ICICI Lombard General Insurance Co Ltd-Satish Musti-0439

8/7/2019 ICICI Lombard General Insurance Co Ltd-Satish Musti-0439

1/72

ADISSERTATION

ON

MARKET ANALYSIS OF OFFICE INSURANCE

PRODUCTS with reference to ICICI Lombard Generalinsurance co Ltd

Submitted in partial fulfillment of the requirement for MBA

Degree of Bangalore University

BY

SATISH S MUSTIRegister Number

04XQCM6080

Under the guidance of

Dr. N.S. Viswanath

M.P.Birla Institute of Management

Associate Bharatiya Vidya Bhavan

#43, Race Course road,Bangalore-560001

(2004-2006)


2/72

GUIDE CERTIFICATE

This is to certify that Mr. Satish S Musti , bearing registration no. 04XQCM6080

has undertaken a research project and has prepared a report titled

MARKET ANALYSIS OF OFFICE INSURANCE PRODUCTS ,

Under my guidance. This has not formed a basis for the award of any degree/

diploma for any other university.

Place: Bangalore

Date: Dr.N.S.Viswanath


3/72

PRINCIPAL S CERTIFICATE

This is to certify that Mr. Satish S Musti , bearing registration no. 04XQCM6102

has undertaken a research project and has prepared a report titled

MARKET ANALYSIS OF OFFICE INSURANCE PRODUCTS ,

under the guidance of Dr.N.S.Viswanath . This has not formed a basis for the

award of any degree/ diploma for any other university/Institution.

Place: Bangalore

Date: Dr.Nagesh.S.Malavalli


4/72

A C K N O W L E D G E M E N T

At the very outset, I take the opportunity to thank Dr. Nagesh Malavalli,

Principal, M.P. Birla Institute of Management for providing me with the academic

support. I express my sincere regards and gratitude for every individual linked with

my Research Work.

One such person is my guide for the semester Dr.N.S.Viswanath , whose

inspiring words made me, put in all I had to offer. His continuous guidance and

suggestions are the cardinal aspects that have ultimately led me to see this fruitful

end.

I would like to thank all the respondents and personnel of ICICI Lombard general

insurance co ltd for their co-operation and providing the relevant data required.

I express my sincere gratitude to all my friends and well-wishers who helped me

in completing this Project Report.

Last but not the least; I would like to thank the Almighty for being there always in

this endeavor.


5/72

D E C L A R A T A I O N

I hereby declare that the project report titled Market analysis of office insurance

products with reference to ICICI Lombard general insurance co ltd.. is a record of

independent work carried out by me towards the partial fulfillment of therequirements for the Masters Degree in Business Administration course of

Bangalore University, at M.P. Birla Institute of Management , Associate

Bharatiya Vidya Bhavan , Bangalore 560001.

This has not been submitted for the purpose of any award or degree or diploma of

any other university or institution.

Place: Bangalore (Mr. Satish S Musti )

Date: 04XQCM6080 .


6/72

CONTENTS

CHAPTER PATICULARS Page

No.

1 EXECUTIVE SUMMARY

2 DESIGN OF THE STUDY Research Gap

Problem Statement

Research Objectives

Operational Definition Of the Concept

RESEARCH DESIGN ADOPTED

Type Of Research

Sampling Design

SOURCES OF DATA COLLECTION

Primary Data

Secondary Data

LIMITATIONS

3 INDUSTRY PROFILE

4 COMPANY PROFILE

5 PRODUCT PROFILE

6 DATA ANALYSIS AND INFERENCES

7 SUMMARY OF FINDINGS

8 RECOMMENDATIONS AND CONCLUSIONS

BIBLIOGRAPHY


7/72

EXECUTIVE SUMMERY


8/72

EXECUTIVE SUMMARY

The project is done in ICICI LOMBARD GENARAL INSURANCE CO.

The project title is Market Analysis of Office Insurance Products .

The objective of the research is to analyze the market and to find out

customer awareness level about office insurance products. To know about effective

of company service

Type of research is descriptive research, using direct-structured

questionnaire done through the Survey. The sampling unit of the survey is the

entire offices in Raichur city. The sample size is 80 offices.

Findings of the project are major of respondents have awareness about

office insurance and office insurance products. Major of respondents told they

believe in Government owned companies and they want to avail Government

owned companies services. Major of respondents think company and company

services are very important factors for purchasing office insurance policies.

Based on the findings recommendations are given like there is a necessity to

make more advertising and promotions by the insurance company through TV,

news papers, magazines and pamphlets to make aware the customers about the

insurance provided by them. As it was found that customers preparing only

Government companies for their office insurance so company should create trust in

costumers about private insurance companies by rendering good services like

proper claims, good response to costumer queries and maintaining good

relationship with costumers.


9/72

INTRODUCTION

The term insurance market broadly covers the insurance companies, the

buyers of insurance and the various intermediaries.

Historical

Till May, 1971 there were 107 companies operating in the market, both

Indian and foreign. Some companies were in the co-operative sector. The size of

the companies and there reach varied to a great extent. Whereas many companies

used to underwrite all types of covers fire, marine& miscellaneous insurance, some

other restricted their area of operation basically to selected field only like MarineHull Business.

The government in May, 1971 took over the undertaking of all the

companies as a prelude to ultimate nationalization. This was brought about under

the General insurance business (Nationalsation) Act, 1972.

Thus, effective 01/01/1973 a single holding company was created named

as General Insurance Corporation of India, with 4 subsidiaries to take care of thegeneral insurance business operation.

The four subsidiaries formed were as under:

1] The National Insurance Co. Ltd

2] The India Assurance Co. Ltd

3] The Oriental Insurance Co. Ltd

4] The United India Insurance Co. Ltd

The four subsidiary companies operated under the all direction of the GIC.

Each of these had almost a similar structure with 4 tiers. i.e. the branch at the

bottom rung; above them the divisional office; thereafter Regional office and the

HO at the apex.


