fs project sem 2

7/24/2019 Fs Project Sem 2

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1.1 EXECUTIVE SUMMARY

Insurance is not the sale of products, but servicing customers. It is a system, by which

the losses suffered by a few are spread over many, Exposed to similar risks. Insurance

is a protection against financial loss arising on the happening of an unexpected event.

Insurance companies collect premiums to provide for this protection. A loss is paid

out of the premiums collected from the insuring public and the Insurance Companies

act as trustees to the amount collected. The very fundamental principle of spreading of

the risk is actually practiced by the insurance companies by reinsuring the risks that

they have insured. The opening up of the Insurance ector to !rivate Companies, has

made available more products and world class service to Indian Customer.

This pro"ect has been made with an ob"ective to give an insight into various facts of

#eneral Insurance sector in India. An attempt has been made to explain the apex body

of #eneral Insurance. i.e. #eneral Insurance Corporation of India, its structure,

products and subsidiaries.

Also the review of latest entrants into insurance sector vi$. private players like TATA

AI# #eneral Insurance Company, %eliance #eneral Insurance Company limited,

&a"a" Allian$ #eneral Insurance Company, I''C( Tokyo #eneral Insurance

Company, %oyal undaram #eneral Insurance Company limited and ICICI )ombard

#eneral Insurance Company have been described in brief, *ue to the growth in the

technological sector of the country, the insurance companies have started utili$ing

these technologies to it+as optimum level.

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1.2 INTRODUCTION TO INSURANCE INDUSTRY

a. Origin and Developmen o! "e ind#$r%

Till ay, -/- there were -0/ companies operating in the market, both Indian and

foreign. ome companies were in the co1operative sector. The si$e of the companies

and there reach varied to a great extent. 2hereas many companies used to underwrite

all types of covers fire, marine3 miscellaneous insurance.

The government in ay, -/- took over the undertaking of all the Companies as a

prelude to ultimate nationali$ation. This was brought about under the #eneral

insurance business 45ationalsation6 Act, -/7.

Thus, effective 0-80-8-/9 a single holding company was created named as #eneral

Insurance Corporation of India, with : subsidiaries to take care of the general

insurance business operation.

&rie! 'i$or% o! "e In$#ran(e Se(or

The business of life insurance in India in its existing form started in India in the year

-;-; with the establishment of the (riental )ife Insurance Company in Colkata.

ome of the important milestones in the insurance business in India are<

1)12* The Indian )ife Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1)2+* The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non1life insurance businesses.

1),+* Earlier legislation consolidated and amended to by the Insurance Act with the

ob"ective of protecting the interests of the insuring public.

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1)- * 7:= Indian and foreign insurers and provident societies taken over by the

central government and nationali$ed. )IC formed by an Act of !arliament, vi$. )IC

Act, -=>, with a capital contribution of %s. = crore from the #overnment of India.

The #eneral insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company )td., the first general insurance company established in the

year -;=0 in Colkata by the &ritish.

ome of the important milestones in the general insurance business in India are<

1)/0* The Indian ercantile Insurance )td. set up, the first company to transact all

classes of general insurance business.

1)-0* #eneral Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1)+* The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1)02* The #eneral Insurance &usiness 45ationali$ation6 Act, -/7.5ationali$ed the

general insurance business in India with effect from -st ?anuary -/9.

-0/ insurers amalgamated and grouped into four companies.

T"e !o#r $#$idiarie$ !ormed ere a$ #nder*

-. The 5ational Insurance Co. )td7. The India Assurance Co. )td

9. The (riental Insurance Co. )td

:. The @nited India Insurance Co. )td

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The four subsidiary companies operated under the all direction of the #IC . Each of

these had almost a similar structure with : tiers

•

The branch at the bottom rung,• The divisional office,

• %egional office and

• The ead (ffice at the apex.

. 3ro" and 4re$en $a#$ o! "e ind#$r%

At present -7 companies are operating in general insurance market for direct business.

The four public sector companies mentioned above and the following companies in

the private sector. These private companies were formed after the passing of the I%*A

Act, -. This removed the prohibition existing in the #I&5A Act relating to

formation of insurance companies other than the four !ublic sector companies.

T"e (ompanie$ in "e privae $e(or are*5

-. &a"a" Allian$ #eneral Insurance Co.)td.

7. Cholamandalam #eneral Insurance Co. )td.

9. *'C Chubb #eneral Insurance Co. )td.

:. ICICI )(&A%* #eneral Insurance Co. )td.

=. I''(C( Tokyo #eneral Insurance Co. )td.>. %eliance #eneral Insurance Co. )td.

/. %oyal undaram Alliance Insurance Co. )td.

