A PROJECT REPORT ON

MOTOR INSURANCE WITH REFERANCE TO IIFCO-TOKIO

GENERAL INSURANCE COMPANY

SUBMITTED BY
Megha Vijay Shinde

T.Y.BBI SEM-VI

(2013-2014)

UNDER THE GUIDANCE OF

PROF: NITIN AGRAWAL

GURUKUL COLLEGE OF COMMERCE

AFFILIATED TO UNIVERSITY OF MUMBAI

TILAK ROAD, GHATKOPAR (E)

MUMBAI 400077.
 CERTIFICATE

This is to certify that Miss. Megha V Shinde, a student of Gurukul College of

Commerce studying in TYBBI bearing Roll No.02 and Examination seat No.
_____ has successfully completed the project entitled MOTOR INSURANCE
WITH REFERANCE TO IIFCO-TOKIO GENERAL INSURANCE COMPANY
as part of internal assignments under my supervision during the academic year
2012-2013.

_____________ _____________

Prof. Nitin Agrawal Dr. Kshitij Prabha

(co- ordinator) Principal

___________ ___________

External Examiner Prof. Janhavi Rao.

GUIDE
 DECLARATION

I, Megha Vijay Shinde student of T.Y.B.B.I semesterVI(2013-2014) of

Gurukul College Of Commerce,Mumbai-400077 do hereby declare that I
have completed the project work titled MOTOR INSURANCE WITH
REFERANCE TO IIFCO-TOKIO GENERAL INSURANCE COMPANY as
a part of my academic fulfillment.

The Information submitted in this project work is true and original to the
best of my knowledge and belief

Date : ______________

Signature of the Student

(Megha Vijay Shinde.)

 ACKNOWLEDGMENT

I sincerely acknowledge my debt of gratitude to my project guide and Co-

ordinator Prof.Nitin Agrawal, principal Dr. Kshitij Prabha, who have given me
the opportunity to conduct this study. It is with their support, guidance and co-
operation I have completed this project.

I would also like to thank our college librarian Mrs. Seema Saraf for her timely
support in issuing reference materials.

I am grateful and earnestly my heartful thanks to myparents and friends who have
helped me in every respect.

__________________

Signature of the Student

( Megha V Shinde )
 Introduc tion.

1.1 Introduction to insurance:

I n s u r a n c e i s t h e e q u i t a b le t r a n sf e r o f t h e r i s k of a l o s s , f r o m
o n e e n t i t y t o a n o t h e r i n e x ch a n g e f or p a ym e n t . I t i s a f o r m of
r i s k m a n a g e m e n t p r i m a r i l y u s e d t o he d g e a g a i n s t t h e r i s k o f
a contingent, uncertain loss.

A n i n s u r e r, o r i n s u r a n c e c a r r i e r, i s a c o m p a n y se l l i n g t h e
i n s u r a n c e ; t h e i n s u r e d , o r po l i c yh o l d e r, i s t h e p er s o n or
e n t i t y b u yi n g t h e i n s u r a n c e p o l i c y. Th e a m o u n t t o be c ha r g e d
f o r a c e r t a i n a m o u n t o f i n s ur a n c e co v e r a ge i s c a l l e d t he
p r e m i u m . R i s k m a n a g e m e n t , t h e pr a c t i c e of ap p r a i s i n g an d
c o n t r o l l i n g r i s k , h a s e v ol v e d as a d i s c r e t e f ie l d of s t ud y a nd
p r a ct i c e .

T h e t r a n s a c t i o n i n v o lv e s t h e i n s ur e d a s s u m i n g a g u ar a n t e ed
a n d k n o wn r e la t i v e l y s m a l l l o s s i n t h e f or m o f pa ym e n t t o t h e
i n s u r e r i n e x ch a n g e f o r t he i n s u r er ' s pr o m i s e t o c o m p e n s a t e
( i n d e m n i f y ) t h e i n s u r e d i n t h e c a s e of a f i n a n c ia l ( p er s o n a l)
l o s s . Th e i n su r e d r e c e iv e s a c on t r a c t , ca l l e d t h e i n s u r a n c e
p o l i c y , wh i c h d e t a i l s t h e c on d i t i o n s a n d c i r c u m s t a n c e s u n d er
wh i c h t h e i n s u r e d wi l l b e f i n a n c i a l l y co m p e n s at e d .
Definition :

Risk-transfer mechanism that ensures full or partial financial

c o m p e n s a t i o n f o r t h e l o s s o r d a ma g e c a u s e d b y e v e n t ( s ) b e y o n d
t h e c o n t r ol o f t h e i n s u r e d p a r t y . U n d e r a n i n s u r a n c e c o n t r a c t , a
p a r t y ( t h e i n s u r e r ) i n d e mn i f i e s t h e o t h e r p ar t y ( t h e i n s u r e d )
against a specified amount of loss, occurring from specified
eventualities within a specified period, provided a fee called
p r e mi u m i s p a i d . I n g e n e r a l i n s u r a n c e , c o m p e n s a t i o n i s n o r ma l l y
p r o p or t i o n a t e t o t h e l o s s i n c u r r e d , w h e r e a s i n l i f e i n s u r a n c e
u s u a l l y a f i x e d s u m i s p a i d . S o me t y p e s o f i n s u r a n c e ( s u c h a s
p r o d u c t l i a b i l i t y i n s u r a n c e ) a r e a n e s s e n t i a l c o mp o n e n t o f r i s k
management, and are mandatory in several countries. Insurance,
h o w e v e r, pr o v i d e s pr o t e c t i o n o n l y a g a i n s t t a n g i b l e l o s s e s . I t
c a n n o t e n s u r e c o n t i n u i t y o f b u s i n e s s , m a r k e t s h a r e , or c u s t o me r
c o n f i d e n c e , a n d c a n n o t pr o v i d e k n o w l e d g e , s k i l l s , or r e s o u r c e s t o
resume the operations after a disaster.

T h e c o n f e d e r a t i o n o f I n di a n o f I n d u s t r y s t a t e s t h a t t h e i n s u r a n c e
s e c t o r o f t h e c o u n t r y h a s b e e n w i t n e s s i n g a c o n s i s t e n t gr o w t h r a t e
o f l a t e a n d i t s pr e s e n t w o r t h i s 4 1 b i l l i o n U S D OL L A R S .

T h e i n d u s t r y h a s o f l a t e a c h i e v e d a y e ar l y g r o w t h r a t e w i t h i n 3 2
a n d 3 4 p e r c e n t a n d t hi s m a k e s i t t h e 5 t h b e s t a m o n g e m e r gi n g
e c o n o m i e s ar o u n d t h e w o r l d . Th e v a r i o u s e n t i t i e s o f t h e i n d u s t r y
a r e a l s o br i n g i n g o u t n e w e r pr o d u c t s o n a r e g u l a r b a s i s t o a t t r a c t
their customers.
As per rules, the upper limit of foreign direct investment
p e r mi t t e d i n t h i s s e c t o r i s 2 6 p e r c e n t . H o w e v e r, t h i s h a s t o b e
d o n e t hr o u g h t h e a u t o ma t i c route and the investor needs a license
from Insurance Regulatory a n d D e v e l o p m e n t Au t h o r i t y ( I R D A) .

A t p r e s e n t t h er e a r e 2 2 l i f e i n s u r e r s i n I n d i a . Th e I R D A h a s
r e c e n t l y t a k e n a w ay t h e t a r i ffs o f t h e i n t er e s t r a t e s a n d t h i s h a s
p r o v i d e d i n s u r e r s g r e a t e r i n d e p e n d e n c e w h e n i t c o me s t o d e c i d i n g
t h e pr i c e o f t h e i r i n s u r a n c e p o l i c i e s . Th e i n s u r a n c e i n d u s t r y h a s
a l s o b e c o me m o r e c o mp e t i t i v e a s a r e s u l t .

Yet a n o t h e r i m p o r t a n t f a c t o r a ffe c t i n g t h i s s e c t o r h a s b e e n t h e
recent financial meltdown.

India insurance industry growth in last few y e ar s

The life insurance companies have performed the best when it

c o m e s t o g r o w t h w i t h a n i n c r e a s e o f a l m o s t 7 0 % i n n e w pr e m i u m
that has been collected in the initial 5 months of 2012.

A s p e r I R D A d a t a , i n Apr i l - A u g u s t 2 0 1 0 t h e i n s u r a n c e c o mp a n i e s
e a r n e d $ 11. 7 3 b i l l i o n i n n e w pr e m i u m - i n t h e c or r e s p o n d i n g
p e r i o d i n t h e p r e v i o u s y e ar t h e a m o u n t s t o o d a t 6 . 9 b i l l i o n
dollars.

L I C , a s t a t e h e l d i n s u r e r, h a d b e e n t h e b i g g e s t pr o f i t m a k e r a t t h a t
t i m e w i t h a n a d d i t i o n o f 8 8 % t o t h e i r e x i s t i n g b u s i n e s s . Th e
privately owned insurers together had seen a leap of 34% to their
policy sales.

I C I C I P r u d e n t i a l e a r n e d 5 7 6 . 6 0 m i l l i o n d o l l a r s a t t h a t t i me .
D u r i n g Ap r i l - A u g u s t 2 0 0 9 S B I L i f e h a d e a r n e d $ 3 7 9 . 2 0 m i l l i o n i n
s a l e s o f n e w p o l i c i e s a n d t h a t f i g u r e w e n t u p t o $ 5 3 1 . 8 7 mi l l i o n
i n t h e c o r r e s p o n d i n g p e r i o d i n 2 0 1 0 m a k i n g i t a n i n cr e a s e o f 4 0 % .
H D F C S t a n d a r d L i f e a l s o e x p e r i e n c e d a g o o d gr o w t h o f 5 4 % i n
new sales.

I R D A d a t a s h o w s t h a t b e t w e e n Apr i l a n d O c t o b e r 2 0 1 0 t h e g e n e r a l
i n s u r a n c e i n d u s t r y e x p e r i e n c e d a y e a r-o n - y e a r g r o w t h o f 2 2 . 7 6 %
with regards to underwritten gross p r e mi u m .
T h e t o t a l v a l u e o f t h a t pr e m i u m w a s 5 . 2 9 b i l l i o n d o l l ar s w h i l e t h e
s a m e f i g u r e s t o o d a t $ 4 . 3 1 b i l l i o n i n Ap r i l - O c t o b e r 2 0 0 9 . F o r t h e
p u b l i c s e c t o r c o mp a n i e s t h e y e a r-o n - y e a r gr o w t h r a t e w a s 2 1 . 0 9
p e r c e n t b e t w e e n Ap r i l - O c t o b e r 2 0 1 0 a n d Apr i l - O c t o b e r 2 0 0 9 .

I n t h e s a m e p er i o d t h e p r i v a t e l y h e l d i n s u r e r s s a w a n i n c r e a s e o f
2 5 . 1 9 p e r c e n t i n t e r ms o f p r e mi u m c o l l e c t e d . Amo n g t h e p u b l i c l y
owned entities, New India Insurance was one of the better
p e r f o r m e r s w i t h a pr e m i u m i n c o me o f 9 1 6 . 7 7 m i l l i o n d o l l a r s i n
April-October 2010.

A t t h e s a me p e r i o d i n 2 0 0 9 t h ey h a d e a r n e d 7 7 0 . 2 5 m i l l i o n d o l l ar s
w h i c h i mp l i e s a g r o w t h r a t e o f 1 9 . 0 4 % . Th e I R D A S u m m a r y
R e p o r t o f M o t o r D a t a o f Pu b l i c a n d Pr i v a t e S e c t or I n s u r e r s 2 0 0 9 -
1 0 s t a t e s t h a t i n t h e s a me p e r i o d a l mo s t 2 8 . 4 m i l l i o n p o l i c i e s
w e r e s o l d a n d t h e a g g r e g a t e w o r t h o f p r e mi u m c o l l e c t e d w a s
$2.31 billion.

T h e h e a l t h i n s u r a n c e s e c t o r, a c c o r d i n g t o t h e R N C O S ' r e s e a r c h
r e p o r t n a me d " B o o mi n g H e a l t h I n s u r a n c e i n I n d i a " p o s t e d
u n p r e c e d e n t e d gr o w t h r a t e s i n 2 0 0 8 - 0 9 a n d 2 0 0 9 - 1 0 . Th e r e p or t
a l s o e s t i ma t e s t h a t b e t w e e n t h e 2 0 0 9 - 1 0 a n d 2 0 1 3- 1 4 t h e s e c t o r
w o u l d s e e a c o mp o u n d a n n u a l g r o w t h r a t e ( C A G R ) o f a t l e a s t
25%.

I n d i a n i n s u r a n c e i n d u s t r y c o mp o s i t i o n As p e r I R D A . Th e
c o m p o s i t i o n o f t h e I n d i a n i n s u r a n c e i n d u s t r y by m a r c h 2 0 11 c o u l d
be mentioned as such:

General insurance

Category N u mb e r of
o rga n i z a t i o n s

publicly owned general insurers 4

pr i v a t e i n s u r e r s c o mp l e t e l y o w n e d b y a n 1
I n d i a n b u s i n e s s o r ga n i z a t i o n

specialized general insurers 2

pr i v a t e i n s u r e r s ' JV with international 14

insurers

Specialized health insurers 3

Life insurance

Category N u mb e r of
o rga n i z a t i o n s

p u b l i c l y o w n e d l i f e i n s u r er s 1

pr i v a t e i n s u r e r s ' JV with international 21

insurers

pr i v a t e i n s u r e r s c o mp l e t e l y o w n e d b y a n 2
I n d i a n b u s i n e s s o r ga n i z a t i o n
India insurance product composition

F o l l o w i n g i s a n a p p r o x i ma t e r e p r e s e n t a t i o n of the pr o d u c t
composition of India's insurance industry:

General insurance Percentage

Product

Engineering 4

Motor OD 27.63

M o t o r TP 14.94

Health 22.58

Avi a t i o n 1.08

Liability 2.40

P er s o n a l a c c i d e n t 2.63
Fire 10.91

Marine 5.97

Others 7.37

Life insurance Product P er c e n t a g e

Non linked life individual 21.70

Non linked gen annuity group 4.33

Non linked gen annuity individual 0.85

Non linked pension group 4.22

Non linked pension individual 0.25

Non linked health 0.09

Linked insurance 55.01

Riders 0.01

Linked life group 13.54

1.3 INTRODUCTION TO GENERAL INSURANCE

COMPANY

I n s u r i n g a ny t h i n g o t h e r t h a n h u ma n l i f e i s c a l l e d g e n e r a l
i n s u r a n c e . I n s u r a n c e o t h e r t h a n L i f e I n s u r a n c e f a l l s u n d er t h e
c a t e g o r y o f G e n e r a l I n s u r a n c e . G e n e r a l I n s u r a n c e c o mp r i s e s o f
insurance of property against fire, b u r gl a r y etc, personal
i n s u r a n c e s u c h a s Ac c i d e n t a n d H e a l t h I n s u r a n c e , a n d l i a b i l i t y
i n s u r a n c e w h i c h c o v e r s l e g a l l i a b i l i t i e s . Th e r e a r e a l s o o t h e r
covers such as Errors and Omissions insurance for professionals,
credit insurance etc.

