an analysis of general insurance

8/2/2019 An Analysis of General Insurance

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A

PROJECT

on

An Analysis of General Insurance Business with Special

Reference to United Insurance in Nagpur City

A PROJECT SUBMITTED IN PARTIAL FULFILMENT

For

THE DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION IN RASHTRASANT TUKDOJI

MAHARAJ NAGPUR UNIVESITY, NAGPUR

SPECIALIZATION IN

FINANCE

SUBMITTED BY

Mr. Amit D. Suke

UNDER THE GUIDANCE OF

Mr. Ajinkya G. Deshpande

R. S. MUNDLE DHARAMPETH ARTS & COMMERCE

COLLEGE, NAGPUR

Department of BBA & BCCA

2011- 12


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R. S. Mundle Dharampeth Arts & Commerce College,Nagpur

ACKNOWLEDGEMENT

It is my pleasure to complete the project An Analysis ofGeneral Insurance Business with Special Reference to

United Insurance in Nagpur City for the requirement of

BBA III, RTM Nagpur University, Nagpur.

I am also very thankful to Mr. Ajinkya G. Deshpande for

their kind support and guidance.I am also very thankful to all the teaching and non

teaching staff for their kind cooperation and support.

Thanking you

Place: - Nagpur

Date:-


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R. S. Mundle Dharampeth Arts & Commerce College,

Nagpur

DECLARATION

I hereby declare that this project titledAn Analysis of

General Insurance Business with Special Reference to

United Insurance in Nagpur City is the work done by me

under the guidance of Mr. Ajinkya G. Deshpande, during the

academic session 2011- 12.

The work presented here is not duplicated from any other

source and not submitted earlier for the award of any Degree/

Diploma to any other University.

Amit D. Suke

Place: - Nagpur

Date:-


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R. S. Mundle Dharampeth Arts & Commerce College,

Nagpur

CERTIFICATE

This is to certify that this project An Analysis ofGeneral Insurance Business with Special Reference to

United Insurance in Nagpur City is the work carried out

and development by Mr. Amit D. Suke in the partialfulfillment for the award of the Degree of Bachelor of

Business Administration during the academic session 2011- 12

submitted to RTM Nagpur University under my guidance and

supervision.

To the best of my knowledge the matter presented in this

project report has not been submitted earlier for any Degree/

Diploma to any other University.

Dr. Sandhya Nair Mr. Ajinkya G. Deshpande

Principal Project Guide

Internal Examiner External Examiner

Date:


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INDEX

Sr. No Name Of Chapter Page No.

1. Introduction

2. Objective , Scope & Importance

3. History, Management & Analysis

4. Use of Advance

Technology In Exchange

5. Research Methodology

6. Bibliography


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CHAPTER 1

Introductio

n


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Introduction

The Insurance is the important segment of economy and ourday to day life. If we take insurance policy for covering our assetsas well as life, then it provide security to our assets and life, andmake us free from tension of future accidents and incidents also.

Let we see some concept about InsuranceWhat is insurance?

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

An insurance contract provides risk coverage to the insure. A

purchaser of insurance pays a fixed premium in exchange for a

promise of compensation in the event of some specified loss.

Insurance is bought because it gives peace of mind to the holders.

This comfort level is important in personal and business life.

Though the primary purpose of insurance is to provide risk

coverage, when the contract period extends over a long time, as in

the case of life insurance, premium payments comprise of two

components one for buying risk coverage and the other towards

savings. This bundling together of risk coverage and savings is

peculiar to life insurance and is more common in developing

countries like India. In the industrially advanced countries, this is

not necessarily so and short duration life insurance contractswithout a savings component is equally popular. In the developing

economies because of the savings component and the long nature

of the contract, life insurance has become an important instrument

of mobilizing long-term funds. The savings component puts the life

insurance in direct competition with other financial institutions and

savings instruments.

The total investment portfolio of the insurers in India as at the

end of March, 2005 was Rs. 4,65,864 crore. The total premium


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collected by the insurers both life and non-life in 2004-05 was

Rs.1,00,335 crore. The major contribution came from life

insurance. The insurance penetration i.e., premium as percentage

of GDP was 3.17 per cent in 2004. While this ratio is steadily

increasing, it is far below the world average of 8.06 per cent. Thisshows the vast potential that exists.

What are major types of insurance?

According to risks, there are many types of insurance but ifwe think about major types of insurance then only two types comesenforcedly. Those are

1) Life Insurance

2) General Insurance

What is general insurance?Insurance other than Life Insurance falls under the category ofGeneral Insurance. General Insurance comprises of insurance ofproperty against fire, burglary etc, personal insurance such as

Accident and Health Insurance, and liability insurance which coverslegal liabilities. There are also other covers such as Errors andOmissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover

property against Fire and allied perils, flood storm and inundation,

earthquake and so on. There are products that cover property

against burglary, theft etc. The non-life companies also offer

policies covering machinery against breakdown, there are policies

that cover the hull of ships and so on. A Marine Cargo policy covers

goods in transit including by sea, air and road. Further, insurance ofmotor vehicles against damages and theft forms a major chunk of

non-life insurance business.

In respect of insurance of property, it is important that the

cover is taken for the actual value of the property to avoid being

imposed a penalty should there be a claim. Where a property is


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undervalued for the purposes of insurance, the insured will have to

bear a ratable proportion of the loss. For instance if the value of a

property is Rs.100 and it is insured for Rs.50/-, in the event of a

loss to the extent of say Rs.50/-, the maximum claim amount

payable would be Rs.25/- ( 50% of the loss being borne by the

insured for underinsuring the property by 50% ). This concept is

quite often not understood by most insured.