10/72

Present Scenario:

At present 12 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 IRDA Act, 1999. This removed the prohibition existing in

the GIBNA Act relating to formation of insurance companies other than the four

public sector companies.

The companies in the private sector are:-

1.

Bajaj Allianz General Insurance Co.Ltd.2. Cholamandalam General Insurance Co. Ltd.

3. HDFC Chubb General Insurance Co. Ltd.

4. ICICI LOMBARD General Insurance Co. Ltd.

5. IFFOCO Tokio General Insurance Co. Ltd.

6. Reliance General Insurance Co. Ltd.

7. Royal Sundaram Alliance Insurance Co. Ltd.

8. Tata AIG General Insurance Co. Ltd.

The General Insurance Corporation is now only Reinsurance Company and

operates as the National Reinsures.

There are however, some companies in the market which are formed for a

specific purpose only.

Deposit insurance company- To take care of loss suffered by the depositors

of a bank.

i. Exports Credit Guarantee Corporation this takes care of the credit risk

which exporters face in respect of the goods exported.

ii. Agricultural Insurance Corporation to take care of crop insurance and allied

risks.

iii. There are also insurance departments in some of the states.


11/72

The four public sector and the 8 private sector companies are authorized to

handle direct business as well as reinsurance business, both inward outward.

The buyers of insurance would be property owners, factory owners, traders,

vehicle owners, commercial establishments, professionals etc. In fact the wholepopulation could deemed as potential costumers for insurance of one type or

another.


12/72

DESIGN OF THE STUDY


13/72

DESIGN OF THE STUDY

RESEARCH GAP

My personal enquiry with the sales manager of ICICI Lombard General

Insurance Co Office indicates that there is a potential market for office insurance

products in north eastern part of Karnataka. There is a need for research

investigation in to the analysis for office insurance products. This has evoked me

to undertake this research investigation

PROBLEM STATEMENT:

How can one assess the market awareness for office insurance products.

How can we tap this potential after assigning, through strategic marketing

of services.

SCOPE OF THE STUDY:

The scope of the study is restricted to analyze the market for office

insurance products with various offices in Raichur.The study intends to know

awareness of insurance products.

The research was conducted to know opinion about services provided by

the ICICI LOMBARD . The research was also concentrated on other factors like

premium and advertising of products.


14/72

RESEARCH OBJECTIVES:

To find out the customer awareness level for office insurance products.

To assess the effectiveness of company service.

To make an independent assessment of the magnitude of the market

potential in the light of the competitive scenario.

To suggest remedial measures to exploit the market potential.

OPERATIOANAL DEFINATIONS:

Market:

Traditionally, market was a physical place where buyers and sellers gathered to

exchange goods. It is also a collection of buyers and sellers who transact over a

particular product.

A simple market system can be shown as:

Communication

Goods/Services

Money

Information

IndustryMarket

(A collection of Bu ers


15/72

Marketing:

It is a societal process by which individual and groups obtain what they need and

want through creating, offering and freely exchanging products and services of

values with others.

Marketing research:

It is a systematic and objective study of problems pertaining to the

marketing of good and services. It may be emphasized that it is not restricted to

any particular area of marketing but is applicable to its all phases and aspects.

Product:

A product is anything that can be offered to a market to satisfy a want/need.

Products that are marketed include physical goods, Services, Experiences, events,

persons, properties, organizations, information and ideas.

Brand:

A Brand is a name, term, sign, symbol, design or a combination of them

intended to identify the goods/services of one seller/group of sellers and to

differentiate them from those Of Competitors.

Distribution and its Channels:

Distribution is the process of moving goods/services form the place of production

to the marketing activities involved in the flow of goods/services from the primary

producer to ultimate consumer.


16/72

Accident and accidental

Means a sudden, unforeseen, and unexpected physical event beyond the

control of the Insured caused by external, visible and violent means.

Bodily injury

Means any accidental physical bodily harm but does not include any

sickness or disease.

Business or business purposes

Means any full or part time, permanent or temporary, activity under taken

in the premises with a view to profit or gain.

Burglary

Means an act involving the unauthorized entry to or exit from the insured s

property or attempt threat by unexpected, visible, forcible and violent means, with

the intent to commit an act of theft.

Bank

Means and includes bank of every description, post office and government

treasury.

Contents

Means the following used for business or business purposes, so long as theyare owned by the insured and / or for which the insured legally responsible for

including family of insured, directors, karta of HUF, partners and the like goods

such as furniture, stock, machinery, equipment, fixtures, fittings and interior

decorations but excluding money, jewelry, and valuables.


17/72

Employee

Means any person employed by the insured to perform certain duties for

consideration, either expressly or impliedly in the course of employment

Insured or insured s

Means the person named in the policy as the policy holder and / or his

family, and / or his parents, and / or directors and / or karta of HUF, and the like.

Medical expenses

Means expenses incurred on necessary on medical or surgical treatment,

services, or supplies.

Period of insurance

Means the period of time stated in the schedule for which the policy is valid.

Policy

Means insured s proposal, the schedule, company s covering letter to the insur ed,

insurance clauses, definitions, exclusions, conditions and other terms contained

here in and any endorsement attaching to or forming part hereof, either at inception

or during the period of insurance.

Premises

Means insured s shop as stated in the schedule, which is used or occupied

mainly for business purposes by insured.


18/72


19/72

RESEARCH DESIGN ADOPTED

TYPE OF RESEARCH

The type of research used in this project is a Descriptive research design.

The major purpose of descriptive research is a description of the state of the affairs,

as it exists at present. Thus a Descriptive study is a fact finding investigation with

adequate interpretation. It is the simplest type of research. It focuses on particular

aspects or dimensions of the problem studied. It is so designed that it gathers

descriptive information and provides information for formulating more

sophisticated studies. There is a cause effective relationship.

The criteria for selecting this particular design are that, the problem of the

project must be described and not arguable. The data collected is amenable to

statistical analysis and has accuracy and significance. It is possible to develop valid

standards of comparison. It lends itself to the verifiable procedure of collection and

analysis of data.

