Project on Icici Lombard General Insurance

7/28/2019 Project on Icici Lombard General Insurance

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PROJECT ON

ICICI LOMBARD GENERAL INSURANCE

A Project Report submitted in partial fulfillment of the requirements for theaward of the degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

MADURAI KAMARAJ UNIVERSITY, MADURAI

BY

GUMANA RAM JAT Reg. No. A8751151

Under the guidance of.

Prof. B.K.Bhardwaj

K.J. SOMAIYA COLLEGE OF ARTS & COMMERCE

VIDHYAVIHAR, MUMBAI

NOVEMBER 2014


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CERTIFICATE

STUDENTS DECLARATION

ACKNOWLEDGEMENT

I extend my special gratitude to our beloved director Dr. M.R Pattabhiram and

Dean, Project Guide Prof. B.K.Bhardwaj , NIAM Training Officer Mrs. Leela for

inspiring me to take up this project.

I wish to acknowledge my sincere gratitude and indebtedness to my project

guide Prof. B.K.Bhardwaj of Ramaiah Institute of Management Studies,

Bangalore for his valuable guidance and constructive suggestions in the

preparation of project report.

I extend my gratitude to ICICI LOMBARD GIC LTD. and my Manager Mr.Bishnu

Charan Hotta and all my colleagues, friends for their encouragement, support,

guidance and assistance for undergoing industrial training and for preparing

the project report.


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CONTENT

No. Chapter Name Page No.

1 INTRODUCTION

1.1 General Introduction about the sector

1.2 Industry Profile

1.2.1 Origion & Development of the Industry

1.2.2 Growth & Present Status of the Industry

1.2.3 Future of The Insurance Sector

2 PROFILE OF THE ORGANIZATION

2.1 Origion of ICICI Lombard


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2.2 Growth & Development of ICICI Lombard

2.3 Present Status of Organization

2.4 Functional Departments of Organization

2.5 Org. Structure & Org. Chart

2.6 Product & Service Profile of the competitors

2.7 Market Profile of ICICI Lombard

3 DISCUSSION ON TRAINING

3.1 Work Profile (Role & Responsibilities)

3.2 Description of live Training

4 STUDY OF SELECTED RESEARCHPROBLEM

4.1 Statement of Research Problem

4.2 Statement of Research Objective

4.3 Research Design & Methodology

4.4 Analysis of Data

4.5 Summary of Findings

5 SUMMARY AND CONCLUSIONS

5.1 Summary of Learning Experience


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5.2 Recommendations & Conclusion

BIBLIOGRAPHY

CHAPTER 1


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INTRODUCTION

1.1 GENERAL INTRODUCTION ABOUT THE SECTOR

Insurance is not the sale of products, but servicing customers. It is a system, bywhich the losses suffered by a few are spread over many, Exposed to similar risks.


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Insurance is a protection against financial loss arising on the happening of anunexpected event. Insurance companies collect premiums to provide for thisprotection. A loss is paid out of the premiums collected from the insuring public and

the Insurance Companies act as trustees to the amount collected. The veryfundamental principle of spreading of the risk is actually practiced by the insurancecompanies by reinsuring the risks that they have insured. The opening up of theInsurance Sector to Private Companies, has made available more products andworld class service to Indian Customer.

This project has been made with an objective to give an insight intovarious facts of General Insurance sector in India. An attempt has been made toexplain the apex body of General Insurance. i.e. General Insurance Corporation ofIndia, its structure, products and subsidiaries.

Also the review of latest entrants into insurance sector viz. private players like TATAAIG General Insurance Company, Reliance General Insurance Company limited,Bajaj Allianz General Insurance Company, IFFCO Tokyo General InsuranceCompany, Royal Sundaram General Insurance Company limited and ICICI LombardGeneral Insurance Company have been described in brief, Due to the growth in thetechnological sector of the country, the insurance companies have started utilizingthese technologies to itas optimum level.

1.2 INDUSTRY PROFILE

a. Origin and Development of the industry

Till May, 1971 there were 107 companies operating in the market, both Indian andforeign. Some companies were in the co-operative sector. The size of the companiesand there reach varied to a great extent. Whereas many companies used to


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underwrite all types of covers fire, marine& miscellaneous insurance.

