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Insurance men make sure about our liquidity, safety, savings and protection in future. Insurance is of two types: the life insurance and general insurance which help us in protection of our income and our familys financial future incase we are not around. Critical illness benefit gives financial cover when we are deprived of a normal life and are unable to work. Medical insurance reimburses us hospital bills and protect our financial loss for medical reasons.

Insurance is that process by which men can do savings & Secure of life in future. There are different types of insurances companies in India like- ICICI, MAX NEW YARK, NATIONAL INSURANCE CO. LTD etc. are giving so man attractive policies to peoples.

Insurance companys given more benefit and reduces unemployment. Because these companys provide more jobs for unemployed persons. In this field, Man can secure his future by doing insurance, so it helpful to mankind.

Chapter-1 Introduction of Company


OVERVIEW: With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs. 450 billion. Together with banking services, it adds about 7 percent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance 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 strengthens the risk taking ability. It is estimated that over the next ten years, India would require investments of the order of one million US Dollar. The Insurance sector, to some extent, can enable 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 The Insurance Act-1938 and the IRDA Act 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 3600 turn witnessed over a period of almost two centuries.


The main reason for the study is to complete my degree. Its compulsory at the end of degree. Under this Im provide information & status of the co. We live in high competitive world. The successes of the organization depend on its human resource. There are so many insurance companies in our nation. Every one is best. But with the help of study I give the information about national insurances company and its performance & status in our Country.



Primary objective of the study determine the level of company and its growth.


1. To identify the growth of the company. 2. To know about the the satisfaction /dissatisfaction level of people regarding the product.


A research design is a plan according to which observation is made and data is assembled. It provides the empirical and logical basis for drawing conclusion and gaining knowledge. For accomplishing the objective of the study Secondary data has been utilized. To elicit first hand information and know the working of the company better, personal visit to co., interviews and discussion with the authorities is done.


To know the extent to which a study is reliable it is important to state the limitations under which it has been conducted. The main limitations of the study is as under.

1 The collection of data is limited of national insurance ltd Dharamshala only. 2 Short span of time is the main limitation of the research. 3 Some respondents were not be ready to provide the true information 4 Incomplete and wrong formations and poor responses to some questions could not be avoided.

Chapter-2 Introduction to Insurance


Introduction to the Concept of Insurance Insurance is such a method, which provides security a fearless to the man. It is a means of shifting the risk to the insurer in consideration of a nominal cost called premium. Risk may be transferred in two ways; a person may seek to transfer the activity or avoid such event, which create risk. Insurance is a contract of indemnity under which insurance company agrees to pay certain sum of money to compensate loss by the occurrence of uncertain event in consideration of certain periodical payments that is premium.

Insurance is a complex mechanism & it is consequently difficult to define. Insurance is co-operative device for spreading over the loss suffered by one or more, caused by particular risk, over large number of persons who agree to share the loss collectively.

We all are exposed to various risks in our daily life. Even the Wisest & Cleverest are cant avoid all risks. Nobody can predict or foresee the calamity he may suffer in future. Everybody on the road, whether on foot or in a vehicle carries some risk of accident which may result into serious injury, loss of limb impairing ability to earn livelihood, or even death. One may take precautions

against such risk, but the risk cant be eliminated. Similarly, there can be loss due to fire, earthquakes, illness etc. Every loss causes human suffering.

A risk involves loss. Not all, but most of the losses can be expressed in term of money. A person exposed to some risk may incur a loss. If loss is small he may bear it alone. If loss is huge he may not able to bear it alone. Society mayve to render help to enable the sufferer to cope up with the situation. E.g. the help rendered to the victim of earthquake in Gujrat. However it will be better if a device or system is developed to provide help to those who happen to suffer a loss. Such a system is INSURANCE.

INSURANCE is a co-operative device, which spreads, the loss caused by a particular risk to some person, over a number of person who are exposed to same or similar risk & who agree to insure against that risk.

DEFINITIONS:Functional Definition: Insurance is an instrument of distributing the loss of a few among many. ALLEN C. MAYERSON, Insurance is a device for the transfer to an insured of certain risk of economic loss that would otherwise be same by the insured.

Contractual Definition: JUSTICE TINDALL, Insurance is a contact in which a sum of money is paid to the assured in consideration of insurers incurring the risk of paying a large sum upon a given contingency.

CONCEPT OF INSURANCE:Insurance is always against the risk (Risk is a condition where there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for). When risk is said to be exist, there must always be at least two outcomes: certain and uncertain. Risk arises out of uncertainty. Therefore, insurance is for the loss arising out of the uncertainty of an event.

Insurance is a mechanism or device to reduce the risk through risk sharing and risk transfer. It is not property, which is being insured. It is the persons financial interest in the property. So, insurance provides the financial service.

However in simple terms, it has two characteristics: 1. 2. Transferring or shifting of risk from one individual to a group; Sharing losses, on some equitable basis, by all members of the Group.




Life Insurance:

The subject matter of this type of insurance is human life. Most of insurance policies are combination of saving & security. The insured is promised by the insurance co. that during the tenure of insurance in case of his death, his nominee will be paid the insurance amount.

According to the SECTION 2 (ii) of Insurance Act 1938, Life Insurance is the business of effecting contracts of insurance upon human life including any contract, whereby the payment of money is assured on death except death by accident on the happening of any contingency dependent on human life and any contract which is subject to the payment of premium for a term dependent on human life.


General Insurance:

All other types of insurance except the life insurance are called general insurance. The common types of general insurance are:



Marine Insurance:-

It covers the sea or marine perils. Peril is the cause of loss or hazard, which is a condition that may increase the chance of the loss. Marine insurance is protection against marine perils like loss or sinking of the ship, sea piracy, capture by enemy etc.