Descriptive study objectives aim at identifying the various characteristics of

a company problem under study. It can reveal potential relationships between

variables with exploratory research.

SAMPLING TECHNIQUE :

The sampling technique used is convenient sampling . It is also called as

purposive sampling or non-probability sampling. This sampling method involves

purposive or deliberate selection of particular units of the universe for constituting

the sample, which represents the universe. When population elements are selected

for inclusion in the sample based on the ease of access, it can be called as

convenient sampling.

Empirical field studies required collection of first hand information and data

pertaining to the units of study from the field.


20/72

SAMPLING DESIGN:

SAMPLING UNIT

The samples includes various offices & shops in and around of Raichur city.

SAMPLE SIZE

The sample size for listing questionnaire of research is 100, and the sample

size is broken down in to two samples i.e. a sample size of 80 respondents from the

offices and shops and the sample size of 20 respondents from the customers who

are already availing the service of ICICI Lombard.

SOURCES OF DATA COLLECTION:

Primary data:

The data was collected by using questionnaire and structured direct

interviews which were separately conducted to know the market awareness and

market potential.

Secondary data:

The secondary data was collected from the company reports, broaches,

manuals, text books and Internet. The customer of 20 respondents was provided by

the company for assessing the service provided by a company.

RESEARCH LIMITATIONS:

This research is company- specific and confined only to north east part of

Karnataka, the problem of generalization becomes obvious

Limited sample size is taken.


21/72

INDUSTRY PROFILE


22/72

INDUSTRY PROFILE

Insurance is not necessarily an investment from which one expects the

returns. Insurance is not gambling. A gambler takes risk, while insurer offers

protection against risks that already exists. Insurance is a way to share risk with

others.

Insurance industry has always been a growth-oriented industry globally. On

the Indian scene too, the insurance industry has always recorded noticeable growth

vis--vis other Indian industries.

The transaction of general insurance business in India is governed by, and

is subject to two statutes, viz, the insurance act -1938 (as amended) and the

insurance regulatory act, 1999.

The practice of general insurance is directly or indirectly affected by other

statutes also, e.g. Marine insurance act, Motor vehicles act, Workmen s

compensation act, public liability insurance act etc.

The Insurance act, 1938:

This Act was passed in 1938 and was brought into force from 1 st July, 1939.

The act has been amended a number of times, the most important amendments

being made in 1950, 1968 and especially by IRDA ACT, 1999.

The act applies to all insurers transacting insurance business subject to

exceptions, restrictions and limitations, as specified by the Central Government.


23/72

The important provisions of the act relate, among other things, to:

a) Registration

b) Accounts and returns

c) Investments

d) Limitations in expenses of management

e) Solvency margin

f) Prohibition of rebates

g) Powers of investigation

h) Licensing of agents/corporate agents

i) Licensing of brokers/reinsurance brokers Advance payment of premium

j) Licensing of surveyors/loss assessors

k) Advance payment of premium

l) Tariff Advisory Committee

GENERAL INSURANCE BUSINESS (NATIONALISATION)

ACT, 1972

This act came into force on 1 st January, 1973.

Object of the Act

The object of the act, as stated therein, is

i. To provide for the acquisition and transfer of shares of Indian Insurance

Companies and undertakings of other existing insurer s.

ii. To serve better the needs of the company by securing the development of

general insurance business in the best interests of the community.

iii. To ensure that the operation of the economic system does not result in the

concentration of wealth, to the common detriment.

iv. For the regulation and control of such business and for matters connected

therewith or incidental thereto.


24/72

Establishment of General Insurance Corporation of India

The act provided that the Central Government shall form a Government

Company in accordance with the provisions of the Companies act, 1956 to be

known as the General Insurance Corporation of India for the purpose of

superintending, controlling and carrying on the business of general insurance.

Functions of GIC and the companies:

a) The carrying on of any part of the general insurance business if it thinks it

desirable to do so.

b) Aiding, assisting and advising the companies in the matter of setting up

standards of conduct and sound practice in general insurance business and

in rendering efficient service to policy holders.

c) Advising the companies in the matter of controlling their expenses and

investment of funds; and.

d) Issuing directions to companies in relation to the conduct of general

insurance business.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA):

Subsequently, The Insurance Regulatory and Development Authority act, 1999

came into being effective 19/04/2000

The Insurance Act, 1938 provided that the Government should appoint a

controller of Insurance, to ensure that insurance companies register under the act,

comply with the various provisions of the act. His duties included approval of theterms and conditions of various plans being offered by the companies, including

the adequacy of the basis of premier, scrutiny of the various returns on

investments, annual accounts, periodical actuarial valuations, etc. Required to be

submitted by the companies. The Controller also had powers to order special

investigations and also to take over the management of the companies.


25/72

The IRDA will consist of a chairperson and more than five whole time

members and not more than four part time members. The whole time members

shall hold office for 5 years or until the age of 62 (65 in the case of chairperson)

whichever is earlier. Part members will hold office for not more than 5 years.

The objects are stated in the act as follows:

a) An act provide for the establishment of an authority to protect the interests

of holders of insurance policies.

b) To regulate, promote and to ensure orderly growth of the insurance industry

and for matters connected therewith or incidental thereto.

c) And further to amend the insurance act, 1938, the Life Insurance

Corporation Act, 1956 and the general insurance Business (nationalization)

act, 1972.


26/72

The powers and functions of the authority are stated in the act as follows:

a) To regulate, promote and ensure orderly growth of the insurance and

reinsurance business.

b) Issue a certificate of registration, renew, modify, withdraw, suspend orcancel such registration to the applicant, i.e., insurance company.

c) To exercise all powers and perform all functions of the Controller of

insurance under the insurance act 1938 and other related acts as mentioned

above.

d) Prepare a code of conduct for the agents, surveyors and loss assessors or

the intermediaries who take part in the development of insurance business

and in the settlement of the claims.

e) To promote efficiency in the conduct of insurance business.

f) To promote and regulate professional organizations connected with the

insurance business.

g) To levy fess and other charges for carrying out the purpose of the proposed

act.

h) To regulate investment of funds by insurance companies.

i) To regulate maintenance of margin of solvency.

j) To adjudicate disputes between insurers intermediaries.