;. Tata AI# #eneral Insurance Co. )td.

The #eneral Insurance Corporation is now only %einsurance Company and operates

as the 5ational %einsures. There are however, some companies in the market, which

are formed for a specific purpose only.

4



1., OVERVIE6 O7 ICICI 8OM&ARD

The ICICI )td. was established in -== by the 2orld &ank, the #overnment of India

and the Indian Industry, to promote industrial development of India by providing

pro"ect and corporate finance to Indian industry. ince inception, ICICI has grown

from a development bank to a financial conglomerate and has become one of the

largest public financial institutions in India. ICICI has thus far financed all the ma"or

sectors of the economy, covering >,;:; companies and ->,;=- pro"ects.

)ombard Canada )td., is a leading insurance management company responsible for providing insurance management services for all of the )ombard groupBs commercial,

personal, and speciali$ed insurance companies. Canadian owned and operated,

8omard Canada 8d. has its head office in Toronto and has annual sales in excess

of 9-// million and is a wholly owned subsidiary of 7air!a: 7inan(ial 'olding$

8imied ;77' on the T' )ombard Canada )td. has achieved a reputation for

providing solid underwriting performance, diversified books of business and strong

capital positions.

The ?oint enture ICICI )ombard #eneral Insurance Co will be headed by r. an"iv

Derkar. ICICI would hold about /: percent stake, while Canadian insurer )ombard

would hold the maximum permissible 7> percent and commence business with a start1

up capital of %s.-00 crore. ICICl )ombard has plans to sell covers to the corporate

clients of ICICl. At the same time it will sell property insurance for ICICI home loan

seekers and auto insurance for those availing of car finance.

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6

2.1 3ENERA8 INSURANCE < MA=OR 4RIVATE 48AYERS



2.2 MAR>ETIN3 MIX O7 ICICI 8OM&ARD

The marketing mix is the combination of marketing activities that an organisation

engages in so as to best meet the needs of its targeted market. The Insurance business

deals in selling services and therefore due weight1age in the formation of marketing

mix for the Insurance business is needed. The marketing mix includes sub1mixes of

the / !Bs of marketing i.e. the product, its price, place,

promotion, people, process 3 physical attraction. The above mentioned / !Bs can be

used for marketing of Insurance products, in the following manner<

-. !%(*@CT

A product means what we produce. If we produce goods, it means tangible product

and when we produce or generate services, it means intangible service product. A

product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance

company sells services and therefore services are their product.

Eg < (T(% I5@%A5CE , EA)T I5@%A5CE , T%AE) I5@%A5CE ,

T@*E5T E*ICA) I5@%A5CE , (E I5@%A5CE ,

1. Car In$#ran(e < Inrod#(ion

• ICICI 8ombard brings a comprehensive !ackage !olicy for your four1wheelers,

which covers Third !arty )iability 4T!)6 for bodily in"ury and8or death, !ersonal

Accident cover for owner1driver and loss or damage to the vehicle insured 4(wn

*amage or (*6.

4oli(% Coverage

a6 8o$$ or damage o %o#r ve"i(le* The policy covers you against any loss or

damage caused to the vehicle or its accessories due to the following natural

and man made calamities.

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b6 Na#ral Calamiie$ < 'ire, explosion, self1ignition or lightning, earthFuake,

flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm,

frost, landslide, rockslide.

c6 Man made Calamiie$ < &urglary, theft, riot, strike, malicious act, accident

by external means, terrorist activity, any damage in transit by road, rail, inland

waterway, lift, elevator or air. The rates of the vehicle and its parts are sub"ect

to depreciation as per the schedule provided by the Indian otor Tariff.

d6 4er$onal a((iden (over* The motor insurance provides compulsory personal

accident cover for individual owners of the vehicle while driving. Gou can also

opt for a personal accident cover for passengers.

e6 T"ird par% legal liaili%* This protects you against legal liability arising

due to accidental damages

1Any permanent in"ury8 death of a person

1Any damage caused to the property.

f6 No Claim &on#$* If you do not make a claim during the policy period, a 5o

Claim &onus 45C&6 is offered on renewals.

g6 Addiional di$(o#n$* Gou can also avail of additional discounts if you are a

member of a recogni$ed Automobile Association in India.

h6 ARAI devi(e$* In case you have installed A%AI approved anti theft device in

your vehicle, you get a discount of 7.= H on the (* !remium to a maximum

of %s. =00.

>e% &ene!i$

• A digitally signed policy is issued immediately through online facility.

•

Gou can claim towing charges up to %s -,=00 through 7:/ call centers.• Cashless claim settlement at network garages all across India.

