MAJOR PROJECT REPORT

ON
STUDY ON ICICI LOMBARD GENERAL INSURANCE

Submitted in the partial fulfilment of the Requirement for the award of the
Degree
Of
BACHELORS IN BUSINESS ADMINISTRATION (BANKING AND INSURANCE)

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mrs. Suhasini Parashar Harsh Mohan
ASSOCIATE PROFESSOR 01914901815
DEPARTMENT OF BUSINESS BBA (B&I) 6TH SEMESTER
ADMINISTRATION

SESSION: 2015-2018
DEPARTMENT OF BUSINESS ADMINISTRATION
MAHARAJA SURAJMAL INSTITUTION
RECOGNISED BY UGC, U/S 2(F),
NAAC ACCREDITED
AFFILATED BY GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
C-4, JANAKPURI, NEW DELHI – 110058

Page 1
 CERTIFICATE

This is to certify that HARSH MOHAN of BBA (BANKING & INSURANCE) 6TH
SEMESTER has accomplished the project title “STUDY ON ICICI LOMBARD
GENERAL INSURANCE” under my guidance and supervision.

The project report submitted has been found satisfactory for the partial fulfilment of the
degree of BACHELOR OF BUSINESS ADMINISTRATION (BBA) as per GURU
GOBIND SINGH INDRAPRASTHA UNIVERSITY.

PROJECT GUIDE:

MRS. SUHASINI PARASHAR

ASSISTANT PROFESSOR

DEPARTMENT OF BUSINESS ADMINISTRATION

Page 2
 ACKNOWLEGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide Mrs.
SUHASINI PARASHAR (Department of Business administration) for her exemplary
guidance, monitoring and constant encouragement throughout the course of my thesis. The
blessings, help and my guidance given by her time to time shall carry me a long way in the
journey of life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude for her cordial support,
valuable information and guidance, which helped me in completing this task through various
stages.

I am obliged for the valuable information provided by her in her respective field. I am
grateful for her cooperation during the period of my MAJOR PROJECT REPORT.

Lastly, I thank almighty, my parents, teachers and friends for their constant encouragement
without which this project would not be possible.

Harsh Mohan
01914901815
BBA (B&I)
6th Semester

Page 3
 Table of Contents

CHAPTER PARTICULARS PAGE NO.

1. INTRODUCTION OF THE STUDY
a) Introduction of the sector 6
b) Objective of the study 8
c) Scope of the study 9
d) Limitation of the study 10
e) Research methodology 11
2. PROFILE OF THE ORGANISATION
a) Origin of the organization 12
b) Growth and Development of the organization 13
c) Present status of the organization 14
d) Philosophy 15
e) Products of ICICI Lombard GIC 18
3. REVIEW OF LITERATURE
a) Insurance sector in India 27
b) IRDA and its roles 28
c) Structure of Insurance sector in India 29
d) Impact of Globalization 30

4. ANALYSIS AND INTERPRETATION

a) SWOT analysis of ICICI Lombard GIC 33
b) Data Analysis 34
5. CONCLUSION AND RECOMMENDATION
a) Conclusion 50
b) Recommendations 51
c) Bibliography 52
d) Annexure 53

Page 4
 Chapter-1
INTRODUCTION OF THE STUDY

Page 5
1.1 INTRODUCTION OF THE SECTOR

Insurance is not the sale of products, but servicing customers. It is a system, by which the
losses suffered by a few are spread over many, Exposed to similar risks. Insurance is a
protection against financial loss arising on the happening of an unexpected event. Insurance
companies collect premiums to provide for this protection. A loss is paid out of the premiums
collected from the insuring public and the Insurance Companies act as trustees to the amount
collected. The very fundamental principle of spreading of the risk is actually practiced by the
insurance companies by reinsuring the risks that they have insured. The opening up of the
Insurance Sector to Private Companies, has made available more products and world class
service to Indian Customer.
This project has been made with an objective to give an insight into various facts of General
Insurance sector in India. An attempt has been made to explain the apex body of General
Insurance. I.e. General Insurance Corporation of India, its structure, products and
subsidiaries.

Also the review of latest entrants into insurance sector viz. private players like TATA AIG
General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz
General Insurance Company, IFFCO Tokyo General Insurance Company, Royal Sundaram
General Insurance Company limited and ICICI Lombard General Insurance Company
have been described in brief, Due to the growth in the technological sector of the country, the
insurance companies have started utilizing these technologies to it‚as optimum level.

Page 6
 Brief History of the General Insurance Sector
The entire general insurance business in India was nationalised by General Insurance
Business (Nationalisation) Act, 1972 (GIBNA).
The Government of India (GOI), through Nationalisation took over the shares of 55 Indian
insurance companies and the undertakings of 52 insurers carrying on general insurance
business.
General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of
GIBNA.
It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private
company limited by shares.
GIC was formed for the purpose of superintending, controlling and carrying on the business
of general insurance.
As soon as GIC was formed, GOI transferred all the shares it held of the general insurance
companies to GIC.
Simultaneously, the nationalised undertakings were transferred to Indian insurance
companies.
After a process of mergers among Indian insurance companies, four companies were left as
fully owned subsidiary companies of GIC
 National Insurance Company Limited.
 The New India Assurance Company Limited.
 The Oriental Insurance Company Limited.
 United India Insurance Company Limited.
The next landmark happened on 19th April 2000, when the Insurance Regulatory and
Development Authority Act, 1999 (IRDAA) came into force.
This Act also introduced amendment to GIBNA and the Insurance Act, 1938. An amendment
to GIBNA removed the exclusive privilege of GIC and its subsidiaries carrying on general
insurance in India.
In November 2000, GIC was re-notified as the Indian Reinsurer and through administrative
instruction, its supervisory role over the four subsidiaries was ended.
With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002)
coming into force from March 21, 2003; GIC ceased to be a holding company of its
subsidiaries. The ownership of the four erstwhile subsidiary companies and also of the
General Insurance Corporation of India was vested with Government of India.

