Anuj HR Consumer Bhvr

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S UM ME R T RA IN IN G

REPORT

ON

CUSTOMER BEHAVIOUR

ONINSURANCE

IN AXIS BANK KAITHALOPP. R.K.S.D COLLEGE, AMBALA ROAD

KAITHAL.

UNDER THE SUPERVISION OF: COMPILED BY:

MR. VIVEK SHARMA SHAIFFALI(BRANCH MANAGER) R.NO 48

IVth Sem.

INSTITUTE OF MANAGEMENT STUDIESKURUKSHETRA UNIVERSITY, KKR.


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CONTENTSPage No.

CHAPTER 1 INTRODUCTION 1-10

MISSION

VALUES

BOARD OF DIRECTORS

PROMOTERS

MILESTONES

CHAPTER 2 CUSTOMER BEHAVIOUR ON INSURANCE 11-23

INTRODUCTION TO INSURANCE

PRINCIPLES OF INSURANCE

INSURERS BUSINESS MODEL

CHAPTER 3 INTRODUCTION TO LIFE INSURANCE 24-25

CHAPTER 4 INTRODUCTION TO GENERAL INSURANCE 26-29

CHAPTER 5 QUESTIONNAIRE 30-41

CHAPTER 6 LIMITATIONS 42

CHAPTER 7 SUGGESTIONS 43

BIBLIOGRAPHY 44


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DECLARATION

I (Miss Shaiffali ) declare that the project entitled CUSTOMER

BEHAVIOUR ON INSURANCE is an original piece of work done by me

and has not been submitted to any College /Institute /University in any

means possible.

Shaiffali


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ACKNOWLEDGEMENT

At the very outset I am highly indebted to MR. VIVEK SHARMA

(BRANCH MANAGER) for giving me an opportunity to carry out my

project on CUSTOMER BEHAVIOUR ON INSURANCE at their

esteemed organization.

The one single person whose contribution towards the consummation of the

project can never be adequately paid back in any manner is, of course, my

project guide MR. ASHWINI SARDANA (DEPUTY MANAGER). He

undoubtedly friend, guide through out my training without whom it would

have been impossible to attain success. I have experienced a rare

combination of profound human behaviour, energetic teacher, and an

affectionate considerable individual.

My heartiest thanks to MR. VIVEK SHARMA (BRANCH MANAGER)

for helping me through out my project tenure.

Finally, I would like to express my profound sense of gratitude to my guide

MR. ASHWINI SARDANA (DM) for giving me immense inspiration,

technical, moral, and valuable guidance for the successful development of

project.


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PREFACEMANY PEOPLE DO NOT LIKE THEIR JOBS

MANY FEEL THEIR JOBS ARE TOO BORINGMOST PEOPLE THINK THEY ARE NOT PAID ENOUGH

A concern about all the above factors is must for an industry. If a worker is

not satisfied with his work, then both the quality as well as the quantity of

his output suffers. Every new project or task is a kind of challenge for us.

However every challenge teaches us a new lesson. It makes us familiar withnew problems, new situations, new methods, new ideas, new solutions and

new field. It is the test of our knowledge and problem solving skills.

Knowledge doesnt mean only theoretical one it also includes practical part.

Theory and practice go hand in hand, if one is river, other is its bank, if one

is the rung of ladder, other is the foot we put on it. Both cannot survive

without each other. We the management students learn the important

prospective of business, whether it is Marketing, Finance or HRM in our

classroom study is not enough to compete, so in order to bridge them such a

barrier between the classroom life and real life practical experience is

necessary.

This summer training which go into are very good instrument to bridge thegap between theory and practice. My project deals with CUSTOMER

BEHAVIOUR ON INSURURANCE. I learnt a lot of new things that could

have never been learnt from theory classes. This report is presentation of my

work.