Fire Insurance:-

It covers loss due to fire to the property like houses, shops, goods factories or godown etc.


Liability Insurance:-

Covers risk of liability against third party, which on insurer might have to pay under certain circumstances. E.g. injury to the property and / or person of a third person in road accident or employers liability for an injury or death of a worker while performing duty etc.



Social Insurance:-

This is aimed at providing social security to the weaker sections of the society. It may take the shape of pension plans, disability or sickness benefits etc. The premium may come from government or employee and may also be shared by beneficiary.

Life insurance is a contract that pledges payment of an amount to the person assumed (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during: 1. 2. 3. The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates risk, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. That of dying prematurely leaves a dependent family to fend for itself. That of living till old age without visible means of support.

FUNCTIONS OF INSURANCE: a) 1. Primary Functions Certainly of Compensation of Loss: Insurance provides certainly of payment at the uncertainty of loss. The element of uncertainly is reduced by better planning and administration. The insurer charges premium for providing certainty. Life is always full of risks. Life without risks and uncertainties is unthinkable. Man has always encountered risks of various types since the inception of civilization. Minor risks can be ignored but the major risks cannot be ignored and their avoidance is desirable. One of the ways or techniques of meeting the risks loss is prevention and insurance. Insurance removes all uncertainties and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.


Insurance provides protection: The risk will occur or not, when will occur, how much loss will be there

is an uncertain? These are uncertainties of happenings of time and amount of loss. The main function of the insurance is to provide protection against the probable chances of loss. The insurance cannot check the happening of risk. The insurer gives certainty of payment of loss to the assured by charging premium.



Risk Sharing: Risk is uncertain and therefore loss arising from the risk is also uncertain.

All business concerns face the problem of risk and if the concern is big enough the handing of risk become a specialized function. Risk and insurance are interwoven with each other. Insurance, as a device is the outcome of the existence of various types of risks in our day-to-day life. It does not eliminate risks but it reduces the financial loss caused by risks. Insurance spreads the whole loss over the large number of persons who are exposed by a particular risk.


Secondary Function


Prevention of loss: Prevention is always better than cure. Prevention of loss is by far the best

solution to the problem of risk. It is the most effective and cheapest method to avoid the unfortunate consequences but some times prevention of protection is not always possible and effective. When prevention fails other methods must be adopted. The insurance joins hands with those institutions, which are actively engaged in prevention the losses of the society. Reduction in loss causes lesser payment to the assured and so more saving is possible which will assist in reducing the premium.



It provides capital: It provides capital to the society. For planned development of a country

there is great need for huge amount of capital. The accumulated funds are invested in providing proper infrastructure and in investing in productive channel. Now a day, the insurance companies are rendering positive help in the development of trade, commerce and industries of a country through different scheme of investment. A countrys natural resources can be exploited with long term and huge amount of investment by the insurance companies.


Adequate Financial Cover: The need of insurance is largely felt to give a cover to the rural areas and

to the socially and economically backward classes with a view to reach all insurable person in the country and provide then adequate financial cover against death at a reasonable cost. (iv) Mobilization of Savings: In insurance the savings of masses is collected by insurance corporations.


Investment: When funds are invested the interest of the community is kept in mind.


Chapter-3 Life Insurance in India



The history of the life insurance in India dates back 1818 when it was conceived as a means to provide fund for English Windows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives, as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and nonIndian lives. The Oriental Assurance Company was established in 1880. The General Insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end of nineteenth century, insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies Act 1912 and the Provident Fund Act 1912. Several frauds 20s and 30s sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act 1938 that provided strict State Control over insurance business. The insurance business grew at a faster rate after independence. Indian

companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon.

The Govt. of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that it would create much-needed funds for rapid industrialization. This was in conformity with the Governments chosen path of State lead planning and development.

The (non-life) insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, 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. These were subsidiaries of the General Insurance Company (GIC).



1912 :

The Indian Life Assurance Companies Act enacted as the first statute to regulate the Life Insurance Business.

1928 :

The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938 :

Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the public.

1956 :

245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament LIC Act 1956 with a capital contribution of Rs. 5 Crore from the Government of India.









1907 :

The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business.

1957 :

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

1968 :

The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972 :

The general insurance business in India nationalized through the General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.



In 2005, worldwide insurance premiums amounted to US Dollar 3426 billion. Of this, US Dollar 1974 billion accounted for life and US Dollar 1452 billion to non-life insurance. In real terms, total premium volume grow by 2.5 per cent. While life premiums increased by 3.9 per cent, non-life premiums increased by 0.6 per cent. Profitability in life insurance improved when compared to 2004. Non-life business remained profitable despite huge losses in the US High economic growth, moderate inflation, low interest rates and favorable stock market in Europe, Japan and in the emerging markets contributed to growth in the insurance industry. In a number of countries, life business grew faster than overall economic activity in 2005 excepting in the US, where higher short term interest rates had made life products les attractive. The strong growth observed is in line with the overall trend of increase importance of life insurance. There is higher demand for old age provisions because of increase number of retirees in the total population and governments are shifting away from public old age provisions to private schemes.

A change in tax laws of life products plays an important role in this context. Profitability of life business has continued to improve in many countries due to lower costs.


In the last year, non-life business growth slowed down due to decline in premium rates in commercial lines such as aviation and marine, which had experienced sharp increase in rate between 2001-2004. Premiums in emerging markets like India continued to outgrow than mature insurance markets. Profitability in non-life business remained sound with favorable underwriting experience. Despite the huge losses, capital in the industry continued to rise in line with higher exposure. This development was supported by new capital flowing into markets. The outlook for 2006 remains favorable. Growth may even speed up in the life insurance. Non-life insurance will most probably continue to show low growth. Important exceptions are certain lines of business affected by big losses, where premium rates and premium volumes are expected to rise substantially. Profitability will remain same, with life insurance making further progress.