27/72

COMPANY PROFILE


28/72


29/72

PHILOSOPHY

Claim Settlement:

Lightning-fast claim settlement is one of the key areas of focus for ICICI

Lombard. Our dedicated relationship managers, wide spread network across India

and presence of 24 *7 call centers assure our customers that we are always on call,

day or night. Our tie-up with Cunningham Lindsey, the world s second largest loss

adjustors with its network in 80 locations across India, ensures a surveyor on site in

less than 24 hours.

Rural Initiative:

ICICI Lombard believes in striking the right balance between the commercial

and socio-economic aspects of the insurance business. In its Endeavour to offer

tailor-made products to meet the requirement of the rural population, explore

business opportunities in the related segments and build a competitive edge

through strong distribution network and product innovation, ICICI Lombard uses

intermediaries like ICICI Banks kiosks, direct selling agents, state-level tie-ups,

ITC s e -Chou pals, NGO s and other micro - finance Institutions (MFIs). The rural

segment offers immense business opportunities for insurers since it constitutes50% of the GDP. Growing per capita and disposable income and rising financial

awareness among rural masses has opened up new avenues for insurers in this

segment.

Corporate Business:

ICICI Lombard via its CSG segment aims to tap large corporate with high

premium potential. The company has emerged as a major player in the corporate

segment with a well-balanced portfolio. It has made forays into specialized

products that require complex product development and strong underwriting skills.

In addition, a strong distribution has enabled it to reach out to over 3,000

corporate. It also offers single point contact through dedicated relationship

managers for both sales and customer service.


30/72

Bank assurance

The Company has set up a dedicated SBU to cater to banc assurance business

managed by dedicated teams for each bank partner across all locations to ensure

highest levels of service to the channel and their customers and to provide

complete support and value addition to the bank partners. Our banc assurance

philosophy emphasizes on complete respect for the partner s brand and business

model with a clear understanding that the partner owns the customer. The

company has tied up with few partners like ABN Amro Bank, ICICI Bank, UTI

Bank etc, to ensure complete support and continuous value addition to the partner.

The business philosophy behind the banc assurance initiative is to leverage

distribution synergies with partners. The channel offers unmatched product suite

customized for bank channels and customers.

Retail

ICICI Lombard aims to tap retail segment through multi-product and multi-

channel approach to marketing. The company believes that retail segment has

immense potential and will drive the company s growth in future. It has presence

in all retail categories -- travel, health, home and motor. It has launched a numberof innovative products and features in each category like `Pay-per-day in Overseas

Travel Insurance and floater cover for individual Health Insurance. The key to

success in this area is effective market segmentation and targeted product offerings

that meet customer needs.

E-channel

ICICI Lombard s e -channel initiative has embraced technology with open

arms. The effective use of technology platforms has enabled customers to view all

their insurance transactions through the web on a real time basis. ICICI Lombard s

e-channel mainly focuses on targeting customers through Internet, intranet (of

large corporate and manufacturing companies) and other national level distribution


31/72

networks. The focus is on targeting customers through the online medium. The

model is to develop an integrated and customized

Product platform with key partners -- ICICI Direct, ICICI Bank, preferred partners

moneycontrol.com and indiatimes.com and other websites.Board Members

Mr. K V Kamath, Chairman

Mr. R Athappan, Director

Mr. R Athappan, Director

Mr. B V Bhargava, Director

Mr. Dileep Choksi, Director

Mr. James F Dowd, Director

Ms. Lalita D Gupte, Director

Ms Kalpana Morparia, Director

Mr. S Mukherji, Director

Mr. Chandran Ratnaswami, Director

Mr. H N Sinor, Director

Mr. Sandeep Bakhshi, Managing Director & CEO

COMMITTEES

Audit Committee

Mr. S Mukherji, Chairman

Mr. Dileep Choksi, Director

Mr. James F Dowd, Director

Investment Committee

Mr. Chandran Ratnaswami, Chairman

Ms. Kalpana Morparia, Director

Mr. Sandeep Bakhshi,, Managing Director & CEO

Mr. S Gopalakrishnan, Head Investments

Mr. Rakesh Jain, Head-Finance & Accounts

Mr. Liyaquat Khan, Appointed Actuary


32/72

Board Governance Committee

Ms Kalpana Morparia, Chairperson

Mr. Chandran Ratnaswami, Director

Mr. H N Sinor, Director

VALUES

Managing Risk

The ability to identify, quantify and manage risk is intrinsic to success in the

business of insurance. ICICI Lombard s risk management approach balances the

need to provide cost effective solutions to our customers while delivering optimal

shareholder returns. Success on both fronts is reflected in the numbers: while the

number of policies sold increased by 2.5 times in fiscal 2004, profits grew almost

ten- fold during the year. A strong capital base gives an insurer the ability to

service large claims in the event of a catastrophe. This is a key determinant of

growth as it provides comfort to customers in a business that is largely driven by

trust. Our reinsurance program is formulated in line with the guidelines laid down

by the Insurance Regulatory Authority of India (IRDA), which aims at optimumretention of premium within the country and adequate risk coverage and

diversification. Our choice of reinsurance partners is in turn determined by their

strong reputation, high credit rating and the alignment of their strengths with our

risk management objectives.


33/72

Staying ahead in managing risk through:-

A dedicated risk management team that constantly monitors the risk

exposure by customer, product and region.

An indigenously developed Risk Accumulation System that facilitates

online tracking of various risks down to the pin code level in any

geographical location.

Thus, our risk management program seeks to blend the objectives of

customer satisfaction and investor return while operating within the

statutory norms.


34/72

IT & Infrastructure:

ICICI Lombard has effectively used Information Technology to meet

growing customer needs while improving operational efficiency and profitability.

