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1
PROJECT REPORT
ON
GENERAL INSURANCE &
AGENT ACQUISITION IN
SOM-LALIT INSTITUTE OF
BUSINESS MANAGMENT
SUBMITTED BY
UJJAWAL C SHELAT
2
CONTENT
CHAPTER
No.
Topic No. PARTICULAR
CHAPTER- 1 1 Preface
CHAPTER- 2 2 Acknowledgement
CHAPTER- 3 4 Executive Summary
CHAPTER- 4 5 Introduction 6 Introduction of Insurance sector 7 Introduction of History 8 Life Insurance The Time Line 9 About Industry 10 Multiple Distribution Channel 11 Multi Channel Approach 12 Organization Chart
13 Role of Insurance
14 IRDA 15 About Co. 16 ICICI Group 17 Current Scenario 18 The Opportunity 19 About us
20 Product Basket 21 Rewards
CHAPTER- 5 22 Training 23 Responsibilities 24 Market Share 25 Awards 26 About the promoters 27 Distribution 28 Product 29 Board of Directors 30 Management Team 31 Target & Task 32 Recruitment Strategies 33 Strategies Adopted 34 Procedure of Recruitment
3
35 Analysis of Performance Vs. Target 36 Limitations
CHAPTER- 6 37 Learning at Executive Training 38 Purpose of agency development 39 Tied agency
CHAPTER- 7 40 Agent the process 41 agency channel 42 Scenario of Ahmedabad City
CHAPTER- 8 43 Findings and Solutions
CHAPTER-9 44 Conclusion 45 Executive Summary
CHAPTER-10 46 Bibliography
4
PREFACE
India is on the threshold of being an open and liberated economy.
Globalization has changed the rules of competition, forcing Indian corporations
to expand beyond their traditional markets even as the face incursion of
foreign companies at home.
True learning is born out of experience and observation. There is a
large gap between theoretical knowledge and practical knowledge about
handling and managing a business. Only bookish knowledge cannot help me in
building up an effective administrator. So as a part of the syllabus of MBA
programmed, we all students are supposed to analyze the functional working
of any of the organization which gives us an opportunity to relate theoretical
knowledge with real corporate situations. A thorough and practical study,
knowledge and learning can only be useful to become more eligible and
competitive. It also helps to improve my analytical skill, communication skill
and knowledge.
This project is totally based on primary data and secondary data. Information
about Marketing and different organizational processes has been collected
from ICICI Lombard office.
In this project I have tried to analyze how to recruit agents in context of
general Insurance Industry and different organizational processes of ICICI
Lombard and sale policies of ICICI Lombard.
5
Acknowledgement
“Project” words seem to be gigantic. It could not be completed on my own.
This is the proper time where I want to thank all of them who have directly or
indirectly help in carrying out the activities.
It’s my delight to use the opportunity for conveying my thanks to all, who
motivate and supported throughout the project duration.
I would like to say thanks to my company guide Mr. Parad Inamdar (Sales
Manager) for his constant support and his guidance, also I extent my gratitude
towards Mr. Abhishek Shah (Unit Sales Manager) for his constant effort for
making us better all the time, I would also like to thank all the staff of ICICI
LOMBARD, especially, Ajay Sir who was constantly inspiring us for incurring our
best performance, also to Rasesh Sir, Mr. Nikhil, and also to the security staff,
Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.
It’s my pleasure to say thanks to Ms. Rubi Saiyyed our SIP co-coordinator &
respected Principal Dr. Jagdish Joshipura, without help of whom I can’t see the
project to be completed. It’s their constant support and timely advises that
helped me in carrying out the project successfully.
I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun
Toliya, Ashok Chauhan, Divya Patel & Pooja Nair who have given their
constant support and motivation to do the task.
I don’t want to miss the opportunity to be thankful of the Almighty God, who
rules the world, & my family who were always been helping hand for me.
Hearty thanks to you all.
6
EXECUTIVE SUMMARY
Insurance industry in India has undergone a sea change in terms of delivering
value added services to the rising consumerism in India. The insurers are
constantly adopting innovative distribution channels in alliance with other
financial counterparts. Also new custom made products are introduced in the
market after through assessment of current requirements of customer needs.
Insurance companies have realized the need for higher returns on life
insurance product, introduced by many insurance companies, have made
returns transparent.
Today insurance companies are getting larger share of their collection through
tied agency channel of distribution. The LIC has channel well developed and of
wide reach. The mentality of most of the people in India is that they are ready
to buy insurance from a person whom they know, who is also doing the
business for quite a time, who can give advise in financial planning, and also
collect the premium from them. This shows the importance of tied agency
channel. There is still a wide scope for private life insurers in selection of
agencies. The rural India is almost out of the private life insurer’s functional
area, though they are slowly, firmly and aggressively making their presence
felt.
The large part of the mobilization of the rupee by life insurers comes from
government employees. This is because of the fact that government gives tax
benefits if employees invest in life insurance. This is clearly reflected in the
study conducted about life time plan among the employees.
ICICI Lombard General Insurance Company is a 74:26
ICICI Bank Ltd. &
Holdings Limited.
ICICI Bank is India’s second largest
diversified financial corporate engaged in general insurance, reinsurance,
insurance claims manag
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
commence general ins
ICICI Lombard General Insurance Company is a 74:26
ICICI Bank Ltd. &
Holdings Limited.
ICICI Bank is India’s second largest
diversified financial corporate engaged in general insurance, reinsurance,
insurance claims manag
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
commence general ins
ICICI Lombard General Insurance Company is a 74:26
ICICI Bank Ltd. & the $ 26 billion Canadian based company Fairfax Financial
Holdings Limited.
ICICI Bank is India’s second largest
diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
commence general insurance business in August 2001
ICICI Lombard General Insurance Company is a 74:26
the $ 26 billion Canadian based company Fairfax Financial
ICICI Bank is India’s second largest
diversified financial corporate engaged in general insurance, reinsurance,
ement and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
urance business in August 2001
ICICI Lombard General Insurance Company is a 74:26
the $ 26 billion Canadian based company Fairfax Financial
ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
ement and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
urance business in August 2001
ICICI Lombard General Insurance Company is a 74:26 joint venture between
the $ 26 billion Canadian based company Fairfax Financial
while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
ement and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
the Canada’s oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to
urance business in August 2001
joint venture between
the $ 26 billion Canadian based company Fairfax Financial
while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
ement and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
ICICI Lombard General Insurance Company received regulatory approvals to
urance business in August 2001
joint venture between
the $ 26 billion Canadian based company Fairfax Financial
while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
ICICI Lombard General Insurance Company received regulatory approvals to
7
joint venture between
the $ 26 billion Canadian based company Fairfax Financial
while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance,
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of
ICICI Lombard General Insurance Company received regulatory approvals to
8
INTRODUCTION
CONTENTS:
� INTRODUCTION OF INSURANCE SECTOR
� CURRENT SENARIO
� MAIN INSURERS
� IRDA
New Idea of
insurance
9
INTRODUTION TO INSURANCE
SECTOR
We face a lot of risks in our daily lives. Some of these lead to financial losses.
Insurance is a way of protecting against these financial losses. For a payment
(premium), an insurance company will take the responsibility of compensating
your financial losses.
Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against fire,
burglary etc.
Private Sector Market Share:
10
Take a look at these statements:
� You carry loan on your dream home than it is much important to
protect that house from any natural or manmade calamities by
insuring it on that home.
� You are securing it against the uncertainty which includes risk in it.
� You are carrying huge risk if you are driving car without insurance.
� Even your family and kids may be exposed to any risk factor which
may affect their future life and your savings too if you are not
having medical policy
� Medical policies are also useful for tax benefit.
If you identify any of the above need as a saving boon for you then, you shall
clearly understand the need of General insurance acts as a buffer against
uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of
your policy premium is eligible for tax rebate under section 80D.
11
1. What is non-life insurance and why do you need it?
Whether it is your home, your health or your business, everything is
exposed to any danger in these times. Non-life insurances you for calamities
like these at a minimal amount.
2. In what manner is a non-life claim settled?
The following steps are carried out:
� The claim is filed by the person suffering the loss
� A preliminary survey is conducted
� The final survey report is submitted on receipt of all your documents
� The claim payment is released
3. Tax implications of taking an insurance cover
A percentage of the amount that you invested mediclaim policy is
allowed, depending upon your total premium, as a tax rebate under section 88
against provisions of the income-tax liability, subject to provision of the
income-tax Act. Presently, there is a 12.36%service tax is applicable on general
insurance premium.
4. How much insurance should you have?
Insurance companies often conduct a thorough personal finance review and
use the concept of Human Life Value to ascertain the correct amount of
insurance you should have. “Human life value” is the net present value of
your potential future earning for the rest of your working life span. This is
typically a factor of your annual income.
12
5. In what manner do you evaluate the policies?
Decide the type of policy you want after asking some basic questions.
� What are the returns offered by the policy?
� What is your risk profile?
� Can you sustain payment of the premium amount?
� Is there flexibility in premium payment?
� How good is the surrender value of the policy?
Once you decide on these, you will be able to select better.
What is insurance? “Insurance is a financial service for the saving of the public and providing them
with risk coverage”
Thus in insurance,
The Risk
The Insured the Insurer
General definition: “insurance is a plan by which large number of people
associate and transfer to the shoulders of all risks that attach to individuals.”—
JOHN MAGEE
13
Fundamental definition: “insurance is accumulated contributions of all parties
participating in the schemes”--- D. S. HANSELL.
Contractual definition: “insurance is a contract in which a sum of money is paid
to the assured as consideration of insurer’s incurring the risk of paying a large
sum upon a given contingency”--- JUSTICE TINDAL.
PRINCIPLES OF INSURANCE
� Principle of utmost good faith
� Disclosure of all facts
� Principle of Indemnity � Loss indemnified
� Not to earn profit
� Doctrine of Subrogation � Hold negligent person responsible for the loss
� Prevent the insured from collecting twice
� Principle of Causa Proxima � Cause of loss must be direct and insured
� Principle of Insurable Interest � Direct benefit to insured from the asset insured
14
Why do you need insurance cover?
Insurance provides a protection to the customers from certain and uncertain
risks. Certain risk involves events like death, retirement, pension, education,
marriage, etc. uncertain risk includes events like theft, accidents, fire and
earthquake risks.
In general insurance fire, accidents, medical claim and because of that if
third party damages occur than it also covered in it. General insurance is only
for unexpected or uncertain risks. Now there are more than 14 companies
under it. Government is more giving priority on medical policies as now
medical expenses are more expensive and for that tax benefits also available
for this kind of policies.