General insurance means managing risk against financial

loss arising due to fire, marine or miscellaneous events as a
r e s u l t o f c o n t i n g e n c i e s , w h i c h m a y or m a y n ot o c c u r. G e n e r a l
Insurance means to Cover the risk of the financial loss from any
natural calamities viz. Flood, Fi r e , E ar t h q u a k e , B u rgl a r y,
etc.. i.e. the events which are b ey o n d the control of the
o w n e r o f t h e g o o d s f o r t h e t h i n g s h a v i n g i n s u r a b l e i n t er e s t w i t h
the utmost good faith by declaring the facts about the
c i r c u m s t a n c e s a n d t h e pr o d u c t s by p ay i n g t h e s t i p u l a t e d s u m , a
p r e mi u m a n d n o t h a v i n g a m o t i v e o f m a k i n g pr o f i t f r o m t h e
insurance contract.

P e r s o n a l i n s u r a n c e c o v e r s i n c l u d e p ol i c i e s f o r Ac c i d e n t , H e a l t h
etc. Products o ffe r i n g P er s o n a l Ac c i d e n t cover ar e benefit
p o l i c i e s . H e a l t h i n s u r a n c e c o v e r s o ffe r e d by n o n- l i f e i n s u r e r s a r e
m a i n l y h o s p i t a l i z a t i o n c o v e r s e i t h e r o n r e i mb u r s e m e n t or c a s h l e s s
basis. Th e cashless service is o ffe r e d through Th i r d Party
Administrators who have a r r a n g e me n t s with various service
p r o v i d e r s , i . e . , h o s p i t a l s . Th e Th i r d P a r t y Ad mi n i s t r a t o r s a l s o
p r o v i d e s e r v i c e f o r r e i m b u r s e me n t c l a i m s . S o me t i m e s t h e i n s u r e r s
t h e m s e l v e s pr o c e s s r e i m b u r s e me n t c l a i m s .

Accident and health insurance p ol i c i e s are available for

i n d i v i d u a l s a s w e l l a s g r o u p s . A gr o u p c o u l d b e a gr o u p o f
e m p l oy e e s o f a n o rga n i z a t i o n o r h o l d e r s o f c r e d i t c ar d s o r d e p o s i t
h o l d e r s i n a b a n k e t c . N o r m a l l y w h e n a g r o u p i s c o v e r e d , i n s u r er s
o ffe r g r o u p d i s c o u n t s . Th e r e a r e g e n e r a l i n s u r a n c e p r o d u c t s t h a t
a r e i n t h e n a t u r e o f p a c k a g e p o l i c i e s o ffe r i n g a c o mb i n a t i o n o f
the covers mentioned above. For instance, there are package
policies available for householders, shop keepers and also for
p r o f e s s i o n a l s s u c h a s d o c t or s , c h a r t er e d a c c o u n t a n t s e t c . Ap a r t
f r o m o ffe r i n g s t a n d a r d c o v e r s , i n s u r er s a l s o o ffe r c u s t o mi z e d or
t a i l o r- m a d e o n e s .

S u i t a b l e g e n e r a l I n s u r a n c e c o v e r s a r e n e c e s s a r y f o r e v e r y f a mi l y.
I t i s i m p o r t a n t t o pr o t e c t o n e s pr o p e r t y, w h i c h o n e m i g h t h a v e
a c q u i r e d f r o m o n e s h a r d e a r n e d i n c o m e . A l o s s o r d a m a g e t o
o n e s pr o p e r t y can leave one shattered. Losses cr e a t e d by
c a t a s t r o p h e s s u c h a s t h e t s u n a mi , e a r t h q u a k e s , cy c l o n e s e t c h a v e
l e f t m a n y h o m e l e s s a n d p e n n i l e s s . Su c h l o s s e s c a n b e d e v a s t a t i n g
b u t i n s u r a n c e c o u l d h e l p m i t i g a t e t h e m. Pr o p e r t y c a n b e c o v e r e d ,
s o a l s o t h e p e o p l e a g a i n s t P e r s o n a l Ac c i d e n t . A H e a l t h I n s u r a n c e
p o l i c y c a n pr o v i d e f i n a n c i a l r e l i e f t o a p e r s o n u n d e r go i n g m e d i c a l
t r e a t me n t w h e t h e r d u e t o a d i s e a s e or a n i n j u r y.

1.4 Review of literature

( 1) - R i s k m a n a g e me n t i n s u r a n c e

- S . ar u n a j a t e s a n

- f i r s t e d i t i o n y e ar 2 0 0 9

S e v e r a l c o m p l a i n t s h a v e b e e n r e c e i v e d b y I R D A r e g ar d i n g n o n -
availability of motor third party insurance especially for
c o m me r c i a l vehicles. However in view of adverse claim
e x p e r i e n c e i n s u r er s h a v e b e e n e x pr e s s i n g d i ffi c u l t y t o u n d e r wr i t e
t h i s b u s i n e s s u n l e s s t h e y a r e p e r mi t t e d t o c h a r ge p r e m i u m r a t e s
t h a t t h e y c o n s i d e r a p p r o pr i a t e .

I n v i e w o f t h e m a n d a t o r y n a t ur e o f m o t o r t h i r d p a r t y i n s u r a n c e
b u s i n e s s I R D A h a s t a k e n s t e p s t o m o n i t or t h e r a t e s , t e r ms a n d
c o n d i t i o n o f c o v e r. TR D A c o n s i d e r s t h a t a l l i n s u r e r s r e g i s t e r e d t o
carry on general insurance business including motor insurance
b u s i n e s s s h o u l d a c t i v e l y p ar t i c i p a t e i n p r o v i d i n g s u c h c o v er t o
v e h i c l e o w n er s a t r a t e s a s n o t i f i e d by t h e m.

( 2) - b a n k i n g & i n s u r a n c e

- o. p.agarwal

- s e c o n d e d i t i o n y e a r 2 0 11

A t pr e s e n t , i n s u r a n c e c o v e r i s a v a i l a b l e t o a b o u t 2 6% o f t h e
i n s u r a b l e p o p u l a t i o n , 2 4 c r or e i n t h e c a s e o f l i f e - i n s u r a n c e a n d
potential general insurance India is one of the lowest insurance
per capita ranking in the world as is so clear from the following
chart:.

(No. of policies per 100 insurable

persons)
6.2
Indonesia
12.1
Philippines
 26.2
India
201.4
Japan

P e r c a p i t a g r o s s pr e m i u m o f $ 5 i s l o w c o m p a r e d w i t h o t h e r
c o u n t r i e s l i k e Tai w a n . Th e e s t i ma t e d i n s u r a b l e p o p u l a t i o n i n
I n d i a i s e x p e c t e d t o r e a c h by 2 0 1 0 a t 7 0 c r or e .

( 3) - i n s u r a n c e & r i s k m a n a g e m e n t

- p. k. gupta.

- S e c o n d e d i t i o n y e a r 2 0 11

T h e p r e mi u m s i n c a s e o f n o n- i n s u r a n c e ar e g e n e r a l l y o n a n
annual basis. If the insurance cover is for less than 12 months,
s p e c i a l s c a l e s s h o r t s c a l e s m a y b e u s e d a s pr e s c r i b e d f o r v a r i o u s
p r o d u c t . I f t h e c o n s i d e r a t i o n f o r t h e p r e mi u m t o t a l l y o r p a r t i a l l y
f a i l s w i t h o u t f r a u d or o t h e r w i s e o n p ar t o f t h e a s s u r e d o r hi s
agents then, the p r e mi u m s shall be accordingly r e t ur n e d .
P r e mi u m i s r e f u n d e d o n l y w h e n t h e p o l i cy pr o v i d e s f o r i t . Th e
p r e mi u m c o n v e n t i o n a l l y h a s t o b e r e c e i v e d i n a d v a n c e w i t h t h e
p r o p o s a l . Th e p o l i cy c o m e s i n t o f o r c e o n l y w h e n t h e pr e m i u m i s
actually received.
( 4) - Tim e s o f I n d i a

- D e c 11 , 2 0 1 2 , 0 3 . 2 6 AM I S T

R o a d a c c i d e n t v i c t i m g e t s 3 7 l a k h i n d a ma g e s

N E W D E L HI : A M o t o r Ac c i d e n t C l a i m s Tri b u n a l h a s a w a r d e d a
c o m p e n s a t i o n o f R s 3 6 . 9 8 l a k h t o a 4 0 - y e a r- o l d m a n , w h o
s u ffe r e d 9 0% p e r ma n e n t d i s a b i l i t y i n a r o a d m i s h a p i n v o l vi n g a
rashly-driven c a r.

T h e t r i b u n a l di r e c t e d i ffc o t o k i o G e n e r a l I n s u r a n c e C o mp a ny
L i mi t e d , w i t h w h i c h t h e o ffe n d i n g v e h i c l e w a s i n s u r e d , t o p a y R s
3 6 , 9 8 , 9 11 to city resident Manjeet Si n g h .

A s p e r t h e F I R a n d c h a r ge s h e e t , t h e d r i v er w a s d r u n k w h i l e
d r i v i n g t h e v e h i c l e . Th e d o c u m e n t s o f cr i m i n a l c a s e w h i c h h a v e
b e e n p l a c e d o n r e c o r d ar e p r i m a f a c i e e v i d e n c e o f t h e f a c t t h a t
S i n g h s u ffe r e d i n j u r i e s o n a c c o u n t o f r a s h a n d n e g l i g e n t dr i v i n g
o f t h e o ffe n d i n g v e h i c l e b y t h e d r i v e r, M A C T p r e s i d i n g o ffi c e r
Harish Duane said.

Singh told the tribunal that the accident had taken place on the
night of July 1, 2009 when a Santro car had hit him as he was
crossing a road near Dhaula Kuan. He added that due to the
i m p a c t h e s u s t a i n e d g r i e v o u s i n j ur i e s a n d h a d t o b e r u s h e d t o a
nearby hospital.
H e s a i d h e w a s r e n d e r e d p ar a l y s e d f r o m b e l o w t h e w a i s t , h a s l o s t
c o n t r o l o f hi s b o w e l m o v e me n t s a n d i s i n c a p a b l e o f w o r k i n g .

S i n g h a l s o t ol d t h e t r i b u n a l t h a t h e w a s w o r k i n g a s a s e n i o r
p r o gr a m m e r w i t h a c o mp a ny h er e a n d w a s e a r n i n g a s a l a r y o f R s
1 5 , 5 7 0 p e r m o n t h . Th e d r i v er a n d o w n er o f t h e c a r, S h a l e e n
B h a t n a g a r a n d M a n i P a d m a r e s p e c t i v e l y, c o n t e n t e d b e f o r e t h e
tribunal that the accident had taken place as Singh was negligent
a n d c a r e l e s s t o w ar d s t r a ffi c r u l e s .

( 5) t h e t i m e s o f I n d i a

-India business

-Jan 6 , 2013, 06. 22 PM IST

G e n e r a l i n s u r a n c e i n d u s t r y m a y g r o w by 2 0% a n n u a l l y

M U M B A I : Th e I n d i a n g e n e r a l i n s u r a n c e i n d u s t r y i s l i k e l y t o g r o w
b y a r o u n d 2 0 p e r c e n t p e r a n n u m i n t h e c o mi n g y e a r s b e c a u s e o f
increasing penetration, a top o ffi c i a l of New India
Assurance said.

" D e s p i t e s l o w d o w n i n e c o n o my , t h e g e n e r a l i n s u r a n c e i n d u s t r y
h a s g r o w n by a r o u n d 2 0 p e r c e n t i n t h e r e c e n t p a s t . We h o p e t h e
i n d u s t r y w i l l s e e s i m i l a r gr o w t h i n t h e c o mi n g y e ar s , " c h a i r m a n
and managing director of New I n di a As s u r a n c e G
Srinivasan said.

The penetration of the general insurance in India stands at around

0.7 per cent, lower than the global average of 1.5 to 4 per cent.
R e c e n t l y, t h e f i n a n c e m i n i s t r y h a d a s k e d t h e i n d u s t r y t o c o me u p
with proposals for increasing the penetration.

A s t o t h e t o t a l pr e m i u m, Sr i n i v a s a n s a i d i t s h o u l d g o u p by a t
least four t i me s in the next 10 years.

P r e s e n t l y, t h e t o t a l p r e mi u m o f t h e i n d u s t r y i s a r o u n d R s 6 0 , 0 0 0
c r o r e , w i t h a gr o w t h o f a r o u n d 2 0 p e r c e n t p e r a n n u m.

A b o u t m a j o r c h a l l e n g e s b e f o r e t h e i n d u s t r y, S r i n i v a s a n s a i d i t
will have to reduce the u n d er w r i t i n g losses.

N e w I n d i a As s u r a n c e , t h e l a rge s t g e n e r a l i n s u r e r o f t h e c o u n t r y,
c r o s s e d R s 1 0 , 0 0 0 cr o r e m a r k i n p r e mi u m c o l l e c t i o n i n t h e l a s t
f i n a n c i a l y e a r a n d a i ms t o t o u c h a g l o b a l p r e m i u m o f R s 1 2 , 0 0 0
c r o r e i n t h e c u r r e n t f i n a n c i a l y e ar.

Industry profile
2.1 introduction to insurance ( in general )

Insurance may be described as a social device to reduce or

e l i m i n a t e r i s k o f l o s s t o l i f e a n d pr o p e r t y. U n d e r t h e p l a n o f
i n s u r a n c e , a l a rge n u m b e r o f p e o p l e a s s o c i a t e t h e m s e l v e s
b y s h a r i n g r i s k s a t t a c h e d t o i n d i v i d u a l s . Th e r i s k s w h i c h c a n b e
insured against include fire, the perils of sea, death and accidents
a n d b u rgl a r y. An y r i s k c o n t i n g e n t u p o n t h e s e , m a y b e i n s u r e d
a g a i n s t a t a p r e mi u m c o m m e n s u r a t e w i t h t h e r i s k i n v o l v e d . Th u s
collective bearing of risk is insurance.

Principles of insurance:
 1 . P r i n c i p l e o f U b e r r i ma e f i d e i ( U t m o s t G o o d F a i t h)

B o t h t h e p ar t i e s i . e . t h e i n s u r e d a n d t h e i n s u r e r s h o u l d a g o o d
f a i t h t o w a r d s e a c h o t h er.

T h e i n s u r e r m u s t pr o v i d e t h e i n s u r e d c o mp l e t e , c o r r e c t a n d
c l e a r i n f o r m a t i o n o f s u b j e c t m a t t e r.

T h e i n s u r e r m u s t pr o v i d e t h e i n s u r e d c o mp l e t e , c o r r e c t a n d
i n f o r m a t i o n r e g a r d i n g t er m s a n d c o n d i t i o n o f t h e c o n t r a c t .

T h i s pr i n c i p l e i s a p p l i c a b l e t o a l l c o n t r a c t o f i n s u r a n c e i . e .
life, fire and marine insurance.

2. Principle of Insurable Interest

The insured must have insurable in the subject matter of

insurance.

In life insurance if refers to the life insured.

In marine insurance it is enough if the insurable interest exits

only at the time of occurrence of the loss.

He owner of the party is said to have insurable interest as long

a s h e i s t h e o w n er o f t h e i t .

If is applicable to all contracts of insurance.

3. Principle of Indemnity

Indemnity means a guarantee or assurance to put the insured in

t h e s a me p o s i t i o n i n w h i c h h e w a s i m me d i a t e l y p r i o r t o t h e
h a p p e n i n g o f t h e u n c e r t a i n e v e n t . Th e i n s u r er u n d e r t a k e s t o m a k e
good the loss.

It is applicable to fire, marine and other general insurance.