With a larger population and untapped market, insurance happens to be a big opportunity in India. The insurance business (measured in the context of first year premium) grew at 47.93 per cent in 2005-2006, surpassing the growth rate of 32.49 percent achieved in 2004-05. However, insurance penetration in the country continues to be low. Insurance penetration or premium volume as a share of a countrys GDP, for the year 2005 stood at 2.53 per cent for life

insurance and 0.62 per cent for non-life insurance. The level of penetration tends to rise as income increases, particularly in life insurance. India, with its huge middle class households, has exhibited potential for the insurance industry. Saturation of markets in many developed economies has made the Indian Market even more attractive for global insurance majors. The insurance market has witnessed dynamic changes which includes presence of a fair number of insurers in both life and non-life segment.



Reforms in the insurance sector were initiated with the passage of the IRLA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fast stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.


DUTIES, POWERS AND FUNCTIONS OF IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.. (1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in subsection (1), the powers and functions of the Authority shall include, -

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

(b) 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;

(c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;


(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organisations connected with the insurance and re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

(i) Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;


(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed


Chapter-4 Company Profile of NIC




National Insurance Company Limited was incorporated in 1906 with its Registered office in Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it and National became a subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the Government of India. After the notification of the General Insurance Business (Nationalisation) Amendment Act, on 7thAugust 2002, National has been delinked from its holding company GIC and presently operating as a Government of India undertaking. National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's foreign operations are carried out from its branch offices in Nepal.


Befittingly, the product ranges, of more than 200 policies offered by NIC cater to the diverse insurance requirements of its 14 million policyholders. Innovative and customized policies ensure that even specialized insurance requirements are fully taken care of. The paid-up share capital of National is Rs.100 crores. Starting off with a premium base of 500 million rupees (50 crores rupees) in 1974, NIC's gross direct premium income has steadily grown to 42799 million rupees (4279.9 crores rupees) in the financial year 2008-2009. National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The Company offers protection against a wide range of risks to its customers. The Company is privileged to cater its services to almost every sector or industry in the Indian Economy viz. Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment, Space Research etc. National Insurance is the second largest non life insurer in India having a large market presence in Northern and Eastern India. The steady growth in premium income has been commensurately matched by profits over the years. As of March 2009, NIC's general reserve stood at


13080.5 million rupees (1308.05 crores rupees) with a net worth of 5015.97 million rupees (501.59 crores rupees) signaling strong financial fundamentals. No wonder than that NIC has been accorded AAA/STABLE financial strength rating by CRISIL rating agency, which reflects the highest financial strength to meet policyholders obligations.



To be able to meet the requirements of our customers and stakeholders at all times To build a lasting relationship with all stake holders based on trust and mutual benefit

VALUES Leveraging technology to integrate people and processes To excel in service and performance To uphold the highest ethical standards in conducting our business


COMMITMENT In areas coming within competence of General Insurance, respond to all commercially viable general insurance requirements of the citizenry, not hitherto available, within three months from the date on which such a demand is received. In areas covered by tariff submit appropriate proposals to the Tariff Advisory Committee with comments within two months. Continue to provide customized insurance products for weaker sections of the society at affordable price, within six months from the date of receipt of request for a specific type of cover. Establish full and efficient computerized customer information counters at all regional centers, which will be further extended to cover the Divisional and Branch offices in stages. Establish more equipped "MAY I HELP YOU" facility to cater to customers' information requirements at the Head Quarters and the Regional Offices. Ensure issuance of 90% of documents on a day to day basis. Prepare booklets on standard policy covers setting out essential information and make such booklets readily available for purchase at suitable places.


Organize Zonal Advisory Committees meeting at the four metropolitan cities on a regular basis from time to time to interact with customers and get feedback on insurance services. Promote customer education in general insurance by holding workshops in important regional centers. Make available to a customer, on request to the Policy issuing office, the status of his claim and/or claim settlement details within 7 working days. Settle all claims within a time schedule envisaged hereunder ; o Personal line insurance claims within 30 days on completion of all requirements. o Property claims within 60 days on completion of all requirements. o Liability claims within 30 days on completion of process of law. Ensure proper functioning of Ombudsman at the four metropolitan cities to conciliate disputes on personal lines insurance claims.


Chapter-5 Working of NIC

(Product Information)


Personal Line Policies 1. Motor Policy - Two Wheelers Policy indemnifies bona fide owner of Two wheeler, used for personal purposes against the loss due to damage / theft / burglary of vehicle or any part there of, electrical accessories and also includes cover against liability towards third party personal injury and property damage1. 2. Householders Policy Policy covers risks of different types and protects the house as well as personal effects and household goods. 3. Personal Accident Policy Policy compensates individuals against accidental injuries resulting in disability or death. 4. Critical Illness Policy

Policy provides exclusive benefit to individuals in the age group 20-65 years who are unexpectedly diagnosed for treatment of critical ailments like Coronary Artery Surgery, Cancer, Renal Failure, Major Organ Transplant, Stroke or Multiple Sclerosis. 5. NRI Accident Policy Policy covers Non-Resident Indians and family against loss arising from accidental injuries including death. 6. Amartya Siksha Yojana Policy


Policy covers cost of education of a student/students in the age group of 4 to 25 years in the event of death of Parent/Guardian thus providing for continuation of studies. 7. Rajrajeshwari Mahila Kalyan Yojana Policy Specially designed to protect the welfare of women mainly in rural and semi-urban areas. 8. Bhagyashree Child Welfare Policy Policy provides protection to the girl child in the event of death of either or both the parents. 9. Traffic Accident Policy Policy provides hospitalization expenses up to Rs. 1 lac and Personal Accident Benefits up to Rs. 1 lac in case of road/rail accidents resulting in injuries/death. 10 Niwas Yojana Policy . Policy insures repayment of housing loan in case of accidental death/Permanent Total Disablement of loanee and also covers residential building and the owners permanent fixture and fittings against Fire and allied perils including Flood, Storm, Earthquake etc. 11 Baggage Policy . Policy indemnifies individual or a party against loss/damage to personal effects such as clothing etc carried as baggage during travel.