Page 7
1.2 OBJECTIVES OF THE STUDY:
 To know the marketing strategy in ICICI Lombard General Insurance.
 To know the public interest towards the insurance.
 To know the brand awareness towards ICICI Lombard General Insurance Co., Ltd.
 To find out which parameter is motivating insurance advisers to join insurance field.
 To make suggestions and recommendations to improve upon the working of the
company.

Page 8
1.3 RESEARCH METHODOLOGY:

Information is collected from the primary and secondary data. Analytical tool applied for the
analysis of data or Sources of Data.

The source of information is broadly classified into 2 categories:

 PRIMARY DATA
 SECONDARY DATA.

 PRIMARY DATA:
The present study is mostly based on the questionnaire and personnel discussion with
the respondents in New Delhi respectively.

 SECONDARY DATA:
Secondary data is collected through the company brochures, manuals, periodicals,
newsletters, articles, internet and other publications.

Page 9
1.3 LIMITATIONS OF THE STUDY:

 The area of study is limited to Delhi.

 The bias response from the respondents may have introduced errors in the survey
findings.
 The sample is limited.
 Time constraint.

Page 10
 CHAPTER -2
PROFILE OF THE ORGANISATION

Page 11
2.1 Origin of the Organization:

The 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 $500 million 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.100 crore. ICICl Lombard has plans to sell covers to the corporate clients of ICICl. At the
same time it will sell property insurance for ICICI home loan seekers and auto insurance for
those availing of car finance.

Page 12
History of ICICI Lombard GIC ltd.
Established in 2001, ICICI Lombard General Insurance Company is a joint venture
between ICICI Bank- India’s second largest bank and Fairfax Financial Holdings Limited- a
financial services company based in Toronto. ICICI bank had 64% stake in the venture while
Fairfax had 35% in the joint venture. ICICI Lombard General Insurance is the largest private
sector general insurance company in India.

2.2 Growth and Development of the Organization

ICICI Lombard is the largest private sector general insurance company in India with a Gross
Written Premium (GWP) of Rs. 34,198.4 million for the year ended March 31, 2009. The
company presently has around 4,777 employees in 357 branches. In the financial year ended
March 31, 2009, the company issued over 4 million policies and serviced over 33 lakh
claims. The company has a claim disposal ratio of 97% (percentage of claims) settled against
claims reported as on March 31, 2009

ICICI Lombard has been assigned a domestic rating of IAAA by ICRA (an associate of
Moody’s Investors Service) for highest claim paying ability and a fundamentally strong
position. ICICI Lombard allows instant policy issuance and renewal through its website
www.icicilombard.com for all retail insurance products including Car Insurance, Health
Insurance, Travel Insurance, Two Wheeler Insurance and Home Insurance. There are
multiple payment options available including Internet banking, credit card, debit card and
cash card.

ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power
Asia Pacific in India among 11 auto insurance providers. The company has been conferred
the Golden Peacock- Eco Innovation Award of 2009 for weather insurance and the Customer
and Brand Loyalty award in the “Insurance Sector - Non-Life” at the 2nd Loyalty awards,
2009. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia
Insurance Industry Awards. The company also won the NDTV Profit Business Leadership
Award 2007 and was adjudged as the most Customer Responsive Company in the Insurance
category at the Economic Times Avaya Global Connect Customer Responsiveness Award

Page 13
2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2006.

It is the largest private sector general insurance company in India with a gross written
premium (GWP) of Rs885.1 crore in 2004-2005

2007 - ICICI Lombard General Insurance Corporation has grabbed the second spot in
insurance premiums growth displacing three public sector companies earned the second
largest premium of Rs448.65 crore for April but was at top place in terms of premium growth
of 35 per cent over the corresponding period of the last financial year.

2.3 Present status of the organization

ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power
Asia Pacific in India among 11 auto insurance providers. The company has been conferred
the Golden Peacock- Eco Innovation Award of 2015 for weather insurance and the Customer
and Brand Loyalty award in the “Insurance Sector - Non-Life” at the 2nd Loyalty awards,
2015. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia
Insurance Industry Awards. The company also won the NDTV Profit Business Leadership
Award 2014 and was adjudged as the most Customer Responsive Company in the Insurance
category at the Economic Times Avaya Global Connect Customer Responsiveness Award
2013. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2013.

ICICI Lombard GIC ltd. Is one of the leading private sector general insurance companies in
India with a Gross written Premium (GWP) of Rs.109.60 billion for the year ended March 31,
2017. The company issued over 17.73 million policies and settled over 2.18 million claims as
on March 31, 2017. ICICI Lombard has 249 branches spread across the nation.