4oli(% E:(l#$ion$

• @nder this policy, you are not covered against 1

• 5ormal wear, tear and general aging of the vehicle

• *epreciation or any conseFuential loss

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• echanical8 electrical breakdown

• 2ear and tear of consumables like tyres and tubes

• ehicle being used otherwise than in accordance with limitations as to use

• *amage to8 by a person driving the vehicle without a valid license

• *amage to8 by a person driving the vehicle under the influence of drugs or

liFuor 8 )oss8 damage due to war, mutiny or nuclear risk

2. T6O 6'EE8ER INSURANCE

6'AT IS COVERED

• )oss or *amage to your vehicle against 5atural Calamities

• 'ire, explosion, self1ignition or lightning, earthFuake, flood, typhoon,

hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,

rockslide.

6"a i$ no (overed

• 5ormal wear and tear and general ageing of the vehicle.

• *epreciation or any conseFuential loss.

• echanical8 electrical breakdown.

S#m In$#red

• All vehicles are insured at a fixed value called the InsuredBs *eclared alue

4I*6.

• I* is calculated on the basis of the manufacturerBs listed selling price of the

vehicle 4plus the listed price of any accessories6 after deducting the depreciation

for every year as per the schedule provided by the Indian otor Tariff.

2. 4RICE

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In the insurance business the pricing decisions are concerned with<

i6 The premium charged against the policies,

i6 Interest charged for defaulting the payment of premium and credit facility, and

iii6 Commission charged for underwriting and consultancy activities.

,. 48ACE

This component of the marketing mix is related to two important facets 11

i6 anaging the insurance personnel, and

ii6 )ocating a branch.

&RANC'ES O7 ICICI 8OM&ARD MAIN8Y INC8UDE *MA8AD &RANC'

#round 3 :th 'loor, Interface --,(ffice 5o. :0- 3 :07, 5ew )inking %oad, alad

426 umbai :00 0>: aharashtra

?. &. 5agar, Andheri

:09 , Centre !oint, Andheri Durla %oad,?. &. 5agar, Andheri 4E6, umbai :00 0=

aharashtra 5ear Dohinoor Continental, ?& 5agar

?. 4ROMOTION

The insurance services depend on effective promotional measures. In a country like

India, the rate of illiteracy is very high and the rural economy has dominance in the

national economy. It is essential to have both personal and impersonal promotion

strategies. In promoting insurance business, the agents and the rural career agents play

an important role. *ue attention should be given in selecting the promotional tools for

agents and rural career agents and even for the branch managers and front line staff.

They also have to be given proper training in order to create impulse

buying.

Some E:ample$ are

a@ No 4aring 3ae &oard$5 In keeping with focus on effective media

solution, ICICI )ombard pioneered the 5(51 !A%DI5# I#5&(A%* as a

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marketing initiative. This activity combining a relevant message and brand

awareness across the country.

@ Tra!!i( &arri(ade Campaign5 The traffic barricade campaign has been

one of the most intensive activities undertaken with a large number of barricades

planted across umbai alone. The barricades with a relevant road safety message

reflect ICICI )ombards commitment as a socially responsible corporate.

'urthermore, these public utilities have simultaneously provided us

with uniFue branding opportunity to make the presence felt in a clutter breaking

manner.

(@ O#door Campaign 7or Over$ea$ Travel < A month long sustained

awareness cum lead generation drive was undertaken in *elhi for (verseas Travel

Insurance. The creative was developed to communicate the benefits of the product

and a call to action upfront. In a city with limited outdoor opportunity, 9 mobile

vans carrying the communication constantly moved around the city in mapped ot

routes to get maximum mileage and leads from the activity.

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d@ R#ral5 S#mo Campaign5 umo Campaign gains its name from umos

moving around with the 2eather Insurance Communication. This activity meant

to mark the launch of I )ombard1 weather Insurance product for soyabean in Dota

3 ?halawar 4%a"asthan6. Aside from the visual branding these sumos also

generated considerable interest by announcing the product launch and the features

on speaker phones. The creative was a simple and reliable one for the rural

audience, highlighting the key benefits in language script. /=00 farmers enrolled

as a result of this communication drive.

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- 4EO48E*

@nderstanding the customer better allows to design appropriate products. &eing a

service industry which involves a high level of people interaction, it is very important

to use this resource efficiently in order to satisfy customers. Training, development

and strong relationships with intermediaries are the key areas to be kept under

consideration. Training the employees, use of IT for efficiency, both at the staff and

agent level, is one of the important areas to look into.

. 4ROCESS

The process should be customer friendly in insurance industry. The speed and

accuracy of payment is of great importance. The processing method should be easy

and convenient to the customers.

Installment schemes should be streamlined to cater to the ever growing demands of

the customers. IT 3 *ata 2arehousing will smoothen the process flow.