The company s IT strategy, architecture and successful Deployment form the

backbone of its business

Staying ahead in IT infrastructure through:-

Online Manager: A web-based interface that allows a customer to buy,

endorse and renew policy online. Claims intimation and status tracking also

forms part of the interface.

Using SMS technology to deliver timely alerts and reminders to keep

customers informed of various transactions.

Using intranet effectively to enhance employee productivity and simplify

human resource functions.

A state-of-the art data center with robust connectivity and support.

Highest security level offered through 128-bit encryption in case of online

data exchange.

The only company to provide digitally signed documents through the

online interface.


35/72

Distribution Reach:

ICICI Lombard General Insurance Company s endeavor is to become India s

preferred provider of the entire array of financial products and services. The

company has built a robust franchise network in association with its joint venture

partners to expand coverage. The company presently has 103 offices across India

manned by over 1,200 employees. It believes in targeting customers through multi-

channel route including direct sales, agents, brokers, banc assurance, alternate

channels and the Internet. Thus, the customers have number of channels to choose

from.

Human Resource:

ICICI Lombard believes in a progressive human resource philosophy that turns

human capital into a key source of competitive advantage. The capability and

motivation level of employees is a key determinant in success of any service-

oriented organization. Our employee strength is over 1,200. We have people from

diverse backgrounds viz. general insurance, banking, financial services, consumer

goods, telecom, automotive engineering etc.

Partnerships

Effective partnerships and alliances form an integral part of the company s

strategy. ICICI Lombard believes that a leveraged distribution model via

partnerships and alliances will be a key driver of its growth in future. Partnership

driven alliances model allows the company to cash-in on the partner s customer

network so that the customer gets a packaged offering of products.

Staying ahead in partnership through Banc assurance tie-ups

ICICI Bank

ABN Amro Bank

Rural Distribution tie-ups

ICICI Bank


36/72

Product Innovation:

Product innovation is key to business growth. ICICI Lombard believes in

challenging existing product assumptions and targeting new product-market

segments. This has helped the company in customer acquisition and retention as

well as in increasing category penetration. The company has launched a slew of

products and has emerged as a major player in the corporate and retail segment

driven by a well-balanced portfolio.

Staying ahead in product innovation through:-

During the year 2004: The company in coordination with the World Bank launched Weather Insurance.

The company s Overseas Travel Insurance is the only product in the market

that offers premium calculation on a Pay -per-day basis as against paying

premium on a slab-wise basis.

Unique Senior Citizen Overseas Travel Insurance Plan to cover senior

citizens up to the age of 85 years was launched by the company during the

year 2004. It is the only policy of its kind in the market.

Loan Care a first of its kind product to be launched in India protectingthe lender from borrower default on account of death, permanent disability,

loss of job and loss pay due to critical illness.

Channels

The Company follows multi-channel approach to tap customers. Depending

on the effectiveness, the following channels are used for sales, service and other

allied activities. The main objective of these channels is: To create value beyond the product .

To convert customer to clients.

To spread awareness about the company and its products.


37/72

Physical

Sales force, agents and brokers are the driving force behind the company s

business. They are the point of contact with the end customer and share the

company s vision of bringing innovative insurance solutions to customers'

doorsteps.

Direct:

The company s sales force -- sales executives and sales officers form the

company s backbone and are the most powerful assets b ehind our growth.

Indirect:

Brokers : Insurance broking plays a vital role in distribution of insurance solutions.

Through this channel, we plan to reach out to a wider customer base to increase

our market share. Customers look forward to insurance brokers for expert advice

on customized insurance solutions.

Agents: Agents are the face of the company and are critical to company s

growth. The company has individual and corporate as its agent.

Online:

ICICI Lombard has developed a web-based system to meet all the pre- and

post-policy transaction and MIS needs of its customers. The online initiative

supports online policy sales, which is directly linked to our payment gateway

server for online payments. The company uses the web integration process with its

channel partners to streamline its sales process, increase revenues and reduce costs,

delays and buyer dissatisfaction.


38/72

The main features of Online Insurance are:

Do It Yourself architecture.

Fast, convenient and easy.

Buy / renew policies.

24\7 access to all your policy details.

Regular premium renewal reminders.

Single view of all insurance policies held by an individual.

Online Manager: A tool to manage your entire insurance portfolio.

Instant issuance of digitally signed policies.

Most advanced technology and state-of-the art infrastructure.

Online claim intimation and status-tracking.

Bank assurance:

Banc assurance channel has been successfully deployed internationally to

distribute insurance products. ICICI Lombard is the only company with a

dedicated bank assurance distribution channel servicing over 50 locations through

a dedicated team of product managers, sales managers and sales executives.

Tele Sales:

Telesales channel is being used effectively by ICICI Lombard to sell, cross

sell and up-sell various products and services to customers. It is specially suited to

shorten sales cycle, increase revenues and profitability. The channel taps customers

through direct sales, institutional and relationship sales, transactional sales,

segment/account specific targeted sales, event-based activities, ongoing

communication to build trust and generate repeat purchase and tele-servicing.


39/72

The main role of tele sales is: As leads routers

As leads converter

As service support to Agency and other Sales Force

Customer Segments:

With our wide range of products, we cater to the needs of people from all

kinds of backgrounds. The profiles of our clients vary tremendously, and so do

their needs. In our endeavor serve them at our best; we have pages dedicated to

each segment.

Different Segments:

NRIs

Student

Rural & Agriculture

NRIs

ICICI Lombard brings insurance services for the Global Indian. If you are an

NRI, and your family or your parents are in India, your key concerns would be to

secure your assets back home (home /commercial property / motor) and the health

of your dependents in India. In addition, if your family or your parents are

planning to visit you abroad, you can opt for our travel plan to mitigate all travel

related risks. Moreover, it is lighter on your pockets too.


40/72

Rural Insurance:

At ICICI Lombard, investing in rural markets is seen as a keen social

responsibility. The protection provided to the rural class is specified and

customized according to their needs. Through a multiple channel system we not

only provide agricultural protection but also health, motor and other covers.