12 Mediclaim Policy . Provides protection to individuals, families, employers, employees and welfare bodies against heavy financial burden for treatment in hospitals for illness, disease or accident, whether involving surgery or not. 13 Motor Policy - Private Car . Policy indemnifies bona fide owner of Motor Car, used for personal purposes against the loss due to damage / theft / burglary of vehicle or any part there of, electrical accessories and also includes cover against liability towards third party personal injury and property damage. 14 Professional Indemnity for Doctors . Policy covers liability on account of errors and omission of doctors while rendering professional services. 15 Star National Swasthya Bima Policy . Star National Swasthya Bima policy is a unique Health Policy designed especially for the Account holders of Bank of India. The entire family consisting of the account holder, spouse and two dependent children upto the age of 21 years can be covered under this policy. This policy covers


Hospitalization expenses for account holder and family. In case of hospitalization Expenses, the entire family is covered for the Floater Sum Insured as opted for, i.e., either one or all members of the family, as stated above, can utilize the Sum Insured during the policy period. 16 PARIVAR Mediclaim for Family . This is a Family Floater Health Insurance Policy wherein entire family will be covered under single Sum Insured. The Policy covers reimbursement of Hospitalization expenses for illness/diseases contracted or injury sustained by the Insured Person. In the event of any claim becoming admissible under the policy, the Company either pay directly to the insured if TPA service is not availed by the insured or pay to the Hospital/Nursing Home through TPA the amount of such expenses subject to limits as would fall under different heads mentioned below, as are reasonably and necessarily incurred in respect thereof anywhere in India by or on behalf of such Insured Person but not exceeding Sum Insured (all claims in aggregate) for that family as stated in the Schedule in any one period of insurance. 17 VIDYARTHI-Mediclaim for Students . VIDYARTHI-Mediclaim for Students is a unique policy designed to provide Health and Personal accident cover to the students. It also provides for continuation of insured students education in case of death or permanent

total disablement of the guardian due to accident. 18 UCO Medi + Care Bima Policy . Uco Medi+ Care Bima is a unique Health cum Accident Policy designed especially for the a/c holders of Uco Bank. The entire family consisting of the a/c holder, spouse and 2 dependent children and two dependant parents can be covered under this policy. 19 VARISTHA Mediclaim for Senior Citizens . This policy has been designed to cater to the needs of our Senior Citizens. It covers Hospitalization and Domiciliary Hospitalization Expenses under Section I as well as expenses for treatment of Critical Illnesses, if opted for, under Section II. Diseases covered under Critical Illnesses are as under: Coronary Artery Surgery Cancer Renal Failure i.e. Failure for both kidneys Stroke Multiple Sclerosis Major Organ Transplants like kidney, Lung, Pancreas or Bone marrow Paralysis and blindness at extra premium 20 BOI National Swasthya Bima . BOI National Swasthya Bima policy is a unique Health Policy designed especially for the Account holders of Bank of India. The entire family consisting of the account holder, spouse and two dependent children upto

the age of 21 years can be covered under this policy. This policy covers Hospitalization expenses for account holder and family. In case of Hospitalization Expenses, the entire family is covered for the Floater Sum Insured as opted for, i.e., either one or all members of the family, as stated above, can utilize the Sum Insured during the policy period. 21 Overseas Mediclaim . Overseas Mediclaim policy covers Medical Expenses whilst traveling abroad for business/holiday. The policy will be valid only if the insured journey commences within 14 days of the first day of insurance as indicated in the policy schedule. 22 Baroda Health Policy . Baroda Health policy is a unique Health cum Accident Policy designed especially for the a/c holders of Bank of Baroda. The entire family consisting of the a/c holder, spouse and 2 dependent children can be covered under this policy. This policy covers Hospitalization expenses for a/c. holder and family. In case of Hospitalization Expenses, the entire family is covered for the Floater Sum Insured as opted for, i.e., either one or all members of the family can utilize the Sum Insured during the policy period.


Rural Line Policies 1. Cattle / Livestock Insurance Policy indemnifies against loss sustained due to loss of life of cattle / livestock. 2. Sheep and Goat Insurance Policy indemnifies against loss sustained due to loss of life of Sheep or Goat. 3. Elephant Insurance Policy provides indemnity to insured for the loss sustained by him due to death of his elephant used for commercial/religious purpose. Policy does not provide cover to circus elephants. 4. Dog Insurance Policy covers death of pet dogs of Cross-bred and exotic breeds between the age group of 2 months to 8 years. 5. Brackish Water Prawn Insurance Policy covers Total loss of prawns, Nursed seeds in hatcheries owned by state Government, FFDAS, State Fisheries Corporation, MPEDA or such other organisations. 6. Silkworm ( Sericulture) Insurance Policy covers total or partial loss due to death of silk worms of different variety due to disease or accident. 7. Janata Personal Accident Insurance Policy Covers individuals in the age group of 10-70 years against death or


