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Industry Profile

General insurance means managing risk against financial loss arising due to fire,

marine or miscellaneous events as a result of contingencies, which may or may not

occur. General Insurance means to “Cover the risk of the financial loss from any

natural calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are

beyond the control of the owner of the goods for the things having insurable interest

with the utmost good faith by declaring the facts about the circumstances and the

products by paying the stipulated sum , a premium and not having a motive of making

profit from the insurance contract.”

General Insurance Companies provide financial protection to individuals and business

houses. Protection is provided against financial losses caused by unforeseen events.

This protection is available to individuals, businessmen and large companies alike. To

succeed and survive insurance companies must cover their costs, which include

payments to cover the losses of policyholders, as well as sales and administrative

expenses, taxes and dividends. Insurance companies have two sources of income for

covering these costs: Premium and Investment income.

Premiums are collected on a regular basis and invested in Government Bonds, Gift

stocks, mutual funds, real estates and other conservative avenues. However,

investment income depends on market conditions, interest rates, economy etc and

varies from year to year. Because of the uncertainty associated with the investment

income, insurance companies must generate enough income from the premiums to

cover the bulk of their expenses.

Meaning of Risk / Insurance

Insurance is a contract whereby, in return for the payment of premium by the insured,

the insurers pay the financial losses suffered by the insured as a result of the

occurrence of unforeseen events. The term "risk" is used to describe all the accidental

happenings, which produce a monetary loss.

Insurance is a method in which a large number of people exposed to a similar risk

make contributions to a common fund out of which the losses suffered by the

unfortunate few, due to accidental events, are made good. The sharing of risk among

large groups of people is the basis of insurance. The losses of an individual are

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distributed over a group of individuals .

The risk becomes insurable if the following requirements are complied with:

a) The insured must suffer financial loss if the risk operates.

b) The loss must be measurable in money,

c) The object of the insurance contract must be legal.

d) The insurer should have sufficient knowledge about the risks he accepts.

Definition and meaning:

1. INSURANCE:

Insurance is the means of managing risk and protection against financial loss arising

as a result of contingencies, which may or may not occur.

In other words, insurance is the act of providing assurance, against a possible loss, by

entering into a contract, with one who is willing to give assurance. Through this

contract the person willing to give assurance binds himself to make good such loss, if

it occurs.

2. GENERAL INSURANCE:

General insurance means managing risk against financial loss arising due to fire,

marine or miscellaneous events as a result of contingencies, which may or may not

occur.

General Insurance means to “Cover the risk of the financial loss from any natural

calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyond

the control of the owner of the goods for the things having insurable interest with the

utmost good faith by declaring the facts about the circumstances and the products by

paying the stipulated sum , a premium and not having a motive of making profit from

the insurance contract.”

4 I’s of Insurance Service

The 4 I’s refers to the different dimensions/ characteristics of any service. Unlike pure

product, services have its own characteristics and its related problems. So the service

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provider needs to deal with these problems accordingly. The service provider has to

design different strategies according the varying feature of the service. These 4 I’s not

only represent the characteristics of different services but also the problems and

advantages attached to it.

These 4 I’s can be broadly classified as:

• Intangibility

•Inconsistency

• Inseparability

• Inventory

• Intangibility:

Insurance is a guarantee against risk and neither the risk nor the guarantee is tangible.

Hence, insurance rightly come under services, which are intangible. Efforts have been

made by the insurance companies to make insurance tangible to some extent by

including letters and form

• Inconsistency

Service quality is often inconsistent. This is because service personnel have different

capabilities, which vary in performance from day to day. This problem of

inconsistency in service quality can be reduced through standardization, training and

mechanization.

• Inseparability

Services are produced and consumed simultaneously. Consumers cannot and do not

separate the deliverer of the service from the service itself. Interaction between

consumer and the service provider varies based on whether consumer must be

physically present to receive the service.

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• Inventory

No inventory can be maintained for services. Inventory carrying costs are more

subjective and lead to idle production capacity. When the service is available but there

is no demand, cost rises as, cost of paying the people and overhead remains constant

even though the people are not required to provide services due to lack of demand.

In the insurance sector however, commission is paid to the agents on each policy that

they sell. Hence, not much inventory cost is wasted on idle inventory. As the cost of

agents is directly proportionate to the policy sold.

Some of the General Rules:

1. Mis-description :

The insurance policy shall be void and all the premiums paid by insured may be

forfeited by the insurance company in the event of mis-presentation or mis-

declaration and/or non-disclosure of any material facts.

2. Reasonable care :

The insured shall take all reasonable steps to safeguard the property insured against

any loss or damage. Insured shall exercise reasonable care that only competent

employees are employed and shall take all reasonable precautions to prevent all

accidents and shall comply with all statuary or other regulations

3. Fraud :

If any claim under the policy may be in any respect fraudulent or if any fraudulent

means or device are used by the insured or any one acting on the insured’s behalf to

obtain any benefit under the insurance policy, all the benefits under the insurance

policy may be forfeited.

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4. Few basic principles of general insurance are :

� Insurable interest

� Utmost good faith

� Subrogation

� Contribution

� Indemnity

5 Risks of loss not covered under general insurance are:

The loss or damage or liability or expenses whether direct or indirect occasion by

happening through or arising from any consequences of war, invasion, act of foreign

enemy, hostilities (whether war be declared or not), civil war, rebellion revolution,

civil commotion or loot or pillage in connection therewith and loss or damage caused

by depreciation or wear and tear. However the risk of loss or damage by war can be

insured by payment of additional premium in some cases only.

Today the technology is boosting in each and every field. Insurance is not an

exception. Companies have started providing customers facility of online payment of

premium through their websites. They also provide online assistant to the customer the

policy status and how to calculate the premium. To calculate the premium they just

need the present age, the type of police, sum assured, and accident covered if any. By

filling in this information you can calculate the amount of premium you have to pay.

The customer can pay their premiums by means of credit cards or can also give

standing instruction to the bank in order to pay their monthly premiums.

The insurance companies also provide loan facilities against their policies. At present

loans are granted on unencumbered polices as follows:

• Up to 90% of the Surrender Value for policies, where the premium due is fully paid-

up, and

• Up to 85% of the Surrender Value for policies where the premium due is partly paid-

up.

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The minimum amount for which a loan can be granted under a policy is Rs150. The

rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a

period shorter than six months, or on the security of lost policies (the assured must

have the duplicate policies) or on policies issued under certain plans. Certain types of

policies are, however, without loan facility.

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COMPANY PROFILE

Reliance General Life Insurance Company is a Reliance Capital Ltd. product. Under

the guidance of Anil Dhirubhai Ambani Group, reliance insurance company has

secured the position of the top insurers in India. Reliance General insurance is one of

the first non-life companies to get the license from the IRDA.

The risks covered under general insurance include property, marine, casualty and

liability. Wide ranges of products are available at Reliance Standard Insurance for

both group and individual customers. Each insurance policy is customized so as the

customers feel as if it was made for their needs. The distribution channels include

branch network, individual and specially trained insurance agents and insurance

brokers and online purchases of the insurance policies.

A completely customer centric company, Reliance Insurance Co Ltd aims at making

insurance affordable and accessible to all. The interests of the policyholders are

protected to the best of their capabilities and complete cooperation is provided in

insurance claims. a pan India presence of Reliance Standard Insurance brings the

insurance policy best suited to your requirements right to a branch near you.

2.a)Background and inception of the company

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of

India Act, 1934. as a public limited company in 1986 and is now listed on the Bombay

Stock Exchange and the National Stock Exchange (India).

RCL has a net worth of over Rs '3,300 crore and over 165,000' shareholders. On

conversion of outstanding equity instruments, the net worth of the company will

increase to about Rs 4,100 crore. It is headed by Anil Ambani and is a part of the

Reliance ADA Group. Reliance Capital ranks among the top 3 private sector financial

services and banking companies, in terms of net worth.

Reliance Capital has interests in : Asset management, Mutual funds. Life and general

insurance. Private equity and proprietary investments. Stock broking. Reliance PMS.

Depository services and financial products. Consumer finance and other activities in

financial services

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2.b) Nature of the business carried

Reliance General Insurance is one of India’s leading private general insurance

companies with over 94 customized insurance products catering to the corporate, SME

and individual customers. The Company has launched innovative products like India’s

first Over-The-Counter health & home insurance policies. Reliance General Insurance

has an extended network of over 200 offices spread across 173 cities in 22 states, a

wide distribution channel network, 24x7 customer service assistance and a full fledged

website. It is also India’s first insurance company to be awarded the ISO 9001:2000

certification across all functions, processes, products and locations pan-India.

2.c)Vision, mission and quality policy

Vision

To be an Insurer of World Standards and the most preferred choice for clientele at the

domestic and global level.

Mission

The Mission is to keep the customer satisfaction as focal point of all our operations,

adopt the best international practices in underwriting, claims and customer service, be

the most innovative in product development, establish presence all over India, ensure

sustained value addition to all stake holders and to uphold Corporate Value &

Corporate Governance.

Objectives

1. Make affordable insurance accessible to all

2. Keep customer as focal point for all operations

3. Protect policy holders interests

4. Adopt best international practices in claims, underwriting and policy servicing

5. Be the most innovative in product development

6. Establish Pan India presence

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Quality Policy

At Reliance General Insurance, one can identify Quality and Customer-focus as the

key strategic initiatives. The Quality roadmap, strictly aligned with the business

priorities, is benchmarked to the best contemporary global practices, and is designed

to support single-minded objectives of maintaining world-class quality standards.