IT will help in servicing large no. of customers efficiently and bring down overheads.Technology can either complement or supplement the channels of distribution cost

effectively. It can also help to improve customer service levels. The use of data

warehousing management and mining will help tofind out the profitability and

potential of various customers product segments.

0. 4'YSICA8 DISTRI&UTION

*istribution is a key determinant of success for all insurance companies. Today, the

nationali$ed insurers have a large reach and presence in India. &uilding a distribution

network is very expensive and time consuming.

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2., 6'Y ICICI 8OM&ARD BBBBBBBBBBB

I5*IAB 5@&E% (5E !%IATE #E5E%A) I5@%A5CE C(!A5G'I%T #E5E%A) I5@%A5CE C(!A5G I5 I5*IA T( &E I( 00-<

7000 CE%TI'IE*

AI#5E* TE IAAA %ATI5# &G IC%A I5*ICATI5#

I#ETC)AI !AGI5# A&I)ITG

I!)E A5* 'AT *(C@E5TATI(5

)I#T5I5# 'AT C)AI ETT)EE5T

I5TA5T (5)I5E !()ICG I@A5CE

C(!%EE5IE !%(*@CT )I5E

I#ET EC@%ITG )EE) (''E%E* T%(@# -7; 1&ITE5C%G!TI(5 I5 CAE (' (5 )I5E *ATA EJCA5#E

'I%T C(!A5G T( !%(I*E *I#ITA))G I#5E* *(C@E5T

T%(@# A5 (5)I5E I5TE%'ACE

ACIEE* 'I5A5CIA) &%EADEE5 I5 'I%T '@)) GEA%

ACIEE* @5*E%2%ITI5# &%EADEE5 I5 EC(5* GEA% ('

(!E%ATI(5

A*?@*#E* A TE B#E5E%A) I5@%A5CE C(!A5G (' TE

GEA%B AT TE --T AIA I5@%A5CE

14



A2A%*E* TE 5*T !%('IT &@I5E #E5E%A) I5@%A5CE

CATE#(%G (5 ?@)G 7/, 700/

A*?@*#E* A TE (T C@T(E% %E!(5IE C(!A5G I5

TE I5@%A5CE CATE#(%G AT TE EC(5(IC A)C(55ECTC@T(E% %E!(5IE5E A2A%* 700>

A2A%*E* TE &ET (@I5# I5@%A5CE I5 TE A%T )II5#

*E#%EE, A TIE (' I5*IA #%(@! @&I*IA%G, I5 5( 700>

A2A%*E* TE #()* IE)* '(% KEJCE))E5CE I5 'I5A5CIA)

%E!(%TI5#K &G TEICAI 4I5TIT@TE (' CA%TE%E* ACC(@5TA5T(' I5*IA6 '(% TE GEA% E5*E* A%C 9-, 700>

A*?@*#E* CATE#(%G AT TE T AIA I5@%A5CE I5*@T%G

A2A%* '@5CTI(5 E)* I5 I5#A!(%E *@%I5# E!TE&E%, 700=

15



16



S6OT ANA8YSIS O7 ICICI 8OM&ARD *

STREN3T'S *

Assigned the iAAA rating by IC%A indicating highest claims paying ability

imple and fast documentation

)ightning fast claims settlement

Instant online policy issuance

Comprehensive product line

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ighest ecurity level offered through -7; L bit encryption in case of online

data exchange

'irst Company to provide digitally signed documents through online

interfaces

6EA>NESS

ave to underwriters approval for every process

)ess agent payout that is 4 -0H to -= H 6

O44ORTUNITY

=H (' 7 wheelers are not insured

&eneficial in business sector because of corporate growth

)ow market share in insurance sector

There is lot of innovation to be done

Customi$ed insurance solution

#etting 'leet (wner

18



T'REATS

There will be too many competitors in future

&ecause of d L tariff margin may further shrink

Threat of new entries

Threat of ubstitute products

#overnment !olicies

!@ Companies

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2.? OVERVIE6 O7 &A=A= A88IAN 3ENERA8 INSURANCE CO

&a"a" Allian$ #eneral Insurance Company )imited is a "oint venture between &a"a"

'inserv )imited 4recently demerged from &a"a" Auto )imited6 and Allian$ E. &oth

en"oy a reputation of expertise, stability and strength.

&a"a" Allian$ #eneral Insurance received the Insurance %egulatory and

*evelopment Authority 4I%*A6 certificate of %egistration on 7nd ay, 700- to

conduct #eneral Insurance business 4including ealth Insurance business6 in India.

The Company has an authori$ed and paid up capital of %s --0 crores. &a"a" 'inserv

)imited holds /:H and the remaining 7>H is held by Allian$, E.