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INTRODUCTIONTO

AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in

1994, after the Government of India allowed new private banks to be

established. The Bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI - I), Life InsuranceCorporation of India (LIC) and General Insurance Corporation of India

(GIC) and other four PSU insurance companies, i.e. National Insurance

Company Ltd., The New India Assurance Company Ltd., The Oriental

Insurance Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the

public holding (other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmadabad and its Central Office is

located at Mumbai. Presently, the Bank has a very wide network of more

than 701 branch offices and Extension Counters. The Bank has a network of

over 2854 ATMs providing 24 hrs a day banking convenience to its

customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is

committed to adopting the best industry practices internationally in order to

achieve excellence.


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1

MISSION

Customer Service and Product Innovation tuned to diverse needsof individual & corporate clientele.

. Continuous technology up gradation while maintaining human

values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

2


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VALUES

Customer Satisfaction through

Providing quality service effectively and efficiently.

"Smile, it enhances your face value" is a service quality

stressed on.

Periodic Customer Service Audits.

Maximization of Stakeholder value.

Success through Teamwork, Integrity and People.

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Promoters

Axis Bank Ltd. has been promoted by the largest and the best FinancialInstitution of the country, UTI. The Bank was set up with a capital of Rs.115 crores, with UTI contributing Rs. 100 crores, LIC - Rs. 7.5 crores andGIC and its four subsidiaries contributing Rs. 1.5 crores each .

SUUTI - Shareholding 27.11%

Erstwhile Unit Trust of India was set up as a body corporate under the UTIAct, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament,

paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II

with effect from 1st February 2003. In accordance with the Act, theUndertaking specified as UTI I has been transferred paving the way for the

bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1stFebruary 2003. In accordance with the Act, the Undertaking specified asUTI I has been transferred and vested in the Administrator of the SpecifiedUndertaking of the Unit Trust of India (SUUTI), who manages assuredreturn schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with aUnit Capital of over Rs. 14167.59 crores.

The Government of India has currently appointed Shri K. N. Prithviraj as theAdministrator of the Specified undertaking of UTI, to look after andadminister the schemes under UTI - I, where Government has continuingobligations and commitments to the investors, which it will uphold.

4


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Board of Directors

The Bank has 10 members on the Board. Dr. P. J. Nayak is the Chairman

and CEO of the Bank.

The members of the Board are:

Dr. P.J. Nayak Chairman & CEO

Shri N.C. Singhal Director

Shri A.T. Pannir Selvam Director

Shri J.R. Varma Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri RameshRamanathan Director

Shri K. N. Prithviraj Director

5


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MILESTONES


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Mar-08Axis Bank lulaunches Platinum Credit Card, India's first EMV chip based card

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings

Sept-07 Axis Bank ties up with Banque Prive Edmond de Rothschild Europefor Wealth Management

July-07 UTI Bank re-brands itself as Axis Bank

July-07 UTI Bank successfully raises USD 1050 million

July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans

June-07 UTI Bank's expansion into Asia supported by FRS

May-07 UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever merchant-supported rewards program

April-07 UTI Bank opens a Financial Services Category I Branch in the DIFC inDubai

Mar-07 UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar-07 UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the country

Mar-07 UTI Bank launches Car Loans in association with Maruti Udyog Ltd

Mar-07 UTI Bank opens a Full Licence Bank Branch in Hong Kong

Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank Co - Branded Credit Card Exclusively For Small Road TransportOperators (SRTOS)

Feb-07 UTI Bank announces the launch of its Meal Card

Feb-07 UTI Bank announces the launch of its Gift Card

Feb-07 LIC Premium payment now through UTI Bank Branches

Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 UTI Bank opens Priority Banking Lounge in Pune

Sep-06 UTI Bank launches operations of UBL Sales, its Sales Subsidiary -Inaugurates its first office in Bangalore 6

Aug-06 UTI Bank announces the launch of its Credit Card Business

Aug-06 UTI Bank becomes the first Indian Bank to successfully issue ForeignCurrency Hybrid Capital in the International Market

Aug-06 UTI Bank Business Gold Debit Card MasterCard Launched - Designedfor business related spending by SMEs and self employed professionals

Aug-06 UTI Bank announces the scheme of issuance of "Senior Citizen ID


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10

CUSTOMER BEHAVIOURON

INSURANCE


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11


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INTRODUCTION TO INSURANCE

Insurance , in law and economics , is a form of risk management primarily

used to hedge against the risk of a contingent loss. Insurance is defined as

the equitable transfer of the risk of a loss, from one entity to another, in

exchange for a premium. An insurer is a company selling the insurance.