U n d e r t hi s t h e i n s u r e r a g r e e s t o c o m p e n s a t e t h e i n s u r e d f o r t h e
a c t u a l l o s s s u ffe r e d .

4. Principle of Contribution

T h e pr i n c i p l e i s a c o r ol l a r y o f t h e p r i n c i p l e o f i n d e m n i t y.

I t i s a p p l i c a b l e t o a l l c o n t r a c t s o f i n d e m n i t y.

U n d e r t hi s p r i n c i p l e t h e i n s u r e d c a n c l a i m t h r u c o mp e n s a t i o n
o n l y t o t h e e x t e n t o f a c t u a l l o s s e i t h e r f r o m a n y o n e i n s u r er o r a l l
the insurers.

Important characteristics of Insurance

T h e i n s u r a n c e h a s t h e f o l l o wi n g ch a r a c t e r i s t i c s wh i c h ar e ,
g e n e r a l l y, o b s e r v e d i n ca s e of l i f e , m a r i n e , f i r e a n d g e ne r a l
insurances.

1.Sharing of Risk:
 I n s u r a n c e i s a d e v i c e t o s ha r e t he f i n a n c i a l l o s se s wh i c h
m i g h t b e f a l l o n a n i n d i v i d u a l or h i s f a m i l y o n t h e ha p p e n in g
o f a s p e c i f i e d e v e n t . Th e e v e n t m a y b e d e a t h o f a b r ea d -
wi n n e r t o t h e f a m i l y i n t h e c a s e of l i f e i n s ur a n c e , m a r i n e -
p e r i l s i n m a r i n e i n s u r a n c e , f i r e i n f i r e i n s u r an c e a n d ot h e r
certain events in general insurance, e.g., theft in burglary
i n s u r a n c e , a c c i d e n t i n m o t o r i n s ur a n c e , et c . Th e l o s s ar i s i n g
n o m t h e s e e v e n t s i f i n s u r e d ar e s h a r e d b y a l l t h e i n s u r e d i n
the form of premium.

2 . C o - o p e r a t i ve D e v i c e :
T h e m o s t i m p o r t a n t f e a t ur e o f ev e r y i n s ur a n c e pl a n i s
t h e c o - o p e r a t io n o f l a r g e n u m b e r of pe r s o n s wh o , i n e f fe c t ,
a g r e e t o s h a r e t h e f i n a n c i a l l o s s ar i s i n g du e t o a pa r t i c u l ar
r i s k wh i c h i s i n s u r e d . S u c h a g r o u p o f pe r s o n s m a y b e
b r o u g h t t o g e t h e r v o l u n t ar i l y or t h r o u gh pu b l i c i t y or t h r o u gh
solicitation of the agents.
A n i n s u r e r wo u l d b e u n a b le t o c o m p e n s a t e a l l t h e l o s s e s
f r o m h i s o wn c a p i t a l . S o , b y i n s ur i n g o r u n d er wr i t i n g a l a r ge
n u m b e r o f p e r s o n s , h e i s a b l e t o pa y t h e a m o u n t o f l o s s .
L i k e a l l c o o p e r a t iv e d e v i c e s , t he r e i s no c o m p u l s i o n h e r e o n
a n yb o d y t o p u r c h a s e t h e i n s u r a n c e p o l i c y.

3 . Val u e o f R i s k :
T h e r i s k i s e v a l u a t e d b ef o r e i n su r i n g t o c h a r g e t h e
a m o u n t o f s h a r e o f a n i n s ur e d , h er e i n c a l l e d, c o n s i d er a t i o n
o r p r e m i u m . Th e r e a r e s e v e r a l m e t h o d s o f ev a l ua t i o n o f
r i s k s . I f t h e r e i s e x p e c t a t io n o f m o r e l o s s , hi g h e r p r e m i u m
m a y b e c h a r g e d . S o , t h e p r o b a b i l i t y o f lo s s i s c a l c u l a t e d a t
the time of insurance.

4. Payment at Contingency:
T h e p a ym e n t i s m a d e a t a c er t a i n c o n t i n g en c y i n s ur e d .
I f t h e co n t i n g e n c y o c c u r s , pa ym e n t i s m a d e . S i n c e t h e l i f e
i n s u r a n c e co n t r a ct i s a co n t r a c t o f c e r t a i n t y, b e ca u s e t h e
c o n t i n g e n c y, t h e d e a t h o r t h e e x p ir y o f t er m , wi l l c er t a i n l y
o c c u r, t h e p a ym e n t i s c er t a i n . I n ot h e r i n s u r an c e c o n t r a c t s ,
t h e c o n t i n g e n c y i s t h e f i r e o r t he m a r i n e p er i l s e t c . , m a y o r
m a y n o t o c c u r. S o , i f t h e c o n t i ng e n c y o c c ur s , p a ym e n t i s
m a d e , o t h e r wi s e n o a m o u n t i s g iv en t o t he p o l i c y- ho l d e r.
S i m i l a r l y, in c e r t a in t yp e s o f l i f e p o l i c i e s , p a ym e n t i s n ot
c e r t a i n d u e t o u n c e r t a i n t y o f a p a r t i cu l a r c o nt i n g e n c y wi t h i n
a p a r t i c u l a r p e r i o d . F o r e x a m p l e , i n t er m - i n su r a n ce t he n ,
p a ym e n t i s m a d e o n l y wh e n d e a t h of t h e a s su r e d oc c u r s
wi t h i n t h e s p e c i f i e d t e r m , m a y be on e or t wo ye a r s . S i m i l a r l y,
i n P u r e E n d o wm e n t p a ym e n t i s m a d e o n l y at t h e s ur v i v a l o f
t h e i n s u r e d a t t h e e xp i r y o f t h e p er i o d .

5 . Am o u n t o f P a y m e n t :
T h e a m o u n t o f p a ym e n t d ep e n d s up o n t h e v al u e o f l o s s
occurred due to the particular i n s ur e d risk p r ov id e d
i n s u r a n c e i s t h e r e u p t o t h a t a m o u n t . I n l i f e i n s ur a n c e , t h e
p u r p o s e i s n o t t o m a k e g oo d t h e f i na n c i a l l o s s s u ffe r e d . Th e
i n s u r e r p r o m i s e s t o p a y a f i x ed s u m on t h e h ap p e n i n g of a n
event.
I f t h e e v e n t o r t h e c o n t i n ge n c y t a k e s p la c e , t h e pa ym e n t
d o e s f a l l d u e i f t h e p o l i c y i s v a l i d a nd i n f or c e a t t he t i m e o f
t h e e v e n t , l i k e p r o p e r t y i n s u r a n c e , t h e d e p e nd e n t s wi l l n o t
b e r e q u i r e d t o p r o v e t h e o c c ur r i ng o f l o s s a n d t h e a m o u n t of
l o s s . I t i s i m m a t e r ia l i n l i f e i n s ur a n c e wh a t wa s t h e a m o u n t
o f l o s s a t t h e t i m e o f c o n t i ng e n c y. B u t in t h e pr o p er t y a n d
g e n e r a l in s u r a n ce s , t h e a m o u n t o f l o s s as we l l a s t h e
h a p p e n i n g o f l o s s, a r e r e q u ir e d t o be p r o v e d .

6. Large Number of Insured Persons

To s p r e a d t h e l o s s i m m e d i a t e l y, s m o o t h l y an d c h e ap l y,
l a r g e n u m b e r o f p e r s o n s s h o u l d be i n s u r ed . Th e c o- o p er a t i o n
o f a s m a l l n u m b e r o f p e r s o n s m a y a l s o be i n s u r a n c e b u t i t
wi l l b e l i m i t e d t o s m a l l e r a r ea . Th e c o s t o f i n s ur a n c e t o ea c h
m e m b e r m a y b e h i g h e r. S o , i t m a y b e u n m a r k e t a b l e .
T h e r e f o r e , t o m a k e t he i n s u r an c e c h e ap e r, i t i s e s se n t i a l
t o i n s u r e l a r g e n u m b e r of p er s o n s o r p r o p e r t y b e ca u s e t h e
l e s s e r wo u l d b e co s t o f i n s ur a n c e an d s o , t he l o we r wo u l d b e
p r e m i u m . I n p a s t ye a r s , t ar i ff a s s o c i a t i on s or m u t u a l f i r e
i n s u r a n c e a s s o c i a t i o n s we r e f ou n d t o s ha r e t h e l o s s at
c h e a p e r r a t e . I n o r d e r t o f un c t i o n s u c c e s s f u l l y, t h e i n s u r an c e
s h o u l d b e j o i n e d b y a l a r ge n u m b e r o f pe r s on s .

7 . I n s u r a n c e i s n o t a g a mb l i n g :
 The insurance s e r v es i n d i r e ct l y to increase the
productivity of the community by eliminating wo r r y and
increasing i n i t ia t i v e . Th e un c e r t a in t y is c h a n ge d into
c e r t a i n t y b y i n s u r i n g p r o pe r t y a n d l i f e be c a u s e t h e i n s ur e r
p r o m i s e s t o p a y a d e f i n i t e s u m a t da m a g e o r de a t h .
F r o m a f a m i l y a n d bu s i n e s s p o i nt o f v ie w a l l l iv e s
p o s s e s s a n e c o n o m i c v a l ue wh i c h m a y a t a n y t i m e b e
s n u f fe d o u t b y d e a t h , a n d i t i s as r e a so n a b l e t o e n s ur e
a g a i n s t t h e l o s s o f t h i s v al u e a s i t i s t o p r o t e c t o ne s e l f
a g a i n s t t h e l o s s o f p r o p e r t y. I n t h e a b se n c e of i n su r a n c e, t he
p r o p e r t y o wn e r s co u l d at be s t pr a c t i c e o n l y s o m e f o r m o f
s e l f - i n su r a n c e , wh i c h m a y no t g iv e h i m a b s o l u t e c e r t a in t y.
S i m i l a r l y, in a b s e n c e o f l i f e i n s ur a n c e , sa v in g r eq u i r e s
t i m e ; b u t d e a t h m a y o c c ur at an y t i m e an d t h e pr o p er t y, a nd
f a m i l y m a y r e m a i n u n p r o t e c t e d . Th u s , t h e f a m i l y i s pr o t e c t ed
against losses on death a nd damage wi t h the help of
insurance.

8 . I n s u r a n c e i s n o t Ch a r i t y :
C h a r i t y i s g i v e n wi t h o u t c o n s i d er a t i o n b u t i n s u r a n c e i s
n o t p o s s i b l e wi t h o u t p r e m i u m . I t p r ov id e s s e cu r i t y a n d s a f e t y
t o a n in d i v i d u a l a n d t o t h e so c i e t y a lt h o u g h i t i s a k i n d o f
b u s i n e s s b e c a u s e i n co n s i d e r a t i o n o f pr e m i u m i t g u ar a n t ee s
t h e p a ym e n t o f l o s s . I t i s a pr o f e s s i on b e c a u se i t p r ov id e s
a d e q u a t e s o u r c e s a t t h e t i m e of d i s a s t er s o n l y b y c ha r g i n g a
n o m i n a l p r e m i u m f o r t h e s er v i c e .
2.2 Insurance market ( present )
I N S U R A N C E M A R K E T - P RE S E N T

The insurance sector was opened up for private participation

a d e c a d e b a c k . F o r y e ar s n o w, t h e pr i v a t e p l ay e r s a r e a c t i v e i n t h e
l i b e r a l i z e d e n v i r o n m e n t . Th e i n s u r a n c e m a r k e t h a s w i t n e s s e d
d y n a m i c c h a n g e s , w h i c h i n c l u d e pr e s e n c e o f a f a i r l y n u mb e r o f
insurers both life, and non-life segment. Most of the private
i n s u r a n c e c o mp a n i e s h a v e f o r m e d j o i n t v e n t u r e p a r t n er i n g w e l l -
r e c o g n i z e d f o r e i g n p l ay e r s a c r o s s t h e g l o b e . Th e I n d i a n
life insurance market generated total revenues of $41.36billion in
2007, thus representing a c o mp o u n d annual growth
r a t e ( C A G R ) o f 11. 8 4 % f o r t h e p e r i o d s p a n n i n g 2 0 0 0- 2 0 0 7 . L i f e
i n s u r a n c e m a r k e t h a d a gr o w t h o f $ 2 2 . 4 6 b i l l i o n w i t h i n a p e r i o d
o f 7 y e a r s w i t h a gr o w t h r a t e o f 118 . 2 4 % . E s t i ma t e d l i f e
p r e mi u m s r o s e t o I N R 1 , 4 7 0 , 8 0 0 m i l l i o n ( $ 3 6 . 7 7 b i l l i o n ) i n 2 0 0 6
f r o m I N R 1 , 3 0 1 , 5 4 0 m i l l i o n ( $ 3 2 . 5 4 bi l l i o n ) i n 2 0 0 5 . We e n v i s a g e
t h a t l i f e p r e mi u m s i n 2 0 11 w i l l b e $ 6 5 . 9 6 b i l l i o n , a gr o w t h l a r ge r
t h a n t h ey w er e i n 2 0 0 7 . Th e p er f o r ma n c e o f t h e m a r k e t i s f o r e c a s t
t o a c c e l e r a t e , w i t h a n a n t i c i p a t e d C A G R o f 9 . 7 8 % f o r t h e f o u r-
y e ar p e r i o d 2 0 0 7 - 2 0 11 e x p e c t e d t o d r i v e t h e m a r k e t t o a v a l u e o f
$ 6 5 . 9 6 b i l l i o n by t h e e n d o f 2 0 11. Th e r e w o u l d b e a g r o w t h
o f $ 2 4 . 6 b i l l i o n i . e . 5 9 . 4 8% i n t h e n e x t 4 y e ar s . N o n - l i f e
p r e mi u m s i n I n d i a w e r e $ 6 . 5 3 b i l l i o n i n 2 0 0 7 . G r o s s wr i t t e n
p r e mi u m ( G W P ) i n t h e I n di a n n o n- l i f e i n s u r a n c e m a r k e t r e a c h e d a
value of $5.75 billion in 2006, this representing an annual
g r o w t h o f 1 3 . 5 5 % f o r t h e p er i o d s p a n n i n g 2 0 0 6- 2 0 0 7 . E s t i m a t e d
n o n - l i f e p r e mi u m s r o s e f r o m I N R 2 3 0 bi l l i o n ( $ 5 . 7 5 b i l l i o n ) i n
2 0 0 6 t o I N R 2 6 1 b i l l i o n ( $ 6 . 5 3 b i l l i o n ) i n 2 0 0 7 . We a n t i c i p a t e t h a t
n o n - l i f e p r e mi u m s w i l l gr o w b y a C A G R o f 9 . 4 0 % b e t w e e n 2 0 0 7-
2 0 11. We ar e l o o k i n g f o r n o n- l i f e p r e mi u m s t o r i s e b y $ 4 0 5
m i l l i o n o v e r t h e f i v e y e ar s t o t h e e n d o f 2 0 11 w i t h a gr o w t h r at e
o f 6 2 . 0 2% . Wit h a h u g e p o p u l a t i o n b a s e a n d l a r ge u n t a p p e d
m a r k e t , i n s u r a n c e i n d u s t r y i s a b i g o p p o r t u ni t y a r e a i n I n d i a f o r
n a t i o n a l a s w e l l a s f o r e i g n i n v e s t o r s . I n d i a i s t h e f i f t h l a r ge s t l i f e
i n s u r a n c e m a r k e t i n t h e e me rgi n g i n s u r a n c e e c o n o m i e s g l o b a l l y
a n d i s gr o w i n g a t 3 2- 3 4 % a n n u a l l y. Th i s i m p r e s s i v e g r o w t h i n t h e
m a r k e t h a s b e e n d r i v e n by l i b er a l i z a t i o n , w i t h n e w p l ay e r s
s i g n i f i c a n t l y e n h a n c i n g pr o d u c t a w a r e n e s s a n d p r o mo t i n g
c o n s u m e r e d u c a t i o n a n d i n f o r ma t i o n . Th e s t r o n g g r o w t h p ot e n t i a l
o f t h e c o u n t r y h a s a l s o m a d e i n t e r n a t i o n a l p l ay e r s t o l o o k a t t h e
I n d i a n i n s u r a n c e m a r k e t . M o r e o v e r, s a t u r a t i o n o f i n s u r a n c e
markets in many developed economies has made the Indian market
m o r e a t t r a c t i v e f o r i n t e r n a t i o n a l i n s u r a n c e p l a y er s , a c c o r d i n g t o

" B o o m i n g I n s u r a n c e M a r k e t i n I n d i a ( 2 0 0 8- 2 0 11) :

Tot a l l i f e i n s u r a n c e p r e mi u m i n I n d i a i s pr o j e c t e d t o gr o w
R s 1 , 2 3 0 , 0 0 0 c r o r e by 2 0 1 0- 11.