As on 9-st arch 700, &a"a" Allian$ #eneral Insurance maintained its premier

position in the industry by achieving growth as well as profitability. The company

garnered a premium income of %s. 7;>> crore, achieving a growth of -- H over the

last year. &a"a" Allian$ has made a profit before tax of %s. -:.; crore and has

become the only private insurer to cross the %s.-00 crore mark in profit before tax in

the last three years. The profit after tax was %s.= crores, which is also the highest

by any private insurer.

20

http://mgmtfunda.com/general-insurance/

http://mgmtfunda.com/general-insurance/



&a"a" Allian$ today has a countrywide network connected through the latest

technology for Fuick communication and response in over 700 towns spread across

the length and breadth of the country. 'rom urat to iliguri and ?ammu to

Thiruvananthapuram, all the offices are interconnected with the ead (ffice at

!une.

Vi$ion*

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value

Mi$$ion*

As a responsible, customer focused market leader, we will strive to understand

the insurance needs of the consumers and translate it into affordable products

that deliver value for money.&a"a" Allian$ #eneral Insurance offers technical excellence in all areas of

21



#eneral and ealth Insuranceas well as %isk anagement. This partnership

successfully combines &a"a" 'inservs in1depth understanding of the local market

and extensive distribution network with the global experience and technical

expertise of the Allian$ #roup. As a registered Indian Insurance Company and a

capital base of %s. --0 crores, the company is fully licensed to underwrite all

lines of general insurance businessincluding health insurance.

A("ievemen$*

&a"a" Allian$ has received MiAAA rating, from IC%A )imited, an associate of

oodys Investors ervices, for Claims !aying Ability. This rating indicates

highest claims paying ability and a fundamentally strong position.

&a"a" Allian$ #eneral Insurance has received the prestigious &usiness )eader in

#eneral Insurance, awarded by 5*T !rofit &usiness )eadership Awards 700;.

The company was one of the top three finalists for the year 700/ and 700; in the

#eneral Insurance Company of the Gear award by Asia Insurance %eview.

2.- MAR>ETIN3 MIX O7 &A=A= A88IAN 3ENERA8 INSURANCE

22



0 4$ o! mareing o! &aa Allian general In$#ran(e *

1. 4rod#($ and Servi(e$*

&a"a" Allian$ #eneral Insurance Company )td. offers a range of insurance

products to its clients. The following insurances are offered by the company<

Moor In$#ran(e

A$$e In$#ran(e

ome Insurance

hop 8 howroom< !rotection against all risks

'eal" In$#ran(e

ealth #uard

!ersonal #uard

ospital Cash

Critical Illness

ilver ealth

E1(pinion

tar !ackage

23



ealth Ensure

Insta Insure

ankat ochan

'amily 'loater # Tax #ain

Travel In$#ran(e

Travel Companion

tudent Companion

!ravasi &harati &ima Go"ana

Travel Asia

Travel Elite

Travel Assist

wades Gatra

Corporae In$#ran(e

pecialty )ines

Aviation

arine ull Insurance

!ro"ect Insurance

ports 3 Entertainment Insurance

Gour Employees

#roup !ersonal Accident

#roup ealth #uard

#roup Critical Illness

2orkmens Compensation #roup Travel

(ffice

(ffice !ackage

&urglary

!late #lass

!ublic )iability

'ire

24



oney

* 3 ( )iability

'idelity #uarantee

anufacturing @nit 'ire

&usiness Interruption

Industrial All %isk

2orkmens Compensation

Engineering

!ublic )iability

!roduct )iability

Composite !ublic 3 !roduct )iability

'idelity #uarantee

arine Insurance

Credit Insurance

2. 4ri(e*

The price structure is based on the type of policies. The price variation has to be

kept due to intense competition among private players. !ricing element is very

important for &a"a" Allian$ as they want to increase market share. The price of

&a"a" Allian$ policies are made as per keeping the customer in mind.

,. 4la(e*

9rd 'loor, 9: &usiness !oint,

2estern Express ighway %oad,

25



Andheri4E6.

The locations of every corporate offices of &a"a" Allian$ is magnificent. They locate

themselves in aN very professional manner. This indicates their corporate approach

towards their work. 2ork culture is also conducive to such environment.

?. 4romoion*

uge advertisements on Television and radios.

Tele1marketing

!romotion in front of corporate offices

Internet arketing

oardings and brochures

-. 4eople*

!eople are the main assets of financial organi$ation because of service factor

attached to it. ere in this case of insurance business, talented and experienced

personnel are reFuired. &a"a" Allian$ recruits highly intellectual persons with good

market knowledge. They also provide training to brief them up about &a"a" Allian$

to its new staff members. This is the reason they are 5o.- position in #eneral

Insurance among private players. They create an emotional commitment and strong

two1way relationship between the employees and the Company.