Personal insurance covers include policies for Accident,

Health etc. Products offering Personal Accident cover are benefit

policies. Health insurance covers offered by non-life insurers are

mainly hospitalization covers either on reimbursement or cashless

basis. The cashless service is offered through Third Party

Administrators who have arrangements with various service

providers, i.e., hospitals. The Third Party Administrators also

provide service for reimbursement claims. Sometimes the insurers

themselves process reimbursement claims.

Accident and health insurance policies are available for

individuals as well as groups. A group could be a group of

employees of an organization or holders of credit cards or deposit

holders in a bank etc. Normally when a group is covered, insurers

offer group discounts.

Liability insurance covers such as Motor Third Party Liability

Insurance, Workmens Compensation Policy etc offer cover against

legal liabilities that may arise under the respective statutes Motor

Vehicles Act, The Workmens Compensation Act etc. Some of thecovers such as the foregoing (Motor Third Party and Workmens


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Compensation policy ) are compulsory by statute. Liability

Insurance not compulsory by statute is also gaining popularity

these days. Many industries insure against Public liability. There

are liability covers available for Products as well.

There are general insurance products that are in the nature of

package policies offering a combination of the covers mentioned

above. For instance, there are package policies available for

householders, shop keepers and also for professionals such as

doctors, chartered accountants etc. Apart from offering standard

covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every

family. It is important to protect ones property, which one might

have acquired from ones hard earned income. A loss or damage to

ones property can leave one shattered. Losses created bycatastrophes such as the tsunami, earthquakes, cyclones etc have

left many homeless and penniless. Such losses can be devastating

but insurance could help mitigate them. Property can be covered,

so also the people against Personal Accident. A Health Insurance

policy can provide financial relief to a person undergoing medical

treatment whether due to a disease or an injury.

Industries also need to protect themselves by obtaining

insurance covers to protect their building, machinery, stocks etc.

They need to cover their liabilities as well. Financiers insist on

insurance. So, most industries or businesses that are financed by

banks and other institutions do obtain covers. But are theyobtaining the right covers? And are they insuring adequately are


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questions that need to be given some thought. Also organizations

or industries that are self-financed should ensure that they are

protected by insurance.

Most general insurance covers are annual contracts.

However, there are few products that are long-term. It is important

for proposers to read and understand the terms and conditions of a

policy before they enter into an insurance contract. The proposal

form needs to be filled in completely and correctly by a proposer to

ensure that the cover is adequate and the right one.

Why should one insure?One of the main reasons one should insure is to protect ones

belongings and assets against financial loss. When one has earnedand accumulated property, protecting it is prudent. The law alsorequires us to be insured against some liabilities. That is, in casewe should cause a loss to another person, that person is entitled tocompensation. To ensure that we can afford to pay thatcompensation, the law requires us to buy liability insurance so that

the responsibility of paying the compensation is transferred to aninsurance company.

Who should buy general insurance?Anyone who owns an asset can buy insurance to protect it

against losses due to fire or theft and so on. Each one of us caninsure our and our dependents health and well being throughhospitalization and personal accident policies. To buy a policy theperson should be the one who will bear financial losses if they

occur. This is called insurable interest.

What areas covered by general insurance?

These are the common types of general insurance:

Home Insurance:

Houses, lands and other real estate properties and hard

assets are subject to accidental risks like theft, damage,destruction due to natural disasters or fire accidents etc. with


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such large investments gone into buying a real estate

property like your home or office, the problem or risk involved

is a loss of large amount of money. Home and property

insurance protects you in managing and protecting against

these risks. The cost of a real estate property and its

monetary insurance is mostly based on the value of the

already insured hard assets and also the place or location in

which the assets are situated.

Travel Insurance:

This is intended to shoulder or cover any of the financial

or any other losses which were basically incurred by the

insured while on his journey or traveling, be it nationally or

internationally, such as mountain trekkers, cruise travelers or

simply as a tourist.

Auto Insurance:

Any vehicle on the road, no matter how safe it is driver

is, sometimes bound to meet with an accident or two, which

may leave it with just a few scratches, or crash it up totally.

Most countries today require or obliged you to have an auto

insurance while on road in your vehicles. If you have an

accidental auto crash, a total repair could cost you a lot or a

fortune. On the other hand, a little scratch on your Land

Cruiser may also soar up your bills to a high level. Whether or

not you want or need auto insurance mostly depends on the

type of automobile you own. If you have an expensive car


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and a little repair could worry you out financially, you should

therefore decide in buying an all-inclusive and crash

insurance which will protect you against any and every harm

done to your vehicle.

Health Insurance:

Whether you like it or not, almost always we face

certain health challenges that may cause us a lot through

medicines, hospitalization bills and other related

expenditures. If we will not be smart and ready enough with

this kind of cases then we will surely find it so hard to face

sickness and other form of health problems such as therapy

and many other treatments such as antibiotics treatment.

Fire insurance:

Fire is one truly big problem that may endanger our

valuables, properties and even businesses. Worse it may

threaten our lives and those of or loved ones. Well this would

not be very hard unless we are ready to face such calamity

with fire insurance. This will help us become more secured

and ready to face fire cases


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CHAPTER 2

Objectives, Scope&

Importance

Objective


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Here we must have to know that what are the objectives

behind to choose and analyzing this topic. I mention the objectives

below to understand what my motto to choose this topic is and I

describe it briefly.