15
History of insurance sector
.
History of Insurance Business
Insurance probably made a beginning in the ancient land of Babylonia In
the 18th century B.C., Babylonian king Hammurabi developed a code of law,
known as the Code of Hammurabi, which codified many specific rules
governing the practices of early risk-sharing activities. For instance, the code
dictated that traders had to repay merchants who financed trading voyages
unless thieves stole goods in transit, in which case debts would be cancelled.
This was similar to the system of insurance known as bottomry which
existed in Phoenicia in 1200 B.C. In this system, backers loaned money to
merchants to finance voyages. Merchants offered their ships (the hull was
known as the ship’s ‘bottom’) as collateral for such loans. When a trip
succeeded, the merchant would pay the trip’s backer the original loan plus
interest, the equivalent of a premium. If a ship went down on its voyage, the
trip’s backer would cancel the merchant’s loan. The Greeks and Romans
developed the earliest systems of life insurance. They formed societies which
paid dues that went toward paying for the burial of members. Sometimes
these societies also paid for the living expenses of deceased members’
families. During the Middle Ages (5th to 15th centuries A.D.), workers joined
together in craft. Many guilds, particularly in England and Italy, provided
benefits to workers and their families in the event of illness or death.
16
Lloyd’s
Insurance as we know it today took its shape in 17th century England.
There was a place called Lloyd's Coffee House in London, owned by Edward
Lloyd, where merchants, ship-owners and underwriters met to discuss and
transact business. The Lloyd’s Act was passed in 1871 incorporating the
members of the association into a single corporate body with perpetual
succession and corporate seal. It extended from marine insurance to other
insurance and guarantee business. Today, Lloyd's has become the world's best
known insurance brand. It is commonly misunderstood that Lloyd's is an
insurance company. Actually, it is a society of members, known as
‘underwriters’, both corporate and individual, who underwrite in syndicates on
whose behalf professional underwriters accept risk. Thus, supporting capital is
provided by investment institutions, specialist investors, international
insurance companies and individuals.
Any insurer who wants to become a member of the association has to
deposit a certain fee as security for the regular payment of his liabilities. The
association will inquire about the financial position of the concern, business
reputation and experience. The business is conducted by these insurers called
underwriters, syndicates etc. Anybody desirous of taking insurance will
approach the ‘underwriters’ and not the ‘association’. Each underwriter will be
responsible for his business underwritten. Usually, the policy is underwritten
by several underwriters and their share or portion is fixed individually. If there
is claim on the policy, the insured gets the money from all the underwriters
according to their respective shares. If an underwriter fails to pay, the amount
is realized from the security taken at the time of enrolment from the
underwriter. Lloyd’s as a corporation is never liable on any policy.
Lloyd’s brokers bring business to the market. The risks placed with
underwriters originate from clients and other brokers and intermediaries all
over the world. Together, the syndicates underwriting at Lloyd's form one of
the world's largest commercial insurers and a leading reinsurer.
17
History of India’s Insurance Business
We find the term ‘Yogakshemam Bahamayam’ in our ancient texts. This
suggests that a form of "community insurance" was prevalent around 1000 BC
and practiced by the Aryans. In modern times, Triton Insurance Co. Ltd. was
the first general insurance company to be established in India in 1850. The
Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge same premium for both Indian and non-Indian lives.
The Oriental Assurance Company was established in 1880. Thereafter, many
players emerged. By 1956, there were around 240 private life insurers and
more than 100 general insurers. The Government of India, concerned by the
unethical standards adopted by some players against the consumers,
nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The
government brought together life insurers under one nationalized monopoly
corporation and LIC was born. The general insurance business remained in the
private sector till 1972. Then, nearly 107 insurers were amalgamated and
grouped into four companies- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance
Company. They were subsidiaries of the General Insurance Company (GIC).
18
Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and
RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance
industry and recommend its future direction. Financial sector reforms were
initiated and it was felt that insurance is an important part of the overall
financial system where it was necessary to address the need for similar
reforms. Some of the recommendations of the Malhotra committee included:
� Government stake in the insurance Companies to be brought down 50%.
� Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations
� All the insurance companies should be given greater freedom to operate
� Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry
� No Company should deal in both Life and General Insurance through a
single entity
� Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
� The Insurance Act should be changed. An Insurance Regulatory
body should be set up.
19
� Investments- � Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.
� GIC and its subsidiaries are not to hold more than 5% in any company
� Customer Service � LIC should pay interest on delays in payments beyond 30 days � Computerization of operations and updating of technology to be carried
out in the insurance industry.
The committee emphasized that it was essential that the sector was
open to competition to improve the customer services and increase the
coverage of the insurance industry. However, enough precaution should be
exercised to prevent failure of the new entrants .Hence a minimum capital
requirement of Rs.100crores was stipulated. To provide greater autonomy to
insurance companies and enable them to act as independent companies, it
proposed setting up an independent regulatory body.
20
About Industry
INSURANCE INDUSTRY AT GLANCE
Many may not be aware that the life insurance industry of India is as old
as it is in any other part of the world. The first Indian life insurance company
was the Oriental Life Insurance Company, which was started in India in 1818 at
Kolkata. A number of players (over 250 in life and about 100 in non life) mainly
with regional focus flourished all across the country. However, the Govt. of
India, concerned by the unethical standards adopted by some players against
the consumers, nationalized the industry in two phases in 1956(life) and in
1972(non-life). The insurance business of the country was then brought under
two public sector companies, Life Insurance Corporation of India (LIC). In line
with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on (popularly called the Malhotra
21
Committee) in April 1993 to suggest reforms in the insurance sector. The
Committee recommended throwing open the sector to private players to usher
in competition and bring more choice to the consumer. The objective was to
improve the penetration of insurance as a percentage of GDP, which remains
low in India even compared to some developing countries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and
Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent
regulatory authority, which has put in place regulations in line with global
norms. So far in the private sector, 12 life insurance companies and 9 general
insurance companies have been registered.
22
ROLE OF INSURANCE
� The companies conducting business of insurance are referred to as `Insurers’. The
terms `insurance company' and `insurer' are interchangeable.
� Various groups of people are exposed to different types of risks, such as:
• People engaged in marine trade are exposed to the risks like damage to
goods, sea piracy, sinking of ship, vessel colliding with another vessel etc.
• Factory owners are exposed to different type of risks like fire, lightning,
hailstorm, flood, earthquake, burglary, etc.
� Insurers form a `group' of those persons who are exposed to the same risks. The
shares/contributions (called premium) collected from each of them, are pooled
together to create a common fund. Every premium represents a corresponding risk,
which it seeks to cover. These funds are held in trust for the benefit of the
policyholders. Compensations (claim) to those, who suffer, are paid out of this fund.
� Insurer's role is that of a trustee and it has to ensure that nobody takes undue
advantage. The insurer does this by:
• Preventing entry of people carrying higher risks through the process of
underwriting of risks
• Preventing payment of claims on losses that are not accidental.
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
Mission
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Ac
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority.
The Authority is a ten member team consisting of
(a)
(b)
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
Mission
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Ac
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority.
The Authority is a ten member team consisting of
a Chairman;
five whole
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
incidental thereto.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Ac
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority.
The Authority is a ten member team consisting of
a Chairman;
five whole-time members
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority.
The Authority is a ten member team consisting of
time members;
When in government decided to privatize insurance sector in 1999, strong need
of a Regulatory authority was felt. This was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
Composition of Authority under IRDA Act, 1999
t' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
The Authority is a ten member team consisting of
When in government decided to privatize insurance sector in 1999, strong need
was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
Composition of Authority under IRDA Act, 1999
t' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
The Authority is a ten member team consisting of
When in government decided to privatize insurance sector in 1999, strong need
was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
(Insurance Regulatory and Development Authority) was born.
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
Composition of Authority under IRDA Act, 1999
t' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
When in government decided to privatize insurance sector in 1999, strong need
was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
Composition of Authority under IRDA Act, 1999
t' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
23
When in government decided to privatize insurance sector in 1999, strong need
was in the backdrop of experience of
investors who had been robbed before through various financial scams such as
stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA
To protect the interests of the policyholders, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or
t' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
24
(c) four part-time members,
(all appointed by the Government of India)
Duties, Powers and Functions of IRDA
• Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration;
• Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;
• Specifying the code of conduct for surveyors and loss assessors;
• Promoting efficiency in the conduct of insurance business;
• Promoting and regulating professional organizations connected with the
insurance and re-insurance business;
• Regulating investment of funds by insurance companies;
• Regulating maintenance of margin of solvency;
• Adjudication of disputes between insurers and intermediaries or
insurance intermediaries;
• Supervising the functioning of the Tariff Advisory Committee;
• Specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations
referred to in clause above;
25
• Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or social
sector; and
• Exercising such other powers as may be prescribed.
About company
ICICI Lombard General Insurance Company Limited is 74:26 joint ventures
between ICICI Bank Limited and the Canada based $26 billion Fairfax Financial
26
Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax
Financial Holdings is a diversified financial corporate engaged in general
insurance, reinsurance, insurance claims management and investment
management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is
one of Canada's oldest property and casualty insurers. ICICI Lombard General
Insurance Company received regulatory approvals to commence general
insurance business in August 2001. Also ICICI Lombard is No. 1 insurance
company as far as private sector is concerned. Its core competency is in highest
and fastest claim settlement which attracts most of the customers. As far as
insurance sector is concerned all the insurance companies are under common
General Insurance Company limited same as Life Insurance Corporation. There
is cut throat competition in the market as there as more than PSU as well as
private sector player in the field of insurance. Also still on 0.68% in penetrated,
so there are lots of opportunities for companies to grow and perform well with
its core competencies. Its still long way to go, because there is need of
customized insurance that will really be a boon for customer, still we can see
that there is lack of decentralization as underwriter approval are to be taken
each and everywhere. But ignoring that we can say that insurance sector is
booming like anything. And ICICI Lombard is a key player in private sector
which is capturing huge part of market. It is following various marketing
27
Strategies and huge advertisement campaign that always keeps aware to the
people about its existence and its products.
Thus there is still long way to go, also various foreign companies are yet to
come, as they seek lots of business opportunities as there is so much yet to be
explored in India.