The insurance rate is a factor used to determine the amount, called the

premium , to be charged for a certain amount of insurance coverage. Risk

management , the practice of appraising and controlling risk, has evolved as adiscrete field of study and practice.

History of insurance

In some sense we can say that insurance appears simultaneously with the

appearance of human society. We know of two types of economies in human

societies: money economies (with markets, money, financial instruments and

so on) and non-money or natural economies (without money, markets,

financial instruments and so on). The second type is a more ancient form

than the first. In such an economy and community, we can see insurance in

the form of people helping each other. For example, if a house burns down,

the members of the community help build a new one. Should the same thinghappen to one's neighbour, the other neighbours must help?

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Otherwise, neighbours will not receive help in the future. This type of

insurance has survived to the present day in some countries where modern

money economy with its financial instruments is not widespread (for

example countries in the territory of the former Soviet Union).

Turning to insurance in the modern sense (i.e., insurance in a modern money

economy, in which insurance is part of the financial sphere), early methods

of transferring or distributing risk were practiced by Chinese and Babylonian

traders as long ago as the 3rd and 2nd millennia BC, respectively.

Chinese merchants traveling treacherous river rapids would redistributetheir wares across many vessels to limit the loss due to any single vessel's

capsizing. The Babylonians developed a system which was recorded in the

famous Code of Hammurabi , c. 1750 BC, and practiced by early

Mediterranean sailing merchants . If a merchant received a loan to fund his

shipment, he would pay the lender an additional sum in exchange for the

lender's guarantee to cancel the loan should the shipment be stolen.

Achaemenian monarchs were the first to insure their people and made it

official by registering the insuring process in governmental notary offices.

The insurance tradition was performed each year in Norouz (beginning of

the Iranian New Year); the heads of different ethnic groups as well as others

willing to take part, presented gifts to the monarch. The most important gift

was presented during a special ceremony. When a gift was worth more than10,000 Derrik (Achaemenian gold coin) the issue was registered in a special

office. This was advantageous to those who presented such special gifts. For

others, the presents were fairly assessed by the confidants of the court. Then

the assessment was registered in special offices. 13
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The purpose of registering was that whenever the person who presented the

gift registered by the court was in trouble, the monarch and the court would

help him. Jahez, a historian and writer, writes in one of his books on ancient

Iran: "[W]henever the owner of the present is in trouble or wants toconstruct a building, set up a feast, have his children married, etc. the one in

charge of this in the court would check the registration. If the registered

amount exceeded 10,000 Derrik, he or she would receive an amount of twice

as much."

A thousand years later, the inhabitants of Rhodes invented the concept of the

'general average '. Merchants whose goods were being shipped together

would pay a proportionally divided premium which would be used to

reimburse any merchant whose goods were jettisoned during storm or

sinkage.

The Greeks and Romans introduced the origins of health and life insurance

c. 600 AD when they organized guilds called "benevolent societies" which

cared for the families and paid funeral expenses of members upon death .

Guilds in the middle Ages served a similar purpose. The Talmud deals with

several aspects of insuring goods . Before insurance was established in the

late 17th century, "friendly societies" existed in England, in which people

donated amounts of money to a general sum that could be used for

emergencies.

Separate insurance contracts (i.e., insurance policies not bundled with loans

or other kinds of contracts) were invented in Genoa in the 14th century, as

were insurance pools backed by pledges of landed estates. 14
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These new insurance contracts allowed insurance to be separated from

investment, a separation of roles that first proved useful in marine insurance.