26



To have clear performance expectations and a clear return from the Company

4working environment, development, reward, career opportunities etc6, which helps

employees to make a connection between their contribution and the progress made

by the Company.

To inspire and empower people to achieve their best and reward them competitively

for their contribution and provide attractive career opportunities.To build a learning

culture which fosters personal development and professional mobility and upholds

values of professionalism,innovation, pragmatism, team spirit, integrity.To respect

and value individuals, their diversity and support them in their need to balance

professional and personal lives.

. 4ro(e$$*

The prestigious awards itself speaks the smooth functioning of the insurance

activities. They have the highest claims paying ability and a fundamentally strong

position. They want to be the first choice for insurers in the country. o, they

understand the insurance needs of the customers and translate it into affordable

products that deliver value for money. &elow case study is a clear evidence of proof<

Bajaj Allianz General Insurance Company Limited

Parent Company Bajaj Finserv LTD. And Allianz S

Cate!ory NBFC

Sector Insurance and fnance

Ta!line" Slo!an Jiyo Befkar ; Lie. Insured by Care

27



#SP Expertise in local market wit !lobal exposure

STP

Se!ment "ersonal and #roup Insurance

Tar!et Group $rban and %ural In&estors

Positionin! Complete Insurance and fnancial solutions

S$%T Analysis

Stren!t&

'. #lobal exposure in Insurance trou! (llian) *E and *tron! Local

Implementation by Ba+a+

,. -as network across , towns

/. Fundamentally *tron! wit !ood payin! Capabilities

0. (llian) (# is an insurance con!lomerate !lobally and one o te lar!e

asset mana!ers in te world1 mana!in! assets wort worldwide wit ''

years o fnancial experience in o&er 3 countries

2. %ecei&ed te presti!ious 4Business Leader in #eneral Insurance41

award by N567 "roft

$ea'ness

'. Lack o penetration in rural areas

,. *maller Inrastructure as compared to establised players

%pportunity

'. #rowin! rural market potential

,. $rban 8out wit !rowin! income

T&reats

'. Economic crisis and economic instability

,. Entry o new NBFCs in te sector

/. Increasin! awareness amon!st people about securin! teir uture

28



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3.3 KEY BENEFITS OF ICICI LOMBARD CAR INSURANCE

09

Cashless Claim 5etworks

Cashless claim service over 9-00O authori$ed network of garages across India

*iscounts

A further discount on the premium is available if you opt for a oluntary Excess in

addition to the Compulsory Excess. 4Compulsory Excess is the amount of loss which

the insured has to bear in each and every claim.6

Accidental Cover 8Customer upport

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Accidental cover facility for co1passengers up1to %s. 7 )ac

ADD-ON COVERS FOR ICICI LOMBARD CAR INSURANCE

03

*epreciation Cover

Avail coverage on replaced parts with $ero deduction for depreciation.

Third !arty Cover

Third !arty )egal )iability !rotection against legal liability due to accidental damages

resulting in the permanent in"ury or death of a person, and damage caused to the

surrounding property.

31



!ersonal Accident Cover

!ersonal Accident Cover Coverage of %s - )akh for the individual owner8driver of

the vehicle while driving or travelling, Accidental cover facility for co1passengers up1

to %s. 7 )ac

INCLUSION E!CLUSION IN ICICI LOMBARD CAR

INSURANCE

02

Inclusion

)oss or *amage to your vehicle against an1made Calamities like &urglary, theft and

any damage in transit by road, rail, inland waterway, lift, elevator or air.

32



Exclusion

)oss8 damage due to war, mutiny or nuclear risk

3.4 KEY BENEFITS OF BA"A" ALLIAN# CAR INSURANCE3

Cashless Claim 5etworks

33



Cashless claim service over -=00O authori$ed network of garages across India

*iscounts

%enewing your car isnurance offers EEPEE card which enables discounts on certain

medical expenses like (!*, pathological investigations, select surgical procedures,

dental care, etc. at our tie1up network service providers.

Accidental Cover 8Customer upport

If your car meets with an accident 8 breakdown taking place beyond -00 km from

your city and repairs for which will take more than -7 hrs,otel accommodation for

the occupants of your car for a maximum of two days and two nights limited to %s.

7000 per person per day and maximum total of %s. ->,000 through out the !olicy

!eriod

ADD-ON COVERS FOR BA"A" ALLIAN# CAR INSURANCE

34



0

*epreciation Cover

*epreciation shield cover standard for new cars nowadays owing to the fact that

insured will receive full claim amount without taking in consideration.