Page 14
Board of Members

Chanda Kocchar - Chairperson

Mrs. Lalita D. Gupte – Director

N.S. Kannan – Director

Ashwin Parekh – Director

Bhargav Dasgupta – Managing Director & CEO

Alok Kumar Agarwal – Executive Director

Sanjeev Mantri – Executive Director

Ved Prakash Chaturvedi – Director (ICICI Lombard)

Uday Chitale – Director (ICICI Lomabard)

Suresh Kumar - Director (ICICI Lombard)

2.4 PHILOSOPHY
Claim Settlement:

Lightning-fast claim settlement is one of the key areas of focus for ICICI Lombard. Our
dedicated relationship managers, wide spread network across India and presence of 24 *7
call centres assure our customers that we are always on call, day or night. Our tie-up with
Cunningham Lindsey, the world s second largest loss adjustors with its network in 80
locations across India, ensures a surveyor on site in less than 24 hours.

Rural Initiative:

ICICI Lombard believes in striking the right balance between the commercial and socio-
economic aspects of the insurance business. In its Endeavour to offer tailor-made products
to meet the requirement of the rural population, explore business opportunities in the
related segments and build a competitive edge through strong distribution network and
product innovation, ICICI Lombard uses intermediaries like ICICI Banks kiosks, direct
selling agents, state-level tie-ups, ITC s e-Chou pals, NGO s and other micro- finance

Page 15
Institutions (MFIs). The rural segment offers immense business opportunities for insurers
since it constitutes 50% of the GDP. Growing per capita and disposable income and rising
financial awareness among rural masses has opened up new avenues for insurers in this
segment.

Corporate Business:

ICICI Lombard via its CSG segment aims to tap large corporate with high premium
potential. The company has emerged as a major player in the corporate segment with a
well-balanced portfolio. It has made forays into specialized products that require complex
product development and strong underwriting skills. In addition, a strong distribution has
enabled it to reach out to over 3,000 corporate. It also offers single point contact through
dedicated relationship managers for both sales and customer service.

Bank assurance

The Company has set up a dedicated SBU to cater to banc assurance business managed by
dedicated teams for each bank partner across all locations to ensure highest levels of
service to the channel and their customers and to provide complete support and value
addition to the bank partners. Our banc assurance philosophy emphasizes on complete
respect for the partner s brand and business model with a clear understanding that the
partner owns the customer. The company has tied up with few partners like ABN Amro
Bank, ICICI Bank, UTI Bank etc, to ensure complete support and continuous value
addition to the partner. The business philosophy behind the banc assurance initiative is to
leverage distribution synergies with partners. The channel offers unmatched product suite
customized for bank channels and customers.

Retail

ICICI Lombard aims to tap retail segment through multi-product and multichannel
approach to marketing. The company believes that retail segment has immense potential
and will drive the company s growth in future. It has presence in all retail categories --
travel, health, home and motor. It has launched a number of innovative products and
features in each category like `Pay-per-day in Overseas Travel Insurance and floater cover

Page 16
for individual Health Insurance. The key to success in this area is effective market
segmentation and targeted product offerings that meet customer needs.

E-channel

ICICI Lombard s e-channel initiative has embraced technology with open arms. The
effective use of technology platforms has enabled customers to view all their insurance
transactions through the web on a real time basis. ICICI Lombard s e-channel mainly
focuses on targeting customers through Internet, intranet (of large corporate and
manufacturing companies) and other national level distribution networks. The focus is on
targeting customers through the online medium. The model is to develop an integrated and
customized

Page 17
2.5 Products of ICICI Lombard GIC ltd.

 ICICI Lombard Health Insurance.

 ICICI Lombard Overseas Student Medical Insurance
 ICICI Lombard Home Insurance.
 ICICI Lombard Car Insurance.
 ICICI Lombard Rural Weather Insurance.
 International Travel insurance

1] STANDRARD FIRE AND SPECIAL PERILS

I] FIRE:

Excluding destruction or damage caused to the property insured.

 Its own fermentation, natural heating or spontaneous combustion.

 It’s undergoing any heating or drying process.

 Burning of property insured by order of nay public authority.

Page 18
II] Explosion Implosion

Excluding loss, destruction of or damage.

a. To boilers (other than domestic boilers), Economizers or other vessel, machinery or

apparatus (in which steam is generated) or other contents resulting from their own
explosion- implosion.
b. Caused by centrifugal forces.

III] Aircraft damage

Loss, destruction or damage caused by aircraft, other aerial or space devices

and articles dropped there from excluding those caused by pressure waves.

IV] Riot, strike and malicious damage

Loss or visible physical damage or destruction by external violent means directly Caused
to the property insured.

V] Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation

Loss, destruction or damage directly caused by Storm, cyclone, typhoon, tempest,
hurricane tornado, flood and inundation excluding those resulting from earth quake,
volcanic eruption or other convulsions of nature.