28
(ICICI GROUP)
ICICI LOMBARD CORE VALUES
Why ICICI Lombard
online data exchange
interface
ICICI LOMBARD CORE VALUES
• INTEGRITY
• HUMANITY
• POSITIVITY
• SENSIVITY
• PASSION
Why ICICI Lombard
India's number one private general insurance company
First general insurance company in India to be
Assigned the
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128
online data exchange
First company to provide digitally signed documents through an
interface
Achieved financial
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
INTEGRITY
HUMANITY
POSITIVITY
SENSIVITY
PASSION
Why ICICI Lombard
's number one private general insurance company
First general insurance company in India to be
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
online policy issuance
Comprehensive product line
Highest security level offered through 128
online data exchange
First company to provide digitally signed documents through an
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
INTEGRITY
HUMANITY
POSITIVITY
SENSIVITY
Why ICICI Lombard
's number one private general insurance company
First general insurance company in India to be
rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
online policy issuance
Comprehensive product line
Highest security level offered through 128
First company to provide digitally signed documents through an
breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
's number one private general insurance company
First general insurance company in India to be
rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
online policy issuance
Comprehensive product line
Highest security level offered through 128
First company to provide digitally signed documents through an
breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
's number one private general insurance company
First general insurance company in India to be ISO 9001:2000
rating by ICRA indicating highest claims paying ability
Highest security level offered through 128-bit encryption in case of
First company to provide digitally signed documents through an
breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
's number one private general insurance company
ISO 9001:2000
rating by ICRA indicating highest claims paying ability
bit encryption in case of
First company to provide digitally signed documents through an
breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
ICICI LOMBARD CORE VALUES
ISO 9001:2000 certified
rating by ICRA indicating highest claims paying ability
bit encryption in case of
First company to provide digitally signed documents through an
breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
29
certified
rating by ICRA indicating highest claims paying ability
bit encryption in case of
online
Adjudged as the 'General Insurance Company of the Year' at the 11th
Asia Insurance
Awarded the NDTV Profit Business
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
2006
Awarded the Best Housing Insurance in th
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
March 31, 2006
Adjudged
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005
Adjudged as the 'General Insurance Company of the Year' at the 11th
Insurance Industry Awards 2007
Awarded the NDTV Profit Business
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
Awarded the Best Housing Insurance in th
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
March 31, 2006
Adjudged amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005
Adjudged as the 'General Insurance Company of the Year' at the 11th
Industry Awards 2007
Awarded the NDTV Profit Business
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
Awarded the Best Housing Insurance in th
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005
Adjudged as the 'General Insurance Company of the Year' at the 11th
Industry Awards 2007
Awarded the NDTV Profit Business Leadership Awards 2007 in the
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
Awarded the Best Housing Insurance in th
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Singapore during September, 2005
Adjudged as the 'General Insurance Company of the Year' at the 11th
Leadership Awards 2007 in the
General Insurance category on July 27, 2007
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
Awarded the Best Housing Insurance in the Smart Living Awards by 360
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Adjudged as the 'General Insurance Company of the Year' at the 11th
Leadership Awards 2007 in the
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
e Smart Living Awards by 360
degrees, a Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
Adjudged as the 'General Insurance Company of the Year' at the 11th
Leadership Awards 2007 in the
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
e Smart Living Awards by 360
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
30
Adjudged as the 'General Insurance Company of the Year' at the 11th
Leadership Awards 2007 in the
Adjudged as the most Customer Responsive Company in the Insurance
category at the Economic alConnect Customer Responsiveness Award
e Smart Living Awards by 360
Awarded the Gold Shield for "Excellence in Financial Reporting" by the
ICAI (Institute of Chartered Accountants of India) for the year ended
amongst the top three in the Insurance Website of the Year
category at the 9th Asia Insurance Industry Awards function held in
About ICICI Lombard
•
•
•
•
•
•
•
Organizational Structure
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re
opportunities, while maintaining the required degree of risk management and
controls.
There are four principal group
Wholesale Business,
Banassurance & Retail Business,
About ICICI Lombard
Young Company
Largest private sector Insurer
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1
Pan India presence
time employees on 30 June’07
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
International operations
Organizational Structure
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re
opportunities, while maintaining the required degree of risk management and
controls.
There are four principal group
Wholesale Business,
Banassurance & Retail Business,
About ICICI Lombard
Young Company - August 2001
Largest private sector Insurer
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1
Pan India presence
time employees on 30 June’07
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
International operations
Organizational Structure
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re
opportunities, while maintaining the required degree of risk management and
There are four principal group
Wholesale Business,
Banassurance & Retail Business,
About ICICI Lombard
August 2001
Largest private sector Insurer
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1
Pan India presence – Over 227 branches, 176 locations, and 5349 full
time employees on 30 June’07
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
International operations – UK since May’06
Organizational Structure
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re
opportunities, while maintaining the required degree of risk management and
There are four principal groups:
Banassurance & Retail Business,
About ICICI Lombard
August 2001
Largest private sector Insurer
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1
Over 227 branches, 176 locations, and 5349 full
time employees on 30 June’07
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
UK since May’06
ICICI Lombard’s organizational structure is designed to be flexible and
responsive with the ability to evolve and re-orient towards market
opportunities, while maintaining the required degree of risk management and
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1st
& 2nd
Over 227 branches, 176 locations, and 5349 full
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
UK since May’06
ICICI Lombard’s organizational structure is designed to be flexible and
orient towards market
opportunities, while maintaining the required degree of risk management and
year
Over 227 branches, 176 locations, and 5349 full
ICICI Lombard awarded the NDTV Profit Business Leadership Award
& Avaya Global Customer Responsiveness Award
ICICI Lombard’s organizational structure is designed to be flexible and
orient towards market
opportunities, while maintaining the required degree of risk management and
Over 227 branches, 176 locations, and 5349 full
ICICI Lombard awarded the NDTV Profit Business Leadership Award
ICICI Lombard’s organizational structure is designed to be flexible and
orient towards market
opportunities, while maintaining the required degree of risk management and
31
Over 227 branches, 176 locations, and 5349 full
ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007
opportunities, while maintaining the required degree of risk management and
Rural and Agricultural Business
Shared Services.
•
Rural and Agricultural Business
Shared Services.
The Wholesale Business Group
Focuses on large corporat
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
personal accident schemes
The Bancassurance and Retail Business Group
Delivers products through multiple channels including bancassurance,
agents, feet
include Motor, Travel, Health and Home insurance.
The Rural and Agricul
It is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
covers.
Rural and Agricultural Business
Shared Services.
The Wholesale Business Group
on large corporat
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
personal accident schemes
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
agents, feet-on-street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.
The Rural and Agricul
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
Rural and Agricultural Business &
The Wholesale Business Group
on large corporations and also on
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
personal accident schemes
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.
The Rural and Agricul
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
&
The Wholesale Business Group
ions and also on
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.
The Rural and Agricultural Business Group
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
The Wholesale Business Group
ions and also on small and medium
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.
tural Business Group
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
small and medium
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
include Motor, Travel, Health and Home insurance.
tural Business Group
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
small and medium
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
The Bancassurance and Retail Business Group
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
tural Business Group
is responsible for reaching out to rural customers with relevant
products such as Weather insurance, Health and Personal Accident
32
enterprises, state and central governments and government enterprises.
Key products include Fire, Marine, Engineering, Liability policies and
Group schemes for employees and large scale state level health and
elivers products through multiple channels including bancassurance,
street, telesales and the internet. The key products
products such as Weather insurance, Health and Personal Accident
Business Solutions
Burglary Insurance
Industrial All Risk
All Risk Insurance
Consequential Loss(Fire) Insurance
Electronic Equipment Insurance
Fidelity Insurance
Fire and Special Perils
Tea Corp Insurance
Marine export import
Machinery
Boiler Insurance
Inland Transit
Shared Services
It provides
These services
Operations, Reinsurance, Customer service, Human resources, Legal and
Marketing communications
Business Solutions
Burglary Insurance
Industrial All Risk
All Risk Insurance
Consequential Loss(Fire) Insurance
Electronic Equipment Insurance
Fidelity Insurance
Fire and Special Perils
Tea Corp Insurance
Marine export import
Machinery
Boiler Insurance
Inland Transit
Shared Services
provides support services to the business verticals.
These services include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Marketing communications
Product Range
Business Solutions
Burglary Insurance
Industrial All Risk
All Risk Insurance
Consequential Loss(Fire) Insurance
Electronic Equipment Insurance
Fidelity Insurance
Fire and Special Perils
Tea Corp Insurance
Marine export import
Boiler Insurance
Inland Transit Insurance
Shared Services
support services to the business verticals.
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Marketing communications.
Product Range
Consequential Loss(Fire) Insurance
Electronic Equipment Insurance
Insurance
support services to the business verticals.
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
.
Product Range
Consequential Loss(Fire) Insurance
support services to the business verticals.
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Product Range
support services to the business verticals.
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
33
include Finance & Accounts, Administration, Technology,
Operations, Reinsurance, Customer service, Human resources, Legal and
Project Solutions
Contractors’ All Risk
Contractors’ Plant & Machinery
Erection All Risk
Performance Guarantee
Liability Solutions
Director’s & Officers Liability
Event Insurance
Product Liability
Public Liability
Workmen’s Compensation
Professional Indemnity
Export Solutions
Export Import Transit
Export Credit
Project Solutions
Contractors’ All Risk
Contractors’ Plant & Machinery
Erection All Risk
Performance Guarantee
Liability Solutions
Director’s & Officers Liability
Event Insurance
Product Liability
Public Liability
Workmen’s Compensation
Professional Indemnity
Export Solutions
Export Import Transit
Export Credit
Project Solutions
Contractors’ All Risk
Contractors’ Plant & Machinery
Erection All Risk
Performance Guarantee
Liability Solutions
Director’s & Officers Liability
Event Insurance
Product Liability
Public Liability
Workmen’s Compensation
Professional Indemnity
Export Solutions
Export Import Transit
Contractors’ Plant & Machinery
Performance Guarantee
Director’s & Officers Liability
Workmen’s Compensation
Professional Indemnity
34
Rural Solutions
Weather Insurance
Janata Personal Accident
Tractor
Farmer’s Package
Personal Solutions
Health
Health
Personal Accident
Group Personal Accident
Group Health
Travel Insurance
Domestic Travel
Individual Overseas Travel
Student Overseas Travel
Senior Citizen Overseas Travel
Corporate Overseas Travel
Pravasi Bhartiya Bima Yojana
Rural Solutions
Weather Insurance
Janata Personal Accident
Tractor
Farmer’s Package
Personal Solutions
Health Insurance
Health
Personal Accident
Group Personal Accident
Group Health
Travel Insurance
Domestic Travel
Individual Overseas Travel
Student Overseas Travel
Senior Citizen Overseas Travel
Corporate Overseas Travel
Pravasi Bhartiya Bima Yojana
Rural Solutions
Weather Insurance
Janata Personal Accident
Farmer’s Package
Personal Solutions
Insurance
Personal Accident
Group Personal Accident
Group Health
Travel Insurance
Domestic Travel
Individual Overseas Travel
Student Overseas Travel
Senior Citizen Overseas Travel
Corporate Overseas Travel
Pravasi Bhartiya Bima Yojana
Janata Personal Accident
Group Personal Accident
Individual Overseas Travel
Student Overseas Travel
Senior Citizen Overseas Travel
Corporate Overseas Travel
Pravasi Bhartiya Bima Yojana
35
Motor Insurance
Two Wheeler
Four Wheeler
Home Insurance
Motor Insurance
Two Wheeler
Four Wheeler
Home Insurance
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
So ICICI Lombard
your dream home
Motor Insurance
Four Wheeler
Home Insurance
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
So ICICI Lombard general insurance company has variety of cover for
your dream home
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
36
It covers mainly all natural calamities and also gives covers against man
made calamities, which is very important to protect your dream house.
general insurance company has variety of cover for
Key Products
Key ProductsKey Products
37
38
Motor Insurance
• What is motor insurance?