total / partial disablement. 8. Horticulture/Plantation Insurance Policy covers Loss or Damage to the Insured tree / plant due to fire / lightning / storm / hailstorm / cyclone / tempest. 9. Kisan Agriculture Pumpset Insurance Policy covers centrifugal pump sets (Electrical and Diesel oil) submersible pump sets up to 25 HP used for agricultural purposes against Electrical/Mechanical Breakdown, Fire /Lighting, Theft and Burglary, Riot/Strike/Malicious damage etc. Indistrial Line Policies 1. Erection All Risks Insurance ( EAR ) Erection All Risk Insurance provides cover for projects involving equipment and other similar erections. 2 Contractors All Risks Insurance (CAR) . Contractors All Risks Insurance caters to the need of projects which predominantly involves civil work like construction of multi storied buildings, flyovers, bridges etc. 3 Machinery Insurance ( MI ) . Machinery Insurance provides insurance protection to both rotating as well

as static equipment while at work or at rest against mechanical and electrical breakdown and also human error and negligence. 4 Electronic Equipment Insurance ( EEI) . Electronic Equipment Insurance caters to the peculiar needs of the electronic equipments which are not only extremely sensitive to the slightest changes in ambience conditions but also are characterized by having a large value concentration in a relatively compact set ups. 5 Consequential Loss (Fire) Policy . Consequential Loss (Fire) policy provides the most commonly sought after protection for business interruption triggered by fire and allied perils. 6 Standard Fire and Special Perils Policy . Fire Insurance provides cover against a host of perils ranging from fire, lightening, explosion/implosion, aircraft damage etc as well as act of God perils. 7 Workmen Compensation Insurance . This policy provides indemnity to the Insured against liability to pay compensation if any employee in the Insureds service sustain bodily injury by accident or contracts disease arising out of and in the course of his

employment. 8 Product Liability Insurance . The policy indemnifies the insured against legal liability to third parties for death / bodily injury or damage to property arising out of use of the product sold to them. 9 Public Liability Insurance . This policy indemnifies the insured against legal liability to pay compensation to third parties for death /bodily injury or damage to property arising out of accidents out of insureds business Commercial Line Policies 1. Burglary (Business Premises) Policy Covers loss due to theft and burglary of movable properties like stock-intrade, plant and machinery, furniture, fittings etc followed by virulent and forceful entry or exit. 2. Shopkeepers Policy This policy is specifically devised for small shopkeepers having building and stock value limited to less than or equal to Rupees ten lacs. The policy covers host of risks like stock in trade, building, furniture, moneyin-transit, business interruption etc. and indemnifies the insured loss due to any of the perils covered.

3. Bankers Indemnity Policy This Policy is specially designed for banks to provide indemnity against direct loss suffered by them (excluding Non Banking Financial Institutions). The policy covers loss of Money and/or Securities inside Bank or while In Transit, Forgery or Alteration, Dishonesty of employees etc. 4. Office Package Policy This policy provides a package of various covers required by an office establishment including cover for buildings, the Landlords Fixture and Fittings, Boundary Walls and Fences, Canteen etc. Office contents, equipments, cover for employees, Public Liability etc all built in one policy. 5. Glass Insurance The policy covers loss due to accidental breakage of plain and ordinary glazed glasses without embossing, silvering, lettering, bending or ornamented fitted to doors, windows, show-cases, counters and shelves. Crockeries are not insurable under Glass Insurance. 6. Money Insurance Policy indemnifies insured against loss of Cash, Currency Notes, Coins, Securities, Postal Orders, Stamps, Cheques etc. whilst in transit or in locked safe. 7. Jewellers Block Policy

Covers loss of or damage to the stock in trade and also cash and currency notes while contained in the premises where the insureds business is carried on or at other premises where the property insured is deposited. 8. Extended Warranty Policy Policy provides extended warranty to prospective buyers of vehicle, over and above the normal warranty provided by Manufacturers / Authorised dealers of vehicles like cars and two wheelers. 9. Directors and Officers Liability Policy Policy indemnifies legal liability to third party due to wrongful act by Directors and Officers of any company but excludes dishonest, fraudulent, criminal or malicious act, personal guarantee, libel and slander and damage to property and pollution damage. 10 Fidelity Guarantee Policy . The term Fidelity Guarantee Insurance embraces policies indemnifying employers against financial loss on account of forgery, defalcation, embezzlement and fraudulent conversion by employees. The object is to provide protection in respect of the default of an individual acting in some capacity such as Cashier, Accountant, Store-keeper etc. The cover may be required in respect of a single employee or a number of employees.

11 Marine Cargo Insurance . The policy provides cover to cargo against risk of damage when it is exposed to maritime perils during transportation. The policy covers two categories of risk which are Standard risks of transport and Exceptional risks of transport (war, strike or similar).



Preference Study of Insurance Customer




Premium Gross

Growth in lakh 110 56 63 40 -----

%age 50% 17% 16% 9% 13%

2004-05 3.31 2005-06 3.87 2006-07 4.50 2007-08 4.90 2008-09 5.50 Source:

120 100 80 60 40 20 0 2004-05 2005-06 2006-07 2007-08 2008-09 Premium Gross Grow th in Lacs %age




Year 2004-05 2005-06 2006-07 2007-08 2008-09

Profit in lakh 45 50 70 60 80

Profit in lakh 90 80 70 60 50 40 30 20 10 0 200405 200506 200607 200708 200809 Profit in lakh



National Insurance Co Ltd awarded "Most Preferred Non Life Insurer"

by CNBC AWAAZ Consumer Awards 2009

AWAAZ, Indias first consumer channel and a member of the CNBC Network, initiated a survey on the Indian consumers brand preference across India in terms of customer preference and loyalty. On that basis NATIONAL and New India have been adjudged THE MOST PREFERRED NON-LIFE INSURANCE COMPANY and awarded on 7.7.2005 at New Delhi.