The quality system deployment, defined from the point of the view of the customers,

is to enhance customer experience at all the touch points. As part of this initiative,

every business process in the organization is identified, documented, automated and

deployed. These processes are further monitored continuously through their

compliance scores and dashboard measures and reviewed by the Senior Management

team within the organization.

In fact this passion has taken us one step ahead. The company is pleased to share the

recognition of the Quality Management System by reputed global quality standards

auditing organization – Det Norske Veritas (DNV), which has awarded us the ISO

9001:2000 certification. The certification conforms our adherence to design,

development & sale of General Insurance product offerings to meet customer needs

and in line with 'IRDA regulations'

Advantages of the ISO 9001:2000 certification to the customers

1. Streamlined processes and procedures

Reliance General Insurance has established well-defined and documented process and

to help understand our Customer’s requirements and address them to their satisfaction.

2. Superior Service Standards

Our unwavering commitment to excellence ensures prompt and correct documentation

while also ensuring transparent & speedy claims settlement

2.d)Products / Services Profile

Reliance General Insurance currently offers over 80 customized insurance products for

the retail and corporate sector. All these products are sold through its various offices in

different places.

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Personal accident

I. For Individuals

II. Group Personal Accident

Fire

I. Standard Fir And Special Perils

II. Consequential Loss (Fire)

III. Industrial All Risks

Engineering

I. Erection All Risks/Storage-Cum-Erection

II. Contractor's All Risks

III. Contractor's Plant And Machinery

IV. Machinery Breakdown Insurance

V. Boiler And Pressure Plant Insurance

VI. Electronic Equipment Insurance

Group products

I. Group Term Insurance

II. Group Variable Term Insurance

III. Group Unit Linked Plan

Marine

I. Marine Cargo Insurance

Motor insurance

I. Private Car Comprehensive Insurance

II. Two-Wheeler Insurance

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Liability

I. Directors And Office Liability

II. Public Liability (Act)

III. Public Liability

IV. Product Liability

V. Professional Indemnity

VI. Workmen's Compensation

Other policies

I. Industry Care

II. Commercial Care

III. Office Package

IV. Fidelity Guarantee

V. Burglary and housebreaking

VI. Money insurance

VII. Householder's Package

VIII. Shopkeeper's package

IX. Reinsurance

X. Dental Insurance

XI. Disability Insurance

Besides these specialized products, Reliance General Insurance Company Limited

(RGICL) also provides highly efficient services that have helped establish a loyal

customer base for Reliance Insurance. These services include a dedicated team of

trained agents and brokers that helps in claims and settlements, easy and quick e-

imitation facilities, cashless claims and cashless facilities for tie-ups with leading

TPA's and hospitals and a first-of-its-kind towing facility for the insured vehicles in

the accident cases in the major cities. .

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Health insurance

I. Individual Mediclaim

II. Group Mediclaim

III. Reliance Healthwise Policy

Travel insurance

I. Individual And Family

II. Asia

III. Student

IV. Corporate

Figure 1. RGICL Product Mix

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2.e) Area Of Operation

National and Regional

To achieve business success by improving operational efficiencies, Reliance General

Insurance realizes the need to tighten up and streamline both channel partner relationships

and back office operations. The brokers and channel partners are the interface to end

customers. They play a vital role in helping sustain existing customers as well as attract

new customers through better and diverse services. So it is imperative that the company is

well connected with brokers / channels partners as well as meet their needs. Improvement

in back office operations can happen if policy production and billing are automated;

overall claims expenses are reduced, and claims settlement is made faster.

.

To be successful at doing this, we need to nurture both parts of the solution equation,

that is, creation of solution-oriented strategy and deployment of solution-based

scalable technology that enables meeting of strategic goals laid out as part of the

enterprise strategy. In the current scenario many insurers either rely on manual

methods or custom coded solutions that lack strategic approach to address their

business needs. Manual execution of their crucial operations leads to many errors that

occur in documents passed from insurers to brokers or ceding companies to

reinsurers, which results in lengthy settlement cycles. While custom coded interfaces

are developed to meet a certain set of needs only. They are not scalable so cannot

meet changing needs and require recurring IT investment to keep them in use

.

Reliance General Insurance Co. Ltd is in the process of rolling out a 'Centrally

controlled, Decentralized delivery' operations structure to ensure speedy processing

and service while maintaining predictable and strict quality control. A solution is also

being developed to offer strategic value through systematic design and deployment of

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BPM and integration technologies. The solution will address volatile situations, and

shall be a scalable and reusable solution. It would help meet the challenge of

operational costs saving while enabling the company to exploit business expansion

opportunities .

Global

Reliance Capital Limited intends to be a well-respected global player in the

international financial services sector. It is present in Singapore, Malaysia, United

Kingdom and United Arab Emirates.

Singapore

Reliance Asset Management (Singapore) Pvt. Ltd. (RAMS) is a private limited

company with limited liability and is regulated by the Monetary Authority of

Singapore (MAS). RAMS holds a Capital Markets Services (CMS) license issued by

MAS, for carrying out fund management activities under the Securities and Futures

Act (SFA). It was set up as an offshore fund platform of Reliance Capital Asset

Management Limited in 2006 for managing/advising mandates from global

institutional and accredited investors. The core activity of RAMS is asset

management focusing on India equities, alternative & fixed income instruments.

RAMS has in-house capabilities to structure and manage customized mandates and

new product offerings to meet specific client requirements. RAMS is also a registered

Foreign Institutional Investors (FII) with Securities & Exchange Board of India.

Malaysia

Reliance Asset Management Malaysia Sdn Bhd (RAMMy) has been incorporated to

undertake Islamic Asset Management under the license of The Securities Commission

of Malaysia. RAMMy aims to become the provider of choice within Islamic Asset

Management by launching unique Shariah-compliant investment strategies to

complement investor’s portfolios with the ultimate focus on wealth creation.

United Kingdom and United Arab Emiratess

Reliance Capital Asset Management (UK) Plc is a Financial Services Authority

(FSA) authorized investment advisory business based in United Kingdom

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2.f) Ownership pattern

The ownership pattern of reliance general insurance company limited is shown with a

table below:

TABLE 1. SHARE HOLDING PATTERN

Shareholder As at 30-09-2010 As at 30-09-2009

Number of shares % of

Holding

Number of

shares % of

Holding

Promoters

• Holding Company - Indian 110,929,269 96.27% 108,786,412 96.20% • Holding Company – Foreign - -

Others

• Reliance General Insurance Employees Benefit Trust

4,294,672 3.73% 4,294,672 3.80%

TOTAL 115,223,941 100% 113,081,084

For the period ended 30/09/2010 total number of shares of the company are 115,223,941.

Out of which 96.27% of the shares are held by Indian holding company and no shares are

held by foreign holding company. And shares held by Reliance General Insurance

Employee Benefit Trust 3.73%. Number of shares held by Promoters are increased when

compared to last year.

Reliance Capital Asset Management (UK) plc also established a branch in Dubai

International Financial Centre in 2009. It has commenced operations after receiving a

license from Dubai Financial Service Authority. The DIFC based entity provides a

full range of Wealth and Investment Advisory Services to professional investors and

institutional clients in the region. By establishing this branch RCAM (UK) plc intends

to expand its operations throughout the UK, GCC and Africa.

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2.g) Competitors information

For any industries there are number of competitors who themselves try to emerge with

innovative products and services, to compete with other industries. They provide

products and services in order to satisfy the customers, which are economy to their

purchasing habits. Likewise RGICL is also having its competitors.

The main competitors are

Royal Sundaram: Royal Sundaram Alliance Insurance Company Limited has been at

the forefront of providing innovative insurance solutions for its customers. It became

the first private insurer in the country to be licensed post privatization in 2001. Since

then the company have been innovating constantly for its customers. Its business in

over 150 cities through a combination of own branches and those of our partners. Total

market share is 2.46%

Star Health and Allied Insurance: Another major competitor for Reliance General

Insurance company Ltd is Star health And Allied Insurance. It spreads its business

over 100 cities, through its branches. The Total market share of the company is 2.63%.

Tata AIG: Tata AIG General Insurance Company Limited is a joint venture company

between the Tata Group and American International Group, Inc. (AIG). The Tata

Group holds 74 per cent stake in the insurance venture with AIG holding the balance

26 percent. It commenced its operations on January 22, 2001, by providing insurance

solutions to individuals and corporate. It offers complete range of general insurance

products that includes insurance for automobile, home, personal accident, travel,

energy, marine, property and casualty as well as several specialized financial lines.

Total market share is 2.64%

ICICI Lombard: ICICI Lombard GIC Ltd. is a 74:26 joint venture between ICICI

Bank Limited, India’s second largest bank with consolidated total assets of over USD

100 billion at March 31, 2010 and Fairfax Financial Holdings Limited, a Canada based

USD 30 billion diversified financial services company engaged in general insurance,

reinsurance, insurance claims management and investment management.

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ICICI Lombard GIC Ltd. is the largest private sector general insurance company in

India with a Gross Written Premium (GWP) of 36,948 million for the year ended

March 31, 2010. The company issued over 44 Lakh policies and settled over 62 Lakh

claims and has a claim disposal ratio of 96% (percentage of claims settled against

claims reported) as on March 31, 2010. The company has 4,634 employees and 350

branches as on March 31, 2010. Total market share 9.38%

Bajaj Allianz: Bajaj Allianz General Insurance received the Insurance Regulatory

and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to

conduct General Insurance business (including Health Insurance business) in India.

The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv

Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier

position in the industry by achieving growth as well as profitability. Bajaj Allianz has

made a profit before tax of Rs. 180 crores and has become the only private insurer to

cross the Rs.100 crore mark in profit before tax in the last four years. The profit after

tax was Rs. 121 crores, 27% higher than the previous year. Total market share is

6.22%.