• How is motor insurance different from other forms of general insurance?
• Why do I need motor insurance?
• What is the kind of emergency that can strike?
• What are the exclusions under the policy?
• What is the maximum cover that can be availed for occupants of vehicle?
• What is compulsory deductible under Motor insurance?
• What is the difference between private motor insurance and commercial
motor insurance?
What is motor insurance?
Motor insurance protects you and your vehicle against every comprehensible
risk related to your vehicle – theft or damage to it, death of the driver and
passengers in an accident, and damage caused by your vehicle to another
person or property (Third Party Liability).
39
How is motor insurance different from other forms of general
insurance?
A motor insurance policy (Third Party Liability) is mandatory under the Motor
Vehicle Act, while other forms of general insurance are optional. The law
mandates that every owner of a motor vehicle must have a motor insurance
policy.
Why do I need motor insurance?
You need motor insurance for the following reasons:
• Third Party Liability (injury, death or property damage) is mandatory as per
the Motor
Vehicle Act
• Your car is one of your most coveted possessions
• Passengers in your car are mostly your near and dear ones
• Accident, theft, damage and third party liability can arise unexpectedly
What is the kind of emergency that can strike?
• Loss or damage to the vehicle insured
• Own damage
• Partial theft
40
• Total theft
• Third party injury
• Third party death
• Third party property damage
• Personal accident of owner-driver and other passengers
What are the exclusions under the policy?
The following are the specific exclusions under the policy:-
• Mechanical breakdown
• Wear & tear
• Consequential loss
• Depreciation
• Deliberate accidental loss
• Intoxicated driving
• Any contractual liability
What is the maximum cover that can be availed for occupants of
vehicle?
Under a package policy, the maximum cover that can be availed for the driver
and each passenger is Rs 1lakh and Rs 2lakh respectively.
41
What is compulsory deductible under Motor insurance?
Motor insurance policies have a compulsory deductible, wherein the claim
amount has to be borne by the insured.
• For private cars up to 1,500 cc – Rs 500
• For private cars above 1,500 cc- Rs 1,000
• For two wheelers – Rs 50
What is the difference between private motor insurance and
commercial motor insurance?
Vehicles owned by individuals and used for their personal purpose fall under
the category of private vehicles However, vehicles owned by companies or
individuals used for public utilities fall under the category of commercial
vehicle. The insurer’s liability is lower in private vehicles than in commercial
vehicles, where the third party liability is huge.
42
Home Insurance - Introduction
It is imperative that you secure your home from natural and man-made
catastrophes. Our Home Insurance Plan ensures you peace of mind by
protecting the structure and the contents of your home.
Policy Details
There is wide range of policy details regarding the hypothecation with bank,
and what kind of documentation is needed in acquiring of policy.
Policy Coverage
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
any natural and man made
The calamities covered are:
- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood & inundation
- Damage due to impact by vehicles
- Missile testing
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installations
- Aircraft damage
- Bursting and/or overflowing of water tanks, apparatus and pipes
Policy Coverage
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
any natural and man made
The calamities covered are:
Fire
Riot, strike & malicious damage
Explosion & implosion
Earthquake
Lightning
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Damage due to impact by vehicles
Missile testing
Subsidence, landslides and rockslides
Leakage from automatic Sprinkler installations
Aircraft damage
Bursting and/or overflowing of water tanks, apparatus and pipes
Policy Coverage
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
any natural and man made
The calamities covered are:
Riot, strike & malicious damage
Explosion & implosion
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Damage due to impact by vehicles
Missile testing operation
Subsidence, landslides and rockslides
Leakage from automatic Sprinkler installations
Aircraft damage
Bursting and/or overflowing of water tanks, apparatus and pipes
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
any natural and man made calamities
The calamities covered are:
Riot, strike & malicious damage
Explosion & implosion
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Damage due to impact by vehicles
operation
Subsidence, landslides and rockslides
Leakage from automatic Sprinkler installations
Bursting and/or overflowing of water tanks, apparatus and pipes
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
calamities.
The calamities covered are:
Riot, strike & malicious damage
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Damage due to impact by vehicles
Subsidence, landslides and rockslides
Leakage from automatic Sprinkler installations
Bursting and/or overflowing of water tanks, apparatus and pipes
You can choose to buy insurance for only the building (structure) of your
home, or only the contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Leakage from automatic Sprinkler installations
Bursting and/or overflowing of water tanks, apparatus and pipes
You can choose to buy insurance for only the building (structure) of your
The policy covers the losses to the structure and contents of your home due to
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Bursting and/or overflowing of water tanks, apparatus and pipes
You can choose to buy insurance for only the building (structure) of your
The policy covers the losses to the structure and contents of your home due to
Storm, cyclone, tempest, tornado, hurricane, flood & inundation
Bursting and/or overflowing of water tanks, apparatus and pipes
43
You can choose to buy insurance for only the building (structure) of your
The policy covers the losses to the structure and contents of your home due to
Optional
Terrorism cover
contents of your home due to acts of terrorism.
Additional expenses of rent
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
you against the additional rent.
The maximum coverage is up to Rs. 1
available only if you are insuring the structure of your home.
Burglary cover (only for contents):
The contents of your home are
burglary or an attempted burglar
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Optional covers
Terrorism cover
contents of your home due to acts of terrorism.
Additional expenses of rent
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
you against the additional rent.
The maximum coverage is up to Rs. 1
available only if you are insuring the structure of your home.
Burglary cover (only for contents):
The contents of your home are
burglary or an attempted burglar
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
covers:
Terrorism cover - Covers any damages and losses to the structure and / or
contents of your home due to acts of terrorism.
Additional expenses of rent
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
you against the additional rent.
The maximum coverage is up to Rs. 1
available only if you are insuring the structure of your home.
Burglary cover (only for contents):
The contents of your home are
burglary or an attempted burglar
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Covers any damages and losses to the structure and / or
contents of your home due to acts of terrorism.
Additional expenses of rent
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
you against the additional rent.
The maximum coverage is up to Rs. 1
available only if you are insuring the structure of your home.
Burglary cover (only for contents):
The contents of your home are also covered against loss due to
burglary or an attempted burglary. It also covers loss of jewelry
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Covers any damages and losses to the structure and / or
contents of your home due to acts of terrorism.
Additional expenses of rent for alternative accommodation
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
The maximum coverage is up to Rs. 1, 00,000
available only if you are insuring the structure of your home.
Burglary cover (only for contents):
also covered against loss due to
y. It also covers loss of jewelry
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Covers any damages and losses to the structure and / or
contents of your home due to acts of terrorism.
for alternative accommodation
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
00 for up to 6 months. The cover is
available only if you are insuring the structure of your home.
also covered against loss due to
y. It also covers loss of jewelry
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Covers any damages and losses to the structure and / or
for alternative accommodation
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
for up to 6 months. The cover is
available only if you are insuring the structure of your home.
also covered against loss due to
y. It also covers loss of jewelry, silver
articles and precious stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is lower.
Covers any damages and losses to the structure and / or
for alternative accommodation
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
for up to 6 months. The cover is
44
, silver
articles and precious stones kept under lock and key, up to 25% of the
Covers any damages and losses to the structure and / or
for alternative accommodation –
If you are forced to shift into an alternative accommodation because your
home is destroyed or damaged by any insured peril, the policy will cover
for up to 6 months. The cover is
Key Benefits
Comprehensive cover
Avail 15% discount on a 3 years home insurance policy and
years policy.
Optional covers available
alternative accommodation.
Alternate Covers
cover for alternative rent & Terrorism cove
Need for Policy
FICCI surveys show that realty rates may escalate 10%
of 2007
According to official statistics, the Maharashtra floods on July 26, 2005, has
led to damages to over 1
families
Protect your single largest investment against losses due to natural or man
made calamities like fire, floods, burglary,
Cover your household contents including furniture, durables, clothes,
utensils, jewelry,
Key Benefits
Comprehensive cover
Avail 15% discount on a 3 years home insurance policy and
years policy.
Optional covers available
alternative accommodation.
Alternate Covers
cover for alternative rent & Terrorism cove
Need for Policy
FICCI surveys show that realty rates may escalate 10%
of 2007
According to official statistics, the Maharashtra floods on July 26, 2005, has
led to damages to over 1
families
Protect your single largest investment against losses due to natural or man
made calamities like fire, floods, burglary,
Cover your household contents including furniture, durables, clothes,
utensils, jewelry,
Comprehensive cover -
Avail 15% discount on a 3 years home insurance policy and
Optional covers available
alternative accommodation.
Alternate Covers - A Home Insurance cover allows you to avail an optional
cover for alternative rent & Terrorism cove
Need for Policy
FICCI surveys show that realty rates may escalate 10%
According to official statistics, the Maharashtra floods on July 26, 2005, has
led to damages to over 1, 87,000
Protect your single largest investment against losses due to natural or man
made calamities like fire, floods, burglary,
Cover your household contents including furniture, durables, clothes,
utensils, jewelry, at market value to accommodate inflation
Covers both structure and contents of your home.