Tot a l n o n - l i f e i n s u r a n c e pr e m i u m i s e x p e c t e d t o i n c r e a s e a t
a C A G R o f 2 5 % f o r t h e p e r i o d s p a n n i n g f r o m 2 0 0 8 - 0 9 t o 2 0 1 0 - 11.

Wit h t h e e n t r y o f s e v e r a l l o w- c o s t a i r l i n e s , a l o n g w i t h f l e e t
e x p a n s i o n b y e x i s t i n g o n e s a n d i n c r e a s i n g c or p o r a t e a i r c r a f t 1 7
ownership, the Indian aviation insurance market is all set to boom
i n b i g w a y i n c o m i n g y e ar s .

H o m e i n s u r a n c e s e g m e n t i s s e t t o a c h i e v e a 1 0 0 % gr o w t h a s
f i n a n c i a l i n s t i t u t i o n s h a v e m a d e h o m e i n s u r a n c e o b l i g a t or y
for housing loan approvals.

H e a l t h i n s u r a n c e i s p oi s e d t o b e c o m e t h e s e c o n d l a r ge s t b u s i n e s s
f o r n o n- l i f e i n s u r e r s a f t e r mo t o r i n s u r a n c e i n n e x t t h r e e y e ar s .
 A b o o mi n g l i f e i n s u r a n c e m a r k e t h a s p r o p e l l e d t h e I n d i a n l i f e
insurance agents into the

t o p 1 0 c o u n t r y l i s t i n t er m s o f m e mb e r s h i p t o t h e M i l l i o n D o l l a r
R o u n d Tab l e ( M D RT

2.3 present structure of insurance industry in India

Introduction
G l o b a l i n t e gr a t i o n o f f i n a n c i a l m a r k e t s r e s u l t e d f r o m d e-
r e g u l a t i n g m e a s u r e s , t e c h n o l o g i c a l i n f o r ma t i o n e x p l o s i o n a n d
financial innovations. Liberalization and Globalization have
a l l o w e d t h e e n t r y o f f o r e i g n p l a y er s i n t h e I n s u r a n c e s e c t o r. Wit h
t h e e n t r y o f pr i v a t e a n d f o r e i g n p l ay e r s i n t h e I n s u r a n c e b u s i n e s s ,
p e o p l e h a v e g o t a l o t o f o p t i o n s t o c h o o s e f r o m. R a d i c a l c h a n g e s
a r e t a k i n g p l a c e i n c u s t o me r pr o f i l e d u e t o t h e c h a n g i n g l i f e s t y l e
a n d s o c i a l p e r c e p t i o n , r e s u l t i n g i n e r o s i o n o f br a n d l o y a l t y. To
s u r v i v e , t h e f o c u s o f t h e m o d e r n i n s u r e r s s h i f t e d t o a c u s t o me r-
c e n t r i c r e l a t i o n s h i p . Th e p a p er f o c u s e s t h e c ur r e n t p o s i t i o n o f
i n s u r a n c e i n d u s t r y.

Liberalization and Privatiza tion

I n d i a ' s e c o n o m i c d e v e l o p m e n t m a d e i t a mo s t l u c r a t i v e I n s u r a n c e
m a r k e t i n t h e w or l d . B e f o r e t h e y e a r 1 9 9 9 , t h er e w a s m o n o p o l y
state run LIC transacting life business and the General Insurance
Corporation of India with its four Subsidiaries transacting the
rest. In the wake of reform process and passing Insurance
 R e g u l a t o r y a n d D e v e l o p me n t Au t h o r i t y ( I R D A ) Ac t t h r o u g h
Indian parliament in 1999, Indian Insurance was opened for
private companies.

L i b er a l i z a t i o n o n t h e I n s u r a n c e s e c t o r s h a s a l l o w e d the foreign
p l a y er s t o e n t er t h e m a r k e t w i t h t h e i r I n d i a n p a r t n e r s . Most of the
foreign Insurers have joined within the local market. I n d i a o ffe r s
i m me n s e p o s s i b i l i t i e s t o f o r e i g n I n s u r e r s s i n c e i t i s t h e w or l d ' s
most populous country having over a billion people.

Insurance industry had ten and six entrants in life and non-life
s e c t o r r e s p e c t i v e l y i n t h e y e ar 2 0 0 0 - 2 0 0 1 . Th e i n d u s t r y a g a i n s a w
two and three entrants in the life and non-life business
r e s p e c t i v e l y i n t h e y e ar 2 0 0 1- 2 0 0 2 . O n e a d d i t i o n a l e n t r a n t w a s
m a d e b o t h i n t h e l i f e a n d i n n o n- l i f e b u s i n e s s i n 2 0 0 4 a n d 2 0 0 5
r e s p e c t i v e l y. At pr e s e n t t h e r e a r e f o u r t e e n c o m p a n i e s e a c h i n L i f e
a n d G e n e r a l I n s u r a n c e . Th e F u n d s e a r l i e r g e n e r a t e d by t h e s t a t e
o w n e d i n s u r e r s h a v e b e e n d i v e r s i f i e d w i t h o t h e r n e w i n s u r e r s . We
s h o u l d w a i t a n d s e e h o w t h e n e w p l ay e r s ar e g o i n g t o b o o s t u p
o u r e c o n o my.

Competition
P r i v a t e a n d F or e i g n e n t r a n t s i n t h e I n s u r a n c e I n d u s t r y m a d e
o t h e r s d i ffi c u l t t o r e t a i n t h e i r m a r k e t . H i g h e r c u s t o me r
aspirations lead to new expectations and compel him to move
t o w a r d s t h e i n s u r er w h o p r o v i d e s h i m t h e b e s t s e r v i c e i n t i m e . I t
becomes less viable for them even to maintain the functional
n e t w o r k s o r c o m p e t i t i v e s t a n d a r d s a n d s e r v i c e s . To s u r v i v e i n t h e
I n d u s t r y t h e y a n a l y z e , t h e e me rgi n g r e q u i r e me n t s o f t h e
p o l i c y h o l d e r s / i n s u r e r s a n d t h ey a r e i n t h e f o r e f r o n t i n p r o v i d i n g
e s s e n t i a l s e r v i c e s a n d i n t r o d u c i n g n o v e l p r o d u c t s . Th e r e b y t h e y
b e c o m e n i c h e s p e c i a l i s t s , w h o pr o v i d e t h e r i g h t s e r v i c e t o t h e
r i g h t p er s o n i n r i g h t t i m e .

T h e f o l l o w i n g t a b l e s h o w s t h e m a r k e t s h a r e o f l i f e a n d n o n- l i f e
insurers

MARKET SHARE (%)

LIFE INSURERS N O N L I FE I NS U R E R S

1. LIC 76.07 1. New India 21.41

2. ICICI Prudential 6.91 2. National 1 7 . 11

3. B a j a j Al l i a n z 4.75 3. United India 1 7 . 11

4. HDFC Standard 2.98 4. Or i e n t a l 17.02

5. Birla Sun life 1.72 5. I CI C I - 8.04

Lombard

6 . Tat a AI G 1.66 6. B a j a j Al l i a n z 6.15

7. SBI Life 1.46 7. I F F C O - Tok y o 4 . 0 0

8. M a x N e w Yor k 1.28 8. Tat a - A I G 2.89

9 . Avi v a 1.08 9. ECGC 2.50

10. Kodak Mahindra Old0.71 10. R oy a l 2.17

Mutual S u n d ar a m

11. I N G Vys y a 0.54 11. C h o l a ma n d a l a 1 . 2 2

 m

12. AMP Sanmar 0.46 12. HDFC-Chubb 0.89

13. Met Life 0.37 13. Reliance 0.75

General

14. Sahara Life 0.03 14. A gr i c u l t u r e --

Insurance Co.

Private total 23.93 Pr i v a t e t o t a l 27.35

Public total 76.07 P u b l i c t ot a l 72.65

Grand total 100.00 Gr a n d t ot a l 100.00

S o u r c e : w w w.i r d a i n d i a . o r g

I n t h e a b o v e t a b l e s h o w s , t h e pr i v a t e p l a y er s i n t h e l i f e i n s u r a n c e
b u s i n e s s h a v e i n c r e a s e d t h e i r m a r k e t s h a r e t o 2 3 . 9 3 p er c e n t .
Among them ICICI prudential is ranked first in capturing the
m a r k e t f o l l o w e d by B a j a j Al l i a n z a n d H D F C S t a n d a r d . I n t h e
G e n e r a l I n s u r a n c e s e c t o r t h e p r i v a t e p l a y er s h a v e c a p t u r e d 2 7 . 3 5
p e r c e n t . Am o n g t h e m I C I C I - L o m b a r d i s r a n k e d f i r s t , f o l l o w e d b y
Bajaj Al l i a n z and I F F C O - Tok i o .
T h e h e a l t hy c o m p e t i t i o n i n t h e s e c t o r e n a b l e d t h e S t a t e o w n e d
insurers of our mother country to reduce its market share to 76.07
per cent and 72.65 percent in life and non-life business
r e s p e c t i v e l y. M o r e o v e r, p r i v a t e i n s u r e r s h a v e p l a n n e d t o i n c r e a s e
t h e i r m a r k e t s h a r e i n t h e n e x t f i v e y e a r s . Th e p u b l i c i n s u r er s h a v e
to enrich its approach to withhold its share.

2.4 RELATED ACTS

The insurance sector went through a full circle of phases from

being unregulated to be completely regulated and now being
p a r t i a l l y d e r e g u l a t e d . I t i s g o v e r n e d b y n u mb e r o f a c t s , w i t h t h e
f i r s t o n e b e i n g t h e I n s u r a n c e Ac t , 1 9 3 8 .

The Insurance Act, 1938

T h e I n s u r a n c e Ac t , 1 9 3 8 w a s t h e f i r s t l e g i s l a t i o n g o v e r n i n g a l l
insurance titles to provide strict state over insurance business.
Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only
o n 1 9 t h J a n u a r y, 1 9 5 6 , t h a t l i f e i n s u r a n c e i n I n d i a w a s c o mp l e t e l y
n a t i o n a l i z e d t h r o u g h t h e L i f e I n s u r a n c e C o r p o r a t i o n Ac t , 1 9 5 6 .
There were 245insurance companies of both Indian and foreign
origin companies in1956. Th e g o v e r n me n t acquiring
t h e c o m p a n i e s a c c o m p l i s h e d n a t i o n a l i z a t i o n . Th e L i f e I n s u r a n c e
C o r p o r a t i o n o f I n d i a w a s t h e n f o r m e d o n 1 s t S e p t e m b e r, 1 9 5 6 .

General Insurance Business (Nationa liza tion) AC T, 1972

T h e g e n er a l i n s u r a n c e b u s i n e s s ( n a t i o n a l i z a t i o n) Ac t , 1 9 7 2 w a s
e n a c t e d t o n a t i o n a l i z e t h e 1 0 0 o d d g e n e r a l i n s u r a n c e c o mp a n i e s
b y m e r gi n g t h e m t o f o r m f o u r d i ffe r e n t c o m p a n i e s n a m e d N a t i o n a l
Insurance, New India21 Assurance, Oriental Insurance and United
India Insurance headquartered in each of the four metropolitan
cities of India.

Insurance Regulatory and Development Authority (IRDA)

Act, 1999

Reforms in the Insurance sector were initiated with the passage of

t h e I R D A B i l l i n P ar l i a m e n t i n D e c e m b e r 1 9 9 9 . Th e I R D A s i n c e
i t s i n c or p o r a t i o n a s a s t a t u t o r y b o dy i n Ap r i l 2 0 0 0 h a s
fastidiously stuck toits schedule of framing regulations
a n d r e g i s t e r i n g t h e p r i v a t e s e c t o r i n s u r a n c e c o mp a n i e s . Th e o t h e r
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's online service for issue
a n d r e n e w a l o f l i c e n s e s t o a g e n t s . Th e a p p r o v a l o f i n s t i t u t i o n s f o r
imparting training to agents has also ensured that the insurance
companies would have a trained workforce of insurance agents in
p l a c e t o s e l l t h e i r pr o d u c t s , w h i c h a r e e x p e c t e d t o b e i nt r o d u c e d
b y e a r l y n e x t y e a r. S i n c e b e i n g s e t u p a s a n i n d e p e n d e n t s t a t u t o r y
b o d y t h e I R D A h a s p u t i n a f r a me w o r k o f g l o b a l l y c o m p a t i b l e
r e g u l a t i o n s . I n t h e p r i v a t e s e c t o r 1 2 l i f e i n s u r a n c e a n d 6 g e n er a l
i n s u r a n c e c o mp a n i e s h a v e b e e n r e g i s t e r e d .
2.5 product of general insurance
Some of the key General Insurance products* available at
Standard Chartered:

Double Protect:

2 y e ar H e a l t h I n s u r a n c e Pl a n f o r y o u r f a mi l y
M a t e r n i t y e x p e n s e s ar e C o v e r e d u p t o 1 0% o f t h e Su m i n s u r e d
s u b j e c t t o a m a x i mu m o f R s . 2 0 , 0 0 0 / -
C u m u l a t i v e B o n u s - 1 0 % c u mu l a t i v e b o n u s o n 1 s t r e n e w a l f o r 2
c l a i m f r e e y e a r s a n d 5% f o r e v e r y s u b s e q u e n t c l a i m f r e e y e ar
s u b j e c t t o a m a x i mu m o f 5 0%
Family Discount - A discount of 5% for covering 2 people and
1 0 % i f 3 o r m o r e ar e c o v e r e d

Surgical Shield:

S u r gi c a l S h i e l d i s a c o mp r e h e n s i v e i n s u r a n c e c o v e r t h a t o ffe r s
f i n a n c i a l p r o t e c t i o n t o y o u a n d t o y o u r f a mi l y w h e n i n n e e d o f
h o s p i t a l i z e d s u r gi c a l c a r e .
Tot a l c o v e r a g e 1 0 0 s u rge r i e s c l a s s i f i e d i n t o 4 c a t e g o r i e s
including Heart Bypass, Cataract, Hip / Knee replacement
Payout is fixed depending on clinical intensity not on the
a c t u a l c o s t o f s u r ge r y
B a l a n c e a m o u n t i s p a i d t o t h e c u s t o m e r a f t e r t h e d i s c h a r ge a s
benefit.