The objective of the thesis is:To study the Indian general

insurance industry particularly with the Unite India Insurance

Company Ltd. segment of general insurance , identify areas of

excellence and areas needing improvement; and provide

suggestions for such improvement.

1. The aim of this Thesis is to successfully study general insurance

sector on a common platform.

2. Analyze their working and performance.

3. Marketing strategies highlight their performance.

4. Evaluating the various challenges faced by them

5. Provide suggestions and recommendations for improvement

6. Scope for Insurance in Nagpur.

7. United Insurance Company Ltd.s business position.

Scope


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The insurance industry in our country is on the threshold of anew era of rapid expansion. A more competitive environment isemerging with new participants entering the insurance industry.We need specialists who can work in insurance industry.

Risk management has a wide application. It is relevant notonly to insurance industry but also to many other organizations inthe fields of business and finance. To understand risk, measure itand weigh its consequences are an integral part of management.Financial institutions in the management of the funds placed withthem have to reckon with market risk, credit risk, counter party riskand liquidity risk. To mitigate the impact of various risks is theessence of risk management.

The United India Insurance Company Ltd. Have a lot of scopein market in near future because people are awaking aboutinsurance for their lives as well as assets. In Nagpur city the scopeis wide due to improvement in life standard of people andincreasing interest of Nagpurians in insurance policies.

Importance


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General Insurance covers are necessary for every family. It is

important to protect ones property, which one might have acquired

from ones hard earned income. A loss or damage to ones property

can leave one shattered. Losses created by catastrophes such as

the tsunami, earthquakes. Cyclones etc have left many homeless

and penniless. Such losses can be devastating but insurance could

help mitigate them. Property can be covered, so also the people

against Personal Accident.

A Health Insurance policy can provide financial relief to aperson undergoing medical treatment whether due to a disease or

an injury. Industries also need to protect themselves by

obtaining insurance covers to protect their building, machinery,

stocks etc. They need to cover their liabilities as well.

Financiers insist on insurance. So, most industries or

businesses that are financed by banks and other institutions do

obtain covers. But are they obtaining the right covers? And are they

insuring adequately are questions that need to be gi ven some

thought . Also organizat ions or industr ies that are sel f -

fi nanced should ensure that they are protected by insurance.

Most general insurance covers are annual contracts. However,

there are few products that are long-term

In the United States the insurance industry provides several

types insurance coverage. Life insurance is available for wide

range financial needs along with general insurance that covers

losses for property & casualties. Assessing your family or individual


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needs both personal & financial will help you determine what kind

insurance you should consider.

Health insurance covers hospitalization illness accidental

injury & sometimes even well-checkups. Often health insurance

some type is offered employee benefits packages on the job. If

none is offered where you work or you are self-employed

investigate other health care options through local or on-line

insurance agency. No one expects to become critically ill or injuredbut happens. Medical costs can be enormous & health insurance is

an important resource to have.

Life insurance has range possible uses as well. It can be

arranged to cover person?s final expenses like left over debt &

funeral arrangements. It can also be used as source income

support for the family the one who has died. This kind coverage

becomes somewhat less necessary as people age & become more

financially stable but is an invaluable resource for young families

who could face hardship at the loss main source income.

General insurance offers protection from financial loss due to

fire various types natural or man-made damage theft vandalism &

variety other causes as defined on the individual s policy.

Automobile insurance homeowner & renter insurance liability &

business insurance are all different types general or property


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insurance. The important goal property insurance is to cover your

financial losses so that recovery and/or rebuilding is possible.

Coverage for your car is something most people are familiar

with. It protects you the case loss or damage as well as injury cost

due to being hit an accident. This is relevant especially when the

other party isn?t insured. Car policies can also help protect the

other party when you are considered to be responsible for the

accident. Mortgage & renter?s coverage helps protect yourpersonal items so that they can be replaced if need be. It also can

provide liability coverage for accidental harm to someone else?s

property or to another person.

There are wide variety general or property insurance

policies available to cover just about any contingency. People who

have loans on their cars or homes are required by lenders to have

protection coverage. People near the coast may need hurricane

insurance & homeowners flood-prone areas need flood insurance.

There is policy for just about every need.

Insurance to protect the policy holder & their family?s

financial well-being is extremely important. It is highly

recommended that each person research & find out what insurance

options are available & make choices that will offer the best

protection for them & their families.


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CHAPTER 3

History, Management

&Analysis


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History

History of insurance in India:

In India, insurance has a deep-rooted history. It findsmention in the writings of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk interms of pooling of resources that could be re-distributed in timesof calamities such as fire, floods, epidemics and famine. This wasprobably a pre-cursor to modern day insurance. Ancient Indianhistory has preserved the earliest traces of insurance in the form

of marine trade loans and carriers contracts. Insurance in Indiahas evolved over time heavily drawing from other countries,England in particular.