Avail 15% discount on a 3 years home insurance policy and
Optional covers available - Terrorism and Additional expenses of rent for
alternative accommodation.
A Home Insurance cover allows you to avail an optional
cover for alternative rent & Terrorism cove
FICCI surveys show that realty rates may escalate 10%
According to official statistics, the Maharashtra floods on July 26, 2005, has
, 87,000 houses all over the State, affec
Protect your single largest investment against losses due to natural or man
made calamities like fire, floods, burglary,
Cover your household contents including furniture, durables, clothes,
at market value to accommodate inflation
Covers both structure and contents of your home.
Avail 15% discount on a 3 years home insurance policy and
Terrorism and Additional expenses of rent for
A Home Insurance cover allows you to avail an optional
cover for alternative rent & Terrorism cover.
FICCI surveys show that realty rates may escalate 10%
According to official statistics, the Maharashtra floods on July 26, 2005, has
houses all over the State, affec
Protect your single largest investment against losses due to natural or man
made calamities like fire, floods, burglary, and earthquake
Cover your household contents including furniture, durables, clothes,
at market value to accommodate inflation
Covers both structure and contents of your home.
Avail 15% discount on a 3 years home insurance policy and
Terrorism and Additional expenses of rent for
A Home Insurance cover allows you to avail an optional
r.
FICCI surveys show that realty rates may escalate 10%
According to official statistics, the Maharashtra floods on July 26, 2005, has
houses all over the State, affec
Protect your single largest investment against losses due to natural or man
and earthquake
Cover your household contents including furniture, durables, clothes,
at market value to accommodate inflation
Covers both structure and contents of your home.
Avail 15% discount on a 3 years home insurance policy and 25% discount on 5
Terrorism and Additional expenses of rent for
A Home Insurance cover allows you to avail an optional
FICCI surveys show that realty rates may escalate 10%-15% in next 6 months
According to official statistics, the Maharashtra floods on July 26, 2005, has
houses all over the State, affec
Protect your single largest investment against losses due to natural or man
and earthquake
Cover your household contents including furniture, durables, clothes,
at market value to accommodate inflation
Covers both structure and contents of your home.
25% discount on 5
Terrorism and Additional expenses of rent for
A Home Insurance cover allows you to avail an optional
15% in next 6 months
According to official statistics, the Maharashtra floods on July 26, 2005, has
houses all over the State, affecting eight lakh
Protect your single largest investment against losses due to natural or man
Cover your household contents including furniture, durables, clothes,
45
Covers both structure and contents of your home.
25% discount on 5
Terrorism and Additional expenses of rent for
A Home Insurance cover allows you to avail an optional
15% in next 6 months
According to official statistics, the Maharashtra floods on July 26, 2005, has
ting eight lakh
Protect your single largest investment against losses due to natural or man-
46
Sum Insured
How to calculate the sum insured for the risk to be covered, also what is to be
excluded and what is included.
Home Structure:
The home insurance policy insures the structure of your home for its
reconstruction value (and not for market value). Reconstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. On the
other hand market value is a combination of cost of land, demand & supply
scenario, etc.
Sum insured is calculated by multiplying the built up area of your home with
the construction rate per sq. feet, e.g. if your built up area of your home is
1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum insured
for your home structure is Rs. 8, 00,000.
We recommend the rate of construction for your location when you are buying
online. However, this value can be revised appropriately if expensive material -
like marble flooring, etc. – has been used in construction. If your home has
lawn / garden surrounded by a perimeter wall, the construction rate can be
revised to include the cost of construction of this wall in home structure sum
insured.
Home Contents:
The contents of your home
- are to be valued on market value basis i.e. the current market value of similar
items after depreciation. Deprec
Home Contents:
The contents of your home
are to be valued on market value basis i.e. the current market value of similar
items after depreciation. Deprec
Home Contents:
The contents of your home
are to be valued on market value basis i.e. the current market value of similar
items after depreciation. Deprec
The contents of your home - furniture, durables, clothes, utensils, jewelry,
are to be valued on market value basis i.e. the current market value of similar
items after depreciation. Depreciation does not apply for jewel
furniture, durables, clothes, utensils, jewelry,
are to be valued on market value basis i.e. the current market value of similar
iation does not apply for jewel
furniture, durables, clothes, utensils, jewelry,
are to be valued on market value basis i.e. the current market value of similar
iation does not apply for jewel
furniture, durables, clothes, utensils, jewelry,
are to be valued on market value basis i.e. the current market value of similar
iation does not apply for jewelry.
furniture, durables, clothes, utensils, jewelry,
are to be valued on market value basis i.e. the current market value of similar
ry.
47
furniture, durables, clothes, utensils, jewelry, etc.
are to be valued on market value basis i.e. the current market value of similar
48
ICICI Lombard presents a completely new look to the Mediclaim concept.
Health Insurance (popularly known as Mediclaim) offers protection in case of
unexpected medical emergencies. In case of a sudden illness or accident, the
health insurance policy takes care of the hospitalization, medical and other
costs incurred.
We offer a range of innovative policies to choose from. Each plan offers
something unique (in addition to the usual mediclaim policies) to suit your
specific needs.
Buy insurance policy online with your ICICI Bank & Citibank Credit Card and pay
premium at interest free installments.
49
Health Plans
Critical Care
Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and
Procedures, Personal Accident and Permanent Total Disablement (PTD)
Health Advantage Plus Insurance
A unique policy that covers hospitalization and Outpatient Department
Expenses (including Dental treatment, cost of medicines and drugs) and
enables optimum tax savings of up to Rs. 5099 u/s 80D.
Family Floater Plan
A single policy that secures the hospitalization expenses of your entire family.
Personal Accident Insurance
A Policy that covers personal accident, permanent total disablement (PTD) and
loss due to terrorism.
50
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’. (Code: Misc 4030)
Student Medical Insurance
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. (Code: Misc 4050)
Achievements & Ratings
Best Customer Responsiveness:
Awarded the Economic Times Avaya Global
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
the Insurance category.
Best Housing Insurance:
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary,
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
2006.
Top Insurers of Asia:
Among the top three
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Awards.
Insurance Website of the Year:
Among the top three to be awarded at the 9th Asian Insurance awards 2005
for the 'Insurance
Achievements & Ratings
Best Customer Responsiveness:
Awarded the Economic Times Avaya Global
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
the Insurance category.
Best Housing Insurance:
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary,
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
Top Insurers of Asia:
Among the top three
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Awards.
Insurance Website of the Year:
Among the top three to be awarded at the 9th Asian Insurance awards 2005
for the 'Insurance
Achievements & Ratings
Best Customer Responsiveness:
Awarded the Economic Times Avaya Global
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
the Insurance category.
Best Housing Insurance:
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary,
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
Top Insurers of Asia:
Among the top three General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Insurance Website of the Year:
Among the top three to be awarded at the 9th Asian Insurance awards 2005
for the 'Insurance website of the Year' category.
Achievements & Ratings
Best Customer Responsiveness:
Awarded the Economic Times Avaya Global
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Best Housing Insurance:
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary,
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Insurance Website of the Year:
Among the top three to be awarded at the 9th Asian Insurance awards 2005
website of the Year' category.
Achievements & Ratings
Awarded the Economic Times Avaya Global Connect Customer
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary,
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Among the top three to be awarded at the 9th Asian Insurance awards 2005
website of the Year' category.
Connect Customer
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
degrees , a Times of India Group subsidiary, in Nov 2006.
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Among the top three to be awarded at the 9th Asian Insurance awards 2005
website of the Year' category.
Connect Customer Responsiveness
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
in Nov 2006.
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Among the top three to be awarded at the 9th Asian Insurance awards 2005
Responsiveness
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
General Insurance Companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Among the top three to be awarded at the 9th Asian Insurance awards 2005
51
Responsiveness
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in
Conferred as the Best Housing Insurance in the Smart Living Awards by 360
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,
"General Insurance Company of the Year" at the 10th Asia Insurance Industry
Among the top three to be awarded at the 9th Asian Insurance awards 2005
iAAA Rating by ICRA:
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services
Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
cost-effective settlement of motor claims.
iAAA Rating by ICRA:
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services
Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
effective settlement of motor claims.
iAAA Rating by ICRA:
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services
Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
effective settlement of motor claims.
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services.
Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
effective settlement of motor claims.
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
effective settlement of motor claims.
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
52
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of
motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and
53
ICICI LOMBARD - Awards & Reputation’s
ICICI Lombard awarded the ‘General Insurance company of the year’
� ICICI Lombard has been awarded as the 'General Insurance Company of
the Year' at the 11th Asia Insurance Industry Awards 2007 held in
Singapore on November 5, 2007. ICICI Lombard becomes the first Indian
insurance company to win this prestigious award.
It was ICICI Lombard’s innovation that caught the eyes of the judging
panel. The innovations credited to ICICI Lombard include introduction of
biometric smart cards to rural customers for availing health insurance,
pioneering weather insurance along with the World Bank for farmers in
India and introducing online insurance for the customers.
� With more than 700 nominations received across 15 award categories
from various regions, the submissions of the short-listed candidates
were thoroughly scrutinized by the eminent judges. Audited by KPMG,
the distinguished panel of 20 judges comprised of regulators, industry
leaders, practitioners and association heads.
54
Financial Highlights
Financial Year 2006-07 2005-06
Figures in nos.
No. of policies sold 3,136,393 1,461,039
No. of claims handled 642,777 243,951
No. of employees 4,770 2,283
No. of offices 220 154
Rs. in Million
Gross Written Premium 30,035 15,920
Net Written Premium 14, 508 7,339
Net Earned Premium 10,667 5,277
Profit before Tax 801 545
Profit after Tax 684 503
Share Capital 3,357 2,450
Net Worth 9,427 3,729
Investments 17,105 9,065
Total asset 29,540 16,391
Ratios in %
Claim Ratio 76% 74%
Commission Ratio (13%) (17%)
Expense Ratio
Combined Ratio
•
•
•
•
•
•
Expense Ratio
Combined Ratio
Only General Insurance company having an ISO certification
Product delivery
o Web (remote access, anytime, anywhere)
o ILPOS (Point of Sale)
Number of polic
Total claims initiated
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Combined Ratio
Overview of Operations
Only General Insurance company having an ISO certification
Product delivery – automated
Web (remote access, anytime, anywhere)
ILPOS (Point of Sale)
Number of policies issued
Total claims initiated
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Overview of Operations
Only General Insurance company having an ISO certification
automated
Web (remote access, anytime, anywhere)
ILPOS (Point of Sale)
ies issued
Total claims initiated
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Overview of Operations
Only General Insurance company having an ISO certification
automated
Web (remote access, anytime, anywhere)
: 11,87,430
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
34%
97%
Overview of Operations
Only General Insurance company having an ISO certification
Web (remote access, anytime, anywhere)
: 3.2 million
: 11,87,430
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Overview of Operations
Only General Insurance company having an ISO certification
Web (remote access, anytime, anywhere)
: 3.2 million p.a.