Third !arty Cover

!rotection against legal liability due to accidental damages resulting in the permanent

in"ury or death of a person, and damage caused to the surrounding property.

!ersonal Accident Cover

!ersonal Accident Coverage of %s. - lakh for the individual owner8driver of the

vehicle while driving or travelling and mounting.

35



INCLUSION E!CLUSION IN BA"A" ALLIAN# CAR

INSURANCE

07

Inclusion

!rotection against accidental damages resulting in the permanent in"ury or death of a

person and damage caused to the surrounding property.

Exclusion

36



2ear 3 tear, depreciation, mechanical or electrical breakdown

&ASIS &A=A= A88IAN CAR INSURANCE

ICICI 8OM&ARD CAR

INSURANCE

6"a i$ iB

&aa Allian Car In$#ran(e 4oli(% i$ a

(ompre"en$ive plan o proe( !rom

p"%$i(al damage o %o#r (arF "ird par%

liailiie$ and in#r%.

ICICI 8omard o!!er$ %o# a(ompre"en$ive 4a(age

4oli(% !or %o#r !o#r5"eeler$F

"i(" (over$ T"ird 4ar%

8iaili% !or odil% in#r%

andGor dea"F 4er$onal

A((iden (over !or oner5

driver and lo$$ or damage o

"e ve"i(le in$#red.

>e% !ea#re$• Ca$"le$$ Claim pro(e$$ing

a 1-//H neor garage$ a(ro$$

India.

• C#$omer $ervi(e a$$i$an(e in

availale on p"one !or 12 "o#r$.

• A no Claim &on#$ ;NC&@ (an e

ran$!erred !rom an% in$#rer #p

• 6"en in$#re$ onlineF a

$igned poli(% i$ i$$#ed

immediael%.

• Toing ("arge$ #p o

R$ 1F-// (an e

(laimed.

37

,.- &A=A= A88IAN CAR INSURANCE VS

ICICI 8OM&ARD CAR INSURANCE



o -/.

• 2?J0 Toing 7a(ili% in (a$e o!

readon.

• Updae$ "ro#g" me$$age$ on

(laim$.

• / inere$ EMI opion !or

Ciian Credi Card "older$.

• 2?J0 (all (enre$.

• Ca$"le$$ (laim

$elemen a neorgarage$ all a(ro$$

India.

• Tae advanage o!

!olloing on#$e$ and

di$(o#n$*

ran$!errale NC&F

di$(o#n (an go #po

-/F i! ARAI i$

in$alled in %o#r

ve"i(leF %o# ge adi$(o#n o! 2.- on

OD premi#m o ma:

o! R$. -//.

6"a i$

(overedB • 8o$$ or Damage o %o#r (ar d#e

o man5made (alamiie$ lie*

#rglar%F "e!F rioF $rieF

mali(io#$ a(F a((iden %

e:ernal mean$F errori$ a(ivi%F

an% damage in ran$i % roadF

railF inland aera%F li!F

elevaor or air.

• 8o$$ or Damage o %o#r (ar d#e

o na#ral (alamiie$ lie !ireF

e:plo$ionF $el!5igniion or

lig"ningF ear"K#aeF !loodF

%p"oonF "#rri(aneF $ormF

empe$F in#ndaionF (%(loneF"ail$ormF !ro$F land$lide and

ro($lide.

• 4er$onal A((iden Cover

Coverage o! R$.1 8a" !or "e

individ#al onerGdriver o! "e

ve"i(le "ile driving or

ravelling.

• T"ird 4ar% 8egal 8iaili%

4roe(ion again$ legal liaili%

• 8o$$ or damage o

ve"i(le d#e o na#ral

or man5made

(alamiie$ lie* 7ireF

e:plo$ionF $el!5igniion

or lig"ningF

ear"K#aeF !loodF

%p"oonF "#rri(aneF

$ormF empe$F

in#ndaionF (%(loneF

"ail$ormF !ro$F

land$lideF ro($lide or

&#rglar%F "e!F rioF

$rieF mali(io#$ a(F

a((iden % e:ernalmean$F errori$

a(ivi%F an% damage in

ran$i % roadF railF

inland aera%F li!F

elevaor or air.

• T"e moor in$#ran(e

provide$ (omp#l$or%

per$onal a((iden

(over !or individ#al

oner$ o! "e ve"i(le

38



d#e o a((idenal damage$

re$#ling in "e permanen in#r%

or dea" o! a per$onF and damage

(a#$ed o "e $#rro#nding

proper%.

"ile driving.

• T"ird par% legal

liaili%.