Insurance became far more sophisticated in post- Renaissance Europe , and

specialized varieties developed.

Toward the end of the seventeenth century, London's growing importance as

a centre for trade increased demand for marine insurance. In the late 1680s,

Mr. Edward Lloyd opened a coffee house that became a popular haunt of

ship owners, merchants, and ships captains, and thereby a reliable source of

the latest shipping news. It became the meeting place for parties wishing to

insure cargoes and ships, and those willing to underwrite such ventures.

Today, Lloyd's of London remains the leading market (note that it is not an

insurance company) for marine and other specialist types of insurance, but it

works rather differently than the more familiar kinds of insurance.

Insurance as we know it today can be traced to the Great Fire of London ,

which in 1666 devoured 13,200 houses. In the aftermath of this disaster,

Nicholas Barbon opened an office to insure buildings. In 1680, he

established England's first fire insurance company, "The Fire Office," to

insure brick and frame homes.

The first insurance company in the United States underwrote fire insurance

and was formed in Charles Town (modern-day Charleston ), South Carolina ,

in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual

insurance .

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In 1752, he founded the Philadelphia Contribution ship for the Insurance of

Houses from Loss by Fire . Franklin's company was the first to make

contributions toward fire prevention. Not only did his company warn against

certain fire hazards, it refused to insure certain buildings where the risk of

fire was too great, such as all wooden houses. In the United States,

regulation of the insurance industry is highly Balkanized , with primary

responsibility assumed by individual state insurance departments. Whereas

insurance markets have become centralized nationally and internationally,

state insurance commissioners operate individually, though at times in

concert through a national insurance commissioners' organization . In recent

years, some have called for a dual state and federal regulatory system

(commonly referred to as the Optional Federal Charter (OFC)) for insurance

similar to that which oversees state banks and national bank.

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Principles of insurance

Commercially insurable risks typically share seven common characteristics.1. A large number of homogeneous exposure units . The vast

majority of insurance policies are provided for individual members of

very large classes. Automobile insurance, for example, covered about

175 million automobiles in the United States in 2004. [2] The existence

of a large number of homogeneous exposure units allows insurers to

benefit from the so-called law of large numbers , which in effectstates that as the number of exposure units increases, the actual results

are increasingly likely to become close to expected results. There are

exceptions to this criterion. Lloyd's of London is famous for insuring

the life or health of actors, actresses and sports figures. Satellite

Launch insurance covers events that are infrequent. Large commercial

property policies may insure exceptional properties for which there

are no homogeneous exposure units. Despite failing on this criterion,

many exposures like these are generally considered to be insurable.

2. Definite Loss . The event that gives rise to the loss that is subject to

insurance should, at least in principle, take place at a known time, in a

known place, and from a known cause. The classic example is death

of an insured on a life insurance policy. Fire, automobile accidents,

and worker injuries may all easily meet this criterion.

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3. Other types of losses may only be definite in theory. Occupational

disease, for instance, may involve prolonged exposure to injurious

conditions where no specific time, place or cause is identifiable.

Ideally, the time, place and cause of a loss should be clear enough thata reasonable person, with sufficient information, could objectively

verify all three elements.

4. Accidental Loss . The event that constitutes the trigger of a claim

should be fortuitous, or at least outside the control of the beneficiaryof the insurance. The loss should be pure, in the sense that it results

from an event for which there is only the opportunity for cost. Events

that contain speculative elements, such as ordinary business risks, are

generally not considered insurable.

5. Large Loss . The size of the loss must be meaningful from the

perspective of the insured. Insurance premiums need to cover both the

expected cost of losses, plus the cost of issuing and administering the

policy, adjusting losses, and supplying the capital needed to

reasonably assure that the insurer will be able to pay claims. For small

losses these latter costs may be several times the size of the expected

cost of losses. There is little point in paying such costs unless the

protection offered has real value to a buyer.