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Only General Insurance company having an ISO certification
4 million retail customers and 100 million rural customers
55
41%
97%
56
• Customer service
o 24x 7 call centre, branch contacts
o Loss assessment and approval decentralized for faster delivery
57
About Competitor
The general insurance industry grew 12 per cent till February in 2007-08 with
robust performance by private players including Reliance General, which
continues to be the fastest growing insurer. So Reliance General Insurance
Company is the main competitor in this sector as far the privet players are
concerned.
The 14 non-life insurers collected Rs 25,470 crore in premium till February in
FY'08, against Rs 24,998 crore collected in the last fiscal, according to the
industry data.
During the period, the four public sector non-life insurance companies
collected Rs 15,280 crore, as against Rs 14,686 crore in the same period last
fiscal. From this data we can say that public sector companies have greater
market share but because of cut throat competition in the sector they are not
growing as per industry rate.
The private players increased their business from Rs 7,981 crore to Rs 10,190
crore during the period. The growth in privet sector is much higher than
industry average
In percentage terms, while the public sector could increase their premiums by
just 4 per cent, nine private sector players clocked premium growth of 28 per
cent.
Private sector players' market share has grown to about 40 per cent in FY'08 so
far as compared to the public sector's 60 per cent share.
Reliance General Insurance continues to be the fastest growing insurer with a
premium collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in
the same period last year.
During the period, market leader New India Assurance premium collection
grew by six per cent to Rs 4,760 crore.
In the private sector space, the largest player - ICICI Lombard - collected nearly
58
12 per cent higher premium at Rs 3,143 crore. But still ICICI Lombard is
managed is No.1 position in spite of high competition.
In future also there are more upcoming players in this industry so competition
might increase further and because of D-Tariff the insurance might get chipper
further. New players like Apollo General insurance company and Future Group
are already started their products in General insurance field.
THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the
industry’s growth and imperil balance sheets of insurers. In the scramble to get
new clients and retain the existing ones, companies are offering to cut old
tariff rates by up to 75%. While discounts are squeezing margins at one end,
the increase in rates by re-insurers is pushing up costs for insurers.
Existing Players: (Government non life players)
Oriental Insurance Company Limited
New India Assurance Company Limited
National Insurance Company Limited
United India insurance Company Limited
59
Non life insurers (Private Players)
Baja Allianz General Insurance Company Limited
IFFCO- Tokyo General Insurance Company Limited
National Insurance Company Limited
New India Assurance Company Limited
Oriental insurance Company Limited
Reliance General Insurance Company Limited
Royal Sundaram Insurance Company Limited
Tata AIG General Insurance Company Limited
United India Insurance Company Limited
HDFC Chubb General Insurance Company Ltd.
60
Customer
ICICI LOMBARD General Insurance segment serves a wide range of customers,
from individuals to small and medium-sized businesses, commercial
enterprises and major multi-national corporations. This subsidiary of ICICI bank
focuses on customer segments and key markets that present the best
opportunities for sustained and profitable growth.
Individual customers may take insurance for their Home Insurance, Health
Insurance, Motor insurance, Student medical insurance and Domestic travel
insurance. So they are the main focus area as far as the customer is concerned.
ICICI Lombard is also providing the business products also so corporate is also
a one of the major area for customers. In business segment Fire insurance,
Marine insurance, Industrial insurance, corporate insurance is the main
insurance service is mainly use by clients in corporate segment.
ICICI Lombard is also providing service to the NRI they are also contributing
very high to Lombard’s revenue. In NRI service main focus area of the products
are Health insurance, Parents’ overseas insurance, Student medical, Home
insurance, and Motor insurance. ICICI has major market share of 25% in Travel
insurance.
ICICI Lombard is providing services to rural area and for them also Home
insurance, Health Insurance, Tractor insurance, Weather insurance and Shop
insurance are available.
Corporate agents are also plying the major role in Motor insurance to increase
the customers and increase the market share in the sector.
Customer support
Wherever you are, we strive to provide excellent service to you. We welcome
you to Customer Service, our single point-of-contact for all your service
requests/needs. We are committed to resolving your concern fairly and
quickly.
Now reaching us has become a whole lot easier. Choose the channel suited to
your convenience and get an instant access to our services.
61
Self-Help
Choose the products, service request and we will contact you. Click here
Track Your Interaction Status
Enter your Request/Complaint No. or Policy Number to track your previous
interaction status. Click here
Email Us
Click here to e-mail us
24x7 Insurance Helpline
Call Toll free at 1800 209 8888 for your insurance needs.
Letters
send us a letter
All India Branches
ICICI Lombard has over 257 offices across 196 locations. Find one near you.
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance re
If you are happy and satisfied with our service and products,
feedback.
Corporate Profile
Genesis
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
Holdings
company engaged in general in
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
Strong Pe
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological
Grievance Re
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance re
Compliments
If you are happy and satisfied with our service and products,
feedback.
Corporate Profile
Genesis
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
Holdings Limited;
company engaged in general in
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
Strong Perc
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological
Grievance Re
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance re
Compliments
If you are happy and satisfied with our service and products,
Corporate Profile
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
Limited; a Canada based $26 billion diversified financial services
company engaged in general in
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
centage:
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological
Grievance Reddre
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance re
Compliments
If you are happy and satisfied with our service and products,
Corporate Profile
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
company engaged in general insurance, reinsurance, insurance claims
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
entage:
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological
ressal
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance re
If you are happy and satisfied with our service and products,
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
surance, reinsurance, insurance claims
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological
If you are not satisfied with the resolution provided to you by the above
channels, we will connect you to the grievance reddres
If you are happy and satisfied with our service and products,
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
surance, reinsurance, insurance claims
management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
distribution network and sound technological infrastructure to service
If you are not satisfied with the resolution provided to you by the above
ressal.
If you are happy and satisfied with our service and products, Please provide
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
surance, reinsurance, insurance claims
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
infrastructure to service
If you are not satisfied with the resolution provided to you by the above
Please provide
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
surance, reinsurance, insurance claims
Lombard Canada Limited, a group company of Fairfax Financial Holdings
Limited, is one of Canada's oldest property and casualty insurers.
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive
infrastructure to service
62
If you are not satisfied with the resolution provided to you by the above
Please provide
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture
between ICICI Bank, India's largest private sector bank and Fairfax Financial
a Canada based $26 billion diversified financial services
Lombard Canada Limited, a group company of Fairfax Financial Holdings
infrastructure to service
Customer
innovation, business proc
international best practices in the insurance business.
Resourceful Customer Service:
ICICI Lombard services a wider foot
located in 127 cities across India. With a network
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
quick
Highest Levels of Security:
Security and privacy for customers remain our highest concern.
Click to view our security certificati
- TRUSTe Privacy Seal Program
- VeriSign Certification
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying
ability. As of 2005
and over 2.4 lakh claims settled.
Customer needs. Lombard Canada assists on domain knowledge, product
innovation, business proc
international best practices in the insurance business.
Resourceful Customer Service:
ICICI Lombard services a wider foot
located in 127 cities across India. With a network
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
quick response to service requests.
Highest Levels of Security:
Security and privacy for customers remain our highest concern.
Click to view our security certificati
TRUSTe Privacy Seal Program
VeriSign Certification
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying
ability. As of 2005
and over 2.4 lakh claims settled.
needs. Lombard Canada assists on domain knowledge, product
innovation, business proc
international best practices in the insurance business.
Resourceful Customer Service:
ICICI Lombard services a wider foot
located in 127 cities across India. With a network
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
response to service requests.
Highest Levels of Security:
Security and privacy for customers remain our highest concern.
Click to view our security certificati
TRUSTe Privacy Seal Program
VeriSign Certification
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying
ability. As of 2005-06, over 14
and over 2.4 lakh claims settled.
needs. Lombard Canada assists on domain knowledge, product
innovation, business processes based on cutting edge technology and
international best practices in the insurance business.
Resourceful Customer Service:
ICICI Lombard services a wider foot
located in 127 cities across India. With a network
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
response to service requests.
Highest Levels of Security:
Security and privacy for customers remain our highest concern.
Click to view our security certificati
TRUSTe Privacy Seal Program
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying
06, over 14, 51,000
and over 2.4 lakh claims settled.
needs. Lombard Canada assists on domain knowledge, product
esses based on cutting edge technology and
international best practices in the insurance business.
Resourceful Customer Service:
ICICI Lombard services a wider foot-print of customers with its offices
located in 127 cities across India. With a network
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
response to service requests. Click here
Security and privacy for customers remain our highest concern.
Click to view our security certificati
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying
, 51,000 policies have been issued across India
needs. Lombard Canada assists on domain knowledge, product
esses based on cutting edge technology and
international best practices in the insurance business.
print of customers with its offices
located in 127 cities across India. With a network of 3500 hospitals in 200
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
Click here
Security and privacy for customers remain our highest concern.
Click to view our security certifications:
We have been assigned the iAAA rating, indicating highest claims paying
policies have been issued across India
needs. Lombard Canada assists on domain knowledge, product
esses based on cutting edge technology and
international best practices in the insurance business.
print of customers with its offices
of 3500 hospitals in 200
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
Security and privacy for customers remain our highest concern.
We have been assigned the iAAA rating, indicating highest claims paying
policies have been issued across India
needs. Lombard Canada assists on domain knowledge, product
esses based on cutting edge technology and
print of customers with its offices
of 3500 hospitals in 200
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
Security and privacy for customers remain our highest concern.