Bharthi Axa General: Bharti AXA General Insurance is a joint venture between

Bharti, one of India’s leading business groups with interests in Telecom, Agri

Business and Retail; and AXA, world leader in Financial Protection and Wealth

Management. Bharti Group holds 74% of equity and AXA holds 26% of the equity.

The total market share of the company is 1.13%.

2.h) Infrastructural Facilities

RGICL has good infrastructural facilities. All the employees are provided with the

facilities such as telephone, computer with internet access. All the branches are fully

computerized and all branches are well equipped . Employees in the office are

provided with their own software for calculating the claims and for other operations.

The ambience within the office is what can make the customer feel comfortable. The

cordial and friendly atmosphere at office is like a full time motivation for the

employees.

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2.i) Achievements and Awards

The RGICL has not received any specific awards for the business carried out.

2.j) Work flow model for Claims

Figure 2 work flow model

Customer

Branch Office

Customer Care Center

Surveyor

Customer

Claims Manager

Company

customer

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2.k)Future growth and prospects

We can clearly get the idea about the future growth and prospects of the company by

looking at the following figure. It clears tells that, in the earlier years the company’s

growth was stagnant. And the profit was also low because of its stagnant growth. But

from the year 2006-07 the RGICL is having very high growth every year. The gross

premium and the number of policies of the company are increasing at a very high rate.

As there is high increase in the number of vehicles ,there is a high need of insurance

for it, not only for vehicles but also for other services like marine cargo, employee

liability, travel, personal accident etc there is a lot of need for insurance in order to

protect them from loss. So for Reliance General Insurance there is a opportunity of

better growth in the upcoming years

Figure 3. Business Growth

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Mckensey’s 7S frame work with special reference to RGICL

The 7-S Framework was first mentioned in "The Art Of Japanese Management" by

Richard Pascale and Anthony Athos in 1981. They had been investigating how

Japanese industry had been so successful. At around the same time that Tom Peters

and Robert Waterman were exploring what made a company excellent. The Seven S

model was born at a meeting of these four authors in 1978. It appeared also in "In

Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by

the global management consultancy company McKinsey. Since then it is known as

their 7-S model.

Figure 4. McKensey’s 7S model

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Shared Values (also called Super ordinate Goals).

The interconnecting center of McKinsey's model is: Shared Values. What does the

organization stands for and what it believes in. Central beliefs and attitudes. These are

the core values of the company that are evidenced in the corporate culture and the

general work ethic. Super ordinate goals are the fundamental ideas around which a

business is built. They are of main values. What does the organization stands for and

what it believes in. Central beliefs and attitudes. They are the broad notions of future

direction. According to Mckensey super ordinate goals refers to: a set of values and

aspirations that goes beyond the conventional formal statement of corporate

objectives. All targets and attention of all activities and exercises of the six levers of

any organization should be directed towards accomplishment of the best possible

goals. This is the ultimate and terminal point where the organization will have to

reach.

RGICL believes in total quality at all levels of the organization. It aims at total value

packages for all its needs. The shared values or goals of the RGICL are contained in

the banks mission and vision statement. All the employees are work together to

achieve the objectives of the company. The company try to know the customer needs,

wants and based on that it launches the new product and services. It guides to the

employees in order to provide a better service to customers

Strategy

Plans for the allocation of a firms scarce resources, over time, to reach identified goals.

The plan devised to maintain and build competitive advantage over the competition

.The concept of strategy includes purposes, mission's objectives, goals and major

action plans and policies. The 7s model emphasizes that in practice, the development

of strategies poses less of a problem than their execution. It also includes Plans for the

allocation of firm’s scarce resources, over time, to reach identified goals, environment,

competition, customers.

The company strongly believes that customer satisfaction is indispensable for the

business growth. Customer relation manager and facilitator at the strategic location

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and field units, periodic customer services audit and senior level officer are appointed

as nodal officer monitoring the prompt redressed of customer grievances.

Structure

The way in which the organization's units relate to each other: centralized, functional

divisions (top-down); decentralized; a matrix, a network, a holding, etc. : The way the

organization is structured and who reports to whom .The way the organization's units

relate to each other: centralized, functional divisions (top-down); decentralized (the

trend in larger organizations); matrix, network, holding, etc.

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Figure 5. Organization chart

Central manager

MKT manager

Sin. Fin/operation manager

Jr.fin/operation

manger.

Franchise III Franchise II Franchise IV Franchise V Franchise I

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Systems

The procedures, processes and routines that characterize how the work should be done:

financial systems; recruiting, promotion and performance appraisal systems;

information systems. The daily activities and procedures that staff members engage in

to get the job done. Systems include all those procedures and methodologies, which

are framed by the organization and followed by the operating personnel in the

respective functional areas. Example, financial accounting system, materials planning

and inventory control system, quality management computerization, etc all these

functional areas some traditional system may be in existence which needs to be

reviewed and changed, as per requirements, in view of advanced technology and

process developed.

System in relation to RGICL : The system and procedure as well defined and are

available with all the hierarchy as on need to know basis. The well structure process

manuals are available for all the functional areas, be it business or administration

.

Staff

Numbers and types of personnel within the organization. The employees and their

general capabilities. Staffing is the process of acquiring human resources for the

organization and assuring that they have the potential to contribute to the achievement

of organizational goals.

RGICL recruits those persons who are perfect for the job. Since the job profile can

change so that it requires training and updating knowledge. The company provides

required training for the personnel which will results in increased productivity and

efficiency

Style

The Mckensy’s framework considers the style as more than the style of top

management. Aspects of organizational culture also seen to be encompass by the term

style. It includes Cultural style of the organization and how key managers behave in

achieving the organization’s goals. Management Styles.

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Organizational Culture: the dominant values and beliefs, and norms, which develop

over time and become relatively enduring features of organizational life.

The style of the RGICL in business or in administration has a unique niche in the

industry.

i .Top Down: The RGICL has been following Top Down style of leadership. The

employee in the organization has well defined roles duties and responsibilities. The

managers get guidelines from the top management regarding interest rate, products

and services to the customers.

ii Authoritarian: The managers in the organization has their own style of functioning

and collectively works as a team. Most of the managers use Authoritative style of

functioning to control their executives.

Skills

Distinctive capabilities of personnel or of the organization as a whole. The actual skills

and competencies of the employees working for the company. The operating system

can change to desired efficient skillful human being for operation of the new

techniques in the new technology. Skills development has raised the productivity of

the employees of the company. Skill development is needed to training for inadequate

skill persons in the organization.

However, RGICL has never neglected the skills development programmes for

employees. It leads to an organization which helps in establishing goodwill and image

in the business world. It also includes Distinctive capabilities of personnel or of the

organization as a whole and its Core Competences.

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Swot Analysis

Strengths

1. RGIC is the second among private players after ICICI Lombard GI

2. India’s first company to be awarded the ISO 9001:2000 certification

3. Net worth has increased up to Rs. 4.94 billions doubled from last year’s

Rs.2.59 billions

4. Excellent outreach with a large distribution network

5. It has 200 branches across 171 cities and over 20,000 intermediaries. The set

up provides the company is very strong and very effective distribution

network , and consequently strong penetration in the market

6. Reserves and Surplus has increased five times to Rs.4.998 billion from

Rs.1.04 billion previous year 2007

7. Exclusive bancassurance tie-up with annual business of Rs.130-145 crore.

8. RGIC has been able to give highest ROI of 11.27% in last five years.

9. RGIC commands 17% of the Private Sector Share & 7% share of the General

Insurance Industry

10. Company issued 36.57 Lac policies during the year as compared to 14.60 Lac

in the previous year there by registering the growth of 150%

Weakness

1. Earnings per share is Rs. -15.92 (previous year Rs.0.16)

2. Sudden expansion this year by establishing more than 125 branches has

increased operations and administration expenses due to which losses incurred.

3. There is no technical support of the foreign principals as RGIC is not having

any foreign tie-up as other players have.

4. All the inner facts and factors known to the family member cum competitor

company headed by Mukesh Ambani.

5. Overdependence on fellow subsidiaries for various supplies.

27

Opportunities

1. De-tariff

o –IRDA removed controls on pricing in General Insurance

business with effect from 1st January 2008

2. The industry is going to be freed from product \wordings and policy wordings

3. Can become market leader as presently it is no. 2 position

4. General insurance industry in India has grown at 15% CAGR in terms of gross

premium collection

Threats

1. New Entrants

– Future General India Life Insurance Company Limited

– IDBI Fortis Life Insurance Company Ltd

– Bharti Axa General Insurance Company Ltd

2. Many foreign bank giants are going to enter Indian market. They have very

large portfolio of various verticals and products with them.

3. New tie-ups by the competitors viz.

o -Online travel portal clear trip ties up with TATA AIG to offer

travel insurance

o -ICICI Prudential inks pact with suvidha Info Serve.

4. New joint ventures (JV’s) by industry giants

o -MAX India forms JVC with Bupa Finance to foray into health

insurance

o -Shriram Group is to enter general insurance market

28

Analysis of Financial Statement

Financial analysis of the company with the help of ratio analysis:

I. Current Ratio:

Current ratio is a measure of liquidity calculated dividing the current assets by the

current Liabilities

Current Ratio = Current Assets ÷ Current liabilities

Table 2. Current Ratio

31/03/2009 31/03/2010

Current assets 6,737,335 8,248,216

Current liabilities 8,086,675 10,129,089

Current ratio 0.833 0.814

The current ratio in the year 2010 is very high this is because of less current

liabilities. Company has repaid the liabilities in the year 2010.