Products we offer

Health Insurance - We provide protection to the health of the rural folk through

three plans - Family Health Insurance, Poorna Suraksha Bima and Sampoorna

Arogya Bima.Home Insurance - Our comprehensive policy protects much more than just the

home. Through our network channels, we ensure that the houses in the rural sector

are insured against natural and other perils.

Tractor Insurance - Tractors are one of the most precious assets to the rural folks.

Our comprehensive package policy covers not just own damage but also third party

liability and personal accident.

Weather Insurance - Weather Insurance is an insurance cover against losses

incurred due to uncertainties in climatic conditions. It can be used to hedge anyvulnerability of assets or any other damage incurred due to erratic and irregular

weather.

Shop Insurance - Shop Insurance is a comprehensive policy that covers both the

structure and the contents of a shop and protects it against any financial loss in case

of an unfortunate incident.

Student Travel Welcome to Univ. Search where you can get a detailed report on

your university specific insurance needs. Different universities have different

insurance requirements and looking for an insurance plan covering all these can be

quite a task. We at ICICI Lombard have customized plans for over 150 universities

worldwide. Choose your university from the dropdowns below to get a detailed

report on your insurance needs.


41/72

The key benefits of ICICI Lombard Student Travel Insurance are:

Accepted by most of the foreign universities as a substitute for their

compulsory insurance.

University specific insurance plans to match the insurance requirements of

150 universities worldwide.

Buy the policy in Indian rupees, which is 1/3rd* the cost of buying abroad.

No pre-medical check-up required


42/72

PRODUCT PROFILE


43/72

PRODUCT PROFILE

1] STANDRARD FIRE AND SPECIAL PERILS

I] FIRE:

Excluding destruction or damage caused to the property insured

A.

a. It s own fermentation, natural heating or spontaneous combustion.

b. It s undergoing any heating or drying process.

B

a. Burning of property insured by order of nay public authority.

II] Lighting

III] Explosion Implosion

Excluding loss, destruction of or damage.

a) To boilers (other than domestic boilers), Economizers or other vessel,

machinery or apparatus (in which steam is generated) or other contents

resulting from their own explosion- implosion.

b) Caused by centrifugal forces.

IV] Aircraft damage

Loss, destruction or damage caused by aircraft, other aerial or space devices

and articles dropped there from excluding those caused by pressure waves.

V] Riot, strike and malicious damage

Loss or visible physical damage or destruction by external violent means directly

Caused to the property insured.


44/72

VI] Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and

inundation

Loss, destruction or damage directly caused by Storm, cyclone, typhoon, tempest,

hurricane tornado, flood and inundation excluding those resulting from earth

quake, volcanic eruption or other convulsions of nature.

VII] Impact Damage

Loss of or visible physical damage or destruction cause to the property insured

due

to impact by any rail road vehicle or animal by direct contact not belonging to or

Owned by

a) The insured or any occupier of the premises or

b) There employees while acting in the course of there employment

VIII] Subsidence and land slide including rockslide

Loss, destruction or damage directly caused by subsidence of part of the site

On which the property stands or land slide / rockslide excluding:

a) The normal cracking, settlement or bedding down of new structures.

b) The settlement or movement of made up ground.

c) Coastal or river erosion.

d) Defective design or workmanship or use of defective materials.

e) Demolition, construction, structural alterations or repair of any property or

ground works or excavations.

IX) Bursting and / or overflowing of water tanks apparatus and pipes.

X) Missile testing operations.

XI) Leakage from automatic sprinkler installations.

Excluding loss, destruction or damage caused by

a) Repairs or alterations to the buildings or premises.

b) Repairs, removal or extension of the sprinkler installation.

c) Defects in construction known to the insured.


45/72

XII) Bush Fire

Excluding loss destruction or damage caused by forest fires.

2] BURGLARY:

The company shall compensate the insured for any loss or damage, caused byburglary, to the contents of insured s premises.

3] CASH IN SAFE:

The company will compensate the insured in respect of loss of, or damage

to, money and/or valuables caused by burglary and/or attempted burglary when

such money and/or valuables are contained in a domestic safe or vault which is

protected by appropriate and adequate security measures with lock in key.

4] CASH IN TRANSIT

The company shall compensate the insured for loss of money in coins

and/or notes caused by burglary, robbery or theft occurring while such money is in

the insured s possession and is being conveyed by the insured to the insured s

premises from the insured s bank /ATM fro m where such money had been

withdrawn immediately prior to the occurrence.

5] NEON SIGN /GLOW SIGN:

The company will compensate the insured in respect of loss or damage to

neon sign/glow sign belonging to the insured caused by:

Accidental external means

Fire, lightning or external explosion or theft

Riot, strike or malicious act

Flood, inundation, storm, tempest, typhoon hurricane, tornado, cyclone.

6] GLASS BREAKAGE:

The company shall compensate the insured for loss or damage to any fixed

glass other than that which are specifically excluded hereunder, caused by any

accidental, external and visible means.


46/72

7] CHEQUE FORGERY:

The company shall compensate the insured for any loss to the insured caused

by forgery or material alteration of cheques, drafts or other negotiable instruments

issued by, or in favor of, the insured.

8] EMPLOYERS LIABILITY:

The company shall indemnify the insured against the legal liability of the

insured in respect of any bodily injury sustained by, or the loss of life of, the

insured s employees arising out of and in the course of their employment.

9] ACCIDENTAL, MEDICAL/HOSPITAL EXPENSES TO INSURED:

The company shall compensate the insured for actual and reasonable

medical expenses incurred for hospital treatment by the insured in respect of any

bodily injury sustained by the insured arising out of operation at an insured peril as

provided for in standard fire and special perils- buildings and standard fire and

special perils- contents and / or burglary, coverage s in this policy and subject to a

deductible excess of an amount as may be specified in part 1 of the schedule.