E:(l#$ion$

• Depre(iaion or an% (on$eK#enial

lo$$

• Me("ani(al readon

• Damage oG % a per$on driving

"e ve"i(le #nder "e

(on$#mpion o! al(o"ol or dr#g$

• 8o$$G damage d#e o arF m#in%

or n#(lear ri$

• 6ear and ear d#e o

dail% #$e o! ve"i(le

• Depre(iaion or an%

(on$eK#enial lo$$

• Me("ani(al

readon o! %o#r (ar

• 6ear and ear o!

(on$#male$ lie %re$

and #e$

• Damage oG % a

per$on driving "eve"i(le #nder "e

(on$#mpion o!

al(o"ol or dr#g$

• 8o$$G damage d#e o

arF m#in% or n#(lear

ri$

OnlineB T"e plan (an e p#r("a$ed online.

Onl% privae (ar$ (an e

in$#red online.

39



RECOMMENDATIONS

!eople do not have enough knowledge about the insurance policies provided by theICICI )(&A%*. Therefore ICICI )(&A%* Company should bring awareness

in the customers.

TE %EC(E5*ATI(5 I 2(@)* )IDE T( ADE A%E<

There is a necessity to make more advertising and promotions by the

Insurance Company through T, newspapers, maga$ines and pamphlets tomake aware the customers about the insurance provided by them.

40



5eed for proper channel to reach to the customer.

arketing executives and agents should maintain good communication with

the customers to create the awareness of the policies like ediclaim, #!A

4#roup personnel accidental6 burglary, and other insurance policies provided by the company.

The employees should be given incentives and bonus to motivate to

accomplish their targets.

ICICI )(&A%* is concentrating only urban areas it should concentrate on

semi urban and rural areas also.

As it was found that customers preparing only #overnment companies for

their office insurance so create trust in costumers about private insurancecompanies by rendering good services like proper claims, good response to

costumer Fueries and maintaining good relationship with costumers.

&uilding internal technical expertise reFuiring well Lstacked library resource

by way of settled cases of claims at every $onal office is an immediate

necessity.

The staff of the insurers should be encouraged to refer to these references

often with a view to bring about early settlement to the satisfaction of claimants.

6.1 CONCLUSION

The challenges in the insurance industry and the accelerating pace of developmentshave provided the much1needed impetus to ICICI )ombard to enhance its

performance. The company is growing at a steady pace and has carved a niche for

itself in the general insurance segment.

ICICI )ombard #eneral Insurance has obtained I( 00-<7000 certification from

*ET 5orske eritas 4*56 for establishing a Fuality management system with regard

to settlement of motor claims, according to a release.

41



ICICI )ombard has an aggressive future road map. it plans to add various &I related

features, such as time1series analysis and trend analysis, which will be available to the

sales force. The system would also allow rural data mapping, weather insurance,

analysing historical weather information depicting natural catastrophes and allow for

corporate database mapping

The post1liberali$ed insurance industry panorama in India is witnessing dramatic

changes in terms of a slew of latest products and services, new channels of

distribution, greater use of I.T. as a service facilitator and a further use of diverse toolsof communication and promotion to tackle this issue. It is now seeking to leverage on

the power of internet and mobile for faster customer value deliverability and policy

management operations.

According to industry experts, the marketing and communication initiatives will now

become much more specific and one1to1one marketing will see a rise.

&I&8IO3RA4'Y

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http<88www.answers.com8Q8/pH7/sRofRmarketingRmixRofRinsuranceRsector

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https<88www.icicilombard.com8about1us8insurance1industry1news1detail.aspxS

id-70->07=;

42

http://shodhganga.inflibnet.ac.in/bitstream/10603/7336/16/16_chapter%204.pdf

http://www.answers.com/Q/7p's_of_marketing_mix_of_insurance_sector

http://www.bankbazaar.com/insurance/bajaj-allianz-car-insurance.html

https://www.icicilombard.com/about-us/insurance-industry-news-detail.aspx?id=1290160258


http://shodhganga.inflibnet.ac.in/bitstream/10603/7336/16/16_chapter%204.pdf

http://www.answers.com/Q/7p's_of_marketing_mix_of_insurance_sector

http://www.bankbazaar.com/insurance/bajaj-allianz-car-insurance.html





http<88www.myinsuranceclub.com8car1insurance8ba"a"1allian$1car1insurance

http<88www.mycarhelpline.com8index.phpS

optioncomReasydiscuss3viewpost3id->>73Itemid/;

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http://www.mycarhelpline.com/index.php?option=com_easydiscuss&view=post&id=1662&Itemid=78


http://www.loansninsurances.com/articles/insurance/bajaj-allianz-car-insurance-vs-icici-lombard-car-insurance/


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