II. Quick Ratio:

Quick ratio is the ratio between quick current assets and current liabilities and is

calculated by dividing current assets minus inventory and prepaid expenses by current

liabilities.

Quick Ratio = Quick Assets ÷ Current Liabilities

29

Table 3. Quick Ratio

31/03/2009 31/03/2010

Quick assets 6,737,335 8,248,216

Current liabilities 8,086,675 10,129,089

Quick ratio 0.833 0.814

The quick ratio and current ratio is same for both the years because there is no

inventory.

III. Proprietary Ratio:

Proprietary ratio indicates the extent to which assets are finance by owner’s funds.

It shows the portions of the total assets are financed by the owner’s capital.

Proprietary ratio = Proprietor’s funds ÷ Total assets

Table 4. Proprietary Ratio

31/03/2009 31/3/2010

Proprietor’s funds 79,70,632 1,00,70,631

Total assets 73,81,070 87,23,283

Proprietary ratio 1.081 1.154

30

Learning experience

As a student of Business Administration the learning experience gained in Reliance

General Insurance Co Ltd was one of the important part of my life before entering

into the corporate world. This work provided strong base to get first hand knowledge

of the corporate world which proved very helpful. It not only provided knowledge of

the corporate world but also taught to tackle each and every tremendous situation with

ease.

RGICL is one of the leading companies in India. The study gave me very fruitful

knowledge experience. It provided the solid foundation to study and learn the tactics

of facing the world.

The study on the industry profile, informed on ever expanding view of business in

India with its fascinating history of Insurance sector and its growth and development

in the recent times. This gave a clear idea of the scope of the general insurance in

future, its vastness and ever expanding coverage which the company will cover in the

coming year. The insurance industry has a tremendous potential in the coming years

worldwide and can boom the economy of any given nation.

The history of this company and its origin gave me knowledge to have a great vision

and move strongly withstanding and difficulty which we face and be strong in our

goals. Practically speaking, RGICL is providing vast variety of services to its

customers, that being a customer it’s rather difficult to have knowledge of all the

services. .

To conclude, the whole study in RGICL was a never ending process to learn more,

experience more and get maximum exposure towards the corporate world. In total the

overall experience was excellent and knowledgeable, experience gained was a never

ending quest for knowledge

31

General Introduction

Claims settlement is the most important aspect of the functioning of an insurance

company. Out of any insurance contract, the customer has the following expectations:

i. Adequate insurance coverage, which does not leave him high and dry in time of

need, with right pricing.

ii. Timely delivery of defect free policy documents with relevant endorsements

/warranties / conditions / guidelines.

iii. Should a claim happen, quick settlement to his satisfaction.

Unlike life insurance, where all policies necessarily result in claims – either maturity

or death – in general insurance not all policies result in claim. Approximately around

15% policies in general insurance result in claim. The claim settlement in general

insurance thus have their own peculiarities and therefore need proper handling. Also

how 15% policy holders are attended is of great importance. The services being

rendered will determine the attitude of the customers.

The insurance companies have hitherto been handling the claim rather than managing

them. Typically this process involves –

I. As soon as a claim is reported, the insurance company checks as to whether the

cover was in force at the time of loss and whether the peril is covered under the

policy.

II. A surveyor is appointed who visits the spot, do the assessment and submits the

report.

III. Insurance company examines the report, calls for relevant supporting

documents.

IV. On receipt of survey report and documents, the same are examined. The claim

file is processed and settlement is offered.

1.a) Statement of the problem:

The claims handling is more process oriented and does not pay adequate attention to

the monitoring and claims cost aspect as also to the service parameters. In the present

liberalized scenario, with cut-throat competition being the order of the day, the

insurance companies have to go much beyond the handling of claims. Incase of

general insurance approximately around 15% of the policies results in claim. Thus

32

claims management in general insurance have their own peculiarities and therefore

need proper handling.

1.b) Objectives of study:

� To understand the concept of claims. Its creation and processing.

� To know who are the partners in claims.

� Comparing claims paid and claims recovered to find out whether they

are positively or negatively correlated.

� To find out how the Claims Management System can be helpful to the

company.

� Good practices that can be used by the company to manage the claims

effectively.

�

1.c) Scope of the study:

The study is conducted in order to know, whether the claims are managed properly in

the Reliance General Insurance Company Ltd. The study was conducted on the twelve

months data from 1st January 2010 to 31st December 2010. The data considered for the

study are claims paid, claims recovered, gross incurred claims and net incurred claims

of the year 2010.

1.d) Methodology:

The research carried out a descriptive type of research. The study is mainly based on

the secondary data at appropriate places. Thus the data collected by secondary source

have been tabulated and analyzed making use of appropriate statistical tools and

results, such as correlation. and chi-square tests

33

1.e) Limitations of the study:

No single work is exception to the limitations, every work has got its own limitations,

following are some of the limitations of my study

� The study is mainly based on secondary data and no field work is done because

of time constraint.

� The study is limited to the data of the previous year 2009- 10 only.

� Difficulties are faced while accumulating important data.

� It is not an exact science, so we cannot expect 100% result, so only justified

solutions are given.

34

2.a) Creating Claims

When the variance is detected from the project plan, claim can be created using an

Internet application. This means variances can be documented either at work station,

or at any computer that has Internet access. This makes claim entry easy and

convenient. And claims can be entered at a construction site, when traveling, and so

on. The flexible user interface makes things even easier. Details of the claim can be

entered using long texts. In addition to the notification header long text, four other

long text categories are available. That can be used to structure the information on the

claims.

Processing Claims

As claims usually cause additional costs, costs can be entered which expect to arise

either when claim is created, or later, when more precise information is available. The

following options are available:

-Entering the estimated costs manually.

-Creating a unit costing from the claim or link it to an existing unit costing.

Enter the costs demanded and accepted manually. Status management and workflow

are two more high-performance tools you can use to process claims in the R/3 System.

The link between claim management and status management means that processing of

a claim dependent on its status, that a claim cannot. The system documents all changes

to the claim in the action log. Once the claims processed and closed ,it can be

archived. A deletion program deletes the database records for claims successfully

archived.

Evaluating Claims

The work lists for notifications and tasks include an overview of the claims to be

processed and the tasks associated with them. For detailed evaluations of claims,

information system and access the overview reports for the claims are useful. As the

claim is assigned to a project or WBS element either when creating the claim or later,

all the claims created for a project/WBS element in the information system can be

35

displayed. An evaluation program can be used to display the data for claims already

archived.

Table 5. AGIENG OF CLAIMS

Line of business Total amount of claims paid(Rs in lacs)

Fire 1511.41

marine cargo 424.64

Marine hull 1431.06

Engineering 565.22

Motor OD 16490.6

Motor TP 3027.24

Health 6642.62

Overseas travel 191.28

Personal Accident 1324.45

Employee liability 21.18

Crop 0

Misc. 7228.12

Figure 6. Ageing of Claims

36

Ageing of claims means, claims paid after a certain number of days. In the above

graph, X axis represents various products of the company and Y axis represents total

amount of claims paid. Motor OD( Own Damage) is having highest number of claims

paid for ageing i.e. Rs.16,490.6 lacs. Motor TP( Third Party), Health and

Miscellaneous are the other 3 products which have more than Rs.2000 lacs. All other

products have total claims paid less Rs.2000 lacs

Table 6 Net premium and Net incurred claim

Description NET PREMIUM NET INCURRED CLAIM

Fire 3076.66 772.25

Marine cargo 1088.77

654.77

Marine hull 24.87 -42.8

Motor 93648.79 32043.39

Engineering 1863.94 724.5

Aviation -185.33 386.34

Liabilities 682.64 254.66

Others 3786.69 1335.12

Health 20364.38 12646.88

Figure 7. Net premium and Net incurred claim

37

Table 7 Details regarding claims

PARTICULARS CLAIMS

PAID

CLAIMS

RECOVERED

CLAIMS

O/S AT THE

QUARTER

END

31/12/2010

CLAIMS

O/S AT THE

BEGINNING

Fire 151,465 113,471 285,389 296,252

Marine 42,592 22,343 116,271 104,793

Motor 2,483,546 747,391 6,980,191 7,723,583

Miscellaneous 4,496,888 1,869,915 7,925,130 8,713,797

Figure 8. Claims Details for Fire Insurance

Incase of Fire related claims, the claims outstanding at the beginning of the quarter,

i.e. on 1st october 2010 is 35%. Total claims paid is 18% and claims recovered is 13%.

Claims outstanding at the quarter end 31st december 2010 is 34%. There is a slight

change in the outstanding claims at the end of the quarter when compared to claims

outstanding at the beginning of the quarter

38

Figure 9 Claims Details for Marine Insurance

Incase of marine related claims, the claims outstanding at the beginning of the period

is 36%, total claims paid is 15%. Here recovered claims are very less in number i.e.

only 8% and claims outstanding at the end of the quarter is 41%. In case of marine

related claims, outstanding claims are increased from 36% to 41%.

Figure 10. Claims Details for Motor Insurance

Incase of motor related claims, 43% of claims are outstanding at the beginning of the

quarter. Total claims paid are 14% and recovered claims are only 4%. Very less

amount of claims are recovered in case of mator policies. And claims outstanding at

the end of the quarter is 39% this shows that nimber of claims outstanding are

decreased at the end of the quarter.

39

Figure 11. Claims Details for Miscellaneous Insurance policies

Incase of miscellaneous claims, total claims outstanding at the beginning of the

quarter is 38%, claims paid is 20% and the claims recovered is 8%. Claims

outstanding is decreased to 34% at the end of the quarter.

