s product, and himself to the
customer. To the average customer, every new company is the same.
Perception about the public sector companies are also cemented in his mind.

The new companies are looking for educated, aware individuals with marketing
flair, an elite group.

Role of agents
The insurance agent is the interface between the customer and the insurance
company. The agents should be able to accomplish the following to improve
service.

• Assessing and analyzing the client’s risk profile

• Finding the best products available in the market
• Negotiating the best deal available
• Continuity of service throughout the period of insurance
• Claims advisory service

75
In tied agency thus an agent has important role to play. It becomes his duty to
give the customer best service. Once that is done a customer is satisfied and
this in longer period is bound to bring in more business.

General insurance agency: the process

Once the right profile is found and he/she is ready to take up the agency there
is a fixed process that has to be followed.

Documentation:

A form has to be filled by the person who intends to take up the agency. He
has to submit documents related to Address proof, Education proof, Pan Card
copy, Photo and Cancel cheque.

Training:

Once the form is filled up and necessary documents submitted according to

IRDA guidelines the individual has to undergo a 50 hours training. Thus an
individual undergoes a total 50 hours or two weeks training which is
compulsory and product training is given by company.

76
IRDA Exams and license:

Once the training has been imparted to the individual then to start working as
a general insurance agent than he needs an IRDA license which is given upon
clearing the IRDA exam taken by IRDA itself. This exam is written as well as
online. After clearing exam person gets the license. It is then that individual
become a General insurance agent and can start working.

Facilities provided by the company

• There is 100% management support to agents. For them agent service

desk is also available from there they can get solve any query and get
premium quotation.
• Company gives brochures, pamphlets and other material free of cost.
• In the initial time the unit Sales Manager or Unit Sales Manager also go
with the agent to reap the business and thus gives the practical
knowledge of marketing.
• At any point of time the unit managers are ready help their agents.

77
Returns to an agent

A life insurance advisor earns in form of commissions, bonus, and incentives.

This commission is counted as some percentage of the policy premium. This
commission varies with different policies of a company as well as the policy
terms. It’s high in the year of policy, then decreases and later becomes
constant. For example an advisor can reap 10 to 15 % of commission.
An agent gets the commission till the client pays the premium. According to
IRDA norms certain cap for commission has fixed on various policies.

Apart from regular commission the advisors also gets the gifts as per their
performance. But this is totally an individual life insurance companies’
discretion. Different companies may adopt different strategies for the advisors.

Recruitment strategies
In recruitment of the agents I have targeted the fleet owners who are the
transporter. They own more then 15 trucks with them so they are the initial
beneficial for acquiring the agency, as insurance on the goods carrying vehicle
is compulsory and also they are exposed to n number of risk as they are
constantly into to & fro on the highway road. The main benefit of targeting this
segment is that the owner is itself aware about the risk he is going to have.
And also he has a satisfaction that his property is insured and it would not
affect his financial position is case of any mishaps.

And the best part is that the agent himself can take 20% discount on his Own
Damage premium amount, which is know as OD discount. Still not over, he will
also get 10% payout of the business he gives to the company, so overall he will
be benefited by paying 30% on his own policy premium amount. And not only
will this but they also get No Claim Bonus (NCB) if there is no claim history in

78
Past. Also company is giving RED CARPET service which is only for the fleet
owners as they are considered to be the Gold / Platinum category of the agent.

The red carpet service is the extra benefits which includes many things which
are not rendered by any other competitors.

It includes following benefits:

• Free cashless service in the more than 2000 garages across the country.
• Access to the nearest garage at the highway
• No documents required at the time of surveying
• Free eye check up camp for the drivers
• Free driving training at advance level for the drivers
• Payment of 50% of claim amount at the time of service if claim is more
than 1lakh Rs.
• Settling claims in less than 21days.
• He can insure the vehicle more than 5years of age which no company in
private sector does.

Thus the red carpet service is proving to be win-win situation for both the
company and the agent himself as this is very much beneficial scheme for the
agent himself who is a fleet owner. And thus he is easily convinced however it
is still difficult to trace fleet owner as they are quite busy in their schedule
itself, so taking a prior appointment is difficult task to do.

Also I would like to introduce other specialty which helps agent as a back up
support.

79
  They can insure vehicles above the age of 5 years which generally
Reliance and Iffco tokio is not taking.

 We have agent desk department who is catering agent queries such like
policy, premium calculation if they have any problem regarding their
status and also their payout and claim problems.
 The retention team work as a back up support for the agent which deals
in renewing the old policy of the old customer. So the retention team
intimates the agent and inform about the nearest renewal date and
amount which the agent has to collect from his customer.