VI] Impact Damage

Loss of or visible physical damage or destruction cause to the property insured due to
impact by any rail road vehicle or animal by direct contact not belonging to or Owned by

c. The insured or any occupier of the premises or

d. There employees while acting in the course of their employment

Page 19
VII] Subsidence and land slide including rockslide

Loss, destruction or damage directly caused by subsidence of part of the site on which the
property stands or land slide / rockslide excluding:

e. The normal cracking, settlement or bedding down of new structures.

f. The settlement or movement of made up ground.

g. Coastal or river erosion.

h. Defective design or workmanship or use of defective materials.

i. Demolition, construction, structural alterations or repair of any property or ground

works or excavations.

VIII] Bursting and / or overflowing of water tanks apparatus and pipes.

IX) Missile testing operations.

X) Leakage from automatic sprinkler installations.

Excluding loss, destruction or damage caused by

a) Repairs or alterations to the buildings or premises.

b) Repairs, removal or extension of the sprinkler installation.

c) Defects in construction known to the insured.

XI) Bush Fire

Excluding loss destruction or damage caused by forest fires.

2] BURGLARY:

The company shall compensate the insured for any loss or damage, caused by burglary, to
the contents of insured s premises.

Page 20
3] CASH IN SAFE:

The company will compensate the insured in respect of loss of, or damage to, money
and/or valuables caused by burglary and/or attempted burglary when such money and/or
valuables are contained in a domestic safe or vault which is protected by appropriate and
adequate security measures with lock in key.

4] CASH IN TRANSIT

The company shall compensate the insured for loss of money in coins and/or notes caused
by burglary, robbery or theft occurring while such money is in the insured s possession and
is being conveyed by the insured to the insured s premises from the insured s bank /ATM
from where such money had been withdrawn immediately prior to the occurrence.

5] NEON SIGN /GLOW SIGN:

The company will compensate the insured in respect of loss or damage to neon sign/glow
sign belonging to the insured caused by:

Accidental external means

Fire, lightning or external explosion or theft

Riot, strike or malicious act

Flood, inundation, storm, tempest, typhoon hurricane, tornado, cyclone.

6] GLASS BREAKAGE:

The company shall compensate the insured for loss or damage to any fixed glass other than
that which are specifically excluded hereunder, caused by any accidental, external and
visible means.

7] CHEQUE FORGERY:

The company shall compensate the insured for any loss to the insured caused by forgery or
material alteration of cheques, drafts or other negotiable instruments issued by, or in favor
of, the insured.

Page 21
8] EMPLOYERS LIABILITY:

The company shall indemnify the insured against the legal liability of the insured in respect
of any bodily injury sustained by, or the loss of life of, the insured s employees arising out
of and in the course of their employment.

9] ACCIDENTAL, MEDICAL/HOSPITAL EXPENSES TO INSURED:

The company shall compensate the insured for actual and reasonable medical expenses
incurred for hospital treatment by the insured in respect of any bodily injury sustained by
the insured arising out of operation at an insured peril as provided for in standard fire and
special perils- buildings and standard fire and special perils- contents and / or burglary,
coverage s in this policy and subject to a deductible excess of an amount as may be
specified in part 1 of the schedule.

10] PUBLIC LIABILITY:

The company shall indemnify the insured for those sums that insured becomes legally
liable to pay, including litigation expenses and any amount in compensation, by virtue of

The following items as specified occurring in and about the insured s premises.

 Accidental death or bodily injury to any person other than insured or the insured
employees / staff. This coverage shall be limited to the sum insured for any accident
or series of accidents arising from any one event or cause, and for all accidents
during the period of insurance, and,

 Accidental damage to property of any person other than the insured or

Insured employees / staff. This coverage shall be limited to the sum insured for any
one accident or series of accidents arising from any one event or cause, and for all
accidents during the period of insurance.

Page 22
11] FIDELITY:

The company will compensate the insured for any direct pecuniary loss sustained by the
insured through act of fraud or dishonesty committed by any salaried employee of the
insured in the insured premises, provided that :

A. The loss shall have occurred in connection with the employees occupation and
duties during the uninterrupted continuance of his employment and he discovered
within six months after its happening first of six months after the death, dismissal or
retirement of such person and

B. The liability of the company in respect of any one person or all persons so
employed and in respect of losses in any one period of insurance shall not exceed
the sum insured.

Health Insurance:
We save money for a better future. But life is full of surprises; a medical emergency can strain
your hard-earned investments. Now, let your savings be untouched, get secured.

Home Insurance:
Insure your home and its contents against natural calamities like fire, earthquake, flood,
gas cylinder explosion, fire due to electric short circuit as well as man-made disaster like
burglary.

Home Plans

Gold Plan:

The Gold plan covers much more than just your home. It offers family protection,Covers
loss of cash, public liability, temporary resettlement,Alternative accommodation and
baggage insurance. Other add ones offered are loan repayment for home and car and cover
for terrorism.

Page 23
Silver Plan:

The Silver plan covers the structure of your home and its contents from natural and man-
made calamities like fire, flood, storm and burglary. The add ones offered include expenses
of rent for alternative accommodation and terrorism.

Motor Insurance:
Your vehicle helps you reach destinations and enables you to commute from one place to
another. But it might face some damage in an accident or get stolen. The security of your
co-passengers can be endangered during accidents. Motor insurance takes care of all these
possibilities and more.