1st branch in this area which has achieved super achiever award in top ten branch in India.

1st branch in this area which has received 2nd prize in Hindi implementation among all public sector unites in country.


ACHIEVEMENTS The fastest growing Non-life Insurance Company in India The second largest Non-life Insurance Company in India Internationally recognized as one of the top 5 General Insurance Companies in the Asia Pacific.

CUSTOMER SERVICE INITIATIVES Establishing Connectivity among 1000 offices with in the country Facility to get Policy through NET soon Tie-ups with leading Banks, Corporate Sectors, State Governments Conciliatory Fora for facilitating quick settlement of Motor Third Party claims, Compromise settlement, Lok Adalat and Jald Rahat Yojana. Zonal Advisory Committees set up to maintain progress. May I help you counters set up at Head Office and all Regional Offices. Citizens Charter Commitments being implemented by all offices.


PRODUCT DEVELOPMENT More than 200 products available to cater to the needs of various sectors of the economy. Continuous product development to meet emerging needs of society and industry. R&D cell set up at Head Office for distinctive product innovation relevant to indigenous conditions and rural masses.

New covers launched : PARIVAR Mediclaim for Family, VIDYARTHI-Mediclaim for Students, UCO Medi + Care Bima Policy, Star National Swasthya Bima Policy, VARISTHA Mediclaim for Senior Citizens.


As a major strategic initiative, National Insurance Company has tied up with commercial banks, Non Banking Financial Institutions, Automobile Manufacturers, NGOs and State Governments for marketing of its Insurance services.


Marketing (I) Department as been established at Head Office to provide the required thrust and direction to the business. Strategic Alliances Departments have been created at the Regional and Operating levels to exclusively cater to the Tie-Ups. The RO strategic Alliances coordinator has the overall responsibility of servicing the tie-ups in the Region. The total business from all alliances is budgeted to grow at the rate of 36% to Rs.1070 core in 2006-07 and concerted efforts are being made in this direction.

National Insurance Company Limited ranks among the top GLOBAL BUSINESS INSURERS.

NIC has been awarded the AAA/STABLE financial strength rating by CRISIL. It reflects the highest financial strength to meet policyholders obligations.


FINANCIAL REPORT (In Crores of Rupees) 2004-05 2005-06 2006-07 2007-08 2008-09

Heads \ Year GROSS DIRECT PREMIUM In India 3799.91 3523.67 3814.42 4007.23 4279.90 Increase over previous year (%) 12.06 -7.27 8.25 5.05 6.80 Market share 21.14 17.29 15.26* 14.26 14.12 Outside India Increase over previous year (%) 10.74 21.08 12.67 17.97 12.70 0.24 14.74 16.06 15.95 8.21

Total 3810.65 3563.34 3827.12 4021.97 4295.85 Increase over previous year (%) 12.08 -7.20 8.22 5.09 6.81 Source: National National Insurance Co (NIC) has wrapped up 2008-09 with a growth in gross premium, which stood at Rs 4279.90 crore for the year ended March 31, 2009, up from Rs 4,007.23 crore posted in the previous year. This shows a growth of 6.80%. (In Crores of Rupees) 2004-05 2005-06 2006-07 2007-08 2008-09

Heads \ Year NET PREMIUM INCOME Total 2832.17 2683.00 2855.36 3187.98 3653.63 Increase over previous year (%) 12.90 -5.27 6.42 11.65 14.61 Source: National The company recorded a net premium of Rs 3653.63 crore, up by 14.61 per cent from Rs 3187.98 crore recorded in 2007-08.


NICs total assets stood at about Rs 13,600 crore in March, while its net worth was Rs 1,432.04 crore.


Heads \ Year OPERATING RESULTS Net Premium Income (% to Gross Direct Premium) Net Incurred Claims Net Commission Expenses of Management (% to Gross Direct Premium) Increase in Reserve for Unexpired Risks Invest Income including P/L on sale of investment, Interest, Dividend & Rents Other Income/Outgo (-) Profit before tax Income tax deducted at

(In Crores of Rupees) 2004-05 2005-06 2006-07 2007-08 2008-09 2832.17 74.32 2263.51 77.50 859.39 30.34 2683.00 75.87 2830.33 140.55 882.61 32.90 2855.36 3187.98 74.61 79.26 3653.63 85.05 3393.67 218.17 1023.93 23.84

2394.22 2838.84 114.04 203.89 866.21 985.53 30.34 24.5






685.17 -9.39 141.21 10.03

1009.75 1054.80 1180.92 20.03 7.93 3.65 -59.64 455.83 172.06 55.00 37.76 8.75

1071.32 31.70 -133.53 5.15

source and provision for tax Net Profit after tax 131.18 Dividend (Amount) 25 Dividend(%) 25 Dividend Tax 3.50 Source: national

-114.64 0 0 0

418.07 83.61 83.61 14.21

163.31 32.66 32.66 5.55

-138.68 0 0 0


National Insurance Company (NIC) is now looking at a 22% growth in premium income to Rs 4,600 crore in 2007-08.

Profit after tax, at the same time, is expected to register a 20% growth to Rs 500 crore. Detailing the companys financial performance in 2006-07, NIC chairman & managing director V Ramasaamy said, NIC registered a net profit after tax of Rs 418 crore in 2006-07 against a loss of 114.6 crore in 2005-06. Profit before tax rose eight-fold to Rs 455.8 crore in 2006-07 against loss of Rs 59.6 crore in the previous corresponding period. Gross premium income, on the other hand, touched Rs 3,827 crore in 2006-07 against Rs 3,536 crore in 200506.