2.b) Partners in Claims

Definition

When creating a claim, or each time accessing the claim to change it, it is assigned to a

partner type. Claim Management offers the following partner types:

� Vendor

� Customer

� Internal

Depending on the partner type, the system determines the following in claim

processing:

A suitable partner

If the chosen types are "Customer" or "Vendor", the system does not offer the general

partner overview for partner entry purposes, but:

_ For customers:

Customer Address, where a customer can enter who already exists in the system

40

Contact Person Address, for the contact person at the customer

Notification Address: for example, the customer's lawyer

_ For vendors:

Vendor Address, where a vendor can enter who already exists in the system

Manufacturer Address

Notification Address: for example, sales and distribution at the vendor

Contact person can be entered in the notification address.

If you change the partner the partner type is changed, for example, from customer to

vendor, the system adopts all the partners and displays them in the partner overview.

In the standard claim configuration, the contact person is always the customer contact

person.

Allowed reference documents

� For vendors, the purchasing document

� For customers, the sales order, delivery, and purchase order number

� For "internal", the sales order, delivery, purchase order number, and purchasing

document

2.c) Processing the Partner Information

Prerequisites

In order to process the partner information the company follows the below procedure :

Configuring User Default Values

Use

It is a good idea to define user default values if you enter a lot of claims, but rarely use

particular notification data. The system automatically copies these values to the

appropriate fields while creating a claim. It can be overwritten at any time.

Features

Following default values and settings can be defined:

� General data

- Notification type

- WBS element

- Partner type

41

- Whether the system shows a status line/pushbutton when you enter or display

long texts

� Appearance of the action box: The system represents the action box as a table

or an overview tree. If the table is chosen, the system displays only the follow-

up activities that can be carried out. If the overview tree is chosen, the system

displays all the available follow-up activities.

2.d) Claim Tasks

Definition

A planned or completed activity that describes the planning and organizational

measure in a claim. A task is defined by a code from the task catalog and if necessary

accompanied by a text.

Use

A task allows to plan the cooperation of various persons during the claim process and

assures that the activities connected to the task are completed within a given

timeframe. The task receives a status depending on its degree of completion.

Data for a task is entered on two different screens with varying degrees of detail.

� Overview screen

� Detail screen

The following entries are possible for each task:

� A table key for the tasks to be executed and a brief instruction describing what

is to be done

� The task's planned start and end

� The task's status

� Responsible partner for carrying out the task

The documentation for processing tasks contains a note explaining how to create a

task for a notification item. This is not possible in claim management because a claim

does not recognize items. In claim management a task refers to the entire claim.

2.e) Evaluating Claims

Features

The project information system includes the following reports for analyzing claims:

42

Claim Overview

The system displays all the data entered for the claim selected, except for tasks and

actions. If this is all the data you need, we recommend you use this report, for

performance reasons.

� Claim Hierarchy

The system displays all the data entered for the claim selected, including tasks and

actions.

Archiving Claims.

Procedure

Claim archiving using transaction SARA involves the following steps:

1. Preparation

The preparation program assigns status MARC to the claims selected, thereby flagging

them as ready for archiving and deletion. This also blocks the claims so flagged

against further online changes.

2. Archiving Run

The archiving program writes the database tables for the claim to the archive. If the

process was successful, the program deletes the data from the system immediately

after it has been archived.

3. Delete

A deletion program deletes the database records for claims successfully archived. If

the deletion program is not accessed automatically when the archiving action has been

completed successfully, you must wait until archiving is complete altogether.

4. Evaluation

Evaluation can be used to display the data for claims already archived.

Claims Analysis

The following are the tables regarding claims paid from direct business written,

claims paid on re-insurance accepted, claims recovered on re-insurance accepted,

43

net claims paid, outstanding claims at the quarter end, outstanding claims at the quarter

beginning.net claims incurred. The data is for the period ended 31st December 2010

Table 8 claims analysis (a)

Particulars Claims paid from

direct business

written

Claims paid on re-

insurance accepted

Claims recovered

on re-insurance

accepted

Fire 2,29,133 (2,698) 1,60,449

Marine Cargo 86,059 - 49,291

Marine Hull 144 - 14

Motor OD 31,69,976 - 3,35,344

Motor TP 14,47,604 6,31,783 9,93,288

Employer’s Liability 6,514 - 834

Public Liability - - 54

Engineering 1,40,134 - 89,360

Aviation 8,18,393 - 7,82,436

Personal Accident 1,84,639 - 1,32,995

Health 15,38,084 - 2,29,375

Other Misc 3,13,482 - 2,64,219

Table 9 claims analysis (b)

Particulars Net Claims Paid o/s claims at

the period

ending

31/12/2010

o/s claims at

the period

beginning

Net claims

incurred

Fire 65,986 2,85,339 2,74,149 77,226

Marine Cargo 36,768 1,05,502 76,795 65,475

Marine Hull 130 10,769 15,178 (4,279)

Motor OD 28,34,632 11,37,018 13,22,899 26,48,751

44

Motor TP 10,86,099 58,43,173 63,73,686 5,55,586

Employer’s

Liability

5,680 32,915 17,982 20,613

Public Liability (54) 13,023 8,117 4,852

Engineering 50,774 1,58,057 1,36,831 72,450

Aviation 35,957 30,497 27,820 38,634

Personal

Accidents

51,644 61,461 50,753 62,352

Health 13,08,709 5,36,969 5,80,990 12,64,688

Other Misc 49,263 1,11,567 89,668 71,162

Table 10 COMPUTATION OF CORRELATION BETWEEN CLAIMS PAID

AND CLAIMS RECOVERED

PARTICULARS Claims

paid

Claims

recovered

Fire 151,465 113,471

Marine 42,592 22,343

Motor 2,483,546 747,391

Miscellaneous 4,496,888 1,869,915

Figure 12. Claims paid and Claims Recovered

45

Correlation between Claims Paid and Claims Recovered = 0.985024

Table 11. CHI-SQUARE TEST FOR CLAIMS PAID AND CLAIMS

RECOVERED

PARTICULARS O

(Rs in

lacs)

E

(Rs in

lacs)

(O-E)

(Rs in

lacs)

(O-E)2

(Rs in lacs)

(O-E)2/E

(Rs in lacs)

Fire 1.51 1.13 0.38 0.1444 0.005249

Marine 0.43 0.22 0.21 0.0441 0.001603

Motor 24.84 7.47 17.37 301.7169 10.96754

Miscellaneous 44.97 18.69 26.28 690.6384 25.10499

TOTAL 27.51 36.0794

Degrees of freedom : 4-1=3

@ 5% level of significance 7.815

Table 12. results of correlation and chi-square test

Correlation Table Value X2

0.985024 7.815 36.0794

Therefore, claims paid and claims recovered are positively correlated as the

calculated value is more than 0. And they are highly significant at 5% level of

significance.

46

Table 13

Solvency for the quarter ended 31/12/2010

Required Solvency Margin Based on Net premium and Net incurred

claims

Premium Claims

RSM-1

RSM-2

RSM-

3

Ite

m

No

Descripti

on

Gross

premiu

m

Net

premium

Gross

incurre

d claim

Net

incurre

d claim

1 Fire 11,550.

75

3,076.66 3,831.3

8

772.25

1,155.0

7

1,395.9

1

1,395.9

2 Marine

cargo

2,348.7

6

1,088.77 1,152.3

8

654.77

281.85 570.82 570.82

3 Marine

Hull

141.77 24.87 (80.78)

(42.80)

14.18 58.69 58.69

4 Motor 109,297

.74

93,648.79 59,699.

49

32,043.

39

18,729.

76

20,831.

71

20,831.

71

5 Engineeri

ng

7,889.8

4

1,863.94 2,876.7

7

724.50

788.94 896.14 896.14

6 Aviation 6,949.6

3

(185.33) 21,139.

10

386.34

694.96 3,170.8

7

3,170.8

7

7 Liabilities 1,727.1

1

682.64 276.63

254.66

259.07 83.04 259.07

8 Others 9,185.7

4

3,786.69 3,093.5

7

1,335.1

2

1,286 1,544.7

5

1,544.7

5

9 Health 24,320.

57

20,364.38 14,951.

97

12,646.

88

4,072.8

8

6,636.2

0

6,636.2

47

Table 14

Computation of correlation between gross incurred claim and net

incurred claim

Description Gross incurred claim

(Rs in lacs)

Net incurred claim

(Rs in lacs)

Fire 3.83 0.77

Marine Cargo 1.15 0.65

Marine Hull -0.08 -0.042

Motor 59.70 32.04

Engineering 2.88 0.72

Aviation 21.14 0.386

Liabilities 0.28 0.254

Others 3.09 1.34

Health 14.95 12.65

Correlation between gross incurred claim and net incurred claim is 0.93

Table 15 CHI-SQUARE TEST FOR GROSS INCURRED CLAIM

AND NET INCURRED CLAIM

PARTICULARS

O E (O-E) (O-E)2 (O-E)2/ E

(Rs in

lacs)

(Rs in

lacs)

(Rs in

lacs) (Rs in lacs) (Rs in lacs)

Fire 3.83 0.772 3.06 9.351364 0.1917441

Marine cargo 1.15 0.654 0.5 0.246016 0.0050444

Marine Hull -0.081 -0.043 -0.04 0.001444 2.9608405

Motor 59.69 32.04 27.65 764.5225 15.6760816

Engineering 2.88 0.724 2.16 4.648336 0.0953113

Aviation 21.14 0.386 20.75 430.7285 8.8318334

Liabilities 0.276 0.254 0.02 0.000484 9.9241306

Others 3.09 1.34 1.76 3.090564 0.0633701

Health 14.95 12.65 2.3 5.308416 0.1088459

Total 48.777 37.856

Degrees of freedom 9-1 = 8

@ 5% level of significance 15.507

48

Table 16 Results of correlation and chi-square test

Correlation Table Value X2

0.93 15.507 37.856

The relationship between gross incurred claims and net incurred claims is positively

correlated. And they are highly significant at 5% level of significance.