10] PUBLIC LIABILITY:

The company shall indemnify the insured for those sums that insured

becomes legally liable to pay, including litigation expenses and any amount in

compensation, by virtue of

The following items as specified occurring in and about the insured s premises.

Accidental death or bodily injury to any person other than insured or the

insured employees / staff. This coverage shall be limited to the sum insured

for any accident or series of accidents arising from any one event or cause,

and for all accidents during the period of insurance, and,

Accidental damage to property of any person other than the insured or

insured employees / staff. This coverage shall be limited to the sum insured

for any one accident or series of accidents arising from any one event or

cause, and for all accidents during the period of insurance.


47/72


48/72

Silver Plan:

The Silver plan covers the structure of your home and its contents from natural

and man-made calamities like fire, flood, storm and burglary. The add ones offered

include expenses of rent for alternative accommodation and terrorism.

Motor Insurance:

Your vehicle helps you reach destinations and enables you to commute from

one place to another. But it might face some damage in an accident or get stolen.

The security of your co-passengers can be endangered during accidents. Motor

insurance takes care of all these possibilities and more.

Motor Plans

Four Wheeler Package Policy:

A comprehensive policy that not only covers you against third party but

also against accidents, damage, injury and much more.

Two Wheeler Package Policies:

.A composite policy that protects you against unfortunate accidents, third party

liability, injuries and damages.

Travel Insurance:

You do not want anything to ruin your hard earned holiday or your crucial

business meeting. There is a possibility of some unexpected occurrence no matter

how perfectly you plan your trip. Unfortunate events such as baggage loss,

passport loss, a medical emergency or an accident can affect you. Having Travel

Insurance protects you from all such perils at a fraction of the cost of your trip.

Travel Plans

Individual Overseas Plan:

All overseas travel policies charge premium on a slab basis. Which means if you

are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days.

But with us you pay per day .


49/72

Student Travel Plan:

A comprehensive cover, which insures you against unfortunate incidents or

unexpected expenses abroad and provides timely assistance and support when you

need it the most.

Domestic Travel Plan:

Domestic Travel policy takes care of you and your valued assets left at home. A

policy that let s you enjoy your trip leaving your worries with us


50/72

DATA ANALYSIS ANDINFERENCES


51/72

DATA ANALYSIS AND INFERENCES

1] Are you aware of Office insurance?

Table1:

Particulars No .of Respondents Percentage

Yes 67 83.75

No 0 0

Little bit 13 16.25

Total 80 100

Source: Field Study

Customer Awareness about Office InsuranceLiittlebit

16%

No0%

Yes84%

, The response given by respondents 83.75 are aware of office insurance and

16.25 knows very little about office insurance This clearly shows that there is no

proper advertisement reach to the people.


52/72

Q2] If Yes, How do you come to know about Office Insurance?

Table 2:

Media No.of Respondents Percentage

TV 40 50

Newspapers 19 23.75

Agents 21 26.25

Total 80 100

Source: Field Study

Newspapers

24%

Agents26%

TV50%

It is depicted from the chart that,

50% of respondents came to know through television.

23.75% of respondents came to know through news papers.

26.25% of respondents came to know through agents

Major of the respondents came to know through television.


53/72

Q3] Which factor is important in your eye for purchasing insurance policy?

Table 3:

Factor No.of Respondents Percentage

Company 43 53.75Premium 17 21.25

Service 20 25

Total 80 100

Source: Field Study

43

1720

0

10

20

30

40

50

Company Premium Service

The chart depicts that,53.75% prefer company as an important factor where as

21.25%prefer for premium and 25% prefer service as an important factor for

purchase of insurance policy.


54/72

Q4] How many employees are there in your office?

Table 4:

Employees No.of Respondents Percentage

More than 5 53 66.25More than 10 17 21.25

More than 20 10 12.5

Total 80 100

Source: Field Study

53

1710

0

10

20

30

40

50

60

More than 5 More than 10 More than 20

The above chart shows that,

66.25% of respondents have more then 5,21.25% of respondents have more then

10 and 12.5% of respondents have more then 20.


55/72

Q5] Would you like to have Office insurance?

Table 5:

Particulars No.of Respondents Percentage

Yes 20 25No 60 75

Total 80 100

Source: Field Study

Yes25%

No

75%

Out of 80 respondents, 25% of respondents want to have office insurance policy

and 75%of respondents don t want to have it. The above chart shows that there is a

potential market for office insurance products. Most of the respondents those who

want to have office insurance are of newly opened offices & shops.


56/72

Q6] If yes, Which Company Services do you prefer to avail?

Table 6:

Company No.of Respondents Percentage

ICICI Lombard 5 25HDFC Chubb 0 0

United India 10 50

Oriental 5 25

Total 20 100

Source: Field Study

5

0

10

5

0

2

4

6

8

10

ICICI

Lombard

HDFC Chubb United India Oriental

The chart depicts that, 25% of the respondents wants to avail services of ICICI

Lombard, 50%of the respondents wants to prefer united India and 25%wants to

prefer services of oriental. The data shows around 25% of people are interested in

taking insurance in ICICI Lombard it means there is an opportunity for company to

capture the market. Most of the respondents want to avail services in government

companies.


57/72

Q7] Which type of insurance policy you would like to have?

Table 7:

Type No.of Respondents Percentage

Yearly Renewal 17 85

Others 3 15Total 20 100

Source: Field Study

YearlyRenewal

85%

Others

15%

The above chart shows that 85% of respondents would like to have Yearly renewal

policy and 15% of respondents want to have others.


58/72

Q8] Which product services you are planning to avail?

Table 8:

Product services

No.of

Respondents Percentage

Fire Insurance 12 60Electronic Insurance 5 25

Burglary Insurance 3 15

Total 20 100

Source: Field Study

12

5

3

0

2

4

6

8

10

12

FireInsurance

ElectronicInsurance

BurgularyInsurance

It is depicted from the chart that 60% of respondents trying to avail Fire

insurance,25% of respondents planning to avail Electronic insurance and 15% of

respondents trying to avail Burgulary insurance.