1818 saw the advent of life insurance business in Indiawith the establishment of the Oriental Life Insurance Company inCalcutta. This Company however failed in 1834. In 1829, theMadras Equitable had begun transacting life insurance businessin the Madras Presidency. 1870 saw the enactment of the British

Insurance Act and in the last three decades of the nineteenthcentury, the Bombay Mutual (1871), Oriental (1874) and Empireof India (1897) were started in the Bombay Residency. This era,however, was dominated by foreign insurance offices which didgood business in India, namely Albert Life Assurance, RoyalInsurance, Liverpool and London Globe Insurance and the Indianoffices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns

of Insurance Companies in India. The Indian Life AssuranceCompanies Act, 1912 was the first statutory measure to regulatelife business. In 1928, the Indian Insurance Companies Act wasenacted to enable the Government to collect statisticalinformation about both life and non-life business transacted inIndia by Indian and foreign insurers including provident insurancesocieties. In 1938, with a view to protecting the interest of theInsurance public, the earlier legislation was consolidated andamended by the Insurance Act, 1938 with comprehensiveprovisions for effective control over the activities of insurers.


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The Insurance Amendment Act of 1950 abolished PrincipalAgencies. However, there were a large number of insurancecompanies and the level of competition was high. There werealso allegations of unfair trade practices. The Government of

India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956nationalising the Life Insurance sector and Life InsuranceCorporation came into existence in the same year. The LICabsorbed 154 Indian, 16 non-Indian insurers as also 75 providentsocieties245 Indian and foreign insurers in all. The LIC hadmonopoly till the late 90s when the Insurance sector wasreopened to the private sector.

History of General insurance:

The history of general insurance datesback to the IndustrialRevolution in the west and the consequent growth of sea-faringtrade and commerce in the 17th century. It came to India as alegacy of British occupation. General Insurance in India has itsroots in the establishment of Triton Insurance Company Ltd., inthe year 1850 in Calcutta by the British. In 1907, the IndianMercantile Insurance Ltd, was set up. This was the first companyto transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, awing of the Insurance Association of India. The GeneralInsurance Council framed a code of conduct for ensuring fairconduct and sound business practices.

In 1968, the Insurance Act was amended to regulateinvestments and set minimum solvency margins. The Tariff

Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business(Nationalization) Act, general insurance business wasnationalized with effect from 1st January, 1973. 107 insurers wereamalgamated and grouped into four companies, namely NationalInsurance Company Ltd., the New India Assurance CompanyLtd., the Oriental Insurance Company Ltd and the United IndiaInsurance Company Ltd. The General Insurance Corporation of

India was incorporated as a company in 1971 and it commence


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life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at aspeedy rate of 15-20%. Together with banking services,

insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economicdevelopment as it provides long- term funds for infrastructuredevelopment at the same time strengthening the risk taking abilityof the country.


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Management

As in the case of all financial institutions, insurance is an

activity that needs to be regulated. This is so because the smooth

functioning of business depends on the trust and confidence

reposed by the customers in the solvency of the financialinstitutions. Insurance products are of little value to customers, if

they cannot trust the company to keep its promise.

The regulatory framework in relation to the insurance

companies seeks to take care of three major concerns (a)

protection of consumers interest, (b) to ensure the financial

soundness of the insurance industry, and (c) to help the healthy

growth of the insurance market. So long as insurance remained

the monopoly of the Government, the need for an independent

regulatory authority was not felt. However, with the acceptance of

the idea that there can be private insurance entities, the need for a

regulatory authority becomes paramount. With the passing of the

Insurance Development and Regulatory Act in 2000, the insurance

regulatory authority has become a statutory authority (IRDA).

Protecting consumer interest involves proper disclosure, keeping

prices affordable, some mandatory products and standardization.

Most importantly, it has to make sure that consumers get paid byinsurers.


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From the consumers point of view, the most important

function of the regulatory authority will be to ensure quick

settlement of claims without unnecessary litigation. With respect to

solvency and financial health, regulations will have to be introducedto ensure that insurance companies follow appropriate prudential

norms such as solvency margins. Large funds are under the

custody of the insurers and they get invested to produce additional

returns. The management of these funds is important to the

insurer, the insured and the economy. Entry into the insurance

industry must also be regulated with suitable capital adequacy

norms. The third role should be one of development. The

insurance industry in India has a large potential and the frameworkof regulation must enable the industry to tap this vast potential.

IRDA over the last decade has brought into force a number of

regulations which are well conceived. They have received wide

spread appreciation. The recent decision of IRDA to move to a free

tariff regime for several general insurance products is welcome.

The prescription of tariff is contrary to market principles and

insurance products need to be priced based on market forces.

The reform of the insurance sector is part of the overall

economic reform process that is underway. The basic philosophy

underlying the new economic policy is to improve the productivity

and efficiency of the system. This is sought to be achieved partly

by creating a more competitive environment. The growth of the real

economy depends upon the efficiency of the financial sector. A

greater element of competition is being injected into the financial

system as well.

All regulators need to keep in mind that there is a fine

distinction between regulations and controls. Regulations lay down

norms while controls have a propensity to micromanage

institutions. Regulators must take care to ensure that regulations

do not slide into controls.

The insurance industry in our country underwent a bigchange in 2000 when private participants were allowed into the


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industry along with a streamlined regulatory and supervisory

regime. There are at present 14 private life insurance companies

along with LIC and 12 entities in non-life sector. There is evidence

to show that competition has done good to insurance industry. The

rate of growth of the industry in the post liberalization period hasbeen faster. It has also developed in terms of product innovation

and the use of alternative distribution channels.

Analysis

Insurance and Growth

Insurance and economic growth mutually influence each other.