Table 17.1 Quarterly claims data for the period ended 31/12/2010

Sl no Claims experience Fire Marine

Cargo

Marine

Hull

Motor OD Motor TP

1 Claims o/s at the

beginning of the period

765 598 15 39,497 21,636

2 Claims settled during

the period

381 430 2 60,506 1,116

3 Claims reported during

the period

524 733 1 60,942 4,192

4 Claims repudiated

during the period

70 48 - 2,647 -

5 Claims closed during

the period

99 124 - 5,683 318

6 Claims o/s at the end

of the period

739 729 14 31,603 24,394

7 Less than 3 months 271 376 1 20,406 4,144

8 3 months to 6 months 172 141 - 6,699 3,401

9 6 months to 1 year 138 137 7 3,992 4,487

10 1 year and above 158 75 6 506 12,362

49

Table 17.2 Quarterly claims data

Sl no Claims experience health Overseas

travel

Personal

Accident

liability miscel

laneo

us

1 Claims o/s at the

beginning of the period

9140 862 798 179 813

2 Claims settled during the

period

25,075 624 1,319 81 692

3 Claims reported during

the period

18,580 303 833 20 484

4 Claims repudiated during

the period

2,256 27 124 4 163

5 Claims closed during the

period

2,263 594 36 17 260

6 Claims o/s at the end of

the period

11,116 562 1,124 219 598

7 Less than 3 months 9,247 375 643 72 279

8 3 months to 6 months 873 107 264 52 131

9 6 months to 1 year 686 76 189 37 115

10 1 year and above 310 4 28 58 73

The above tables shows the quarterly claims data, regarding claims outstanding at the

beginning of the period, claims settled during the period, claims reported and claims

repudiated during the period, claims closed during the period and claims outstanding at

the end of the period. And it also gives details of claims paid within different periods

of time, i.e. less than 3 months, 3 months to 6 months, 6 months to 1 year, 1 year and

above. These tables gives complete information of the claims for the different

products offered by the company.

50

Table 18 The following table shows the data regarding Ageing Of

Claims

(Rs in Lacs)

Sl no

no of claims paid

1

month

1-3

month

3-6

month

6

month-

1 year

>1

year

Total

no of

claims

paid

Total

amount

of claims

paid

1 Fire

138

99

80

36

28

381

1,511.41

2 Marine

cargo

255

84

45

32

14

430

424.64

3 Marine hull - 1

-

-

1

2

1431.06

4 Motor OD 33,502 18,711

5,891

2,062

340

60,506

16,490.60

5 Motor TP - 21

76

285

734

1,116

3,027.24

6 Health 12,447 5,064

783

208

78

18,580

6642.62

7 Overseas

travel

48 121

81

38

15

303

191.28

8 Personal

Accident

464 124

114

74

57

833

1324.45

9 Liability 4 1

11

1

3

20

21.18

51

Ageing of claims means claims paid within a specific number of days, as in the above

table, claims are paid within 1 month or between 1 to 3 months, 3 to 6 months, 6

months to 1 year and above 1 year. In most of the policies customers want their claims

to be paid as early as possible. So claims most of the claims are paid within 1 month or

1 to 3 months.

In the below graphs ‘X’ axis represents different periods of time and ‘Y’ axis

represents total amount of claims paid.

1- 1 month

2- 1-3 months

3- 3-6 months

4- 6 months to 1 year

5- > 1 year

Figure 13. showing number of claims paid for different periods for Fire

In the above figure claims paid within 1 month is more than all other periods. Out of

381 claims, 138 claims are paid within a period of 1 months. As the period goes on

52

changing the number of claims paid also goes on decreasing. This means that if the

period for paying claims is less people will be more interested in such policies. As

they can get the claim immedietly.

Figure 14.

Number of claims paid for different periods for Marine Cargo

Out of 430 total claims related to Marine Cargo, 255 claims are paid within 1 month.

Here also most of the people prefer to go for the policies where the claims are paid as

early as possible, i.e. within 1 month. Number of claims paid decreases as the period

changes. At period 5, i.e. when claims are paid after 1 year the total amount of claims

paid is 14 out of 430, which is the least among all.

53

Figure 15.

Number of claims paid for different periods for Motor Own Damage

In the above figure claims paid within 1 month is more than all other periods. Out of

60,506 claims, 33,102 claims are paid within a period of 1 months. More than 50% of

the total claims are paid during period 1. As the period goes on changing the number

of claims paid also goes on decreasing. This means that if the period for paying claims

is less people will be more interested in such policies. As they can get the claim

immedietly.

54

Figure 16

Number of claims paid for different periods for Health

Out of 18,580 claims 12,447 claims are paid within a period of 1 month. i.e morethan

66% of claims are paid in the period 1. In this case also as the period for payment of

claim increases, number of claims paid decreases. People are more interested to get

claims as early as possible. So they prefer the periods in which they will get claims

quicky.

55

Figure 17

Number of claims paid for different periods for Personal Accident

In case of personal accidents people need money as early as possible, to meet their

medical and other expenses. So usually, people will go for the period 1 where they get

the claim within 1 month. Here more than 50% of the total claims are paid within 1

month. Very few people go for the period 5 where the claims are paid after 1 year.

56

Figure 18

Number of claims paid for different periods for Overseas Travel

Incase of oversease travel most of the people go for the 2nd and 3rd period where the claims

are paid either between 1 to 3 months or between 3 to 6 months. Nearly 40% of the claims are

paid in period 2. i.e. between 1 to 3 months. And 27% of the claims are paid in period 3. i.e.

between 3 to 6 months. Only 5% of claims are paid in the period 5 where the claims are paid

after 1 year.

Figure 19 showing number of claims paid for different periods for

Employee Liability

57

In case of employee liability more than 50% of the claims are paid in the period 3

where the claims are paid between 3 to 6 months.

Reliance motor( two wheelers and private car ) insurance

Two wheelers are convenient and exuberant. With the many advanced features added

in today’s two wheelers are safe too. However the possibility of damage to your prides

and joy exist by way of theft, natural calamities and accidents

Key highlights

- Cashless facility for a hassle-free claims processing

- Speedy claims settlement

- Easy documentation

Key advantages

-Complete cover

Reliance two wheeler insurance policy give s complete cover on the road and off it.

It covers your car against accidents, burglaries, natural calamities etc.

It will also gives you personal accident insurance cover and third party liability cover.

-Convenience designed

Towing service owned and operated to cut down on inefficiencies. It also provide an

allowance of Rs. 300 towards towing charges if required

A net work of 1700m garages in over 231 cities to provide you with cashless repairs

- Super fast service

Instant policy issuance

It values time and responds immediately. There are 24/7 helpline for emergency

services also.

It also make sure that a survey of the vehicle is arranged within 8 working hours

58

Discounts

If the claim is made in the previous year, one can get a ‘No Claim Bonus’ reward

while renewing the policy.

There is a option of transferring ‘ No Claim Bonus’ to the new vehicle.

additional discounts are given for

-Voluntary excess

-Membership of a recognized automobile association

-Discount if side-car is attached

-Installation of anti-theft device

There are special discounts for physically challenged car owners and vintage vehicles.

The policy coverage is wide and encompasses many aspects, from the vehicle to the

owner to any third party involved in a liability concerning the vehicle that is insured.

Vehicle

The Reliance Two Wheeler Insurance Policy covers loss or damage to vehicle due to:

� Accident, fire, lightening, self-ignition, explosion, burglary, house break-in or

theft.

� Riot and strike, malicious act, terrorism, earthquake, flood, cyclone and

inundation.

� Transit by rail, road, air, elevator and lift.

Personal Accident Cover

This policy will also cover against an accident, while riding the vehicle

59

Third Party Liability

As per the Motor Vehicle Act, third part liability cover is a compulsory cover to be

taken by all vehicles. This cover provides against the liability for third party

injury/death, third party property damage and liability to paid driver.

Add on covers

� Electrical/Electronic Accessories

� Non electrical accessories

� Rally Extension

� Racing, speed tests, dexterity trials, Hill Climb extensions

� Legal Liability to employees, paid drivers

Exclusions

At Reliance General Insurance, the policies are as transparent as possible. To ensure,

not face any unpleasant surprises when making a claim, some of the major exclusions

under the policy :

� Normal wear and tear of the vehicle

� Mechanical and electrical breakdown

� Vehicles being used other than in accordance with the limitations as to use

� Damage to/by a person driving without a valid driving license

� Loss or damage under the influence of alcohol or any other intoxicating

substance

� Loss or damage due to depreciation

� Compulsory deductibles

� Consequential loss

Auto insurance policy

As soon as a claim occurs, the person have to intimate immediately to Help line

number, call centre executive will be happy to help with the claim procedure.

60

Following information needs to be furnished while intimating a claim:

� Contact Numbers

� Policy Number

� Name of Insured person,

� Date & Time of accident,

� Vehicle number

� Make and Model,

� Location of Loss,

� Garage Name with contact details

� Brief description on how the accident took place,

� Extent of loss

� Place & contact details of the Insured Person if the person intimating the claim

is not insured.