Motor Plans

Four Wheeler Package Policy:

A comprehensive policy that not only covers you against third party but also against
accidents, damage, injury and much more.

Two Wheeler Package Policies:

A composite policy that protects you against unfortunate accidents, third party liability,
injuries and damages.

Travel Insurance:
You do not want anything to ruin your hard earned holiday or your crucial business
meeting. There is a possibility of some unexpected occurrence no matter how perfectly you
plan your trip. Unfortunate events such as baggage loss, passport loss, a medical
emergency or an accident can affect you. Having Travel Insurance protects you from all
such perils at a fraction of the cost of your trip.

Page 24
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.

Student Travel Plan:

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.

Domestic Travel Plan:

Domestic Travel policy takes care of you and your valued assets left at home. A policy
that let s you enjoy your trip leaving your worries with us.

Page 25
 Chapter-3
REVIEW OF LITERATURE

Page 26
3.1 Insurance Structure in India
The General insurance business in India, can trace its roots to the TritonInsurance
Company Ltd., the first general insurance company established in the year 1850in
Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classesof general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames
acode of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum
solvencymargins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
generalinsurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National
InsuranceCompany Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a
company.

INDIA is the 5th largest market in Asia by premium following Japan, Korea, and China and
Taiwan. The US$ 30 billion insurance business in India is expected to grow 17 per cent in
fiscal 2008-09.
If the country’s economy clocks 7.6 percent GDP. In fiscal 2007-08life insurers grew their
business by 23.3 percent to Rs.930 billion while general insurers posted growth of about 14
percent in premium income to Rs 298 billion. Presently thetotal number of insurers registered
with the Insurance Regulatory and Development Authority (IRDA) stands at 42:21 in life
insurance and 21 in general insurance segments.
The Indian insurance sector has a turnover of around Rs 26,287 crore. The current FDI inthis
sector stands at around Rs 2500 crore and market experts expects FDI to zoom
byabout 2.5 times once the FDI cap is raised by another 23 percent to 49 percent.

Page 27
3.2 IRDA and its Roles
Insurance Regulatory and Development Authority (IRDA) was established on 19th April2000
to protect the interests of holder of insurance policy and to regulate, promote andensure
orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entryof
private players into the insurance market which was hitherto the exclusive privilege of public
sector insurance companies/ corporations. Under the new dispensation Indianinsurance
companies in private sector were permitted to operate in India with the
followingconditions:Company is formed and registered under the Companies Act, 1956;The
aggregate holdings of equity shares by a foreign company, either by itself or through
itssubsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such
Indian insurance company;The company's sole purpose is to carry on life insurance business
or general insurance business or reinsurance business.The minimum paid up equity capital for
life or general insurance business is Rs.100 crores.The minimum paid up equity capital for
carrying on reinsurance business has been prescribed as Rs.200 crores.The Authority has
notified 27 Regulations on various issues which include Registration of Insurers, Regulation
on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and
Social sector, Investment and Accounting Procedure, Protection of policy holders' interest
etc. Applications were invited by the Authority with effect from 15thAugust, 2000 for issue
of the Certificate of Registration to both life and non-life insurers.The Authority has its Head
Quarter at Hyderabad.

Insurance companies: IRDA has so far granted registration to 12 private life insurance
companies and 9 general insurance companies. If the existing public sector
insurancecompanies are included, there are currently 13 insurance companies in the life side
and 13companies operating in general insurance business. General Insurance Corporation has
beenapproved as the "Indian reinsurer" for underwriting only reinsurance business.

Page 28
3.3 Structure of Insurance Sector in India

Indian Insurance market was opened to private and foreign investment in 1999-2000. The
Indian Insurance industry consists of a total of 34 playersLife: 1 public sector player; 16
private players Non-life: 6 public sector players; 11 private playersMajor international
players like AIG, Aviva, MetLife, New York Life, Prudential, Allianz, Sun Life,
Standard Life and Lombard arealready present with minority stakes in joint ventures with
Indian companies for both Life and Non-life segmentsThe Life Insurance market is still
dominated by Life Insurance Corporation (LIC) - a public sector company which had 75%
share of first year premium in 2006-07In non-life, private sector companies (almost all are
joint ventures with foreign insurers) accounted for 34% of the market in 2006-07.

Page 29
3.4 IMPACT OF GLOBALIZATION
While nationalized insurance companies have done a commendable job in extending the
volume of the business, opening up insurance sector to private players was a necessity in the
context of globalization of financial sector. If traditional infrastructural and semi-public
goods industries such as banking, airlines, telecom, power etc., have significant private sector
presence, continuing a state of monopoly in provision of insurance was indefensible and
therefore, the globalization of insurance has been done as discussed earlier. Its impact has to
be seen in the form of creating various opportunities and challenges. The introduction of
private players in the industry has added colours to the dull industry. The initiatives taken by
the private players are very competitive and have given immense competition to the on time
monopoly of the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in the sector. The new
players have improved the service quality of the insurance. As a result LIC down the years
have seen the declining in its career. The market share was distributed among the private
players. Though LIC still holds 75% of the insurance sector the upcoming nature of these
private players are enough to give more competition to LIC in the near future. LIC market
share has decreased from 95% (2002-03) to 81% (2004-05). The following company holds
the rest of the market share of the insurance industry.