S e c u r e Al l , a 3 - i n - 1 t w o y ea r c o mp r e h e n s i v e i n s u r a n c e p l a n ,
s p e c i a l l y d e s i g n e d & o ffe r e d f o r y o u , t h i s u n i q u e c o m b o p l a n
provides:
 Hospitalization Cover
Hospital Cash Benefit
P e r s o n a l Ac c i d e n t B e n e f i t

Home Content:

T h e H o me C o n t e n t P o l i cy c o v er s y o ur h o u s e h o l d c o n t e n t s ,
a p p l i a n c e s a n d j e w e l s a g a i n s t t h e r i s k o f F i r e a n d Al l i e d p e r i l s ,
B u rgl a r y a n d E l e c t r i c a l a n d M e c h a n i c a l B r e a k d o w n .

Standard Fire:

T h e s t a n d a r d c o v e r i s a n a me d - p er i l p o l i c y c o v e r i n g a l o t o f
p e r i l s . Th e p o l i c y a l s o c o v e r s R e m o v a l o f d e b r i s u p t o 1 % o f
c l a i m a mo u n t a n d Ar c h i t e c t ' s a n d S ur v e y or ' s f e e s u p t o 3 % o f
claim amount

3 6 0 D e g r e e S h i e l d ( F or S h o p s , O ffi c e s , H o t e l s , C a f e s , B P O s )

T h e 3 6 0 D e g r e e S h i e l d i s a c o mp r e h e n s i v e i n s u r a n c e s o l u t i o n f o r
S m a l l a n d M e d i u m N o n- m a n u f a c t u r i n g E n t e r p r i s e s . 3 6 0 D e g r e e
S h i e l d p r o v i d e s a l l - r o u n d p r o t e c t i o n t o y ou r b u s i n e s s b y
combining the following insurances in a single and convenient
e a sy - t o- m a n a g e p o l i cy :

F i r e & S p e c i a l P er i l s
B u rgl a r y
Fidelity Guarantee
Money
Public Liability

Family Floater
 One sum insured covering all family members.
C a s h l e s s h o s p i t a l i z a t i o n t h r o u g h m o r e t h a n 3 0 0 0 n e t w or k
hospitals across India.
C u mu l a t i v e B o n u s - S u m i n s u r e d u n d e r t h e p o l i cy s h a l l b e
p r o gr e s s i v e l y i n cr e a s e d b y 5 % f o r e v e r y c l a i m f r e e y e a r o f
insurance, subject to a maximum of 50%.
C o v e r a g e f o r pr e - e x i s t i n g d i s e a s e s a f t e r 4 8 m o n t h s o f
c o n t i n u o u s i n s u r a n c e u n d e r t h i s p o l i c y.

Motor insurance policie s

Introduction

A n i n s u r a n c e o f t h i s t y p e e n s u r e s t h a t i n t h e c a s e o f a ny
unintentional accident, the insurance company will pay for the
d a m a g e s d o n e t o t h e p o l i c y h o l d e r s c ar o r t o t h e t h i r d p a r t y o r t o
a t h i r d p a r t y s v e h i c l e i n v o l v e d i n t h e a c c i d e n t . Th i s i s w h a t c a r
i n s u r a n c e I n d i a i s a l l a b o u t . Th i s h o l d s a l o t o f s i g n i f i c a n c e
p r i ma r i l y b e c a u s e o f t h e f a c t t h a t a c c i d e n t s or a ny u nt o w a r d
i n c i d e n t s c a n o c c u r t o a n y o n e o r a n y o n e s v e h i c l e a t a n y p o i n t i n
time. It is the risk mitigation which makes car insurance

T h i s i s t h e m a i n r e a s o n w hy o n e s h o u l d g e t t h e i r v e h i c l e s c o v e r e d
b y i n s u r a n c e . Th e r e a r e t w o pr i n c i p a l t y p e s o f c a r i n s u r a n c e s :

Third party insurance

Comprehensive insurance

Third party insurance only covers damage expenses incurred by

t h e t h i r d p a r t y s or t h e v i c t i ms v e h i c l e . I n c o m p a r i s o n , a
c o m p r e h e n s i v e i n s u r a n c e c o v e r s d a ma g e s c a u s e d by a l o t m o r e
c a u s e s w h i c h i n c l u d e : n a t ur a l c a l a mi t i e s , t h e f t , a c t s o f t er r or i s m ,
etc.

3.2 advantages of motor insurance

A l l t h e s t a t e s i n I n d i a r e q u ir e a m i n i m u m a m o u n t of
i n s u r a n c e . C a r i n s u r a n c e ca n he l p o ffs e t t h e l o s s o f hu g e
s u m i n t h e f o l l o wi n g m a n n er :

A P r o v i d e s be n e f i t s to su r v i v o r s wh e n an
a c c i d e n t r e s u l t s i n de a t h .

A I t co v e r s l a ws u i t s , i n c l u d i n g l e g a l f e e s b r o u g h t
a g a i n s t yo u a s t he r e s u l t of a n a c c i de n t .

A C o v e r s t h e b i l l s of v e hi c l e r e p a i r s d ue t o
d a m a g e c a u s e d i n a n a c c i de n t .

A C o v e r s d a m a g e c a u s e d b y o t h er t ha n an
a c c i d e n t f o r e xa m p l e , t h e f t , f i r e , e t c .

A Ad d i t i o n a l d i s c o u n t s: C a r i n s ur a n c e po l i c i e s
a l l o w p r e m i u m d i s co u n t s f o r t h e f t or f or o wn i n g
m o r e t h a n o n e p o l i c y wi t h t h e s a m e i n s ur e r. I t a l s o
p r o v id e s a d d e d a dv a n t a g e t o ex t e n d c o v e r a g e t o
o t h e r s d r iv i n g yo u r ca r wi t h yo u r pe r m i s s i o n .

A N o C l a i m B o n u s : I f yo u d o no t m a k e a c l a i m
d u r in g t h e p o l i c y p e r i od , a N o C l a i m B o n u s i s
o f fe r e d o n r e n e wa l s pr o v i d e d yo u f u l f i l l c e r t a i n
terms and conditions
Benefits & Features:

A t y pi c a l v e h i c l e i n s u r a n c e p ol i c y c o v e r s d a m a g e s t o t h i r d
p a r t y a n d t o s e l f c a r b u t t h e p r o d u c t s b y a f e w pr i v a t e i n s u r e r s
o ffe r a l a r ge n u mb e r o f o t h e r u t i l i t i e s t o t h e p o l i cy h o l d e r s ,
like:
Direct settlement or cashless claims at network
garages .

Depreciation Cover

Engine Protection Cover

24X7 Road Side assistance

Tow i n g F a c i l i t y.

3.3 factors influencing to buy motor insurance policie s

You w o r k h a r d t o b uy a n a u t o mo b i l e s o a s t o e n j o y t h e t r i p s a n d
m a y b e t o s u p p o r t t h e b u s i n e s s n e e d s . An u n c e r t a i n t y c a n o c c ur
a n y t i m e l e a d i n g t o h e a vy l o s s e s . Th e c o s t s t o g e t t h e v e h i c l e
repaired in the event of damage or replacing it just in case it is
stolen can be huge. Hence it is most needed to buy an appropriate
comprehensive policy c o v e r.

We a t O r i e n t a l I n s u r a n c e u n d e r s t a n d t h e n e e d s a n d o ffe r
C o m p r e h e n s i v e M o t o r I n s u r a n c e pr o d u c t s t h a t p r o vi d e t h e a d d e d
p r o t e c t i o n f o r y ou r v e h i c l e . I t f u r t h e r pr o v i d e s c o v e r f o r l i a b i l i t y,
death or p r o p er t y d a ma g e of third parties.
N o w y o u c a n b uy a n d r e n e w p o l i c i e s O n l i n e . B uy a n e w M o t o r
Veh i c l e I n s u r a n c e p o l i c y, R e n e w a n e x i s t i n g Or i e n t a l M o t o r
I n s u r a n c e p o l i cy or r e n e w p o l i c i e s b o u g h t f r o m a n y o t h e r g e n e r a l
i n s u r a n c e c o mp a ny b y r e g i s t e r i n g y o u r s e l f o n o ur P o r t a l a n d
paying online through your debit card / credit card or Net-
banking.

M O TO R PAC K A G E INSURANCE POLICY FOR TW O

WHEELER:

What is covered under Two Wheeler Insurance Policy:

The Package Po l i c y covers

1. Ac c i d e n t a l Loss of or d a ma g e to the Veh i c l e

2. Liability to third parties, Personal accident cover to owner

d r i v e r.

3. Var i o u s Ad d on Covers on extra p r e mi u m

Loss or d a ma g e to two wheeler caused by :

4. Ac c i d e n t a l external means.

5. B u rgl a r y, House Breaking or Th e f t .

6. Fire, Explosion, Self Ignition & Lightening.

7. Earthquake, Flood, St o r m, L a n d s l i d e o r R o c k s l i d e ,
I n u n d a t i o n , Ter r o r i s m , R i o t s , St r i k e s , M a l i c i o u s Ac t s
8 . Tra n s i t b y R o a d , R a i l , i n l a n d w a t er w a y s , a i r o r l i f t .

What is the Am ount of Insurance: Top

T h e a mo u n t o f I n s u r a n c e w i l l b e I n s u r e d D e c l a r e d v a l u e
o f t h e Veh i c l e ( I D V) . I D V f o r v e h i c l e l e s s t h a n f i v e
y e ar s o l d i s t h e M a n u f a c t u r e r s l i s t e d s e l l i n g P r i c e w h i c h
i s a d j u s t e d f o r D e p r e c a t i o n b a s e d o n a g e o f Veh i c l e . Fo r
v e h i c l e s b e y o n d f i v e y e ar s o f a g e a n d o b s o l e t e v e h i c l e s ,
the IDV is mutually agreed value.

How is Premium Calculated :

T h e P r e mi u m c a l c u l a t i o n i s b a s e d o n t h e f o l l o w i n g
factors:

1. IDV of the vehicle

2. Cubic Capacity of the vehicle

3. Zone of Registration

Age of Veh i c l e Ad d i t i o n a l Pr e m i u m for :

(I) Electrical & electronic items

(ii) CNG/LPG FUEL

(iii) Ad d on Covers
( i v) E x t r a B e n e f i t

What is the Period of Insurance :

C o v e r a g e p e r i o d i s f o r o n e y e ar, however s h o r t er
duration covers are also available.

W h a t i s n o t c o v e red u n d e r t h e Two Wh e e l e r P a c ka g e
Top
P o l i cy :

1 . D a ma g e by a p e r s o n dr i v i n g w i t h o u t a v a l i d d r i v i n g
license

2. Mechanical or Electrical breakdown, failure

3 . D a ma g e by a p e r s o n dr i v i n g u n d er t h e i n f l u e n c e o f
liquor/ Al c o h o l / Dr u g s

4. Depreciation, any consequential loss

5. Loss/Damage attributable to War / M u t i ny / N u c l e a r

risks

6 . D a m a g e t o t i er s / t u b e s , u n l e s s d a m a g e t o t h e v e h i c l e
i n t h e a c c i d e n t w i t h l i a b i l i t y m a x i mu m f i f t y p er c e n t o f
value.

7 . D a ma g e , o u t s i d e I n d i a u n l e s s c o v er e d b y e x t r a
p r e mi u m f o r N e p a l , B h u t a n & B a n g l a d e s h , P a k i s t a n , S r i
Lanka &Maldives
8 . Two Wh e e l e r b e i n g u s e d f o r H i r e o r R e w a r d , s p e e d
testing, or Racing, Reliability Tri a l s .

9 . L o s s o f o r D a m a g e t o a c c e s s o r i e s b y B u rgl a r y,
H o u s e b r e a k i n g or t h e f t u n l e s s t h e Veh i c l e i s s t o l e n a t
t h e s a me t i me .

Discounts in Prem ium:

F o l l o w i n g D i s c o u n t s i n p r e mi u m m a y b e gr a n t e d :

a) Vol u n t a r y Deductible
b) Discount for anti theft Device
c ) I f n o c l a i m i s p r e f e r r e d i n t h e e x p i r i n g P o l i c y, a
B o n u s or D i s c o u n t n a me d N O C L A I M B O N U S i s g i v e n
on the P r e mi u m of the new P ol i c y.
d ) Au t o mo b i l e As s o c i a t i o n d i s c o u n t

What does liability to third parties means

in the coverage:

I f t h e i n s u r e d v e h i c l e c a u s e s I n j ur y / D e a t h a n d / o r
P r o p er t y D a m a g e t o a t h i r d p a r t y, t h e l e g a l l i a b i l i t y
a r i s i n g o u t o f t h e s a m e t o a t h i r d p a r t y i s c o v e r e d u n d er
liability to third parties

What is the Period of Insurance :

C o v e r a g e p e r i o d i s f o r a y e ar, h o w e v e r s h o r t er d u r a t i o n
c o v e r s ar e a l s o a v a i l a b l e .

Im portant Policy Conditions:

I m m e d i a t e N o t i c e s h a l l b e g i v e n t o t h e c o m p a ny i n
w r i t i n g u p o n o c c u r r e n c e o f a c c i d e n t a l l o s s / D a ma g e . Th e
company at its discretion repairs, reinstate or replace
the vehicle insured. Insured shall take all steps to
s a f e g u a r d t h e v e h i c l e a n d c o m p a ny h a s t h e r i g h t t o
i n s p e c t i t a t a ny t i me .

M O TO R PAC K A G E INSURANCE POLICY FOR

P R IVATE C A R :

What is covered under Car Insurance Policy: Top

The Private C a r P a c ka g e Policy covers

1. Ac c i d e n t a l Loss of or damage to the Veh i c l e

2 . L i a b i l i t y t o t h i r d p a r t i e s , P er s o n a l Ac c i d e n t c o v e r t o
o w n e r- dr i v e r

3. Var i o u s Ad d on Covers on extra p r e mi u m

Loss or d a ma g e to p r i v at e car caused by :

1. B u r gl a r y, Housebreaking or Th e f t

2. Fire, Explosion, Self Ignition & Lightening

3 . E a r t h q u a k e , F l o o d , S t or m , L a n d s l i d e o r R o c k s l i d e ,
I n u n d a t i o n . Ter r o r i s m, R i o t s , S t r i k e s , M a l i c i o u s Ac t s .

4 . Tra n s i t b y R o a d , R a i l , I n l a n d w a t e r w a y s , a i r or l i f t .

What is the Am ount of Insurance:

T h e a m o u n t o f I n s u r a n c e w i l l b e I n s u r e d D e c l a r e d Val u e
o f t h e Veh i c l e ( I D V) . I D V f o r v e h i c l e l e s s t h a n f i v e
y e ar s o l d i s t h e M a n u f a c t u r e r s l i s t e d s e l l i n g Pr i c e ,
which is adjusted for Deprecation based on age of
Veh i c l e . F or v e h i c l e s b ey o n d f i v e y e a r s o f a g e a n d
o b s o l e t e v e h i c l e s , t h e I D V i s mu t u a l l y a g r e e d v a l u e .

