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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:
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/