We have been assigned the iAAA rating, indicating highest claims paying
policies have been issued across India
63
needs. Lombard Canada assists on domain knowledge, product
print of customers with its offices
of 3500 hospitals in 200
cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless
claim settlement to its customers. We also have an online customer support
system which allows customers to track their claim status and facilitate
We have been assigned the iAAA rating, indicating highest claims paying
policies have been issued across India
Comprehensive Products:
We have over 32
offered to the customer for their best insurance solution
Comprehensive Products:
We have over 32
offered to the customer for their best insurance solution
Comprehensive Products:
We have over 32 customized
offered to the customer for their best insurance solution
Comprehensive Products:
customized and innovative
offered to the customer for their best insurance solution
and innovative
offered to the customer for their best insurance solution
and innovative insurance solutions which are
offered to the customer for their best insurance solution
urance solutions which are
offered to the customer for their best insurance solution.
urance solutions which are
64
urance solutions which are
S.W.O.T.
Strength
Weakness
•
•
S.W.O.T.
Strength
Assigned the
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128
online data exchange
First company to provide digitally signed documents through an online
interface
Weakness
Have to take
Less agent payout that is (10 %to15%)
S.W.O.T. ANALYSIS OF ICICI Lombard
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128
online data exchange
First company to provide digitally signed documents through an online
Have to take underwriters approval for every
Less agent payout that is (10 %to15%)
ANALYSIS OF ICICI Lombard
GIC Ltd.
rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128
online data exchange
First company to provide digitally signed documents through an online
underwriters approval for every
Less agent payout that is (10 %to15%)
ANALYSIS OF ICICI Lombard
GIC Ltd.
rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128
First company to provide digitally signed documents through an online
underwriters approval for every
Less agent payout that is (10 %to15%)
ANALYSIS OF ICICI Lombard
GIC Ltd.
rating by ICRA indicating highest claims paying ability
Highest security level offered through 128-bit encryption in case of
First company to provide digitally signed documents through an online
underwriters approval for every process
Less agent payout that is (10 %to15%)
ANALYSIS OF ICICI Lombard
rating by ICRA indicating highest claims paying ability
bit encryption in case of
First company to provide digitally signed documents through an online
rocess
ANALYSIS OF ICICI Lombard
rating by ICRA indicating highest claims paying ability
bit encryption in case of
First company to provide digitally signed documents through an online
65
ANALYSIS OF ICICI Lombard
rating by ICRA indicating highest claims paying ability
bit encryption in case of
First company to provide digitally signed documents through an online
66
Opportunity
• 95% 2-wheelers are not insured
• Beneficial in business sector because of corporate growth
• Low market share in insurance sector
• There is lots of innovation to be done
• Customized insurance solution
• Getting Fleet owners
Threats
• There will be too many competitors in future
• Because of d-tariff margin may further shrink
• Threat of new entries
• Threat of substitute products
• Government Policies
• PSU Companies
67
68
MARKET SHARE
ICICI is holding 36% market share of insurance industry and other 13
insurance companies are with 66% market shares.
Increasing market share year-on-year
98%
1%
1%
94%
4%
2%
87%
9%
5%
75%
17%
9%
69%
20%
11%
0%
20%
40%
60%
80%
100%
2001-02 2002-03 2003-04 2004-05 H106
LIC Private Others ICICI Pru
36%
66%
1
2
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About the Promoters
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector
bank with assets of Rs. 2958.32 billion as on December 31, 2006. ICICI Bank
provides a broad spectrum of financial services to individuals and companies.
This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base
through a multi-channel access network which includes over 695 branches and
extension counters, 3051 ATMs, call centers and Internet banking.
Established in London in 1848, Prudential plc, through its businesses in the UK
and Europe, the US and Asia, provides retail financial services products and
services to more than 21 million customers, policyholder and unit holders
worldwide. Today, Prudential has millions of customers worldwide and over
£238 billion (as of 30 June 2006) of fund under management. In Asia,
Prudential is the leading European life insurance company with a vast network
of life and fund management operations in thirteen countries - China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore,
Taiwan, Thailand, Vietnam and United Arab Emirates.
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Distribution
ICICI Lombard has one of the largest distribution networks amongst private
general insurers in India. As of January 31, 2007 the company has over 200
offices across the country and over 16,000 agents.
Thus this is the short and brief history of the ICICI Lombard as No1 private
company. It awareness amongst the customer is rated quite high, as its
marketing vertical is quite advance also they carry on large advertisement
campaigns. Through advertisement it is creating its brand value in the mind of
customer. As we can clearly see from the chart that ICICI Lombard grabs huge
amount of market share and its Product Bouquet is of wide range with meets
the customer requirement to its solutions, which the customer appreciates by
buying the product with faith in the company. Also its core competency of
fastest claim settlement makes customer to prefer ICICI Lombard as their first
choice. We can find n number of hoarding, banners, sign board which reflects
the brand image of ICICI Lombard.
71
Management Team
“The ICICI Lombard General Insurance Company Limited
Management team comprises very young and energetic people
in its management team.”
72
Mr. Sandip Bakshi – M.D & CEO
Mr. Rakesh Jain – CFO
Mr. B. Anant - Head HR
Mr. Ritesh Kumar - Head-Retail, Rural
and Reinsurance
Mr. Neelesh Garg - Head-Retail and
Bancassurance
Mr. Bharathan K - Head GCG
Mr. Alok Agarwal - Head Corporate
Business
73
OBJECTIVES OF MY SIP TRAINING IN ICICI
LOMBARD
As far as my objective of doing my SIP in ICICI Lombard was concerned, I was
always keen to know how the Insurance Company actually works, how the
funda of minimizing loss due to risk is works, also I was eager to know
Corporate Culture, and ICICI Lombard is much reputed firm as far as Insurance
Sector is concerned.
My basic objective was to apply my theoretical knowledge into practical
aspects; it was time to convert the 1year MBA programme into reality. As it
was time take the real corporate experience for my future career is concerned.
Other than this I was also interested to know how the Agent Acquisition helps
the company to generate business for them. What are the criteria of making
agents, what is process of making the Agent, how to attract an agent and
convince him for doing business with the company. Also I wanted to explore
the convincing skill which is very much important criteria as far as my
marketing career is concerned.
Thus with the blend of constant support of our company guide and my hard
work I think I was quite successful in achieving my objective. I acquired
valuable knowledge of marketing skills, and also I came across to the various
product line knowledge of ICICI Lombard and also how to survive in cut-throat
competition.
My study and research under the topic Agent Acquisition is very wide topic,
but still I managed to take the crux of the study, as the greatest limitation of
the study is the time duration of my SIP which was for 2months.
Now I shall discuss the details of my study under the topic I have chosen as
Agent Acquisition. I would like to start for the beginning of the topic. The
knowledge I acquired during my SIP is shown below.
74
SCOPE
Purpose of Making of agents
Expansion of business has always proved as a sign of profit, same is in the
business of insurance. Agency development means recruitment of educated,
aware individuals with marketing flair, an elite group. In short companies are
recruiting an advisor who comes with a handsome business; in return they get
commission, incentives, and other benefits also.
The targeted segments are:
• LIC Agents
• R.T.O agents
• Stock Brokers
• Tax consultants/CA
• Fleet Truck Owners
• Education consultants
• Financial service executives (Savings account etc.)
• Tour & Traveler
• Global consultant
• Auto Dealers
• Used car dealers
• Overseas consultant
• Earth movers
• Contractors
• Labour Union leader
75
And there are many other upcoming segments in which agent acquisition is
proving to be boon for the company for generating more and more business.
Tied agency channel
An Agent Today’s insurance agent has to know which product will appeal to the
customer, and also know his competitor’s products in the same space to be an
effective salesman who can sell his company’s product, and himself to the
customer. To the average customer, every new company is the same.
Perception about the public sector companies are also cemented in his mind.
The new companies are looking for educated, aware individuals with marketing
flair, an elite group.
Role of agents The insurance agent is the interface between the customer and the insurance
company. The agents should be able to accomplish the following to improve
service.
• Assessing and analyzing the client’s risk profile
• Finding the best products available in the market
• Negotiating the best deal available
• Continuity of service throughout the period of insurance
• Claims advisory service
76
In tied agency thus an agent has important role to play. It becomes his duty to
give the customer best service. Once that is done a customer is satisfied and
this in longer period is bound to bring in more business.
General insurance agency: the process
Once the right profile is found and he/she is ready to take up the agency there
is a fixed process that has to be followed.
Documentation:
A form has to be filled by the person who intends to take up the agency. He
has to submit documents related to Address proof, Education proof, Pan Card
copy, Photo and Cancel cheque.
Training:
Once the form is filled up and necessary documents submitted according to
IRDA guidelines the individual has to undergo a 50 hours training. Thus an
individual undergoes a total 50 hours or two weeks training which is
compulsory and product training is given by company.
77
IRDA Exams and license:
Once the training has been imparted to the individual then to start working as
a general insurance agent than he needs an IRDA license which is given upon
clearing the IRDA exam taken by IRDA itself. This exam is written as well as
online. After clearing exam person gets the license. It is then that individual
become a General insurance agent and can start working.
Facilities provided by the company
• There is 100% management support to agents. For them agent service
desk is also available from there they can get solve any query and get
premium quotation.
• Company gives brochures, pamphlets and other material free of cost.
• In the initial time the unit Sales Manager or Unit Sales Manager also go
with the agent to reap the business and thus gives the practical
knowledge of marketing.
• At any point of time the unit managers are ready help their agents.
78
Returns to an agent
A life insurance advisor earns in form of commissions, bonus, and incentives.
This commission is counted as some percentage of the policy premium. This
commission varies with different policies of a company as well as the policy
terms. It’s high in the year of policy, then decreases and later becomes
constant. For example an advisor can reap 10 to 15 % of commission.
An agent gets the commission till the client pays the premium. According to
IRDA norms certain cap for commission has fixed on various policies.
Apart from regular commission the advisors also gets the gifts as per their
performance. But this is totally an individual life insurance companies’
discretion. Different companies may adopt different strategies for the advisors.
Recruitment strategies In recruitment of the agents I have targeted the fleet owners who are the
transporter. They own more then 15 trucks with them so they are the initial
beneficial for acquiring the agency, as insurance on the goods carrying vehicle
is compulsory and also they are exposed to n number of risk as they are
constantly into to & fro on the highway road. The main benefit of targeting this
segment is that the owner is itself aware about the risk he is going to have.
And also he has a satisfaction that his property is insured and it would not
affect his financial position is case of any mishaps.
And the best part is that the agent himself can take 20% discount on his Own
Damage premium amount, which is know as OD discount. Still not over, he will
also get 10% payout of the business he gives to the company, so overall he will
be benefited by paying 30% on his own policy premium amount. And not only
will this but they also get No Claim Bonus (NCB) if there is no claim history in
79
Past. Also company is giving RED CARPET service which is only for the fleet
owners as they are considered to be the Gold / Platinum category of the agent.