How is Premium Calculated:

T h e P r e mi u m c a l c u l a t i o n i s b a s e d o n t h e f o l l o w i n g
f a c t o r s : L o s s or d a ma g e t o v e h i c l e c a u s e d b y :

1. IDV of the vehicle

2. Cubic capacity of the vehicle

3. Zone of registration

4. Ag e of Veh i c l e
Additional P r e mi u m for :

(I) Electrical & electronic items

(ii) CNG/LPG FUEL

(iii) Ad d on cover

( i v) E x t r a B e n e f i t

What is not covered under the Private Car Top

Package policy:

1 . D a ma g e by a p e r s o n dr i v i n g w i t h o u t a v a l i d d r i v i n g
license

2. Mechanical or Electrical breakdown, failure

3 . D a ma g e by a p e r s o n dr i v i n g u n d er t h e i n f l u e n c e o f
L i q u or / A l c o h o l / D r u g s

4. Depreciation, any consequential loss

5. Loss/Damage attributable to War / M u t i ny / N u c l e a r

risks

6 . D a m a g e t o t i er s / t u b e s o f t h e C a r, u nl e s s d a ma g e t o
t h e v e h i c l e i n t h e a c c i d e n t w i t h l i a b i l i t y m a x i mu m f i f t y
percent of value.

7 . D a ma g e , o u t s i d e I n d i a u n l e s s c o v er e d b y e x t r a
p r e mi u m f o r N e p a l , B h u t a n & B a n g l a d e s h , P a k i s t a n , S r i
Lanka &Maldives
8 . Veh i c l e b e i n g u s e d f o r H i r e o r R e w a r d , s p e e d t e s t i n g
o r R e l i a b i l i t y t r i a l s , P a c e m a k i n g , O rga n i z e d R a c i n g ,
a n y p ur p o s e i n c o n n e c t i o n w i t h M o t o r Tra d e .

Discounts in Prem ium:

Following Discounts in premium may be gr a n t e d

a ) Vol u n t a r y Deductible
b)Discount for An t i Th e f t Device
c ) I f n o c l a i m i s p r e f e r r e d i n t h e e x p i r i n g P o l i c y, a
B o n u s o r D i s c o u n t N O CL A I M B O N U S i s gi v e n o n t h e
P r e mi u m of the new Po l i c y
d ) Au t o mo b i l e As s o c i a t i o n M e m b e r s h i p d i s c o u n t

What does liability to third parties means in the

coverage:

I f t h e i n s u r e d v e h i c l e c a u s e s I n j ur y / D e a t h a n d / o r
P r o p er t y D a m a g e t o a t h i r d p a r t y, t h e l e g a l l i a b i l i t y
a r i s i n g o u t o f t h e s a m e t o a t h i r d p a r t y i s c o v e r e d u n d er
liability to third parties.

What is the Period of Insurance :

C o v e r a g e p e r i o d i s f o r a y e ar, h o w e v e r s h o r t er d u r a t i o n
c o v e r s ar e a l s o a v a i l a b l e .

What does Policy pay in Loss on Accident OR

Theft :

In case of Partial damage the Repair/Replacement cost

s u b j e c t t o d e d u c t i o n o f d e pr e c i a t i o n a n d w r e c k v a l u e o f
p a r t s . I n c a s e o f t h e f t or t o t a l l o s s t h e I n s u r e d D e c l a r e d
Val u e ( I D V ) . Th e a p p l i c a b l e e x c e s s i s d e d u c t e d i n a l l
claims.

Im portant Policy Conditions:

I m m e d i a t e N o t i c e s h a l l b e g i v e n t o t h e c o m p a ny i n
w r i t i n g u p o n o c c u r r e n c e o f a c c i d e n t a l l o s s / D a ma g e . Th e
company at its discretion repairs, reinstate or replace
the vehicle insured. Insured shall take all steps to
s a f e g u a r d t h e v e h i c l e a n d c o m p a ny h a s t h e r i g h t t o
i n s p e c t i t a t a ny t i me .

EX TRA COVERAGES FROM "ORIENTAL" :

NIL Depreciation Cover

I n c l a i m o f P ar t i a l D a m a g e s t o t h e Veh i c l e t h e f u l l v a l u e
o f p a r t s s h a l l b e i n d e mn i f i e d w i t h o u t a p p l y i n g
Depreciation thereon however certain deductible shall
b e m a d e a s p e r t e r ms o f t h e P o l i cy. Th e c o v e r i s
a v a i l a b l e w i t h a d d i t i o n a l Pr e m i u m b a s e d o n a g e o f
vehicle.

Loss of Personal effects

T h e L o s s o f p er s o n a l e ffe c t s ( e x c e p t m o n i e s , c r e d i t c a r d s
a n d L a p t o p s , mo b i l e ) t o t h e m a x i mu m o f R s . 5 0 0 0 o r
R s . 1 0 , 0 0 0 , a s t h e l i mi t s m a y b e c h o s e n , a r e p a i d w h e n a
l o s s b e c o m e s p a y a bl e u n d er o w n d a m a g e s e c t i o n o f t h e
p o l i c y. Th e c o v e r i s a v a i l a b l e w i t h a d d i t i o n a l P r e mi u m
o f R s 4 0 0 a n d R s . 6 5 0 r e s p e c t i v e l y.

Alternative Car Benefit

Being deprived of the use of insured vehicle after its

accident/theft, we alleviate the inconvenience by
allowing benefit for use of an alternative vehicle for a
l i mi t e d p er i o d o f t i me o f 5 , 1 0 o r 1 5 d ay s w i t h p e r d a y
l i mi t o f R s . 4 0 0 o r R s . 6 5 0 a s o p t e d a n d pr e m i u m i s
c h a r ge d a c c o r d i n g l y, t h i s b e n e f i t b e c o me s p a y a b l e w h e n
the vehicles gets damaged beyond 20% of IDV and is
disabled.

Free Benefit of Emergency Service through

TVS:
 I f t h e v e h i c l e i s i n s u r e d t h r o u g h o u r o ffi c e s i n St a t e o f
D e l h i & N C R , P u nj a b , H a r y a n a , H i ma c h a l Pr a d e s h ,
R a j a s t h a n , Al l S o u t h e r n St a t e s , M u mb a i a n d K o l k a t a t h e
P o l i cy pr o v i d e s f r e e e m e r ge n cy s e r v i c e s i n c a s e o f
B r e a k d o w n . Th i s i s f r e e b e n e f i t a v a i l a b l e w i t h t h e
P o l i cy w i t h n o p r e mi u m c h a rge d .

3.4 Types of motor insurance

T h e wo r d Mo t o r b r o a d l y c o v e r s a l o t o f c la s s e s o f v e h i c l e s
p l yi n g o n t h e r o a d s . Th e s e m a y be t wo - wh e e l e r s l i k e
s c o o t e r s a n d m o t o r b i k e s , t hr e e - wh e e l e r s or f o ur wh e e l e r s
l i k e p r i v a t e c a r s , je e p s , b u s se s , t r u c k s , c o m m e r c i a l t a x i s an d
other vehicles.

Car Insurance:

T h i s i s t h e f a s t e s t g r o wi n g s e g m e n t i n t h e i n su r a n ce s e c t o r
a s ca r i n s u r a n c e i s m a n d a t o r y wh i l e b u yi n g a n e w c a r. M a jo r
c a r m a n u f a c t u r e r s a r e t yi n g u p wi t h l e a d i n g i n s ur a n c e
c o m p a n i e s t o p r o v i d e q u i c k i n s u r an c e t o i t s c u s t o m e r s. C a r
i n s u r a n c e co v e r s l o s s o r d a m a g e b y a c c i d en t , f ir e , l i g h t n i n g ,
r i o t s , e a r t h q u a k e , h u r r i c a n e, t er r or i s t at t a c k s , e x p l o s i o n ,
t h e f t , t h ir d p a r t y s c l a i m s a n d d a m a g e s ( l i k e l i ab i l i t y f or
t h i r d p a r t y in ju r y o r d e a t h, t h ir d pa r t y p r o p e r t y a nd l i a b i l i t y t o
p a i d d r iv e r ) . O n p a ym e n t of a pp r o pr i a t e a d d i t i o na l pr e m i u m i t
c o v e r s l o s s o r d a m a g e t o e le c t r i c a l o r e l e c t r o n i c ac c e s s o r i e s
and other significant items.

Two Wheelers Insurance:

Two wh e e l e r i n su r a n ce i s a n o t he r t yp e o f p o pu l a r a ut o
i n s u r a n c e in I n d i a . I t i s g o v e r n e d b y t h e I n d i a n M o t o r Tar i ff.
T h i s i n su r a n ce p r o v i d e s p r ot e c t i o n a ga i n s t n a t ur a l a nd
m a n m a d e c a l a m i t i e s l i k e : f i r e , r o c k s l i d e, l a n d s l i d e , s t o r m ,
h u r r i c a n e , f lo o d , e a r t h q ua k e , b ur g l a r y, t h ef t , r i o t s or a n y
d a m a g e ca u s e d t o t h e v eh i c l e i n t r a n s i t b y r o a d , a i r, i n l a n d
wa t e r wa y o r r a i l . Two wh e e l e r i n s ur a n c e pr ov i d e s m a n d at o r y
p e r so n a l a c c i d e n t c o v e r o f R s . 1 l a k h t o t h e i n su r er. Th i s
a c c i d e n t c o v e r c a n a l s o b e o p t e d f o r p a s s e n ge r s . I t a l so
p r o t e c t s a g a i n s t l e g a l l i a b i l i t i e s ar i s i n g d u e t o t h i r d
p a r t y s i n ju r y/ d e a t h or d a m a g e c au s e d t o i t s pr o p er t y.

Commercial Vehicle Insurance:

T h i s t yp e o f i n s u r a n c e co v e r s a l l t h o s e v e h i c l e s wh i c h a r e
n o t u s e d f o r p e r s o n a l p ur p o s e . Tru c k s , b u se s , he a v y
c o m m e r c i a l v e h i c l e s , l i g h t co m m e r c i a l v e h i c le s , m u l t i u t i l i t y
v e h i c l e s , a g r i cu l t u r a l v eh i c l e s , a m b u l a n c e s e t c ar e c o v e r e d
u n d e r t h i s i n s u r a n c e . Th e p r e m i u m i s c a l cu l a t e d o n t h e b a s i s
o f t h e m a k e a n d m o d e l o f t h e c o m m e r c i a l v eh i c l e , p l a c e o f
r e g i s t r a t i o n , ye a r o f m a n u f a c t ur e , c u r r e n t s h o wr o o m p r i c e
a n d wh e t h e r t h e i n s u r e r i s i n d iv i d u a l o r c or p o r a t e . I n s u r a n c e
Companies in c o l l a b or a t i o n wi t h the a ut o m o b i l e
m a n u f a c t u r i n g c o m p a n i e s c h a l k o ut d i f fe r e n t k in d o f e a s y
a n d l e s s co m p l i c a t e d p l a n s f or s af e an d ea s y i n su r a n c e
p o l i c y. H S B C I n d i a , N e w I n d i a As s u r a n ce , U n i t e d I nd i a
I n s u r a n c e , B a j a j Al l i a n z , I C I C I L o m b a r d et c a r e so m e o f t h e
p r o m i n e n t c o m p a n i e s i n I n d i a wh i c h pr ov i d e c o m m e r c i a l
vehicle insurance.

Company profile
Introduction :

I F F C O - Tok i o G e n e r a l I n s u r a n c e ( I T GI ) w a s i n c o r p o r a t e d o n 4 t h
D e c e m b e r 2 0 0 0 w i t h a v i s i o n o f b e i n g i n d u s t r y l e a d e r by b u i l d i n g
c u s t o m e r s a t i s f a c t i o n t h r o u g h f a i r n e s s , t r a n s p a r e n c y, a n d q u i c k
r e s p o n s e . I t i s a j o i n t v e n t u r e b e t w e e n t h e I n d i a n F a r me r s
F e r t i l i z er C o - o p e r a t i v e ( I F F C O ) a n d i t s a s s o c i a t e s a n d Tok i o
M a r i n e a n d N i c h i d o F i r e G r o u p , t h e l a r ge s t l i s t e d i n s u r a n c e gr o u p
in Japan.

I F F C O Tok i o G e n e r a l I n s u r a n c e h a s P a n I n d i a p r e s e n c e w i t h 6 5
'Strategic Business Units' and a wide network of over 120 Lateral
S p r e a d C e n t r e s a n d 2 5 5 B i ma K e n d r a s . I t o ffe r s a w i d e r a n g e o f
u n i q u e l y c u s t o m i z e d p o l i c i e s c o v e r i n g a w i d e r a n g e o f c u s t o me r s ,
f r o m f a r m e r s t o s o m e o f I n d i a ' s l a rge s t a u t o mo b i l e m a n u f a c t u r e r s .
F r o m a m o d e s t R s 2 1 3 C r or e s o f G W P ( Gr o s s Wri t t e n Pr e m i u m) i n
2 0 0 1 - 0 2 i t h a s a c h i e v e d a n i mp r e s s i v e R s 2 2 4 8 . 1 6 C r or e s i n 2 0 11-
1 2 , t h e r e by b e c o m i n g o n e o f I n d i a ' s l e a d i n g pr i v a t e pl a y er s .

I F F C O Tok i o G e n e r a l I n s u r a n c e h a s g o t t h e Tec h n i c a l S u p p or t f o r
u n d e r w r i t i n g a n d r e i n s u r a n c e f r o m Tok i o M a r i n e a n d o n R i s k
M a n a g e me n t f r o m Tok i o R i s k C o n s u l t i n g ( T R C ) . I t i s t h e f i r s t
company in India to underwrite mega policies for a fertilizer and
a n a u t o m o b i l e c o m p a n y. Th i s c o m p r e h e n s i v e p o l i cy i s b a s e d o n
i n t e r n a t i o n a l r a t e s a n d o p t i m i z e s t h e p r e mi u m o ut f l o w f o r c l i e n t s
e v e n a s i t o ffe r s a o n e - s t o p , a l l - r i s k c o v e r. O t h e r t h a n t h e
conventional products, it has been able to come out with niche
p r o d u c t s l i k e C r e d i t I n s u r a n c e , Fi n e Ar t s I n s u r a n c e , P & I
I n s u r a n c e , E r r or s & O mi s s i o n s P o l i c y f o r t h e I T S e c t o r e t c . At t h e
s a m e t i me i t h a s s t e a d f a s t l y c a r r i e d o u t i t s r ur a l c e n t r i c
i n i t i a t i v e s by l a u n c h i n g pr o d u c t s l i k e S a n k a t H a r a n B i m a Yoj a n a ,
M a u s a m B i m a Yoj a n a , M a h i l a S ur a k s h a B i ma Yoj a n a a n d J a n a t a
B i m a Yoj a n a f o r t h e m a s s e s . I t ' s p i o n e e r i n g w o r k u s i n g
t e c h n o l o g y l i k e R F I D ( R a d i o F r e q u e n cy I d e n t i f i c a t i o n D e v i c e ) a n d
N D V I ( N o r ma l i z e d D i ffe r e n c e Veg e t a t i o n I n d e x) h a v e m a d e i t
p o s s i b l e t o o ffe r C a t t l e a n d Wea t h e r i n s u r a n c e t o t h e r u r a l
p o p u l a t i o n a t l a r ge .