Reliance property ( Burglary and House Breaking) insurance policy

The world around us is becoming more and more unsafe and the increase in crime rate

bears witness to this fact. Occurrences like burglary, housebreaking or robbery of

contents at office, warehouse, shop or industry can bring about a huge financial loss.

Reliance General Insurance is pleased to offer a plan that keeps the property protected

at all times against burglary and house breaking.

key benefits

� Specially designed plan that covers the business premises against burglary and

housebreaking.

� Cover available on a first loss basis by way of judicious management of

probable maximum loss assessment.

� Host of extensions such as coverage for riot, strike, malicious damage and

theft.

61

� Multiple options for variations in sum insured such as floater policy,

declaration policy, floater declaration policy

Policy coverage

The policy offers coverage against

� Property contained in business premises (such as stocks, furniture etc) owned

by the Insured

� Stocks held in trust / commission and for which the Insured is responsible, if

specifically covered

� Damage to premises resulting from burglary and/or housebreaking or any

attempt at burglary

� Cash, valuables and securities kept in a locked safe or cash box in locked steel

cupboard if specifically covered

Policy feature

The following variations with regard to sum insured can be opted for:

� Floater policy: Issued for stocks at various locations under one sum insured

� Declaration policy: Takes care of frequent fluctuations in stocks / stock values

� Floater declaration policy: Comprises of features of both floater and the

declaration policies

Exclusions

The policy does not cover:

� Loss of goods held in trust / commission, jewelry, curios, title deeds,

business books unless specifically covered

� Burglary without any forcible entry

� Shop lifting, acts where Insured or his/her family members or employees are

involved

� Losses recoverable under fire / plate glass insurance policy

� War perils, acts of god and nuclear perils

62

� Riot, strike and malicious damage unless specifically covered

� Consequential loss or legal liability of any kind

� Premises left uninhabited for seven or more consecutive days unless

specifically agreed upon.

� Uninformed material alteration in the premises

Eligibility

The Reliance Burglary & Housebreaking insurance Policy can be bought by any one

who has property and valuables that are exposed to the risk of burglary and

housebreaking.

Reliance Marine Cargo insurance policy

The increase in global trade has boosted our economic prosperity as a nation and has

developed new avenues of business for many organizations. Today, new trade

agreements are expanding the realms of business operations to many new countries

and more goods are being shipped around the world. There are a variety of risks that

are associated with transit of goods and it becomes pertinent to have comprehensive

coverage for loss or damage to the goods. For this purpose, Reliance Marine Cargo

Policy is used. .

Key Benefits

� Exhaustive coverage against loss or damage to cargo in connection with its

carriage by land, waterways, air or postal services

� Policy extendable to cover War and Strikes perils

� Flexible coverage options (Specific Policy, Open Policy and Open Cover)

available for the Insured

Policy coverage

� Specific Policy – This policy provides cover against specified perils under

marine cargo sent/received during the Policy period.

63

� Open Policy – Typically opted by commercial firms and industrial

establishments with substantial volume of trade and a number of transactions, an

Open Policy is issued for ensuring automatic & continuous insurance protection.

This policy is issued to cover all shipments sent/received during the Policy period.

� Open Cover – This is an arrangement similar to Open Policy to cover loss or

damage to cargo where specific stamped certificate is issued for declaration made.

The Marine Cargo Policy covers loss or damage to cargo in relation to and in

connection with its carriage by:

-land (whether by motor vehicle or by railway),

-waterways (that is to say by ship which includes every description of vessel used in

navigation);

-air (that is to say, by aircraft used for the transport of cargo, among others); and

-government or private postal services

The Policy provides cover against loss or damage to cargo during transit from one

place to another by any one or more of the modes of transport.

Coverage provided under Marine Cargo policies range from a restricted form of cover

e.g. Fire and Lightning perils only to the widest available form of cover, namely, All

Risks, at the option of the insured.

Special features

� Worldwide Claims Survey and Settlement Assistance.

� Network of Surveyors all over the country.

� Customized and Innovative covers based on your needs.

� Extensions for multi transit, incidental storage, FOB, riot and strikes perils etc

� Discounts for Voluntary Higher excess, lesser distance etc.

Exclusions

The Policy does not cover loss or damage to cargo insured due to:

� willful misconduct of the Insured;

� insufficiency or unsuitability of packing or preparation of the cargo insured;

� ordinary leakage, ordinary loss in weight or volume, ordinary wear and tear

and inherent flaws in the cargo insured;

64

� delay,

� insolvency and financial distress of the carriers;

� unseaworthiness of vessel;

Reliance Personal Accident Policy

Safety is always a paramount concern. However accidents do occur. An accident at

home could be simply broken glass or a gas cylinder burst. Reliance Individual

Personal Accident Policy is one of the key security measures to undertake for

providing financial security incase of a injurious accident. It ensures that one's family

does not suffer in event of an accident by providing compensation for accidental death

or disablement.

Key Benefits

� Reliance Individual Personal Accident Policy covers against risks of accidents.

� It not only provides compensation to the family in case of the accidental death

of the insured but also takes on the onus of providing the insured

with compensation in case of injury, whether temporary or permanent.

� The sum insured increases by 5% for each completed claim-free year of

insurance, subject to a maximum of a 50% increase.

� This policy can also be expanded to cover actual medical expenses arising out

of the accident

Policy coverage.

Reliance Individual Personal Accident Policy will cover against :

� Accidental Death – On the accidental death of the insured person, we will pay

the family the capital sum insured.

� Permanent Total Disability – In the event of permanent total disability due to

an accident, we will also pay the capital sum insured.

65

� Permanent Partial Disability – In case of a partial disability due to an

accident, a specified percentage of the sum insured will be paid. To know the

specific percentage of the sum assured that will be paid,

� Temporary Total Disability – If one is totally disabled by an accident for a

limited period of time, the policy will pay you 1% of the capital sum insured per

week, not exceeding Rs 5,000 per week.

Value Added Benefits

Reliance General Insurance aim at giving the maximum value for money. Hence, this

policy has value-added benefits.

� Carriage of Dead Body – In the event of accidental death outside the

residence, a lump sum of 2% of capital sum insured, subject to a maximum of

Rs.2,500, will be paid towards transportation of the insured person's dead body to

place of residence.

� Education Grant –Children need protection and nurturing. In the event of

accidental death or permanent total disability for which a claim is payable,

education grant is also provided for the children of the insured. An amount equal to

10% of the capital sum insured, subject to a maximum of Rs 5,000, will be paid in

the case of one dependent child below the age of 25 years. With two dependent

children below the age of 25, an amount equal to 10% of the capital sum insured,

subject to a maximum of Rs 10,000, will be paid.

Exclusions

The policy excludes cover for death or disablement due to:

� Pregnancy or related consequence

� Any mental disorder

66

� Any pre-existing conditions / disabilities

� Needless exposure to peril, except in an attempt to save human life

� Intentional self-injury, suicide or attempted suicide

� Influence of intoxicating liquor or drugs

� Insured committing any breach of law with criminal intent

� War and nuclear perils

� Riots, Crimes, Misdemeanors and Felonies

Eligibility

This policy can be issued to persons in the age group of 5 years to 70 years. It can be

extended to cover persons beyond the age of 70 years and up to 80 years on payment of

suitable additional premiums.

2.f) CLAIMS MANAGEMENT SYSTEM

As Claims Management is one of the most challenging business processes in the

insurance industry. With the number of stakeholders involved, the dependencies and

the logistics, there is a need is to eliminate manual interventions and process silos.

Technology can play a significant role by providing integrated channels for

communication and collaboration. This would help the insurance company to increase

employee productivity by reducing cycle time and defect rate and also increase

employee participation and compliance

Features

a. End-to-end claims cycle management:

The system covers the claims management process right from the moment a case is

registered in the front desk to its closure. Workflow provides corresponding task

allocations to task owners.

b. Role based management:

Profiles that are part of the claims process provided with relevant access to the system.

67

c. Document management:

Case related documents, can be uploaded in the system and managed effectively. This

enables easy access to them by the claims owner.

d. Collaboration through web and mobile solutions:

For stakeholders like surveyors, claims advisors web/mobile solutions speed up their

data collection and uploading tasks.

e. Efficient claims Case and Task tracking:

The manager through operational reports can handle claims tracking and resource

assignments efficiently

.

Solution review.

An application that would help the Insurance Company manage their claims

processing from claims Initiation to closure with automated process flows,

collaboration, document management and reporting features.

a. End-to-end claims cycle management: The system covers the claims

management process right from the moment a case is registered in the front

desk to its closure. Workflow provides corresponding task allocations to task

owners.

b. Role based management: Profiles that are part of the claims process provided

with relevant access to the system.

c. Document management: Case related documents, can be uploaded in the

system and managed effectively. This enables easy access to them by the

claims owner.

d. Collaboration through web and mobile solutions: For stakeholders like

surveyors, claims advisors web/mobile solutions speed up their data collection

and uploading tasks.

e. Efficient claims Case and Task tracking: The manager through operational

reports can handle claims tracking and resource assignments efficiently.

68

Figure 20. claims management system solution review

69

Figure 21. claims management system process review

70

Call Center/ Front

Desk

Claims Manager Claims Advisor Claims Owner

Start

Agent initiates a

case after receiving

details from

customer

Verifies the

case and assigns

a claims advisor

to the case

Validates the

case and assigns

the case to the

claims owner

Runs the final

check and closes

the case

Stop

Collects the

necessary

details about

the case

Submit the case

back to the

claims manager

Handouts

the

claims till

settlement

Submits the case

back to the

claims manager

to take it to

closure

71

FINDINGS

• Claims paid and Claims recovered are compared here using correlation

technique and it shows that they are positively correlated as the computed

value is more than 0

• Claims paid and Claims recovered are highly significant at 5% level of

significance, as the table value is less than the calculated value.