As the economy grows, the living standards of people increase. As a

consequence, the demand for life insurance increases. As the assetsof people and of business enterprises increase in the growth process,

the demand for general insurance also increases. In fact, as the

economy widens the demand for new types of insurance products

emerges. Insurance is no longer confined to product markets; they

also cover service industries. It is equally true that growth itself is

facilitated by insurance. A well-developed insurance sector promotes

economic growth by encouraging risk-taking. Risk is inherent in all

economic activities. Without some kind of cover against risk, some ofthese activities will not be carried out at all. Also insurance and more

particularly life insurance is a mobilizer of long term savings and life

insurance companies are thus able to support infrastructure projects

which require long term funds. There is thus a mutually beneficial

interaction between insurance and economic growth. The low income

levels of the vast majority of population has been one of the factors

inhibiting a faster growth of insurance in India. To some extent this is

also compounded by certain attitudes to life. The economy has

moved on to a higher growth path. The average rate of growth of the


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economy in the last three years was 8.1 per cent. This strong growth

will bring about significant changes in the insurance industry.

At this point, it is important to note that not all activities can be

insured. If that were possible, it would completely negate

entrepreneurship. Professor Frank Knight in his celebrated book Risk

Uncertainty and Profit emphasised that profit is a consequence of

uncertainty. He made a distinction between quantifiable risk and non-

quantifiable risk. According to him, it is non-quantifiable risk that

leads to profit. He wrote It is a world of change in which we live, and

a world of uncertainty. We live only by knowing something about the

future; while the problems of life, or of conduct at least, arise from

the fact that we know so little. This is as true of business as of otherspheres of activity. The real management challenges are uninsurable

risks. In the case of insurable risks, risk is avoided at a cost.

Insurance Scope in India:

Insurance is a nice-looking option for investment but most

people are not aware of its advantages as an investment option.

Remember that foremost and first, insurance is about risk coverand protection. By buying life insurance, you buy peace of mind.

Insurance also serves as an excellent tax saving mechanism. The

Government of India has provided tax incentives to life insurance

products in order to facilitate the flow of funds into productive

assets.

The insurance sector has opened up for private insurance

companies with the enactment of IRDA Act, 1999. A large number

of companies are competing under both general and life Insurance.

The FDI cap/equity in this sector is 26% and the proposals have to

be cleared by Insurance Regulatory and Development Authority

(IRDA) established to protect the interest of holder of Insurance

policy and act as a regulator and facilitator in the industry.

Some of the major players in this sector are LIC, Max New

York Life Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard

Life, Metlife Insurance, Birla Sun Life Insurance, etc.

Various types of instruments and policies are coming up in


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the market to attract more clients. Most of the population of India is

not insured, hence there is a lot of scope in this sector and a

number of companies are planning to enter the sector.

Assessment of Risks

An important function of an insurer is to assess the average

level of risk borne while offering a product. This assessment depends

upon a variety of factors and actuarial calculations become necessary.

This is a highly technical area involving theories of probability. Thepremium charged by an insurer is based on the calculated average

risk. Obviously this premium will be high for people who perceive

themselves to be in a low risk category. However, for insurance as an

activity to succeed, the population to which a product is offered must

consist of categories with different degrees of risk. That is why the

larger the coverage, the lower the average risk and lower the

premium. Diversification is the way to reduce the average risk.

Terminologies used in general insurance Proposer-Insured-Insurer

Risk- Peril

Proposal form

Sum Insured

Premium ( Consideration)

Excess ( Deductible)

Indemnity

Cover note

Policy document

Endorsement-for effecting changes in the policy

Warranties/ Clauses


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Conditions

Underwriting

Renewal

Hazard

Conclusion

The insurance sector has a vast potential not only because incomes

are increasing and assets are expanding but also because the

volatility in the system is increasing. In a sense, we are living in a

more risky world. Trade is becoming increasingly global.

Technologies are changing and getting replaced at a faster rate. In

this more uncertain world, for which enough evidence is available in

the recent period, insurance will have an important role to play in

reducing the risk burden individuals and businesses have to bear. In

the emerging scenario, the insurance industry must pay attention to

(a) product innovation, (b) appropriate pricing, and (c) speedy

settlement of claims. The approach to insurance must be in tune with

the changing times.

The mission of the insurance sector in India should be to extend

the insurance coverage over a larger section of the population and a

wider segment of activities. The three guiding principles of the

industry must be to charge premium no higher than what is warranted

by strict actuarial considerations, to invest the funds for obtaining

maximum yield for the policy holders consistent with the safety of

capital and to render efficient and prompt service to policy holders.With imaginative corporate planning and an abiding commitment to

improved service, the mission of widening the spread of insurance can

be achieved. As I said at the beginning, you who are graduating

today have an important role in fulfilling this mission.


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List of major General Insurance Companies:-

Like a United India Insurance Co. Ltd., there are some major

general insurance companies in all over India. Now we will view name of

the Insurance companies, they are listed below.

S.NO NAME OF THE COMPANY NAME OF THEPRINCIPAL OFFICER

NAME OF THEAPPOINTEDACTUARY

TELEPHONENO./FAX No./E-MAIL

& WEB ADDRESS

1.Bajaj Allianz General Insurance Co.Ltd.

GE Plaza, Airport Road,Yerawada, Pune411 006.

Mr. Hemant Kaul Ms. Asha J. Joshi Tel : 020-66026666Fax: 020-66026667

2.ICICI Lombard General InsuranceCo. Ltd.