Procedure of Recruitment:

To achieve a goal successfully one need to sketch a perfect roadmap & also
adopt a strategy to the destination and also need to follow the path strictly.
My plan to achieve target is as follows:

a. Generating Database

In the very first step of recruiting agents is to prepare contact numbers’

list for that I have used natural market contacts, referral contacts and
also I have done cold calling for that. In cold calling I take name and
number of that person and also profile of that person.

b. Tele calling

Tele calling is one way of convincing customers by doing phone calls and
explaining whole procedure of becoming agents and their pay roll
structure and how ICICI providing service to agents. And if possible tele
callers may take appointment so that face to face conformations can be

80
 Beneficial to understand the policy. This support was given by Divya
Patel & Pooja Nair who was on Agent Service Desk support.

c. Appointments

After Tele calling if customers are interested they give appointment for
meet. Both our self and customer conveniently decide the place for
meet.

d. Collecting documents and filling the forms

There are criteria for customer for becoming a. So, after fulfilling criteria
forms are filled and documents attached.

e. Submitted forms in company

After attaching documents and taking signature of customer forms are

submitted in the company. This is to be handover to the operations
department, as entry would be done in MIS after checking the details and
eligibility of the Agent from the document he has submitted, his signature is
verified, also his identity is cross checked, by the document itself or but
telephonic questioning if required.

81
 Limitations

• Generating the Data base of the customers is a quite time consuming for
me.
• Appointments at improper timings. Set the time according to the
customer convenience.
• Getting Quality Customers who would really trust IPRU was very difficult
at initial phase. Aware them about the other company policy and
differentiate between IPRU and its competitors products.

82
 Learning at Executive Training

• Improvement in my convincing skill.

• Time management.
• Leadership.
• Get the knowledge of corporate world.
• Working effectively and efficiently.
• Team work
• Working according to the company policies.
• Regular follow up the agents who are in pipeline.
• It is really important to know what the customer’s requirement is.
• How business & ethics work together
• Regular reporting with my company guide.
• Interacting with different type of agents
• Provide me an opportunity to apply the concepts learned in real –life
situations.
• It sensitizes us about nuances of work place by the time-bound projects
assigned by the company.
• It creates awareness about the strengths & weaknesses in the work
environment
• It provides a platform to develop a network while OJT (On-the-job-
Training), which would be useful in enhancing career prospectus.
• Know the day-to-day functions of the company.
• It provides a unique opportunity to get exposed to corporate culture,
professional experience & professional behavior & putting the
theoretical concepts learned in the classroom for developing managerial
skills.

• To gain a deeper understanding of the work culture, deadlines, pressure

etc. of an organization.

It gives a flavor of teamwork, organization culture, team dynamics, result

orientation, organizational pressures, complexities in achieving the desired
results etc.

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• It provides direct exposure to the execution & support functions of the
departments.
• It provides a good scope for developing necessary managerial skills &
positive attitude.

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 Looking forward in insurance market in 2010
The Indian non-life market has experienced significant changes that are likely
to influence the country’s development of its insurance market in the medium
to long term.
So far, the entry of a large number of Indian and foreign private companies has
led to greater choice in terms of products and services for Indian consumers. A
growing realization of the benefits and importance of sophisticated insurance
and reinsurance tools has broadened the pool of potential buyers of insurance.
Given this backdrop, the Indian insurance market has experienced
considerable growth since its liberalization in 2000. Over the next three years,
the Indian insurance market is. Likely to see its process of maturation
accelerate.

Regulatory drivers
Regulatory changes in the four areas discussed in the previous section –
products, market players, distribution and reinsurance – will drive change in
the Indian insurance market in the medium term. In some areas, such as
detariffication, the majority of reform has already taken place, although the
consequences are yet to be seen. In other areas, while the reform is promised,
it is difficult to anticipate when it will occur. As a result, there is a lot of
uncertainty in the Indian insurance market. The four main areas of change are
now considered in turn.

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 Detariffication
The process of detariffication, first begun in 1994, has gradually moved the
Indian market to a position where the overwhelming majority of insurance is
transacted without a tariff. As of
1 January 2007, tariff rates have been withdrawn from all lines of business
except for motor third-party (TP) liability. While hitherto, insurance
professionals had limited exposure to
Sophisticated technical pricing based on actuarial data analysis, in a detariffed
market, this is increasingly a necessity for businesses in order for them to
remain profitable.