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

Companies as a prelude to ultimate nationalization. This was brought about underthe General insurance business (Nationalsation) Act, 1972.

Thus, effective 01/01/1973 a single holding company was created named as GeneralInsurance Corporation of India, with 4 subsidiaries to take care of the generalinsurance business operation.

Brief History of the Insurance Sector

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

1818 with the establishment of the Oriental Life Insurance Company in Colkata.Some of the important milestones in the insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by thecentral government and nationalized. LIC formed by an Act of Parliament, viz. LICAct, 1956, with a capital contribution of Rs. 5 crore from the Government of India.The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established inthe year 1850 in Colkata by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact allclasses of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimumsolvency margins and the Tariff Advisory Committee set up.


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1972: The General Insurance Business (Nationalization) Act, 1972.Nationalized thegeneral insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies.

The four subsidiaries formed were as under:

1. The National Insurance Co. Ltd2. The India Assurance Co. Ltd3. The Oriental Insurance Co. Ltd4. The United India Insurance Co. Ltd

The four subsidiary companies operated under the all direction of the GIC.Each ofthese had almost a similar structure with 4 tiers

The branch at the bottom rung,

The divisional office,

Regional office and

The Head Office at the apex.

b. Growth and Present status of the industry

At present 12 companies are operating in general insurance market for directbusiness. The four public sector companies mentioned above and the followingcompanies in the private sector. These private companies were formed after thepassing of the IRDA Act, 1999. This removed the prohibition existing in the GIBNAAct relating to formation of insurance companies other than the four Public sectorcompanies.

The companies in the private sector are:-

1. Bajaj Allianz General Insurance Co.Ltd.2. Cholamandalam General Insurance Co. Ltd.3. HDFC Chubb General Insurance Co. Ltd.4. ICICI LOMBARD General Insurance Co. Ltd.5. IFFOCO Tokyo General Insurance Co. Ltd.6. Reliance General Insurance Co. Ltd.7. Royal Sundaram Alliance Insurance Co. Ltd.8. Tata AIG General Insurance Co. Ltd.


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The General Insurance Corporation is now only Reinsurance Company and operatesas the National Reinsures. There are however, some companies in the market, whichare formed for a specific purpose only.

Deposit insurance company

To take care of loss suffered by the depositors of a bank.

Exports Credit Guarantee Corporation - this takes care of the credit risk, whichexporters face in respect of the goods exported.

Agricultural Insurance Corporation to take care of crop insurance and allied

risks.

There are also insurance departments in some of the states.

The four public sector and the 8 private sector companies are authorized to handledirect business as well as reinsurance business, both inward outward. The buyers ofinsurance would be property owners, factory owners, traders, vehicle owners,commercial establishments, professionals etc. In fact the whole population coulddeemed as potential costumers for insurance of one type or another.

With the largest number of life insurance policies in force in the world, Indian

insurance sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per centin 1999-2000, far ahead of China where insurance accounts for just 1.7 % of theGDP and even the US where insurance penetration stands at 4 per cent of the GDP.

The time factor plays an important role while providing service to thecustomer. The customer expects that the procedures for settling the claim should beshort and not much time consuming. They should get the benefits of the service assoon as possible.

Today the technology is boosting in each and every field. Insuranceis not an exception. Companies have started providing customers facility of onlinepayment of premium through their websites. They also provide online assistant to thecustomer the policy status and how to calculate the premium. To calculate the

premium they just need the present age, the type of police, sum assured, andaccident covered if any. By filling in this information you can calculate the amount ofpremium you have to pay. The customer can pay their premiums by means of creditcards or can also give standing instruction to the bank in order to pay their monthlypremiums.

The insurance companies also provide loan facilities against their policies. At presentloans are granted on unencumbered polices as: Up to 90% of the Surrender Valuefor policies, where the premium due is fully paid-up, and Up to 85% of the Surrender


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Value for policies where the premium due is partly paid- up.