PRESENT SCENARIO OF GLOBALIZATION

In a tough battle to expand market shares the private sector life insurance industry consisting
of 14 life insurance companies at 26% have lost 3% of market share to the state owned Life
Insurance Corporation (LIC) in the domestic life insurance industry in 2006-07.According to
the figures released by Insurance Regulatory & Development Authority, the total premium of
these 14 companies have shot up by 90% to Rs 19,471.83 crore in 2006-07from Rs 10, 252
crore. LIC with a total premium mobilisation of Rs 55,934 crore has been able to retain a
market share of 74.26 % during the reporting period. In total the life insurance industry in
first year premium has grown by 110% to Rs 75, 406 crore during 2006-07. The 2006-07
performance has thrown a few surprises in the ranking among the private sector life insurance
companies. New entrants like Reliance Life and SBI Life had shown a huge growth of over
381% and210% respectively during the year. Reliance Life which has become one of the top
five companies ended the year with a premium of Rs 930 crore during the year. Though

Page 30
ICICI Prudential Life Insurance remained as the No 1 private sector life insurance company
during the year. Bajaj Allianz overtook ICICI Prudential in terms of monthly market share in
March, for the first time ever. Bajaj's market share among private players innon-single
premium for March stood at 29.1% vs. ICICI Prudential's 23.8%. Bajaj gained4.6 percentage
point market share among private sector players for FY07.

Among other private players, SBI Life and Reliance Life continued to do well, each
gaining4% market share in FY07. SBI Life's growth was driven by increasing contribution
fromULIP premiums. Another notable developments of the 2006-07 performance has been
theexpansion of retail markets by the life insurance companies. Bajaj Allianz Life
insurancehas added 20 lakh policies while ICICI Prudential has expanded over 19 lakh
policiesduring the year.With the largest number of life insurance policies in force in the
world, Insurance happensto be a mega opportunity in India. It’s a business growing at the rate
of 15-20 per centannually and presently is of the order of Rs 450 billion. Together with
banking services, itadds about 7 per cent to the country’s GDP. Gross premium collection is
nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of
GDP.Yet, nearly 80 per cent of Indian population is without life insurance cover while
healthinsurance and non-life insurance continues to be below international standards. And
this partof the population is also subject to weak social security and pension systems with
hardlyany old age income security. This it is an indicator that growth potential for
theinsurance sector is immense.A well-developed and evolved insurance sector is needed for
economic development as it provides long term funds for infrastructure development and at
the same time strengthensthe risk taking ability. It is estimated that over the next ten years
India would requireinvestments of the order of one trillion US dollar. The Insurance sector, to
some extent, canenable investments in infrastructure development to sustain economic
growth of the country.Insurance is a federal subject in India. There are two legislations that
govern the sector- TheInsurance Act- 1938 and the IRDA Act- 1999. The insurance sector in
India has become afull circle from being an open competitive market to nationalisation and
back to a liberalisedmarket again. Tracing the developments in the Indian insurance sector
reveals the 360degree turn witnessed over a period of almost two centuries.
The insurance industry has grown by 83 per cent since the opening up of the sector.

Page 31
 CHAPTER-4
Analysis and Interpretation

Page 32
4.1 SWOT Analysis of ICICI Lombard GIC ltd.

Strengths Weaknesses
1) The company has well and advance staff
The company is privately driven company and
and work environment.
people rely on companies which are in
2) ICICILombard is considered as a reliable association or wholly governed by any govt.
and easy to approachable environment. organization like LIC of India.

3) The company value the customers and is

having the best customer oriented
approach and system.

4) They have the best follow up system for

its prospects.

Opportunities Threats

1) Indian market is still untapped so large
audience is major opportunity for the
company.
2) High market share in Indian market than
the other market players.
3) Company has a good reputation among
the audience due to its high yearly
returns and market share.
1) High competitive market situation due to
entering of local as well as major firms
like Tata and Bharti insector.
2) High level of involvement of
government in financial sector due to
fraud cases reported in year 2009
(satyam scandal).

Page 33
4.2 DATA ANALYSIS AND INTERPRETATION

1. Are you aware of General insurance?

Table1:
Particulars No. Of respondents Percentages
Yes 50 83.33
No 0 0
Little Bit 10 16.67
Total 60 100

No. of respondents

16%
0%

Yes
No

84% Little Bit

Interpretation:

The response given by respondents 83.33 are aware of general insurance and 16.67 know
very little about office insurance. This clearly shows that there is no proper advertisement
reach to the people.

Page 34
2. If Yes, How do you come to know about General Insurance?
Table 2:
Media No. Of Respondents Percentages
TV 30 50
News Paper 14 23.75
Agents 16 26.25
Total 60 100

No. of Respondents

26%

50% TV
News Paper
24% Agents

Interpretation:

It is depicted from the chart that,

50% of respondents came to know through television.
23.75% of respondents came to know through newspapers.
26.25% of respondents came to know through agents
Major of the respondents came to know through television.

Page 35
3. Which factor is important in your eye for purchasing insurance policy?
Table 3:
Factors No. Of Respondents Percentages
Company 32 53.75
Premium 13 21.25
Service 15 25
Total 60 100

No. of Respondents

25%

54% company
premium
21%
service

Interpretation:

The chart depicts that 53.75% prefer company as an important factor where as 21.25% prefer
for premium and 25% prefer service as an important factor for purchase of insurance policy.