The red carpet service is the extra benefits which includes many things which
are not rendered by any other competitors.
It includes following benefits:
• Free cashless service in the more than 2000 garages across the country.
• Access to the nearest garage at the highway
• No documents required at the time of surveying
• Free eye check up camp for the drivers
• Free driving training at advance level for the drivers
• Payment of 50% of claim amount at the time of service if claim is more
than 1lakh Rs.
• Settling claims in less than 21days.
• He can insure the vehicle more than 5years of age which no company in
private sector does.
Thus the red carpet service is proving to be win-win situation for both the
company and the agent himself as this is very much beneficial scheme for the
agent himself who is a fleet owner. And thus he is easily convinced however it
is still difficult to trace fleet owner as they are quite busy in their schedule
itself, so taking a prior appointment is difficult task to do.
Also I would like to introduce other specialty which helps agent as a back up
support.
80
� They can insure vehicles above the age of 5 years which generally
Reliance and Iffco tokio is not taking.
� We have agent desk department who is catering agent queries such like
policy, premium calculation if they have any problem regarding their
status and also their payout and claim problems.
� The retention team work as a back up support for the agent which deals
in renewing the old policy of the old customer. So the retention team
intimates the agent and inform about the nearest renewal date and
amount which the agent has to collect from his customer.
Procedure of Recruitment:
To achieve a goal successfully one need to sketch a perfect roadmap & also
adopt a strategy to the destination and also need to follow the path strictly.
My plan to achieve target is as follows:
a. Generating Database
In the very first step of recruiting agents is to prepare contact numbers’
list for that I have used natural market contacts, referral contacts and
also I have done cold calling for that. In cold calling I take name and
number of that person and also profile of that person.
b. Tele calling
Tele calling is one way of convincing customers by doing phone calls and
explaining whole procedure of becoming agents and their pay roll
structure and how ICICI providing service to agents. And if possible tele
callers may take appointment so that face to face conformations can be
81
Beneficial to understand the policy. This support was given by Divya
Patel & Pooja Nair who was on Agent Service Desk support.
c. Appointments
After Tele calling if customers are interested they give appointment for
meet. Both our self and customer conveniently decide the place for
meet.
d. Collecting documents and filling the forms
There are criteria for customer for becoming a. So, after fulfilling criteria
forms are filled and documents attached.
e. Submitted forms in company
After attaching documents and taking signature of customer forms are
submitted in the company. This is to be handover to the operations
department, as entry would be done in MIS after checking the details and
eligibility of the Agent from the document he has submitted, his signature is
verified, also his identity is cross checked, by the document itself or but
telephonic questioning if required.
82
Limitations
• Generating the Data base of the customers is a quite time consuming for
me.
• Appointments at improper timings. Set the time according to the
customer convenience.
• Getting Quality Customers who would really trust IPRU was very difficult
at initial phase. Aware them about the other company policy and
differentiate between IPRU and its competitors products.
83
Learning at Executive Training
• Improvement in my convincing skill.
• Time management.
• Leadership.
• Get the knowledge of corporate world.
• Working effectively and efficiently.
• Team work
• Working according to the company policies.
• Regular follow up the agents who are in pipeline.
• It is really important to know what the customer’s requirement is.
• How business & ethics work together
• Regular reporting with my company guide.
• Interacting with different type of agents
• Provide me an opportunity to apply the concepts learned in real –life
situations.
• It sensitizes us about nuances of work place by the time-bound projects
assigned by the company.
• It creates awareness about the strengths & weaknesses in the work
environment
• It provides a platform to develop a network while OJT (On-the-job-
Training), which would be useful in enhancing career prospectus.
• Know the day-to-day functions of the company.
• It provides a unique opportunity to get exposed to corporate culture,
professional experience & professional behavior & putting the
theoretical concepts learned in the classroom for developing managerial
skills.
• To gain a deeper understanding of the work culture, deadlines, pressure
etc. of an organization.
It gives a flavor of teamwork, organization culture, team dynamics, result
orientation, organizational pressures, complexities in achieving the desired
results etc.
84
• It provides direct exposure to the execution & support functions of the
departments.
• It provides a good scope for developing necessary managerial skills &
positive attitude.
85
Looking forward in insurance market in 2010 The Indian non-life market has experienced significant changes that are likely
to influence the country’s development of its insurance market in the medium
to long term.
So far, the entry of a large number of Indian and foreign private companies has
led to greater choice in terms of products and services for Indian consumers. A
growing realization of the benefits and importance of sophisticated insurance
and reinsurance tools has broadened the pool of potential buyers of insurance.
Given this backdrop, the Indian insurance market has experienced
considerable growth since its liberalization in 2000. Over the next three years,
the Indian insurance market is. Likely to see its process of maturation
accelerate.
Regulatory drivers
Regulatory changes in the four areas discussed in the previous section –
products, market players, distribution and reinsurance – will drive change in
the Indian insurance market in the medium term. In some areas, such as
detariffication, the majority of reform has already taken place, although the
consequences are yet to be seen. In other areas, while the reform is promised,
it is difficult to anticipate when it will occur. As a result, there is a lot of
uncertainty in the Indian insurance market. The four main areas of change are
now considered in turn.
86
Detariffication
The process of detariffication, first begun in 1994, has gradually moved the
Indian market to a position where the overwhelming majority of insurance is
transacted without a tariff. As of
1 January 2007, tariff rates have been withdrawn from all lines of business
except for motor third-party (TP) liability. While hitherto, insurance
professionals had limited exposure to
Sophisticated technical pricing based on actuarial data analysis, in a detariffed
market, this is increasingly a necessity for businesses in order for them to
remain profitable.
Foreign ownership
As discussed earlier, foreign ownership is currently restricted to 26%, although
there are plans to increase this limit. The typical structure adopted by the
Indian government for the Phasing in of foreign-owned entities across other
industries (such as construction and pharma) has been as follows:
1. Phase I: Allow foreign entity to have 26% stake in joint
venture.
2. Phase II: Increase foreign entity maximum stake from 26% to 49%.
3. Phase III: Increase foreign entity maximum stake from 49% to 74%.
4. Phase IV: Allow 100% foreign-owned entity to operate in market.
In January 2007, the Indian government reiterated its claim to
Increase the cap from 26% to 49%
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In January 2007, the Indian government reiterated that it would introduce
legislation to hike the FDI cap in the insurance sector to 49%. No time limit has
been set for taking a decision on it although consultations with the industry
and stakeholders are underway. There is ample opposition from the left, but
analysts expect that this change will be made effective in. The next one to two
years. The effect of this change will be twofold. Firstly, it will increase the focus
of the existing Private insurers operating within the Indian market. As
discussed in the previous section, the private companies are increasingly
diverging on strategy as they are influenced by their foreign partners. It is likely
that increased foreign ownership will lead to differentiated strategy, more
niche players and a wider product range.
Secondly, it is expected to increase the supply of capacity in the market as new
investors will decide to enter the market. Indeed, a number of insurers have
commented that, as soon as foreign companies are allowed more than 26%
ownership, they would move as quickly as possible to participate in the
market.
Broker distribution
The broker channel was recognized in 2002; again, foreign capital providers
can take up to a 26% stake in an Indian brokerage operation. There is also no
indication at the time of writing as to whether the constraints placed on
Brokers, such as high set-up costs and activity restrictions will eventually be
removed. What remains clear, however, is the fact that in a detariffed market,
the broker has more opportunity to demonstrate value to both the customer
as well as the insurer. Value-added services can be in the form of consulting
regarding risk management responsibilities as well as more traditional
insurance-related roles.
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Compulsory Sessions
In line with detariffication, there has been some progress in reducing the
compulsory session to the GIC from 20% to 15%.
The 20% compulsory cession has been reduced to 10% in 2007
However, a complete abolishment of the remaining 15% compulsory cession to
the GIC is unlikely to occur in the medium term. Although it would seem
natural to liberalise this position as the broader non-life market begins to open
up, the Indian government and Legislator reiterated their desire to retain
insurance premium in India in the central legislation of 2000, and there is no
reason to believe that this position has since changed. In addition, many local
companies are happy with the automatic reinsurance support that they receive
from the GIC.
The PSUs are pleased that they are able to cede 15% of their poorly performing
motor book on to their parent whereas the growing number of private insurers
are grateful for the additional capacity that they receive from the GIC’s de
facto proportional treaty coverage. While a further reduction to 10% is
expected in 2008, abolishing compulsory cessions
Altogether is not at the top of the legislator’s agenda.
Growth drivers
Overall, sales of both commercial and retail products are expected to benefit
from India’s surging economic output over the medium term. Economists
expect India’s output to grow by around 6% per annum over the next ten to 15
years, and the political and business environments are expected to stabilize
further.79 The combination of this economic growth, Increased stability and
the liberalization of the non-life sector is expected to provide premium growth
in the range of 10% to 15% per annum over the short to medium term.
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Personal lines insurance premium growth drivers:
Personal lines products are expected to develop quickly as Indians grow
wealthier although probably not of immediate interest to Lloyd’s underwriters,
a developing economy’s initial growth in insurance penetration is often driven
by personal lines products, especially motor cover as this tends to compulsory.
Indeed, India’s fast-developing private insurers expect retail products to
provide them with their main source of premium growth over the medium
term.
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Conclusion
It was really a great experience to be associated with such a great corporate
company. Its was a great pleasure to work with reputed firm ICICI Lombard
which is No. 1 player as far as private company in insurance sector. Also I am
once again thankful to my company guide and staff of ICICI Lombard who really
worked hard as far as my training was in process. I have learned enormous
things during these 2 months, which will prove a solid platform as far as my
future career is concerned. It really enhanced my marketing skills, and also it
gave me solid motivation to face the critical situation, also I came across to the
various people and cultures which are in the corporate culture. I can say that
SIP was like net practice before playing any big game. It gave me ample of
knowledge regarding my study on Agent Acquisition.
I also got experience of hardcore selling as it was part of my SIP training. Thus
this 2months of SIP has pumped in lot of motivation and enthusiasm in me. It
also upgraded my confidence level and gave me boosting to face new
challenges and gave me path of not only surviving but also to grow in this
competitive work. I can say that my dedication and hard work towards my
decided task really gave me good result in the end.
I also learned to work in a team and how to cope up with team spirit. Positive
reinforcement was the most motivating factor which makes us to work in a
healthy atmosphere.
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BIBLOGRAPHY
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