59/72

Q9] When you are going to have new insurance policy?

Table 9:

Particulars

No.of

Respondents PercentageWith in 15 Days 5 25

15 to 30 Days 15 75

30 to 45 Days 0 0

Total 20 100

Source: Field Study

With in 15Days25%

30 to 45Days

0%

15 to 30Days75%

Out of 20 respondents, 25% of respondents wants to have insurance policy with in

15 days, 75% of respondents wants to have with in 30 days.


60/72

Q10] How do you rate about services?

Table 10:

Opinion

No. of

Respondents PercentageVery Good 8 40

Good 10 50

Normal 2 10

Total 20 100

Source: Field Study

Good50%

Normal10%

Very Good40%

ICICI Lombard customers rated the services are as,

40% of respondents said very good

50% of respondents said good and

10% of respondents said normal.


61/72

Q11] How much premium are you paying now?

Table 11:

Amount

No.of

Respondents PercentageMore then Rs.2000 4 20

More then Rs.5000 4 20

More then Rs.8000 12 60

Total 20 100

Source: Field Study

More thenRs.5000

20%

More thenRs.2000

20%

More thenRs.8000

60%

The above chart depicts that 20% of respondents paying premium more then

Rs.2000,20% of respondents paying premium more then Rs.5000 and 60% of

respondents paying more then Rs.8000.major of the respondents are paying more

then Rs.8000 are of big offices and important customers to the company.


62/72

Q12] Do you feel it s really economical?

Table 12:

Particulars

No.of

Respondents Percentage

Yes 14 70No 6 30

Total 20 100

Source: Field Study

Yes

2

83%

1

17%

Customers believed of policy economical like this,

70% of respondents said YES.

30% of respondents said NO


63/72

Q13] Have you ever contacted customer help desk?

Table 13:

Particulars

No.of

Respondents PercentageYes 16 80

No 4 20

Total 20 100

Source: Field Study

1 6

4

0 5 10 15 20

Yes

No

The above chart depicts that 80% of respondents contacted customer help desk and

20% of respondents did not contacted customer help desk.


64/72

Q14] If yes, What is your opinion about customer help desk?

Table 14:

Opinion

No.of

Respondents PercentageGood 10 50

Ok 8 40

Poor 2 10

Total 20 100

Source: Field Study

1 0

8

2

0 2 4 6 8 10 12

Good

Ok

Poor

Out of 20 respondents, 50% of respondent s opinions about customer help desk is

good, 40% of respondents told ok and 10% of respondents told poor. Major of the

respondents told they are happy regarding the information and service provided by

customer help desk.


65/72

Q15] For what reason you dial to our customer help desk?

Table15:

Particulars No.of Respondents Percentage

Product relatedenquiry 12 60

To renew policy 8 40

To Complaint 0 0

Total 20 100

Source: Field Study

To renewpolicy

ToComplant

Produc

relatedenquiry

The customers dial up to customer help desk for the following reasons.

60% customer dial up for product related enquiry

40% customers dial up for to renew policy


66/72

SUMMARYOFFINDINGS


67/72

FINDINGS

1. All respondents have awareness about office insurance.

2. Majority of respondents told they were come to know about office

insurance through television and agents.

3. Majority of respondents told employees are more then 5.

4. There is a market potential for office insurance products.

5. Majority of respondents believe in Government owned insurance

companies.

6. There is a market potential for ICCI Lombard office insurance products.

7. Majority of respondents told they are trying to avail Fire insurance and

electronic equipment insurance for their offices.

8. Most of the respondents said they are going to have insurance with in

15to30 days.

9. Majority of respondents told they have satisfaction with the service of the

company. and customer help disk.

10. Most of the customers told they dial to customer help disk for product

related enquiry.

11. All general insurance policies are yearly renewal policies.

12. Premium amount for general insurance policy is low and it is not

refundable.

13. Majority of respondents told their paying premium is economical.

14. Majority of respondents are frequently contacting customer help desk.

15. Majority of respondents told company is the main factor for purchasing

insurance Policy.


68/72


69/72

RECOMMENDATIONS

Respondents do not have enough knowledge about the insurance policies

provided by the ICICI LOMBARD. Therefore ICICI LOMBARD Company

should bring awareness in the customers.

The recommendations I would like to make are:

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

insurance company through TV, news papers, magazines and pamphlets

to make aware the customers about the insurance provided by them.

Need for proper channel to reach to the customer.

Marketing executives and agents should maintain good communication

with the customers to create the awareness of the policies like Mediclaim,

GPA (Group personnel accidental) burglary, and other insurance policies

provided by the company.

The employees should be given incentives and bonus to motivate to

accomplish their targets.

ICICI LOMBARD is concentrating only urban areas it should concentrate

on semi urban and rural areas also.

As it was found that customers preparing only Government companies for

their office insurance so create trust in costumers about private insurance

companies by rendering good services like proper claims, good response

to costumer queries and maintaining good relationship with costumers.


70/72

CONCLUSION

It is concluded from the survey that all respondents are aware about office

insurance and they think they need insurance for their offices.

It is concluded from the survey that customers preparing only Government

companies for their office insurance so create trust in costumers about private

insurance companies by rendering good services like proper claims, good response

to costumer queries and maintaining good relationship with costumers.

Most of customers are using only Fire and electronic equipment insurance

policies so marketing executives and agents maintain good communication with

the customers to create the awareness of the policies like Mediclaim, burglary and

GPA


71/72

BIBLIOGRAPHY


72/72

BIBLIOGRAPHY

BOOKS:

1) MARKETING MANAGEMENT PHILIP KOTLER

2) MARKETING RESEARCH CHURCHILL, AAKER KUMAR AND DEY.

3) CONSUMER BEHAVIOR SCHIFFMAN

WEB SITES-

WWW.ICICILOMBARD.COM

WWW.GOOGLE.COM
http://www.google.com/http://www.icicilombard.com/

Documents

ICICI Lombard General Insurance Co Ltd-Satish Musti-0439