Page 36
4. How many employees have taken insurance in your office?
Table 4:
Employees No. Of Respondents Percentages
More Than 5 40 66.25
More Than 10 13 21.25
More Than 20 7 12.5
Total 60 100

No. of Respondents

13%

21%
More Than 5

66% More Than 10

More Than 20

Interpretation:

The above chart shows that,

66.25% of respondents have more than 5,
21.25% of respondents have more than 10 and
12.5% of respondents have more than 20.

Page 37
5. Would you like to have General insurance?
Table 5:

Particulars No. Of Respondents Percentages

Yes 20 33.33

No 40 66.67

Total 60 100

Yes No

75
45

25
15

NO. OF RESPONDENTS PERCENTAGES

Interpretation:

Out of 60 respondents, 25% of respondents want to have General insurance policy and 75%
of respondents don’t want to have it. The above chart shows that there is a potential market
for office insurance products. Most of the respondents those who want to have office
insurance are of newly opened offices & shops.

Page 38
6. If yes, Which Company Services do you prefer to avail?
Table 6:
Company No. Of Respondents Percentages
ICICI Lombard 6 30
HDFC Chubb 0 0
New India 7 35
Oriental 3 15
United India 4 20
Total 20 100

No. of Respondents

13%

21%
More Than 5

66% More Than 10

More Than 20

Interpretation:

The chart depicts that, 30% of the respondents wants to avail services of ICICI Lombard,
35% of respondents want to prefer New India,20%of the respondents wants to prefer united
India and 15%wants to prefer services of oriental. The data shows around 30% of people are
interested in taking insurance in ICICI Lombard. It means there is an opportunity for
company to capture the market. Most of the respondents want to avail services in government
companies.

Page 39
7. Which type of insurance policy you would like to have?
Table 7:

Type No. Of Respondents Percentages

Yearly Renewal 17 85
Auto Renewal 3 15
Total 20 100

Yearly Renewal Auto Renewal

85
17

15
3

1 2

Interpretation:

The above chart shows that 85% of respondents would like to have Yearly renewal policy
and 15% of respondents want to have Auto Renewal.

Page 40
8. Which product services you are planning to avail?
Table 8:
Product Services No. Of Respondents Percentages
Fire Insurance 10 50
Electronic Insurance 5 25
Burglary Insurance 3 15
All of Above 2 10
Total 20 100

No. of Respondents Percentages

50

25

15
10

10
5

FIRE INSURANCE ELECTRONIC BURGLARY INSURANCE ALL OF ABOVE

INSURANCE

Interpretation:

It is depicted from the chart that 50% of respondents trying to avail Fire insurance, 25% of
respondents planning to avail Electronic insurance,15% of respondents trying to avail
Burglary insurance and 10% of respondents trying to avail all Fire, Electronics and Burglary
insurance policies.

Page 41
9. When you are going to have new insurance policy?
Table 9:
Particulars No. Of Respondents Percentages
Within 15 Days 7 35
15 to 30 Days 13 65
30 to 60 Days 0 0
Total 20 100

No. of Respondents
0%

35%

Within 15 Days
65% 15 to 30 Days
30 to 60 Days

Interpretation:

Out of 20 respondents, 35% of respondents wants to have insurance policy within 15 days,
65% of respondents wants to have within 30 days.

Page 42
10. How do you rate about services?
Table 10:

Opinion No. Of Respondents Percentages

Very Good 6 30

Good 9 45

Normal 4 20

Not Good 1 5

Total 20 100

No. of Respondents

5%
20% 30%

Very Good
Good
Normal

45% Not Good

Interpretation:

ICICI Lombard customers rated the services as,

30% of respondents said very good.
45% of respondents said good.
20% of respondents said normal and
5% of respondents said not good.

Page 43
11. How much premium are you paying now?
Table 11:
Amount No. Of Respondents Percentages
More Than 5000 4 20
More Than 10000 5 25
More Than 20000 11 55
Total 20 100

No. of Respondents

20%

55% More Than 5000

25% More Than 10000
More Than 20000

Interpretation:

The above chart depicts that

20% of respondents paying premium more than Rs.5000,
25% of respondents paying premium more than Rs.10000 and
55% of respondents paying more than Rs.20000.
Major of the respondents are paying more than Rs.20000 are of big offices and important
customers to the company.

Page 44
12. Do you feel it’s really economical?
Table 12:

Particulars No. of Respondents Percentages

Yes 14 70

No 6 30

Total 20 100

Yes No

70

30
14

NO. OF RESPONDENTS PERCENTAGES

Interpretation:

Customers believed of policy economical like this,

70% of respondents said YES.
30% of respondents said NO

Page 45
13. Have you ever-contacted customer help desk?
Table 13:

Particulars No. Of Respondents Percentages

Yes 16 80

No 4 20

Total 20 100

No. of Respondents

20%

55% More Than 5000

25% More Than 10000
More Than 20000

Interpretation:

The above chart depicts that

80% of respondents contacted customer help desk and
20% of respondents never contact customer help desk.