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9. Typically, insurers prefer to limit their exposure to a loss from a

single event to some small portion of their capital base, on the order of

5 percent . Where the loss can be aggregated, or an individual policy

could produce exceptionally large claims, the capital constraint will

restrict an insurers appetite for additional policyholders. The classic

example is earthquake insurance, where the ability of an underwriter

to issue a new policy depends on the number and size of the policies

that it has already underwritten. Wind insurance in hurricane zones,

particularly along coast lines, is another example of this phenomenon.

In extreme cases, the aggregation can affect the entire industry, since

the combined capital of insurers and reinsures can be small compared

to the needs of potential policyholders in areas exposed to aggregation

risk. In commercial fire insurance it is possible to find single

properties whose total exposed value is well in excess of any

individual insurers capital constraint. Such properties are generallyshared among several insurers, or are insured by a single insurer who

syndicates the risk into the reinsurance market.

20

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Insurers Business Model

Profit = earned premium + investment income - incurred loss - underwriting

expenses.

Insurers make money in two ways: (1) through underwriting , the process by

which insurers selects the risks to insure and decide how much in premiums

to charge for accepting those risks and (2) by investing the premiums they

collect from insureds.

The most complicated aspect of the insurance business is the underwriting of

policies. Using a wide assortment of data, insurers predict the likelihood that

a claim will be made against their policies and price products accordingly.

To this end, insurers use actuarial science to quantify the risks they are

willing to assume and the premium they will charge to assume them. Data is

analyzed to fairly accurately project the rate of future claims based on agiven risk. Actuarial science uses statistics and probability to analyze the

risks associated with the range of perils covered, and these scientific

principles are used to determine an insurer's overall exposure. Upon

termination of a given policy, the amount of premium collected and the

investment gains thereon minus the amount paid out in claims is the insurer's

underwriting profit on that policy. Of course, from the insurer's perspective,

some policies are winners (i.e., the insurer pays out less in claims and

expenses than it receives in premiums and investment income) and some are

losers (i.e., the insurer pays out more in claims and expenses than it receives

in premiums and investment income). 21
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An insurer's underwriting performance is measured in its combined ratio.

The loss ratio (incurred losses and loss-adjustment expenses divided by net

earned premium) is added to the expense ratio (underwriting expenses

divided by net premium written) to determine the company's combined ratio.The combined ratio is a reflection of the company's overall underwriting

profitability.

A combined ratio of less than 100 percent indicates underwriting

profitability, while anything over 100 indicates an underwriting loss.

Insurance companies also earn investment profits on float. Float or

available reserve is the amount of money, at hand at any given moment that

an insurer has collected in insurance premiums but has not been paid out in

claims. Insurers start investing insurance premiums as soon as they are

collected and continue to earn interest on them until claims are paid out.

In the United States , the underwriting loss of property and casualty

insurance companies was $142.3 billion in the five years ending 2003. But

overall profit for the same period was $68.4 billion, as the result of float.

Some insurance industry insiders, most notably Hank Greenberg , do not

believe that it is forever possible to sustain a profit from float without an

underwriting profit as well, but this opinion is not universally held.

Naturally, the float method is difficult to carry out in an economically

depressed period. Bear markets do cause insurers to shift away from

investments and to toughen up their underwriting standards. So a poor

economy generally means high insurance premiums. This tendency to swing

between profitable and unprofitable periods over time is commonly known

as the "underwriting" or insurance cycle . 22
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Property and casualty insurers currently make the most money from their

auto insurance line of business. Generally better statistics are available on

auto losses and underwriting on this line of business has benefited greatly

from advances in computing. Additionally, property losses in the US, due tonatural catastrophes, have exacerbated this trend.