The minimum amount for which a loan can be granted under a policy is Rs150. Therate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted fora period shorter than six months, or on the security of lost policies (the assured musthave the duplicate policies) or on policies issued under certain plans. Certain types ofpolicies are, however, without loan facility.

In the first month of financial year 2007-08, private sector insurers grew 37.34 percent to Rs1272.22 crore over April 2006. In the process, the market shares havefurther undergone a change.

Private sector has grabbed a market share of 40 per cent in the non-life insurancebusiness, from 34 per cent in the financial year 2006-07. Public sector market shareis now only 60 per cent.

c. Future of the Industry

India's insurance sector is zooming to show an unprecedented progressive growth of

more than 200% by the period of 2009-12. The Associated Chambers of Commerceand Industry of India has clocked out the fact that during this period, private playersin the industry will see a growth of about 140 per cent, owing to the adoption of theaggressive marketing techniques in comparison of the growth rate of 35-40 per centachieved by the state owned insurance companies. The chamber is expected topoise the business of insurance to reach at Rs.2000 billions in coming 2 years fromthe present level of Rs. 500 billion. With the result of adoption of the intensemarketing strategies by the private players, the declination has been witnessed inrespect of the share of the state owned insurance companies captured in the market.

The market share fallout has been noticed in context of such companies like GIC,LIC, which have come down to nearly 70 per cent in the past 4-5 years from the 97per cent. The experts have fore casted the more severe competition in the insurancesector likely to be occurred in the near future. Till recently, insurance sector wasmajority driven by the government sector players but now many private sectormultinational players have come into the picture. Like HDFC, ICICI Lombard, RoyalSundram,Tata Aig,etc. Insurance sector has been characterized as the boomingsector of the Indian arena, which has shown the growth rate of more than 15 per centto 20 per cent. Insurance in India is put under the federal subject and is governed bythe Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General


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Insurance Business (Nationalization) Act, 1972, Insurance Regulatory andDevelopment Authority (IRDA) Act, 1999 and by various other acts.

Today Insurance Companies in India have grown manifold. The insurance sector inIndia has shown immense growth potential. Even today a giant share of Indianpopulation nearly 80% is not under life insurance coverage, let alone health and non-life insurance policies. This clearly indicates the potential for insurance companies togrow their market in India. In 1999, various reforms were suggested in the insuranceindustry in India. This has changed a lot of things for the insurance companies inIndia. These reforms were:

Bringing down of the government stake holding to 50%. Only the private companieswith a minimum capital of Rs.100 crores should be allowed to enter the insurancesector.

No insurance company can deal in both life and non-life insurance under the samebusiness entity.

Foreign Insurance Companies can enter India only in collaboration with domestic

insurance companies Interest should be paid on delays of payments by the insurancecompanies in case of non-settlement of insurance claims. And many more to bringgreater freedom and a well-planned regulation to the insurance companies in India.

Though, the existing rule says that a foreign partner can hold 26% equity in aninsurance company, a proposal to increase this limit to 49% is pending with thegovernment. Since opening up of the insurance sector in 1999, foreign investmentsof Rs. 8.7 billion have poured into the Indian market and 22 private companies havebeen granted licenses.

The demand for health insurance covers has seen a healthy increase, and today thesector is the fastest growing segment in the non-life insurance industry in India,


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which grew at over 40% last year. It is also emerging as an increasingly significantline of business for life insurance companies. While this rate of growth appears to bevery healthy, it is on a low base, and health insurance penetration in the country

continues to be low. Only about 25 million persons are presently covered for healththrough commercial insurance, in a country of over 1.1 billion people. Overall, theIndian health sector is still characterized by the near absence of any significant riskprotection against major health-related expenditure


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CHAPTER 2

PROFILE OF THE ORGANIZATION


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2.1 Origin of the Organization:

The ICICI Ltd. was established in 1955 by the World Bank, the Government of Indiaand the Indian Industry, to promote industrial development of India by providingproject and corporate finance to Indian industry. Since inception, ICICI has grownfrom a development bank to a financial conglomerate and has become one of thelargest public financial institutions in India. ICICI has thus far financed all the majorsectors of the economy, covering 6,848 companies and 16,851 projects.