Page 46
14. If yes, what is your opinion about customer help desk?
Table 14:
Opinion No. Of Respondents Percentages
Good 10 50
OK 8 40
Poor 2 10
Total 20 100

10%

50%
Good
40%
OK
Poor

Interpretation:

Out of 20 respondents, 50% of respondents’ opinions about customer help desk is good, 40%
of respondents told ok and 10% of respondents told poor. Major of the respondents told they
are happy regarding the information and service provided by customer help desk.

Page 47
15. For what reason you dial to our customer help desk?
Table15:
Particulars No. Of Respondents Percentages
Product Related Inquiry 11 55
To Renew Policy 8 40
To Complaint 1 5
Total 20 100

No. of Respondents

20%

55% More Than 5000

25% More Than 10000
More Than 20000

Interpretation:

The customers dial up to customer help desk for the following reasons:
55% customer dial up for product related enquiry
40% customers dial up for to renew policy and
5% customers dial up for file a complaint.

Page 48
 Chapter-5
Conclusion and Recommendation

Page 49
CONCLUSION

1. All respondents have awareness about General insurance.

2. Majority of respondents told they were come to know about General insurance
through television and agents.
3. Majority of respondent’s employees have taken insurance.

4. There is a market potential for office insurance products.

5. Majority of respondents believe in Government owned insurance companies.

6. There is a market potential for ICCI Lombard office insurance products.

7. Majority of respondents told they are trying to avail Fire insurance and electronic
equipment insurance for their offices.
8. Most of the respondents said they are going to have insurance with in 15to30 days.
9. Majority of respondents told they have satisfaction with the service of the company
and customer help desk.
10. Most of the customers told they dial to customer help desk for product related
enquiry.
11. All general insurance policies are yearly renewal policies.

12. Premium amount for general insurance policy is low and it is not refundable.
13. Majority of respondents told their paying premium is economical.

14. Majority of respondents are frequently contacting customer help desk.

15. Majority of respondents told company is the main factor for purchasing insurance
Policy.

Page 50
RECOMMENDATIONS

Respondents do not have enough knowledge about the insurance policies provided by the
ICICI LOMBARD. Therefore ICICI LOMBARD Company should bring awareness among
the customers.

The recommendations I would like to make are:

1) There is a necessity to make more advertising and promotions by the insurance

company through TV, newspapers, magazines and pamphlets to make aware the
customers about the insurance provided by them.
2) Need for proper channel to reach to the customer.

3) Marketing executives and agents should maintain good communication with the
customers to create the awareness of the policies like Medic claim, GPA (Group
personnel accidental) burglary, and other insurance policies provided by the
company.

4) The employees should be given incentives and bonus to motivate to accomplish

their targets.
5) ICICI LOMBARD is concentrating only urban areas it should concentrate on semi
urban and rural areas also.

6) As it was found that customers preparing only Government companies for their
office insurance so create trust in costumers about private insurance companies by
rendering good services like proper claims, good response to costumer queries and
maintaining good relationship with costumers.

Page 51
Bibliography
 https://www.icicilombard.com/
 https://www.icicibank.com/
 https://www.scribd.com/
 https://pingpdf.com/search/icici+lombard
 https://en.wikipedia.org/wiki/ICICI_Lombard
 https://www.ukessays.com/essays/business/analysis-of-the-icici-lombard-insurance-
company-business-essay.php
 https://www.livemint.com/
 https://www.slideshare.net/

Page 52
 Annexure
Questionnaire:

1. Are you aware of General insurance?

a) YES
b) NO
c) Little Bit

2. If Yes, How do you come to know about General Insurance?

a) TV
b) NEWSPAPER
c) AGENTS

3. Which factor is important in your eye for purchasing insurance policy?

a) COMPANY
b) PREMIUM
c) SERVICE

4. How many employees have taken insurance in your office?

a) MORE THAN 5
b) MORE THAN 10
c) MORE THAN 20

5. Would you like to have General insurance?

a) YES
b) NO

6. If yes, Which Company Services do you prefer to avail?

a) ICICI LOMBARD
b) HDFC CHUBB
c) NEW INDIA
d) ORIENTAL
e) UNITED INDIA

Page 53
7. Which type of insurance policy you would like to have?
a) YEARLY RENEWAL
b) AUTO RENEWAL

8. Which product services you are planning to avail?

a) FIRE INSURANCE
b) ELECTRONIC INSURANCE
c) BURGLARY INSURANCE
d) ALL OF THE ABOVE

9. When you are going to have new insurance policy?

a) WITHIN 15 DAYS
b) 15 TO 30 DAYS
c) 30 TO 60 DAYS

10. How do you rate about services?

a) VERY GOOD
b) GOOD
c) NORMAL
d) NOT GOOD

11. How much premium are you paying now?

a) MORE THAN 5000
b) MORE THAN 10000
c) MORE THAN 20000

12. Do you feel it’s really economical?

a) YES
b) NO

13. Have you ever-contacted customer help desk?

a) YES
b) NO

Page 54
14. If yes, what is your opinion about customer help desk?
a) GOOD
b) OK
c) POOR

15. For what reason you dial to our customer help desk?
a) PRODUCTS RELATED INQUIRY
b) TO RENEW POLICY
c) TO COMPLAINT

Page 55