It is also the only insurance company in the country to have a

1 0 0 % - o w n e d d i s t r i b ut i o n c h a n n e l t o s e r v i c e i t s r e t a i l c u s t o m e r s
c a l l e d I F F C O - TOK I O I n s u r a n c e S e r v i c e s L t d ( I T I S ) . I t f i n d s
s p e c i a l m e n t i o n i n t h e ' C a p g e mi n i Wor l d I n s u r a n c e R e p o r t - 2 0 0 9 '
a s a n i n n o v a t i v e d i s t r i b u t i o n c h a n n e l . Tod a y, I TI S h a s a h i g h l y
m o t i v a t e d w o r k f o r c e o f o v e r 1 5 0 0 e mp l o y e e s i n o v e r 3 5 0 t o w n s .

A s a c u s t o m e r f o c u s e d c o mp a n y, i t c o n d u c t s bi - a n n u a l c u s t o m e r
s a t i s f a c t i o n s u r v ey s t hr o u g h i n d e p e n d e n t a g e n c i e s t o g a u g e i t s
operational e ffi c i e n c i e s . Th i s is backed by a robust IT
i n f r a s t r u c t ur e , w h i c h h a s e n a b l e d , a mo n g o t h e r t h i n g s , s p e e dy
s e t t l e m e n t o f c l a i ms .

5.1 IFFCO-TOKIO Genera l Insurance

Objective:

1 . To k n o w t h e k n o w l e d g e o f c o n s u me r i n t h e s e c t o r o f G e n e r a l
Insurance in Bulandshaher District.
2 . To k n o w t h e d i ffe r e n c e b e t w e e n G e n e r a l I n s u r a n c e a n d M e d i c a l
Insurance in c o n s u me r s mind
3. To know the pr e f e r e n c e s of the insurance companies
4 . To k n o w t h e n e e d s o f t h e c o n s u m e r s f r o m a ny i n s u r a n c e
companies and the unmet needs

5 . pr o v i d e a n o v er v i e w o f t h e m o t o r i n s u r a n c e i n d u s t r y s e ffo r t s
i n p r o mo t i n g r o a d s a f e t y a n d a me l i o r a t i n g t h e c o n s e q u e n c e s o f
road collisions,

6 . h i g h l i g ht g o o d p r a c t i c e , a n d h o w p r o c e d u r e s c a n b e i m p r o v e d
in LICs
7 . r e vi e w t h e i mp l i c a t i o n s o f m o t o r i n s u r a n c e f o r D F I D p ol i c y,
n a m e l y pr o t e c t i n g t h e l i v e l i h o o d s o f t h e p o o r a n d p r o mo t i n g s a f e t y
t h r o u g h p a r t n e r s h i p s b e t w e e n i n s u r a n c e a n d s a f e t y o rga n i z a t i o n s

8 . i d e n t i f y a ny p r o b l e m a r e a w h i c h w o u l d j u s t i f y f u r t h e r r e s e a r c h
e ffo r t s .

9 . I d e n t i f y n e x t s t e p s r e q ui r e d i n o r d er t o a c h i e v e t h e o v e r a l l a i m

I t c o mp a r e d a s m a l l n u m b e r o f c a s e s t u d i e s f r o m L I C s w i t h t h o s e
from HICs, as well as between fault/no-fault, and state insurance
a n d p r i v a t e s e c t o r s y s t e m s . Th e s t u dy a l s o i n c l u d e d e x a mp l e s
f r o m o t h e r c o u n t r i e s , e s p e c i a l l y r e g a r d i n g pr e v e n t i o n a n d
research activities.

5 . 2 M i s s i o n / Vis i o n o f i ffc o t o k i o g e n e r a l i n s u r a n c e c o mp a ny

Mission:
" E x p l or e a n d e n h a n c e t h e q u a l i t y o f l i f e o f p e o p l e t hr o u g h
f i n a n c i a l s e c u r i t y by p r o v i d i n g p r o d u c t s a n d s e r v i c e s o f a s p i r e d
a t t r i b u t e s w i t h c o m p e t i t i v e r e t ur n s , a n d by r e n d e r i n g r e s o u r c e s
f o r e c o n o mi c d e v e l o p me n t . "

To d e v e l o p g e n e r a l i n s u r a n c e b u s i n e s s i n t h e b e s t i n t e r e s t o f
t h e c o m mu n i t y.

To pr o v i d e f i n a n c i a l s e c u r i t y t o i n d i v i d u a l s , t r a d e a n d
c o m me r c e by o ffe r i n g i n s u r a n c e p r o d u c t a n d s e r v i c e o f h i g h
q u a l i t y a t a ffo r d a b l e c o s t .

Vis i o n :

" A t r a n s - n a t i o n a l l y c o mp e t i t i v e f i n a n c i a l c o n g l o me r a t e of
significance to societies and Pride of India.
 5 . 3 IFFCO General Insurance Product Portfolio:

Motor Insurance: M o t o r I n s u r a n c e p r o v i d e s c o v e r f o r l o s s or
d a m a g e t o t h e v e h i c l e a s w e l l a s p r ot e c t s a g a i n s t t h i r d p a r t
l i a b i l i t y.

Health Insurance: Th i s p o l i cy c o v e r s m e d i c a l r e l a t e d e x p e n s e s
l i k e s u rgi c a l e x p e n s e s , o rga n t r a n s p l a n t a t i o n e x p e n s e s e t c . I F F C O
TOK I O h a s I n d i v i d u a l M e d s h i e l d a n d S w a s t hy a K a v a c h h e a l t h
insurance plans. Critical Illness p o l i cy is also available.

Travel Insurance: I F F C O TOK I O h a s f l e x i b l e r a n g e o f t r a v e l

insurance plans which have d i ffe r e n t coverage options like
m e d i c a l e x p e n s e s , l o s s o f p a s s p o r t , p e r s o n a l a c c i d e n t , p er s o n a l
l i a b i l i t y, financial e me rge n c y etc.

Personal Accident: Th i s p r o v i d e s c o v e r i n c a s e p o l i c y h o l d e r i s
i n v o l v e d i n i n j u r i o u s a c c i d e n t a n d s u ffe r s f r o m d i s a b i l i t y or
death.
5.4 performance of motor insurance in iffco tokio general
insurance company

P r i v a t e c a r i n s u r a n c e p o l i c y p r o v i d e s c o v er a g e f o r l o s s o f or
d a m a g e t o y o ur v e h i c l e a g a i n s t t h e r i s k o f a c c i d e n t , f i r e , t h e f t ,
f l o o d s , e a r t h q u a k e , r i o t , s t r i k e e t c . Th e p ol i c y a l s o g i v e s
c o v e r a g e f o r y o ur l i a b i l i t y a r i s i n g o u t o f d e a t h , i n j u r y t o t h i r d
p a r t y a n d / o r t h i r d p r o p er t y d a m a g e .

What the policy covers:

L o s s o r d a m a g e t o t h e i n s u r e d v e h i c l e , P er s o n a l Ac c i d e n t a n d
Third Party Liability due to the following:

N a t u r a l c a l a m i t i es - - F i r e , e x p l o s i o n , s e l f - i g n i t i o n ,
l i g h t n i n g , e a r t h q u a k e , f l o o d , t y p h o o n , h ur r i c a n e , s t o r m,
t e m p e s t , i n u n d a t i o n , cy c l o n e , h a i l s t o r m , f r o s t , l a n d s l i d e ,
rockslide.

M a n m a d e : B u rgl a r y,T h e f t , R i o t & s t r i k e , M a l i c i o u s a c t ,

A c c i d e n t b y e x t e r n a l m e a n s , Any d a m a g e i n t r a n s i t b y r o a d ,
r a i l , i n l a n d w a t e r w a y, l i f t , e l e v a t o r o r a i r.

Personal accident cover:

P r o v i d e s c o mp u l s o r y p e r s o n a l a c c i d e n t c o v e r o f R s . 2 l a k h s f o r
i n d i v i d u a l o w n er d r i v e r o f t h e i n s u r e d v e h i c l e w h i l e t r a v e l l i n g
i n , m o u n t i n g o r di s m o u n t i n g f r o m t h e c a r. You c a n a l s o o p t f o r a
personal accident cover for passengers.

Third party legal liability :

Gives guaranteed protection against legal liability arising due to
a c c i d e n t a l d a ma g e s , a ny p e r ma n e n t i n j ur y / d e a t h o f a p e r s o n
and/or a ny damage caused to the p r o p e r t y.
Key Benefits:
Cashless claim facility at Cashless Garage Network across
India.

C l a i m t o w i n g c h a rge s u p t o R s 1 , 5 0 0 i n t h e e v e n t
a c c i d e n t a l d a m a g e o r l o s s t o y ou r v e h i c l e a s s p e c i f i e d
u n d e r t h e p o l i cy

Ava i l t h e f o l l o w i n g b o n u s e s a n d d i s c o u n t s :

No claim bonus :
I f y ou d o n o t m a k e a c l a i m d ur i n g t h e p o l i cy p er i o d , a N o C l a i m
Bonus ( N C B ) i s o ffe r e d o n r e n e w a l s . Th e d i s c o u n t c a n g o a s
high as 5 0% .
(NCB w i l l o n l y b e a l l o w e d pr o v i d e d t h e p o l i c y i s r e n e w e d
within 9 0 d a y s o f t h e e x p i r y d a t e o f t h e p r e v i o u s p ol i c y.)

Transfer your NCB:

You c a n t r a n s f e r f u l l b e n e f i t s o f N o Claim Bonus when y ou s h i f t
y ou r m o t o r i n s u r a n c e p o l i cy f r o m a n o t h e r c o mp a ny to ITGI.
T h e di s c o u n t r a t e r e ma i n s t h e s a m e , provided you show evidence
that you are entitled to No Claim B o n u s f r o m y ou r previous
motor insurance

Renewal notice or

L e t t e r c o n f i r m i n g t h e N C B e n t i t l e me n t f r o m t h e p r e v i o u s
insurer or

NCB declaration

Additional discounts:
M e m b e r s o f r e c o g n i z e d Au t o m o b i l e As s o c i a t i o n s i n I n d i a c a n
a v a i l a d i s c o u n t o f 5% o n t h e O D Pr e m i u m s u b j e c t t o a
m a x i mu m of Rs. 200.00
Discount for Anti-the ft Devices:
I n c a s e y o u h a v e i n s t a l l e d Au t o mo b i l e R e s e a r c h As s o c i a t i o n o f
I n d i a ( A R A I ) a p p r o v e d a n t i t h e f t d e v i c e i n y o ur v e h i c l e , y o u g e t
a d i s c o u n t o f 2 . 5 % o n t h e O D P r e mi u m t o a m a x i mu m o f R s .
500.00

Cover yourself and your fa mily :

You c a n a l s o o p t f o r p e r s o n a l a c c i d e n t c o v e r o f u p t o R s . 2
L a k h s f o r o t h er u n n a me d p a s s e n g e r s i n y ou r c a r. F or e . g . y o ur
f a mi l y, r el a t i v e s , f r i e n d s e t c .

Customize your insurance with additional covers:

E l e c t r i c a l a n d / or n o n- e l e c t r i c a l i t e ms f i t t e d t o t h e v e h i c l e c a n
b e i n s u r e d s e p a r a t e l y. F o r e x a mp l e : f o g l i g h t s , m u s i c s y s t e m I n
c a s e o f v e h i c l e s f i t t e d w i t h b i - f u e l sy s t e m s u c h a s P e t r o l / D i e s e l
a n d C N G / L P G , p e r mi t t e d by t h e c o n c e r n e d RTO, t h e C N G / L P G
kit fitted to the vehicle is to be insured separately at an
a d d i t i o n a l pr e m i u m o f 4 % o n t h e v a l u e o f s u c h k i t . You n e e d t o
s p e c i f i c a l l y d e c l a r e t h i s i n t h e p r o p o s a l f o r m.

Sum insured with IDV:

T h e v e h i c l e s a r e i n s u r e d a t a f i x e d v a l u e c a l l e d t h e I n s u r e d s
D e c l a r e d Val u e ( I D V ) . I D V i s c a l c u l a t e d o n t h e b a s i s o f t h e
m a n u f a c t u r e r s l i s t e d s e l l i n g p r i c e o f t h e v e h i c l e ( p l u s t h e l i s t e d
p r i c e o f a ny a c c e s s o r i e s ) a f t e r d e d u c t i n g t h e d e p r e c i a t i o n f o r
e v e r y y e ar a s p e r t h e s c h e d u l e pr o v i d e d b y t h e I n d i a n M o t o r
Tar i ff.

I f t h e pr i c e o f a n y e l e c t r i c a l a n d / or e l e c t r o ni c i t e m i n s t a l l e d i n
the vehicle is not included in the manufacturers listed selling
price, then the actual value (after depreciation) of this item can
b e a d d e d t o t h e s u m i n s u r e d o v e r a n d a b o v e t h e I D V.

Two wheeler:
I T G I s c o m p r e h e n s i v e P a c k a g e P o l i c y f o r t w o w h e e l e r s c o v e r s
L o s s o r d a m a g e t o t h e v e h i c l e i n s u r e d , P er s o n a l Ac c i d e n t a n d
T h i r d P a r t y L i a b i l i t y.

What the Policy Covers:

Loss or damage to your vehicle :
Any loss or damage caused to the vehicle due to the
following natural and m a n ma d e calamities.
N a t u r a l C a l a mi t i e s Fi r e , e x p l o s i o n , s e l f - i g n i t i o n or
l i g h t n i n g , e a r t h q u a k e , f l o o d , t y p h o o n , h ur r i c a n e , s t o r m,
t e m p e s t , i n u n d a t i o n , cy c l o n e , h a i l s t o r m , f r o s t , l a n d s l i d e ,
rockslide.
M a n m a d e C a l a m i t i e s B u r gl a r y, t h e f t , r i o t , s t r i k e ,
m a l i c i o u s a c t , a c c i d e n t b y e x t er n a l m e a n s , a n y d a m a g e i n
t r a n s i t b y r o a d , r a i l , i n l a n d w a t e r w ay, l i f t , e l e v a t o r o r a i r.

P e r s o n a l a c c i d e n t c o v e r : Th e m o t o r i n s u r a n c e p r o vi d e s
compulsory personal accident cover of Rs. 1 lakh for
individual owner driver of the vehicle insured while
t r a v e l i n g i n , m o u n t i n g or d i s m o u n t i n g f r o m t h e v e h i c l e .
You c a n a l s o o p t f o r a p er s o n a l a c c i d e n t c o v e r f o r p i l l i o n
r i d e r.

Third party lega l liability :

Protects against legal liability arising due to accidental
d a m a g e s , a ny p e r m a n e n t i n j ur y / d e a t h o f a p e r s o n a n d / o r a n y
d a m a g e c a u s e d t o t h e pr o p e r t y.

Key benefits:
Cashless claim facility at our Cashless Garage Network all
across India.