ICICI Lombard House,414, Veer Savarkar Marg,Near Siddhi Vinayak Temple,PrabhadeviMumbai - 400025

Mr. Bhargav Dasgupta Mr. Liyaquat Khan Tel : 022-61961100Fax: 022-61961110

3.IFFCO Tokio General InsuranceCo. Ltd.

4 and 5th Floors, IFFCO Tower,Plot No.3, Sector 29,GURGAON-122001(Haryana)

Mr.S. Narayanan Mr. K.K. Wadhwa Tel : 0124-2850100Fax: 0124-2577923-2577924

4.National Insurance Co.Ltd.3, Middleton Street, P.B. No.9229, KOLKATA 700 071.

Mr. N. S. R.Chandraprasad

Mr. BhudebChatterjee

Tel : 033-22831705 to 9Fax : 033-22831712

5.The New India Assurance Co. Ltd.

New India Assurance Bldg. 87,M.G. Road, Fort,Mumbai 400 001.

Mr. A.R.Sekar (officiating)Mr.A.R.Prabhu Tel: 022-22674617- 22,Fax: 022-22652811Email:[email protected]

Web-site:

www.newindia.co.in
http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.itgi.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.itgi.co.in/http://www.nationalinsuranceindia.com/http://www.nationalinsuranceindia.com/http://www.nationalinsuranceindia.com/http://www.newindia.co.in/mailto:[email protected]:[email protected]:[email protected]://www.newindia.co.in/http://www.bajajallianz.co.in/http://www.bajajallianz.co.in/http://www.icicilombard.com/http://www.icicilombard.com/http://www.itgi.co.in/http://www.itgi.co.in/http://www.nationalinsuranceindia.com/http://www.newindia.co.in/mailto:[email protected]:[email protected]://www.newindia.co.in/


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6.The Oriental Insurance Co. Ltd.

A-25/27,Asaf Ali RoadNew Delhi 110 002.

Mr. Ravinder Kumar Kaul Mr. Yash PaulSabharwal

Tel :011-23279221-25Direct:23265024Fax:23287192,23287193, 23283971

7.Reliance General Insurance Co.Ltd.570, Naigaum Cross Road ,Next to Royal Industrial Estate,Wadala(West),MUMBAI 400 031

Mr. Rakesh Jain Mr.Gopalakrishna Pai Tel.No.022-30479602Board no:022-30479600Fax. No.022-330479650

8.Royal Sundaram AllianceInsurance Co. Ltd"Sundaram Towers" 45-46, WhitesRoad, RoyapetahCHENNAI-600 014.

Mr. Ajay Singh Bimbhet Ms. Tania Chakrabarti Tel: 044-42227373Fax: 044-28517376E-

mail:ajay.bimbhet

@royalsundaram.in

Web-site:www.royalsundaram.in

9.Tata AIG General Insurance Co.Ltd.

9th Floor, Piramal Towers,Peninsula Corporate Park,G K Marg, Lower Parel, Mumbai

- 400 013, India

Mr. Gaurav D. Garg Mr.Saket Singhal Tel No: +91-22-66699697Fax No: +91-22-66546464Email id:

Gaurav.gargd@ta

ta-aig.comWebsite:

www.tataaiginsur

ance.in

10.United India Insurance Co. Ltd.24, Whites Road

CHENNAI 600 014.

Mr. G. Srinivasan Mr.S.Krishnan

Tel : 044-28520161Fax : 044-28523825

11. Cholamandalam MS GeneralInsurance Co. Ltd."Dare House" 2nd Floor, NewNo.2 (Old No. 234) N.S.C. BoseRoad,Chennai - 600 001

Mr. S. S. Gopalarathnam Mr. O.Lakshminarayana Tel : 044-42166000Fax : 044-42166001

12. HDFC ERGO General InsuranceCo. Ltd.6th Floor, Leela Business Park,Andheri Kurla Road,Andheri (East),

Mumbai - 400 059.

Mr. Ritesh KumarMr. NarayananLaksmanan Tel : 022-6638

3600Fax : 022-66383699
http://www.newindia.co.in/http://orientalinsurance.nic.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.royalsundaram.in/http://www.royalsundaram.in/http://www.royalsundaram.in/http://www.royalsundaram.in/http://www.royalsundaram.in/mailto:[email protected]:[email protected]:[email protected]://www.royalsundaram.in/http://www.royalsundaram.in/http://www.tata-aiggeneral.com/http://www.tata-aiggeneral.com/http://www.tata-aiggeneral.com/http://www.tata-aiggeneral.com/mailto:[email protected]:[email protected]:[email protected]://www.tataaiginsurance.in/http://www.tataaiginsurance.in/http://www.uiic.co.in/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.hdfcergo.com/http://www.hdfcergo.com/http://www.hdfcergo.com/http://orientalinsurance.nic.in/http://www.reliancegeneral.co.in/http://www.reliancegeneral.co.in/http://www.royalsundaram.in/http://www.royalsundaram.in/mailto:[email protected]:[email protected]:[email protected]://www.royalsundaram.in/http://www.royalsundaram.in/http://www.tata-aiggeneral.com/http://www.tata-aiggeneral.com/mailto:[email protected]:[email protected]://www.tataaiginsurance.in/http://www.tataaiginsurance.in/http://www.uiic.co.in/http://www.cholainsurance.com/http://www.cholainsurance.com/http://www.hdfcergo.com/http://www.hdfcergo.com/


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13. Export Credit GuaranteeCorporation of India Ltd.