• Net claims incurred and Gross claims incurred are compared and it is found

that they are also positively correlated as the computed value is more than 0.

And are highly significant at 5% level of significance.

• Claims Management System can play a very significant role. This would help

the company in increasing employee productivity by reducing cycle time and

defect rate. It also increases employee participation and compliance.

• The good practices for claims management mentioned here can be effectively

used by the company to settle claims in an efficient way. If the company uses

these practices it would result in ‘timely claim processing’ ‘effective handling

of complaints and disputes’ ‘ fraud detection and prevention’ ‘better claims

procedure’.

RECOMMENDATIONS

1: Claims reporting

The insurance company writes insurance policies in easily understandable language.

Policies spell out what is covered and what is not covered. If necessary, plain language

explanations could be an addendum to the legal language. The insurance company

draws the attention of the policyholder/claimant/beneficiary1 both when he/she signs a

policy (for policyholders only) and when he/she reports a loss on his/her duties related

to claim reporting which include:

� Try to minimize losses;

� To report claims in a timely fashion;

� �To co-operate in the investigation by providing the company with all relevant

information and, in particular, copies of official documents regarding the

damage (accident, loss, etc.);

72

� To authorize the company to handle necessary inspections and assess the extent

of the damage prior to any repairs or replacement; To ensure that the claims

reporting phase proceeds as smoothly as possible, the insurance company sends

to the policyholder/claimant/beneficiary within a reasonable period of time

(beginning from when the loss is reported):

� �An appropriate claim form (when the loss reporting is made in writing) for

the type of policy - prepared either by an individual insurance company or at

the national level by companies or the supervisory authorities together with

instructions and useful information on how to comply with the terms of the

policy and the legitimate requirements of the company;

2: Receipt of claims by the company

The company claim department and/or the intermediary (if applicable) are as

accessible as possible for the claimant. If an intermediary is an initial contact for

claimants, claims should be sent to the company claim department within an

appropriate time period.

The insurance company should contact the policyholder/claimant/beneficiary or send

an acknowledgement of receipt as soon as the claim is received. Subsequently, if it

appears that the claim cannot be settled rapidly, the company notifies the

policyholder/claimant/beneficiary and indicates that he/she will be re-contacted within

a reasonable time limit. �When it is necessary for the

policyholder/claimant/beneficiary to provide specific documents when filing a claim,

the company should send him/her the list of these documents as soon as possible. In

addition, a specific notification listing the elements to be provided when another

insurance company is involved is sent to the policyholder/claimant/beneficiary.

3: Fraud detection and prevention

� In order to curb the growth of fraudulent claims and the rise in premium costs

that results from them, companies take the following steps:

� �They establish compliance programs for combating fraud and money

laundering appropriate to their exposure and vulnerabilities.

� �In the claim filing phase, they discourage fraudulent practices by making the

policyholder/claimant/beneficiary aware of the consequences of submitting a

73

false statement (which in particular could be liable to prosecution) and/or an

incomplete statement. To this end, insurance companies place a notification on

their claims forms referring to the appropriate law, statute or insurance

regulation that addresses the filing of fraudulent or incomplete claims.

� Where legally possible, companies participate in relevant databases where

claims susceptible to be fraudulent would be reported. Moreover, public

authorities may encourage or take steps to initiate the creation of a public or

private bureau of insurance fraud.

� �Besides, companies provide their claims department staff with adequate

training on fraud indicators.

4: Claim processing

Company’s claim procedures are gathered together in a manual for internal use. At

least, one staff member should be responsible for ensuring that the manual is kept up

to date and additions/amendments are made when necessary. �Companies’ claims

department staff possess proper qualifications. To this end, companies encourage

ongoing internal or external training of their claim staff.

Regular internal audits are carried out for all claims not settled in their entirety.

Internal audits apply to all stages of the claims management process. Peer reviews

(where the claims department staff review each others’ files) could also be carried out.

In case of claim settlement procedures involving several insurance companies,

policyholder indemnification is a priority: the claim should be compensated in an

appropriate time period while potential disputes between insurers are resolved at a

later stage. For the most common insurance claims (related to motor insurance, for

instance), specific agreements are concluded between insurers to accelerate and

simplify claims settlement procedures involving several insured parties.

.

Provision of information to policyholders:

�The company keeps policyholders/claimants/beneficiaries informed of the progress

during the claims process. The company provides information on when payments,

repairs or replacements are expected to be made, and, if necessary, explains why

additional time is required.

When the company decides to call on outside parties (i.e. loss adjusters, solicitors,

surveyors, etc.), it informs policyholders/claimants/beneficiaries of this fact, gives the

reasons for this decision and explains the role that these outside parties will play in

74

processing the claim. When a final payment or offer of settlement is made, the

company explains to policyholders/claimants/beneficiaries what the payment or

settlement is for and the basis used for the payment/settlement. The insurance

company documents their claim files in order to be able to address questions that may

arise concerning the handling and payment of the claim.

5: Timely claim processing

In accordance with applicable insurance law, companies should specify in the contract

the most likely period of time for responding to correspondence from

policyholders/claimants/beneficiaries.

−�The insurance company endeavors to settle the claim as soon as possible and

advises in writing the policyholder/claimant/beneficiary on the reasons for any delay.

Quick claims settlement as well as high-quality and punctual information provided to

the policyholder/claimant/beneficiary are key competition features for insurance

companies. �After an agreement has been reached between the company and the

policyholder/claimant/ beneficiary on the amount of compensation, the payment is

effected within a reasonable amount of time. �Insurance companies implement and

update their own statistical database tracing their performance in the timely settlement

of claims as well as in trends in settlements and expenses. A proper procedure for the

coding and statistical processing of losses is developed for this purpose.

6: Supervision of claims-related services

The insurance supervisory authorities may conduct examinations on claims

management services especially where problems are suspected. In these cases, the

following elements are taken into account:

- �Possible access to non-confidential claims data for all open and closed files

within a specified time frame (e.g. for the current year and the two preceding

years);

- Maintenance of sufficient and appropriate information on claims files;

- �Use of the appropriate type of claim form for the type of insurance;

- �Proper qualification of the claims department’s employees based inter alia

on the applicable insurance code;

75

- �Valuation of claims payments according to company procedures;

- �Appropriate tracking of the nature and number of complaints related to claim

management process;

- �Monitoring of the proportion of claims that result in litigation;

- �Compliance with procedures for combating fraud and money laundering;

- �Regular internal audit practices on claims files;

- �Appropriate internal claims procedure manuals;

- �Proper procedure for coding and statistical reporting of losses;

- �Performance in terms of the speed of claim settlements

7: Market practices

The public authorities promote the implementation of a benchmark exercise regarding

the claims process or a specific part of this process (i.e. handling of complaints). The

terms of remuneration of insurance company employees or other services in charge of

claim management do not give incentives to disadvantageous treatment of

policyholders/claimants/beneficiaries, as regards the handling or the outcome of

claims.

CONCLUSION

After making the study on ‘Claims Management’ with the help of various statistical

tools, I would like to conclude that claims paid and claims recovered are positively

76

correlated and highly significant. The Claims Management System explained above is

very helpful to the company. As the technology plays an important role in the Claims

management System, it will result in less manual errors, time taken to process claims

will be less . claims procedure becomes fully automated. Managing claims becomes

easy for the company it would further results in customer satisfaction. The good

practices on claim management are neither binding nor exhaustive, but meant as a

“checklist” to assist insurance companies in handling claims.

77

ANNEXURE

Reliance General Insurance Company Limited

Balance sheet as at 30th September 2010

PARTICULRS Rs(‘000) Rs(‘000)

Sources of funds

Share capital

Share application money

Reserves and surplus

Faire value change account

borrowings

TOTAL

Applications of funds

Investments

Loans

Fixed assets

Deferred tax asset

Current assets

Cash and bank balances

Advances and other assets

Sub-total(A)

Current liabilities

Provisions

Sub-total(B)

Net current assets(C)=(A-B)

Debit balance in profit and loss account

TOTAL

1,152,239

1,420,000

8,918,392

15,552

----

19,618,135

300,627

376,664

409,735

440,527

3,921,946

4,362,473

10,129,089

6,258,561

16,387,650

(12,025,177)

2,826,199

11,506,183

11,506,183

78

Balance sheet as at 30th September 2009

PARTICULRS Rs(‘000) Rs(‘000)

Sources of funds

Share capital

Share application money

Reserves and surplus

Faire value change account

borrowings

TOTAL

Applications of funds

Investments

Loans

Fixed assets

Deferred tax asset

Current assets

Cash and bank balances

Advances and other assets

Sub-total(A)

Current liabilities

Provisions

Sub-total(B)

Net current assets(C)=(A-B)

Debit balance in profit and loss account

TOTAL

1,130,811

6,839,821

(157,825)

14,592,775

300,627

595,688

8,535

956,365

5,055,035

6,011,401

8,085,675

7,253,307

15,339,982

(9,328,581)

1,643,763

7,812,807

7,812,807

79

BIBLIOGRAPHY

www.reliancegeneral.co.in

www.niapune.com/Research/Claims%20Management.

http://help.sap.com/printdocu/core/print46c/en/data/pdf/PSCLM/PSCLM.

www.oecd.org/dataoecd/43/44/33964905

www.polaris.co.in/practices/technology/.../Claims-Management

http://en.wikipedia.org/wiki/Claims_management_company

www.polaris.co.in/media/media-release/2010-jan-claim-mgmt-solution

80

7,934,162 629,085 3,037,659 5,525,588

81