Finally, claims and loss handling is the materialized utility of insurance. In

managing the claims-handling function, insurers seek to balance the

elements of customer satisfaction, administrative handling expenses, and

claims overpayment leakages. As part of this balancing act, fraudulent

insurance practices are a major business risk that must be managed and

overcome.

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Introduction to Life Insurance

Life insurance or life assurance is a contract between the policy owner

and the insurer , where the insurer agrees to pay a sum of money upon the

occurrence of the insured individual's or individuals' death or other event,

such as terminal illness or critical illness. In return, the policy owner (or

policy payer) agrees to pay a stipulated amount called a premium at regular

intervals or in lump sums.

There may be designs in some countries where bills and death expenses plus

catering for after funeral expenses should be included in Policy Premium.

In the United States, the predominant form simply specifies a lump sum to

be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the

insurer and the policy owner (policyholder) whereby a benefit is paid to

the designated Beneficiary (or Beneficiaries) if an insured event occurs

which is covered by the policy. To be a life policy the insured event must

be based upon life (or lives) of the people named in the policy.

24
http://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Deathhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Beneficiaryhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Deathhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Beneficiary


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Insured events that may be covered include:

Serious illness

Life policies are legal contracts and the terms of the contract describe thelimitations of the insured events. Specific exclusions are often written intothe contract to limit the liability of the insurer; for example claims relating tosuicide, fraud, war, riot and civil commotion.

Life based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of

specified event, typically a lump sum payment. A common form of

this design is term insurance.

Investment policies - where the main objective is to facilitate the

growth of capital by regular or single premiums. Common forms (in

the US anyway) are whole life , universal life and variable life

policies.

25
http://en.wikipedia.org/wiki/Illnesshttp://en.wikipedia.org/wiki/Protectionhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Whole_life_insurancehttp://en.wikipedia.org/wiki/Universal_life_insurancehttp://en.wikipedia.org/wiki/Variable_universal_life_insurancehttp://en.wikipedia.org/wiki/Illnesshttp://en.wikipedia.org/wiki/Protectionhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Whole_life_insurancehttp://en.wikipedia.org/wiki/Universal_life_insurancehttp://en.wikipedia.org/wiki/Variable_universal_life_insurance


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Introduction to General Insurance

General insurance or non-life insurance policies, including automobile andhomeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises anyinsurance that is not determined to be life insurance . It is called property and casualty insurance in the U.S. .

In the UK , General insurance is broadly divided into three areas; personal lines , commercial lines and London market .

The London market insures large commercial risks, for example insuring

supermarkets, football players and other very specific risks. It consists of anumber of insurers, reinsures, [P&I Clubs], brokers and other companies thatare typically physically located in the City of London. The Lloyd's of London is a big participant in this market. [1] The London Market also

participates in personal lines and commercial lines, domestic and foreign,through reinsurance .

Commercial lines products are usually designed for relatively small legalentities. These would include workers comp (employers liability), publicliability, product liability, commercial fleet and other general insurance

products sold in a relatively standard fashion to many organizations.

Personal lines products are designed to be sold in large quantities. Thiswould include autos (private car), homeowners (household), pet insurance,creditor insurance and others.

Insurance other than Life Insurance falls under the category of GeneralInsurance. General Insurance comprises of insurance of property against fire,

burglary etc, personal insurance such as Accident and Health Insurance, and

liability insurance which covers legal liabilities. There are also other coverssuch as Errors and Omissions insurance for professionals, credit insuranceetc.