10th Floor, Express Towers,Nariman Point,Mumbai 400021

Sri A.V. MuralidharanTel :022-56590512-515Fax : 022-56590517022-56590530

14. Agriculture Insurance Co. of IndiaLtd.

13th Floor, 14 K.G. Marg,Connaught Place,

New Delhi - 110001

Mr. M.A.Kharat (Officiating ) Mr. S. Chidambaram Tel :011-46869800,Fax : 011-46869815Email:

[email protected]

Web-site:www.aicofindia.com

15. Star Health and Allied InsuranceCompany LimitedNo.1, New Tank Street,

Vlluvarkottam High Road,Nungambakkam,Chennai - 600 034

Mr. V. Jagannathan Mr. N Srinivasan Tel :044-28260053,Fax :044-28260062

16. Apollo Munich Health Insurance

Company LimitedBuilding No. 10B,

10th FloorDLF CybercityGurgaon 122001Haryana, India

Mr. Antony Jacob Mr. Herbert Meister Tel No: +91-124-

4584100

17. Future Generali India InsuranceCompany Limited

001, Trade Plaza, Ground Floor,414, Veer Sarvarkar Marg,Prabhadevi, Mumbai 400 025

Mr. K. G. Krishnamoorthy Mr. Biresh Giri Telephone No.:+91-22-4097-6666

Fax No.: +91-22-40976868

18 Universal Sompo GeneralInsurance Co. Ltd.

310-311, Trade Centre,Opp. MTNL Building,Bandra Kurla Complex,Bandra(E)Mumbai-400 051.

Mr. Takashi Ebihara Mr. Prem ChandGupta

Tele. No.- 022-4028 7777Fax No.-022-40287781

19 Shriram General InsuranceCompany Limited,

E-8, EPIP, RIICO Industrial Area,Sitapura, Jaipur-302022

Mr. J.S.gujral Mr. P ABalasubramanian

Tele. No.- 0141-3928400, 898,

900, 902
http://www.ecgcindia.com/http://www.ecgcindia.com/http://www.aicofindia.org/http://www.aicofindia.org/mailto:[email protected]:[email protected]://www.aicofindia.com/http://www.starhealth.in/http://www.starhealth.in/http://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.universalsompo.com/http://www.shriramgi.com/http://www.shriramgi.com/http://www.shriramgi.com/http://www.shriramgi.com/http://www.ecgcindia.com/http://www.ecgcindia.com/http://www.aicofindia.org/http://www.aicofindia.org/mailto:[email protected]:[email protected]://www.aicofindia.com/http://www.starhealth.in/http://www.starhealth.in/http://www.apollodkv.co.in/http://www.apollodkv.co.in/http://www.irdaindia.org/www.fg-general.inhttp://www.irdaindia.org/www.fg-general.inhttp://www.universalsompo.com/http://www.universalsompo.com/http://www.shriramgi.com/http://www.shriramgi.com/


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(Rajasthan)

Fax No.-0141-2770693,692

20 Bharti AXA General InsuranceCompany Limited

First Floor, The Ferns IconSurvey No.28, Next to AkmeBalletDoddanekundi, Off Outer Ring RoadBangalore 560 037

Dr. AmarnathAnanthanarayanan

Mr M Venkatesan Phone no:080-40260100Fax. No 080-40260101www.bharti-axagi.co.in

21 Raheja QBE General InsuranceCompany Limited,

"Windsor House", 5th Floor,CST Road, Kalina,Santa Cruz East,Mumbai-400098

Mr. Praveen Gupta Mr. A P Peethambaran Phone No. 022-4231 3888Fax No. 022- 42313777

22 SBI General Insurance Company

Limited

The IL & FS Financial Centre7th Floor, Plot C 22, G Block,Bandra Kurla Complex,Bandra East,

Mumbai 400 051

Mr. Rammohan Rao

Belle MD & CEO

Ms. Sharon DCosta Tel.022-30698922/55/01

Fax: 022-30698958/68

23 Max Bupa Health InsuranceCompany Ltd.

Max Bupa Health Insurance Co.Ltd., Corporate Address2nd Floor, Salcon Rasvilas,

D-1 District Centre, Saket,New Delhi 110 017.

Dr. Damien Marmion Dr. K. Sriram Tel: .011-30902000/30902120Fax: 011-30902010

24 L&T General Insurance Company Limited601-602, Trade CentreBandra Kurla ComplexBandra (East)Mumbai 400051.

Mr. Joydeep Kumar Roy Mr. Arpan N.Thanawala

Tel: +91-22-61230000Fax: +91-22-61230145

This is the list of some major insurance companies in all over India.

But there are so many companies in the world which is big than this listed

companies.
http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.maxbupa.com/http://www.maxbupa.com/http://www.maxbupa.com/http://www.maxbupa.com/mailto:[email protected]:[email protected]://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.bharti-axagi.co.in/http://www.maxbupa.com/http://www.maxbupa.com/mailto:[email protected]:[email protected]


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Information

of

United India Insurance Company

Ltd.


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Company Profile

About United India Insurance Company

United India Insurance Company Limited was incorporated as

a Company on 18th February 1938. General Insurance Business in

India was nationalized in 1972. 12 Indian Insurance Companies, 4

Cooperative Insurance Societies and Indian operations of 5 Foreign

Insurers, besides General Insurance operations of southern region

of Life Insurance Corporation of India were merged with United

India Insurance Company Limited. After Nationalization United

India has grown by leaps and bounds and has 18300 work force

spread across 1340 offices providing insurance cover to more than

1 Crore policy holders. The Company has variety of insurance

products to provide insurance cover from bullock carts to satellites.