Operating profit in 2006-07 touched Rs 246 crore against a loss of Rs 305 crore in the previous fiscal. Having skipped dividends in 2005-06, NIC declared a 83.6% dividend in 2006-07. Networth touched Rs 1,432 crore against Rs 323 crore in 2005-06.

The insurer also managed to enhance its solvency margin from 1.08% in 200506, less than the statutory level pegged at 1.5%, to 1.7 % in 2006-07. The loss in 2005-06 was a result of a conscious decision where NIC decided on limiting exposure to commercial vehicle covers. Unforeseen claims due to the Gujarat and Maharashtra floods also resulted in heavy losses.

The targeted growth in 2007-08 will be achieved through focus on retail products like health covers, motor and insurance polices for household. We also plan to increase policy retention capacity in profitable portfolios like fire and engineering insurance, Mr Ramasaamy told reporters at a press conference in Kolkata on Friday.

Investment income is likely to be about Rs 1,200 crore in the current fiscal against Rs 500 crore achieved in 2006-07. We are aiming at a 2% solvency ratio which stands at about 1.76% as of March 2007. NICs networth is expected to touch Rs 1,900 crore, he said.

Elaborating on the reasons for the profit in 2006-07, Mr Ramasaamy said: The investment portfolio performed well, interest rates firmed up and there were no major flood claims. The company also took up a lot of initiatives for improving claims ratio in third party motor covers. We also managed to register an additional income of Rs 210 crore from inward reinsurance. In a bid to achieve the targeted growth in retail, NIC has also decided to launch two micro insurance products. These will be named Gramin Suraksha Bima and Gramin Swastha Bima. Gramin Suraksha Bima will offer a covers of Rs 10,000 each for dwelling, hospitalisation and personal accident as well as death or permanent total disability. Gramin Swastha Bima will offer a floater

hospitalisation cover of Rs 25,000 and personal accident cover of another Rs 25,000. We have filed the products with IRDA. They will be launched soon, said senior NIC officials. (In Crores of Rupees) 2004-05 2005-06 2006-07 2007-08 2008-09

Heads \ Year CAPITAL & FUNDS Shareholders' Funds: Paid up capital General Reserves Total Policyholders' Fund: Reserve for Unexpired risks Estimated liability for O/S claims at the end of the year Total Total of Capital & Funds

100 100 100 100 100 1114.83 1008.58 1332.04 1457.25 1308.05 1214.83 1108.58 1432.04 1557.25 1408.05 1426.74 1346.57 1434.36 1603.81 1835.08 2809.08 3380.75 3358.90 3620.14 4091.86 4235.82 4727.32 4793.26 5223.95 5926.94 5450.65 5835.90 6225.30 6781.20 7334.99

Kolkata-based National Insurance Company Limited registered a net profit of Rs 418.07 crore for the year March 31, 2007, as against a loss of Rs 114.64 crore in the previous year.

The company's gross premium stood at Rs 3,827.12 crore against Rs 3,536 crore in the last year, a growth of 8.22 per cent over last year.


According to V Ramasaamy, CMD, National Insurance, the company's conscious decision to shed the commercial vehicle segment portfolio, which resulted in the reduction of third party claims, covered for the losses.

The third party claims went down from 280 per cent in 2005-06 to 149 per cent in 2006-07 in the commercial vehicle sector. Also, stringent norms for medical claims helped boost profit.

The company earned Rs 650 crore as mediclaim premium.

Last year the entire insurance sector had suffered due to floods in Gujarat and Maharashtra, said Ramasaamy.

This year the company has identified retail and health as potential growth areas.

For the year 2007-08, the company has set a net profit target of Rs 500 crore, on a gross premium target of Rs 4,600 crore. The company has also initiated a five year corporate plan to re-engineer its business processing plan.

It appointed PricewaterhouseCoopers (PwC) as consultant and used an advisor from the Indian Institute of Management, Kolkata, to work on the plan.


Public sector insurer National Insurance Company is targeting a gross premium of Rs 4,600 crore during the current financial year with focus on health and insurance sectors, companys chairman and managing director Mr V Ramasaamy said here today.

In the current fiscal, the company would focus on the retail and health insurance sectors, he said. The companys profit target set for he financial year 2007-08 was Rs. 500 crore, Mr Ramasaamy added. NIC, which had incurred a loss of Rs 114.64 crore in 2005-06, made a turnaround and registered a profit of Rs 418.07 crore with a gross premium of Rs3827.12 crore in 2006-07.

In the first five months of the calendar year, NICs business has grown by 16 per cent

Here is the analysis and the interpretation of each of the questionnaires question and what they signify after the analysis. Each of the questions is here fully analyzed and interpreted so that useful information can be carried out from these questions and which make the study helpful in giving the best results. For the proper analysis and interpretation the various graphs and charts are being used .

Awareness of Insurance Companies


Graph indicatio n 1 to 4 5 to 8 9 to 12

Business Class 10 7 2 20

Salaried Class 4 12 4 20

Labour Class 20 0 0 20


Retired Peoples


6 11 3 20

12 6 2 20

52 36 12 100

25 20 15 10 5 0
es si on al s Pe op le s la ss la ss C C C la ss

1 to 4 5 to 8 9 to 12

Sa la rie

La bo ur

es s

Pr of

From the above shown table and figure it is clear that more than 50 percent of the people know only about 1-4 insurance companies. While 35 percent people knows about more than 5 to 8 companies that are working in this sector, and only 15 percent of the people knows that more than 9 companies are there in this sector which shows that the awareness among the public is not too much about the insurance companies operating in this sector. The point to notice is

Re tir e

Bu sin


that if people dont knows about the various companies then how can they make comparison of the different schemes and plans being given by various companies and I can also say that this shows that 50 percent of people who are not having the knowledge about other companies are making their investment on the basis of those 4 companies which makes them loose the better opportunities.