N o C l a i m B o n u s : I f y ou d o n o t m a k e a c l a i m d ur i n g t h e
p o l i c y p e r i o d , a N o C l a i m B o n u s ( N C B ) i s o ffe r e d o n
r e n e w a l s . Th i s d i s c o u n t c a n g o a s h i g h a s 5 0 % . ( N C B w i l l
o n l y b e a l l o w e d p r o v i d e d t h e p o l i cy i s r e n e w e d w i t h i n 9 0
d a y s o f t h e e x p i r y d a t e o f t h e pr e v i o u s p o l i cy.)
Tra n s f e r y o u r N C B : You c a n t r a n s f e r f u l l b e n e f i t s o f N o
 C l a i m B o n u s w h e n y o u s h i f t y o u r mo t o r i n s u r a n c e p o l i c y
f r o m a n o t h e r c o m p a n y t o I T GI . Th e d i s c o u n t r a t e r e ma i n s
t h e s a m e , p r o v i d e d y ou s h o w e v i d e n c e t h a t y o u a r e e n t i t l e d
t o N o C l a i m B o n u s f r o m y ou r p r e v i o u s m o t o r i n s u r a n c e .
You c a n pr e s e n t t h e f o l l o w i n g :

Renewal notice or

L e t t e r c o n f i r m i n g t h e N C B e n t i t l e me n t f r o m t h e p r e v i o u s
insurer or

NCB declaration

Addition discounts:
M e m b e r s o f r e c o g n i z e d Au t o m o b i l e As s o c i a t i o n s i n I n d i a c a n
a v a i l a d i s c o u n t o f 5% o n t h e O D Pr e m i u m s u b j e c t t o a
m a x i mu m o f R s . 5 0

Discount for Anti-the ft Devices:

I n c a s e y o u h a v e i n s t a l l e d Au t o mo b i l e R e s e a r c h As s o c i a t i o n o f
I n d i a ( A R A I a p pr o v e d ) a n t i t h e f t d e v i c e i n y o ur v e h i c l e , y o u g e t
a d i s c o u n t o f 2 . 5 % o n t h e O D P r e mi u m t o a m a x i mu m o f R s .
500.

Sum insured:
T h e v e h i c l e s a r e i n s u r e d a t a f i x e d v a l u e c a l l e d t h e I n s u r e d s
D e c l a r e d Val u e ( I D V ) . I D V i s c a l c u l a t e d o n t h e b a s i s o f t h e
m a n u f a c t u r e r s l i s t e d s e l l i n g p r i c e o f t h e v e h i c l e ( p l u s t h e l i s t e d
p r i c e o f a ny a c c e s s o r i e s ) a f t e r d e d u c t i n g t h e d e p r e c i a t i o n f o r
e v e r y y e ar a s p e r t h e s c h e d u l e pr o v i d e d b y t h e I n d i a n M o t o r
Tar i ff.
I f t h e pr i c e o f a n y e l e c t r i c a l a n d / or e l e c t r o ni c i t e m i n s t a l l e d i n
the vehicle is not included in the manufacturers listed selling
price, then the actual value (after depreciation) of this item can
b e a d d e d t o t h e s u m i n s u r e d o v e r a n d a b o v e t h e I D V.
 Objectives

1 ) To t h e s t u d i e s o n t h e p r o f i l e o f t h e i ffc o t o k i o g e n e r a l
i n s u r a n c e c o mp a n y.

2 ) To k n o w t h e a w a r e n e s s o f p e o p l e o n t h e g e n e r a l i n s u r a n c e .

3 ) To a n a l y s i s t h e d i s t r i b u t i o n o f i n s u r a n c e .

4 ) To s t u d y o f c o n s u m e r pr e f e r e n c e f o r g e n er a l i n s u r a n c e . .

5 ) To i d e n t i f y t h e n e e d s o f i n s u r a n c e .

6 ) To k n o w a b o u t f a i l i n g m a r k e t i n g o f t h e i n s u r a n c e .

7 ) To u n d e r s t a n d t h e p o s i t i o n o f g e n e r a l i n s u r a n c e p r oj e c t .

8 ) To u n d e r s t a n d t h e i n s u r a n c e p r o d u c t s a t l e n g t h .

9 ) To u n d e r s t a n d m o t o r i n s u r a n c e p l a n .

1 0 ) To s t u d y t h e c o n s u me r p e r c e p t i o n t o w ar d s v a r i o u s i n s u r a n c e
products.

11) To i d e n t i f y t h e i n s u r a n c e n e e d s o f t h e I n d i a n p o p u l a t i o n w i t h r
e s p e c t t o t h e i r e mo t i o n a l , p hy s i c a l a n d f i n a n c i a l c o n d i t i o n s .
1 2 ) To s t u d y t h e v ar i e d r e a s o n s o f a v a i l i n g g e n e r a l i n s u r a n c e
plans.

SCOPE OF THE STUDY

T h i s s t u d y a i ms t o m a k e a p er f o r ma n c e a n a l y s i s o f t h e m o t o r
i n s u r a n c e P l a n s o f GE N E R A L

I N S U R A N C E C O R P O R ATI O N O F I N D I A i n t h e I n d i a n c o n t e x t ,
insurance market and study the consumer perception towards
v a r i o u s i n s u r a n c e p r o d u c t s . Th e p e r f o r m a n c e a n a l y s i s i s b a s e d o n
t h e e m p i r i c a l d a t a c o l l e c t e d f r o m h e M u m b a i c i t y.

Research Methodology

T h e wa y i n wh i c h t h e da t a a r e c o l l e c t e d f or t h e r e s e ar c h
p r o je c t all of the t e c h n i q ue s , methods and pr o c e du r e s
adopted in terminology wo r k to c ar r y out terminology
research.

primary data:
 D a t a c o l l e c t e d p er s o n a l l y b y t h e r e se a r c h er t hr o u g h
i n t e r v ie w, questionnaire, an d r es e a r c h o actual ba s i s
s p e c i f i c a l l y f o r r e se a r c h pr o je c t i s c a l l ed a s p r i m a r y da t a .

secondary data:

Th e d a t a wh i c h i s a lr e a d y av ai l a b l e t hr o u g h v ar i o u s
models are k n o wn as s e c on d a r y da t a . An y i n f or m a t i o n
collected from intermediate s o u r ce s . Related bo o k s ,
n e ws p a p e r, r e l a t e d we b s i t e s & l i b r ar y s o u r ce s a r e ex a m p l e s
of secondary dat

PRIMARY DATA ANALYSIS

We h a v e d o n e a d e t a i l e d s u r v ey i n D e l h i c i t y t o u n d e r s t a n d a n d
s t u d y t h e c o n s u m e r s r e s p o n s e s . Th e p r i ma r y d a t a w a s c o l l e c t e d
t h r o u g h q u e s t i o n n a i r e s . Th i s q u e s t i o n n a i r e w a s m a i n l y f o r m u l a t e d
t o t a r ge t t h e c o m m o n m a n t o s e e h i s p e r c e p t i o n a n d a w a r e n e s s o f
v a r i o u s i n v e s t me n t o p t i o n s a v a i l a b l e . Th e s a m p l e s i z e o f t h e
s u r v e y w a s 5 0 . O u t o f t h e s e 3 4 w e r e m a l e a n d 1 6 w e r e f e m a l e . Th e
sample of respondents was carefully selected covering people in
a l l a g e gr o u p s a n d w i t h d i ffe r e n t b a c k g r o u n d s a n d o c c u p a t i o n s .
The analysis of these questionnaires gives us an insight about the
mindset of people regarding various i n v e s t me n t s .
C u s t o me r pr e f e r e n c e s a s t o w h e r e t h e y w o u l d l i k e t o i n v e s t h a v e
b e e n s t u d i e d . Al s o w e c o m e t o k n o w a b o u t t h e p r e f e r e n c e s g i v e n
b y c u s t o me r s t o w a r d s v a r i o u s t o p l i f e i n s u r a n c e c o mp a n i e s a n d
t h e i r r e a s o n s f o r i t . F o l l o w i n g i s t h e a n a l y s i s o f t h e p r i ma r y d a t a
c o l l e c t e d t hr o u g h q u e s t i o n n a i r e s .
1) Break-up of respondents
based on their preferences for various savings instruments
Interpretation:

T h e c u s t o m e r s pr e f e r e n c e s f o r d i ffe r e n t f o r m s o f s a v i n g s h a v e
b e e n c a r e f u l l y s t u d i e d t h e m a i n s a v i n g s i n s t r u me n t s g e n e r a l l y
p r e f e r r e d by c u s t o m e r s ar e b a n k d e p o s i t s , f i x e d d e p o s i t s ,
i n v e s t m e n t s a n d p o s t o ffi c e s c h e m e s . O u t o f t h e s e I n v e s t me n t s
h a s b e e n pr e f e r r e d b y a r o u n d 4 3 % r e s p o n d e n t s a n d f i x e d d e p o s i t s
by around 27%.

2) Break-up of respondents based on pre ferences for

various forms of investment.
Interpretation:

T h e v a r i o u s f o r m s o f i n v e s t me n t s g e n er a l l y pr e f e r r e d b y
c u s t o m e r s h a v e b e e n i d e n t i f i e d a s mu t u a l f u n d s , s t o c k s a n d
s h a r e s , i n s u r a n c e pr o d u c t s a n d g o v e r n me n t b o n d s . O u t o f t h e s e
a r o u n d 3 5% pr e f e r r e d s t o c k s a n d s h a r e s a n d a r o u n d 2 0% pr e f e r r e d
i n s u r a n c e pr o d u c t s .
3 ) T Y P E O F TH E R E S P O N D E N T S P R E FE R R E D C O M PAN Y

Typ e of No of Percentage
company Respondents

Government 127 47%

Company

Public Company 62 23%

P r i v a t e C o mp a ny 49 18%

F o r e i g n C o mp a ny 32 12%
4) Customer Respondents Profile In Insurance Sector

C u s t o me r P r o f i l e No of Respondents

Students 62

Housewife 5

Wor k i n g P r o f e s s i o n a l s 115

Business 49

S e l f E m p l oy e d 24
G o v e r n m e n t s e r v i c e e mp l o y e e 14

5) No of Respondents have takenVarious Insurance

Policies

S r. N o Policies No of Percentage
Respondents

1 Life insurance 18 25%

2 General insurance 8 11%

 3 Health insurance 10 14%

4 All of them 36 50%

5 Tot a l 72 100%

Conclusion

T h e p u b l i c s e c t o r i n s u r a n c e c o mp a n i e s ar e d e f i n i t e l y f a c i n g
challenges as private insurance companies are c o mp e t i n g
p o w e r f u l l y i n c or p o r a t e s e g me n t s . Wit h t h e o p e n i n g u p o f t h e
s e c t o r, t h e I n d i a n i n s u r a n c e I n d u s t r y i s b e c o m i n g m o r e r e l i a n t o n
t e c h n o l o g y. N e w pr o d u c t s w i l l b e d e v e l o p e d a n d i n t e r me d i a r i e s
w i l l p l ay a m o r e m e a n i n g f u l r o l e . An d t h e I n d i a n i n s u r a n c e
s e c t o r, by s t r e n g t h e n i n g t e c h n o l o g i c a l i m p r o v e me n t s , c a n b r i d g e
t h e g a p s i n s e r v i c e s o ffe r e d , b r i n g i n pr u d e n t i a l n or m s a n d
u l t i ma t e l y h e l p t h e c u s t o me r i n g e t t i n g w o r l d c l a s s p r o d u c t s a n d
s e r v i c e s . I n a d d i t i o n , t h e P u b l i c S e c t or c o m p a n i e s c a n v e n t ur e
i n t o u n t a p p e d r u r a l p o t e n t i a l f o r w h i c h t h ey h a v e a v e r y v a s t
network of o ffi c e r s and trained m a n p o w e r.

Insurance needs to be packaged in such a form that it appears

a c c e p t a b l e t o t h e r u r a l c u s t o me r. I n t h e n e a r f u t u r e , w h e n w e s e e
m o r e i n n o v a t i o n s i n a g r i c u l t u r e i n t h e f o r m o f c or p o r a t i z a t i o n , o r
a more professional approach from f a r me r s , insurance will
definitely be one option that the Rural Indian looks at it is
h i s f u t u re .

Questionnaire

Personal Details :
 Name:

Address:

Age:

Contact No. :

Date :

D e a r S i r / M a d a m, I am required to do b a s e d pr o j e c t . K i n d l y
s p e n d a f e w mi n u t e s o f y o ur v a l u a b l e t i m e a n d f i l l i n t h i s
questionnaire.

1. Family Members

O 1-4 O 4- 8

O 8-12 O Or More
2 . N u m b e r o f d e p e n d e n t f a m i l y m e m b e r s?

O 1-2 O 2- 4

O 4-8 O Or More

3 . D o y ou h a v e a i n s u r a n c e p o l i c y / i n v e s t me n t p l a n i n y o u r n a me?

O Yes O No

4. Occupation.

O S er v i c e O Business O
Professional O Student

5. Annual Income

O 50000 100000 O 100000

300000

O 3 0 0 0 0 0- 500000 O 5 0 0 0 0 0-
1000000
O Or More

6 . W h i c h S e c t o r d o y o u pr e f e r ?

O P u b l i c S e c t o r. O P r i v a t e S e c t o r.

7 . W h i c h f o l l o w i n g c o mp a ny s i n s u r a n c e p o l i c i e s d o y o u h a v e?

O TATA AI G G e n e r a l I n s u r a n c e

O Birla Sun General Insurance

O I ffc o t o k i o G e n e r a l I n s u r a n c e

O B a j a j Al l i a n z G e n e r a l I n s u r a n c e

O LIC

O HDFC Standard General Insurance

O ICICI Prudential General Insurance

O I N G Vys y a General Insurance

O B h a r t i Ax a G e n e r a l I n s u r a n c e

O O t h e r s ( s p e c i f y n a me )

8 . W h a t i s t h e a p p r o x i ma t e pr e m i u m p a i d b y y o u a n n u a l l y ( i n
Rupees)?

O Rs. 5,000 Rs.10,000 O Rs. 10,001 Rs.15,000

O Rs. 15,001 Rs.25,000 O Rs. 25,001

Rs.50,000

O Rs. 50,001 Rs.60,000 O Rs. 60,001 Rs.80,00

O Rs. 80,001 Rs.1,00,000

O M o r e t h a n R s . 1 , 0 0 , 0 0 0 ( s p e c i f y pr e m i u m)

9 . W h a t k i n d o f i n s u r a n c e p o l i cy w o u l d s u i t y o u b e s t i n y ou r
c u r r e n t s t a g e o f l i f e?

O Government owned company

O P u b l i c L i mi t e d C o mp a ny

O P r i v a t e C o mp a n y

O F o r e i g n b a s e d c o mp a n y

1 0 . W h i c h t y p e o f i n s u r a n c e p o l i c y d o y ou p r e f e r ?

O Life Insurance O Health

Insurance O P e n s i o n Pl u s

O Motor Insurance O Home

Insurance O An y O t h er

11. H o w d o y ou k n o w a b o u t c o mp a n y pr o d u c t ?

O N e w s p a p e r.

O Ag e n t .

O Ad v e r t i s e m e n t .
O Mouth spread.

1 2 . A r e y ou s a t i s f i e d w i t h y ou r c o mp a ny / o r c o mp a n y s p l a n ?

O Yes O No

Chapter 12

Wib l i o g r a p hy

w w w. I ffc o t o k i o g e n e r a l . i n

w w w. s c r i b d . c o m

w w w. Wik i p e d i a . c o m
 Bibliography

Books Referred:

I n s u r a n c e An d R i s k M a n a g e m e n t .

A u t h o r P.K . G u p t a .

Edition 2nd . Yea r 2 0 11.

P u b l i s h e r H i m a l ay a P u b l i s h i n g .

B a n k i n g An d I n s u r a n c e ( Pr i n c i p l e s An d Pr a c t i c e s ) .

Author - Neelam Gulati.

Edition 1st . Yea r 2 0 11.

Publisher Excel Books.

R i s k m a n a g e me n t a n d i n s u r a n c e

A u t h o r- S . Ar u n j a t e s a n .

Edition 1st Yea r - 2 0 0 9

 Newspapers:

Tim e s o f I n d i a - March 02, 2012

DNA- Nov 20 ,2012.