United India has been in the forefront of designing and

implementing complex covers to large customers, as in cases of

ONGC Ltd , GMR- Hyderabad International Airport Ltd, Mumbai

International Airport Ltd Tirumala-Tirupati Devasthanam etc. We

have been also the pioneer in taking Insurance to rural masses with

large level implementation of Universal Health Insurance

Programme of Government of India & Vijaya Raji Janani Kalyan

Yojana ( covering 45 lakhs women in the state of Madhya Pradesh)

, Tsunami Jan Bima Yojana (in 4 states covering 4.59 lakhs of

families) , National Livestock Insurance and many such schemes.


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We have also made our presence in more than 200 tier II & III

towns and villages through our innovative Micro Offices.

Company vision

We United India will be

The most preferred insurer in India with global footprint &

recognition.

Trusted brand admired by all stakeholders

The best-in-class customer service provider leveraging

technology & multiple channels

The provider of a broad range of innovative products to meet

the needs of all customer segments

Great place to work with highly motivated and empowered

employees

Recognized for its contribution to the society

Corporate MissionIntroducing Ourselves

UI is a leading General Insurance Company.

More than three decades of experience in Non-life Insurance

business.

Formed by the merger of 22 companies, consequent to

nationalisation of General Insurance.

Head Quarters at Chennai.

Corporate Mission

To provide Insurance protection to all.

To ensure customer satisfaction

To function on sound business principles.


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To help minimize national waste and to help develop the Indian

economy.

Company business in Nagpur:

United India Insurance Company Ltd. Having too much scope

in Nagpur city. Nagpur is a growing city, it population around 60

lakh thats why company have a wide scope to improve its business

I Nagpur.

People of Nagpur are progressive minded and for security in

life people want insurance for their live as well as assets.

Nagpurians having ability to take insurance for their assets because

improving standard of life. This city facing drastic change in life

style due to that they want life insurance and general insurance for

their assets to secure them.

Performance Chart of United India Insurance Co. Ltd.


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Annual Report 2010-11

The Directors have pleasure in presenting the Seventy Third Annual Report of theCompany.


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Awards achieve by United India Insurance Co. Ltd.


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United India Insurance Company has been selected as oneamong the top three General Insurance companies in Asia by AsiaInsurance Review at the 14th Asia Insurance Industry Awards 2010held in Bali Indonesia


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CHAPTER 4

Using Of Advance

Technology in Insurance

Sector


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Use of Advance Technology in

ExchangeWe know that this new world is of computer and advance technology.

Advance technology is also used in stock exchange.

Advantages:

a) Fast Transaction

b) Easiness in transaction

c) Quick payment of premiums.

d) Easy and fast payment

e) Availability in bilingual formats.

f) Less paper work

g) Payment from home.


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CHAPTER 5

Research Methodology


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Research Methodology

A research design is the arrangement of conditions for collection

and analysis data in a Manner to combine relevance to the researcher

purpose with economy in procedure It constitutes the blueprint for the

collection, measurement and analysis of data. As such design includes an

outline of what the researcher will do form writing the Hypothesis and its

operational implications to the final analysis of data. As such the design

includes an outline of what the researcher will do from writing the

hypothesis and its operational implications to the final analysis of data.

More explicit, the decisions happen to be in respect of:

What is the study about?

Why is the study being made?

Where will the study be carried out?What type of data is required?

Where can the data found?

What periods of time will the study include?

What will be the sample design?

How will the data be analyzed?

In what style will the report be prepared?

What techniques of data collection will be used?

The Research Design undertaken for the study is Descriptive one. A

study, which wants to portray the characteristics of a group or individuals

or situation, is known as Descriptive study. It is mostly qualitative in

nature. The main objective of Descriptive study is to acquire knowledge.

To know information about stock exchange, its transactions,

fundamental base, people & personnel related to it, controlling body,trading type, how it affect & effect by and to the economy.


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The research and the study are based on both the primary and the

secondary data.

Books

websites

Magazines

Broachers


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CHAPTER 6

Bibliography


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Bibliography

Indian Insurance: The Way Forward- G Srinivasan,India: The Next Insurance Giant by PRwire Pvt. Ltd.www.tourindia.com-Insurance in Indiawww.moody.comIndian General insurance outlookwww.IRDA,comannual report 2010-11www.automobileindia.com- Auto Insurance Companieswww.auto.webindia123.com-autoinsuranceindiawww.generalinsuranceindia.comwww.siam.com- auto policy govt of India

www.reliancegeral.co.inwww.UIIC.in
http://www.tourindia.com/http://www.moody.com/http://opt/scribd/conversion/tmp/scratch2435/http:/www.IRDA,comhttp://www.automobileindia.com/http://www.auto.webindia123.com-autoinsuranceindia/http://www.generalinsuranceindia.com/http://www.siam.com/http://www.reliancegeral.co.in/http://www.tourindia.com/http://www.moody.com/http://opt/scribd/conversion/tmp/scratch2435/http:/www.IRDA,comhttp://www.automobileindia.com/http://www.auto.webindia123.com-autoinsuranceindia/http://www.generalinsuranceindia.com/http://www.siam.com/http://www.reliancegeral.co.in/

an analysis of general insurance

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