Main Reason behind for getting life Insurance

Business To secure future and funds growth To avail income tax rebate To invest surplus money For getting Pension Benefits 20 Class 6 4 8 2

Salaried Class 5 10 2 3 20

Labour Class 18 0 0 2 20

Professi onals 6 11 2 1 20

Retired Total Peoples 5 2 3 10 20 39 25 16 20 100


20 18 16 14 12 10 8 6 4 2 0
C la ss La bo ur C la ss Pr of es sio na Re ls tir ed Pe op le s C la ss

To secure future and funds growth To avail income tax rebate To invest surplus money For getting Pension Benefits

Bu sin es s

After making the study on this part I come to know that mostly i.e. 32 percent of the people invest in the insurance sector to secure their future and also for the growth of their funds and among these category people the high proportion is of labour class who want to secure their future and also have more funds. In the category to avail income tax it is professionals who invest in the insurance and also salaried class people while the businessman invests their surplus money to have growth in their money. And the retired persons invest to get pension to secure their future. Factors responsible for taking the life insurance policy

Sa la rie

Business Self Friends / Class 3 1

Salaried Class 8 1

Labour Class 2 0

Professi onals 7 1

Retired Total Peoples 7 0 27 3


Colleagues Family Insurance agents

4 12 20

3 8 20

5 13 20

4 8 20

5 8 20

21 49 100

14 12 10 8 6 4 2 0
Pr of es si on al s La bo ur C la ss la ss C la Pe op l C es ss

Self Friends / Colleagues Family Insurance agents

Bu si ne ss

Sa la rie d

This shows that still the investors invest in this sector on the guidance and information being given to them by the agents. Which means the agents are playing major role in this sector by pursuing the investors to invest in this sector in various plans as per there needs this is clear from the data collected by me that 49 percent of the policies are being made by the agents after pursuing the investors, and only 27 percent investors took decision on their own to invest in this sector, and some part of sales is also being influenced through viral marketing (family & friends).

R et i re d


After sale service of insurance agents

Business Excellent Good Satisfactory Poor Class 1 4 12 3 20

Salaried Class 0 3 10 7 20

Labour Class 0 1 12 7 20

Professi onals 1 4 12 3 20

Retired Total Peoples 0 2 12 6 20 2 14 58 26 100

14 12 10 Excellent 8 6 4 2 0 Business Class Salaried Class Labour Class Professionals Retired Peoples Good Satisfactory Poor

Only 2 percent of the people are saying that the service being provided by the insurance agents are excellent which means that this is the area where the companies are require to work upon to increase their share in the market and also their market share which will increase if they will provide better service to the investors. Big portion of people are happy / satisfied with the type of the services being provided by the insurance agents after making the policy to the investors. While 7 percent salaried class, 7 percent labour class and 6 percent retired people are not happy with the kind of after sale service being provided

by the agents after making the policy, which is not good for them if they want to grow in this sector.

Satisfaction in taking the life insurance policy

Business Yes No Class 17 3 20

Salaried Class 20 0 20

Labour Class 13 7 20

Professi onals 16 4 20

Retired Total Peoples 18 2 20 84 16 100

25 20 15 10 5 0 Business Class Salaried Class Labour Class Prof essionals Retired Peoples

Yes No

In this it is clear from the table and also from the figure that salaried class people are highly satisfied while making investment in the life insurance policy, but he laborers are not much satisfied in making such investment in this policy so requirement is there to make them aware about the benefits of taking life insurance policy. Overall 76% people are satisfied with the life insurance policy


which shows that big portion of population are aware about the benefits of the life insurance policy. Preference for taking the life insurance policy

Business Public Private Class 11 9 20

Salaried Class 13 7 20

Labour Class 19 1 20

Professi onals 9 11 20

Retired Total Peoples 12 8 20 64 36 100

20 18 16 14 12 10 8 6 4 2 0 Business Class Salaried Class Labour Class Professionals Retired Peoples Public Private

This graphs shows that still people prefer to invest their money in this sector through the public companies, instead of the private companies. Here 64 percent of the life insurance policy from a public company instead of the private companies and only 36 percent still thinks that they wants to invest in having through life insurance policy through private insurance companies. Also an interesting facts is that only professional people want that there money should


be invested in private insurance companies. But business, salaried, labour and retired people want to invest money in public insurance company.


Chapter-7 Suggetions & Conclusion



National Insurance should do advertisement of the company as well as of its products, which will be very beneficial for the company because it will give awareness and knowledge to the people about the company, and its products, which will be very beneficial.

It should open at least one more branch in Dharamshala so that it would be able to cover more area of the Dharamshala and its population.

The company should go for more campaigns and sales promotion activities.

Here, the company should start a policy whose premium should be so affordable that not only the middle income group persons but also the low-income group persons can have that policy which in turn will reduce its money, which they are giving to their financial advisor in form of the commission.



1. Its plans are highly beneficial for the people and its sale is increasing And

in the coming years it will be giving a very tough competition to other private insurance companies.

2. Here most of the employees are not only young and energetic but also

they having a full exposure of the experienced persons so they work with high capability

3. the study shows that there is rise in the craze level of people regarding purchase of life insurance policies

This study has identified several issues and challenges from the insurers point of view. These also have broadened implications at level in Dharamshala. In a diverse country like India there should be a good mix of all the policies to cater the different groups of people in India.

To conclude I must say that was a good experience to know about the ground realities of the company as well as whatever we have read in the books Is totally different in the company from the application point of view.