26
http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=London_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=London_market&action=edit&redlink=1http://en.wikipedia.org/wiki/Lloyd's_of_Londonhttp://en.wikipedia.org/wiki/Lloyd's_of_Londonhttp://www.iii.org/commerciallines/global/lloyds/http://en.wikipedia.org/wiki/Reinsurancehttp://en.wikipedia.org/w/index.php?title=Commercial_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/wiki/Auto_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=London_market&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=London_market&action=edit&redlink=1http://en.wikipedia.org/wiki/Lloyd's_of_Londonhttp://en.wikipedia.org/wiki/Lloyd's_of_Londonhttp://www.iii.org/commerciallines/global/lloyds/http://en.wikipedia.org/wiki/Reinsurancehttp://en.wikipedia.org/w/index.php?title=Commercial_lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Personal_lines&action=edit&redlink=1http://en.wikipedia.org/wiki/Auto_insurancehttp://en.wikipedia.org/wiki/Home_insurance


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Non-life insurance companies have products that cover property against Fireand allied perils, flood storm and inundation, earthquake and so on. Thereare products that cover property against burglary, theft etc. The non-lifecompanies also offer policies covering machinery against breakdown, thereare policies that cover the hull of ships and so on.

A Marine Cargo policy covers goods in transit including by sea, air androad. Further, insurance of motor vehicles against damages and theft forms amajor chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should

there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rate able proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, inthe event of a loss to the extent of say Rs.50/-, the maximum claim amount

payable would be Rs.25/- (50% of the loss being borne by the insured for underinsuring the property by 50%). This concept is quite often notunderstood by most insureds.

Personal insurance covers include policies for Accident, Health etc. Productsoffering Personal Accident cover are benefit policies. Health insurancecovers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis.

The cashless service is offered through Third Party Administrators whohave arrangements with various service providers, i.e., hospitals. The ThirdParty Administrators also provide service for reimbursement claims.Sometimes the insurers themselves process reimbursement claims.

27


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Accident and health insurance policies are available for individuals as wellas groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when agroup is covered, insurers offer group discounts.

Liability insurance covers such as Motor Third Party Liability Insurance,Workmens Compensation Policy etc offer cover against legal liabilities thatmay arise under the respective statutes Motor Vehicles Act, TheWorkmens Compensation Act etc.

Some of the covers such as the foregoing (Motor Third Party andWorkmens Compensation policy) are compulsory by statute. Liability

Insurance not compulsory by statute is also gaining popularity these days.Many industries insure against Public liability. There are liability coversavailable for Products as well.

There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance,there are package policies available for householders, shop keepers and alsofor professionals such as doctors, chartered accountants etc. Apart fromoffering standard covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It isimportant to protect ones property, which one might have acquired fromones hard earned income. A loss or damage to ones property can leave oneshattered. Losses created by catastrophes such as the tsunami, earthquakes,cyclones etc have left many homeless and penniless.

Such losses can be devastating but insurance could help mitigate them.Property can be covered, so also the people against Personal Accident.

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A Health Insurance policy can provide financial relief to a personundergoing medical treatment whether due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or

businesses that are financed by banks and other institutions do obtain covers.But are they obtaining the right covers? And are they insuring adequately arequestions that need to be given some thought. Also organizations or industries that are self-financed should ensure that they are protected byinsurance.

Most general insurance covers are annual contracts. However, there are few products that are long-term.

It is important for proposers to read and understand the terms and conditionsof a policy before they enter into an insurance contract. The proposal formneeds to be filled in completely and correctly by a proposer to ensure thatthe cover is adequate and the right one.

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QUESTIONNAIRE

30


34/48

0

20

40

60

80

100

120

yes no

Do you have insurance?

Yes-99 No-1

31


35/48

0

10

20

30

40

50

60

life general both

What type of insurance you have?

Life-30 General-13 Both-56

32


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05

101520253035

v e h i c

l e h e

a l t h h o m e

j e w e l l a

r y

p e r s o

n a l

v e h i c

l e + p e

r s o n a l

v e h i c

l e + h e

a l t h

v e h i c

l e + h e

a l t h + p

e r s o n

a l n o n e

In general what type of insurance you have?

Vehicle-32 Health-2 Home&Jewellery-0

Personal-12 veh.+personal-14

Veh.+health-7 veh.+health+personal-2

None-30 33


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05

10

15202530

3540

y o u r s e l f p a

r e n t s c h i l d e r n w i f e

w i f e +

y o u r s e l f

y o u r s

e l f + c h i l d

r e n

c h i l d r

e n + w

i f e

y o u r s

e l f + p

a r e n t s

y o u r s

e l f + c h i l d

r e n + p

a r e n t s

a l l

For whom you will prefer life insurance?