Foreign ownership

As discussed earlier, foreign ownership is currently restricted to 26%, although

there are plans to increase this limit. The typical structure adopted by the
Indian government for the Phasing in of foreign-owned entities across other
industries (such as construction and pharma) has been as follows:

1. Phase I: Allow foreign entity to have 26% stake in joint

venture.
2. Phase II: Increase foreign entity maximum stake from 26% to 49%.
3. Phase III: Increase foreign entity maximum stake from 49% to 74%.
4. Phase IV: Allow 100% foreign-owned entity to operate in market.
In January 2007, the Indian government reiterated its claim to
Increase the cap from 26% to 49%

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In January 2007, the Indian government reiterated that it would introduce
legislation to hike the FDI cap in the insurance sector to 49%. No time limit has
been set for taking a decision on it although consultations with the industry
and stakeholders are underway. There is ample opposition from the left, but
analysts expect that this change will be made effective in. The next one to two
years. The effect of this change will be twofold. Firstly, it will increase the focus
of the existing Private insurers operating within the Indian market. As
discussed in the previous section, the private companies are increasingly
diverging on strategy as they are influenced by their foreign partners. It is likely
that increased foreign ownership will lead to differentiated strategy, more
niche players and a wider product range.

Secondly, it is expected to increase the supply of capacity in the market as new

investors will decide to enter the market. Indeed, a number of insurers have
commented that, as soon as foreign companies are allowed more than 26%
ownership, they would move as quickly as possible to participate in the
market.

Broker distribution
The broker channel was recognized in 2002; again, foreign capital providers
can take up to a 26% stake in an Indian brokerage operation. There is also no
indication at the time of writing as to whether the constraints placed on
Brokers, such as high set-up costs and activity restrictions will eventually be
removed. What remains clear, however, is the fact that in a detariffed market,
the broker has more opportunity to demonstrate value to both the customer
as well as the insurer. Value-added services can be in the form of consulting
regarding risk management responsibilities as well as more traditional
insurance-related roles.

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 Compulsory Sessions

In line with detariffication, there has been some progress in reducing the
compulsory session to the GIC from 20% to 15%.
The 20% compulsory cession has been reduced to 10% in 2007
However, a complete abolishment of the remaining 15% compulsory cession to
the GIC is unlikely to occur in the medium term. Although it would seem
natural to liberalise this position as the broader non-life market begins to open
up, the Indian government and Legislator reiterated their desire to retain
insurance premium in India in the central legislation of 2000, and there is no
reason to believe that this position has since changed. In addition, many local
companies are happy with the automatic reinsurance support that they receive
from the GIC.

The PSUs are pleased that they are able to cede 15% of their poorly performing
motor book on to their parent whereas the growing number of private insurers
are grateful for the additional capacity that they receive from the GIC’s de
facto proportional treaty coverage. While a further reduction to 10% is
expected in 2008, abolishing compulsory cessions
Altogether is not at the top of the legislator’s agenda.

Growth drivers

Overall, sales of both commercial and retail products are expected to benefit
from India’s surging economic output over the medium term. Economists
expect India’s output to grow by around 6% per annum over the next ten to 15
years, and the political and business environments are expected to stabilize
further.79 The combination of this economic growth, Increased stability and
the liberalization of the non-life sector is expected to provide premium growth
in the range of 10% to 15% per annum over the short to medium term.

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Personal lines insurance premium growth drivers:

Personal lines products are expected to develop quickly as Indians grow

wealthier although probably not of immediate interest to Lloyd’s underwriters,
a developing economy’s initial growth in insurance penetration is often driven
by personal lines products, especially motor cover as this tends to compulsory.
Indeed, India’s fast-developing private insurers expect retail products to
provide them with their main source of premium growth over the medium
term.

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 Conclusion
It was really a great experience to be associated with such a great corporate
company. Its was a great pleasure to work with reputed firm ICICI Lombard
which is No. 1 player as far as private company in insurance sector. Also I am
once again thankful to my company guide and staff of ICICI Lombard who really
worked hard as far as my training was in process. I have learned enormous
things during these 2 months, which will prove a solid platform as far as my
future career is concerned. It really enhanced my marketing skills, and also it
gave me solid motivation to face the critical situation, also I came across to the
various people and cultures which are in the corporate culture. I can say that
SIP was like net practice before playing any big game. It gave me ample of
knowledge regarding my study on Agent Acquisition.

I also got experience of hardcore selling as it was part of my SIP training. Thus
this 2months of SIP has pumped in lot of motivation and enthusiasm in me. It
also upgraded my confidence level and gave me boosting to face new
challenges and gave me path of not only surviving but also to grow in this
competitive work. I can say that my dedication and hard work towards my
decided task really gave me good result in the end.

I also learned to work in a team and how to cope up with team spirit. Positive
reinforcement was the most motivating factor which makes us to work in a
healthy atmosphere.

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 BIBLOGRAPHY

Address:-

ICICI Lombard General insurance co. LTD.

6th floor,
BBC Tower, Law Garden Road,
Near Mithakhali Six Road,
Ahmedabad.

WEBSITES

www.ICICIbank.com

www.icicilombard.com

Search engine like: www.google.com

Magazine

The Economic Times

The business times

News paper

The Times of India

Gujarat samachar

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