Yourself-36 Parents-2 Children-2 Wife-3

Wife+yourself-8 yourself+children-8

Children+wife-3 yourself+parents-2

Yours.+par.+childr.-7 all-15 34


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05

1015202530354045

s e c u r i t y

i n v e s t m e n t

t a x b e

n e f i t

i n v e s t

m e n t +

t a x b e

n e f i t

s e c u

r i t y + t a

x b e n

e f i t

s e c u

r i t y + i n

v e s t m

e n t a l l

For what purpose you have insurance?

Security-40 Investment-11 Tax benefit-5

Invest.+tax-8 security+tax-6

security+invest.-14 all-15

35


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05

1015202530354045

p r e m

i u m

m a t u r

i t y b e

n e f i t

l e s s c

h a r g e

s

p r e m

i u m + m

a t u r i t y

m a t u r

i t y + l e

s s c h

a r g e s

m a t u r

i t y + t a

x b e n

e f i t

a n y o

t h e r

Which factor attracts you most?

Premium-14 Maturity-42 Lesscharges-13

premium+maturity-11 maturity+lesscharges-4

maturity+ tax benefit-3 anyother-12

36


40/48

0

10

20

30

40

50

60

70

public private

Which sector you will prefer for insurance?

Public-64 Private-35

37


41/48

0

5

10

15

20

25

30

35

40

f a i t h

r e f r e

n c e

a s s u

r a n c

p o p u

l a r i t

m a r k e

t s h a

r

f a i t h +

a s s u

r a n

f a i t h +

m a r k e

t s h a

f a i t h +

p o p u

l a r i t y

+ a s s

u r a

f a i t h

+ p o p

u l a r i t y

+ m a r k

e t s

f a i t h +

p o p u

l a r i t y

+ r e f

r e n c

e + a s

s

f a i t h +

p o p u

l a r i t y

+ m a r

k e t s

h a r e +

a s s

p o p [ u

l a r i t y

+ m a r

k e t s h

a r e +

a s s u

Which attracts you towards this sector?

Faith-35 Refrence-5 Assurance-8 Popularity-10

Marketshare-10 faith+assu.- 10 faith+markt.5

faith+popul.+assur.-5 faith+popul.+makt.5

faith+popu. +refrence+assure-.3


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faith+popu.+markt.+assure.-2 popu.+mkt.+assur.-1

38

0

5

10

15

20

25

30

35

4045

A X I S

H D F

I C I C

K O T A

K M

A H I N

O T H E

R

H D F C

+ I C

H D F C

+ O T H

K O T A K

+ O T H

In which private bank you have insurance?

AXIS-0 HDFC-7 ICICI-8

KOTAK MAHINDRA-4 OTHERS-40

HDFC+ICICI-2 HDFC+OTHERS-1

KOTAK+OTHERS-1

39


43/48

0

10

20

30

40

50

60

70

L I C O B C

S B I

U B I

O T H E

R

L I C + S

B I

In which public bank you have insurance?

LIC-63 OBC-0 SBI-2 UBI-0

OTHERS-6 LIC+SBI-3

40


44/48

0

20

40

60

80

100

120

yes

Are you satisfied?

Yes-99


45/48

41

LIMITATIONS

Lack of operational staff.

Lack of infrastructural facilities.

Lack of telephonic lines.

Less market reaches .


46/48

42

SUGGESTIONS

Operational staff must be increase.

Infrastructure facility should be improved.

Telephonic lines must be increase.

Market reaches increase up to customers.


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43

BIBLIOGRAPHY

www.axisbank.com
http://www.axisbank.com/http://www.axisbank.com/


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44

Documents

Anuj HR Consumer Bhvr