Lombard Canada Ltd., is a leading insurance management company responsible forproviding insurance management services for all of the Lombard group's commercial,personal, and specialized insurance companies. Canadian owned and operated,Lombard Canada Ltd. has its head office in Toronto and has annual sales in excessof $500 million and is a wholly owned subsidiary of Fairfax Financial HoldingsLimited (FFH on the TSF Lombard Canada Ltd. has achieved a reputation forproviding solid underwriting performance, diversified books of business and strongcapital positions.

The Joint Venture ICICI Lombard General Insurance Co will be headed by Mr. SanjivKerkar. ICICI would hold about 74 percent stake, while Canadian insurer Lombard

would hold the maximum permissible 26 percent and commence business with astart-up capital of Rs.100 crore. ICICl Lombard has plans to sell covers to thecorporate clients of ICICl. At the same time it will sell property insurance for ICICIhome loan seekers and auto insurance for those availing of car finance.

2.2 Growth and Development of the Organization


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ICICI Lombard is the largest private sector general insurance company in India with aGross Written Premium (GWP) of Rs. 34,198.4 million for the year ended March 31,2009. The company presently has around 4,777 employees in 357 branches. In the

financial year ended March 31, 2009, the company issued over 4 million policies andserviced over 33 lakh claims. The company has a claim disposal ratio of 97%(percentage of claims) settled against claims reported as on March 31, 2009

ICICI Lombard has been assigned a domestic rating of iAAA by ICRA (an associateof Moodys Investors Service) for highest claim paying ability and a fundamentallystrong position. ICICI Lombard allows instant policy issuance and renewal through itswebsite www.icicilombard.com for all retail insurance products including CarInsurance, Health Insurance, Travel Insurance, Two Wheeler Insurance and Home

Insurance. There are multiple payment options available including Internet banking,credit card, debit card and cash card.

ICICI Lombard Auto Insurance has been rated highest in customer satisfaction byJ.D. Power Asia Pacific in India among 11 auto insurance providers. The companyhas been conferred the Golden Peacock- Eco Innovation Award of 2009 for weatherinsurance and the Customer and Brand Loyalty award in the Insurance Sector -Non-Life at the 2nd Loyalty awards, 2009. It was awarded the Gene ral InsuranceCompany of the Year at the 11th Asia Insurance Industry Awards. The company also

won the NDTV Profit Business Leadership Award 2007 and was adjudged as themost Customer Responsive Company in the Insurance category at the EconomicTimes Avaya Global Connect Customer Responsiveness Award 2006. It has theGold Shield for Excellence in Financial Reporting by the ICAI (Institute of CharteredAccountants of India) for the year ended March 31, 2006.

It is the largest private sector general insurance company in India with a gross writtenpremium (GWP) of Rs885.1 crore in 2004-2005

2007 - ICICI Lombard General Insurance Corporation has grabbed the second spot

in insurance premiums growth displacing three public sector companies earned thesecond largest premium of Rs448.65 crore for April but was at top place in terms ofpremium growth of 35 per cent over the corresponding period of the last financialyear.

2.3 Present status of the organization


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ICICI Lombard Auto Insurance has been rated highest in customer satisfaction byJ.D. Power Asia Pacific in India among 11 auto insurance providers. The companyhas been conferred the Golden Peacock- Eco Innovation Award of 2009 for weather

insurance and the Customer and Brand Loyalty award in the Insurance Sector -Non-Life at the 2nd Loyalty awards, 2009. It was awarded the General InsuranceCompany of the Year at the 11th Asia Insurance Industry Awards. The company alsowon the NDTV Profit Business Leadership Award 2007 and was adjudged as themost Customer Responsive Company in the Insurance category at the EconomicTimes Avaya Global Connect Customer Responsiveness Award 2006. It has theGold Shield for Excellence in Financial Reporting by the ICAI (Institute of CharteredAccountants of India) for the year ended March 31, 2006.

AWARDAS AND RECOGNITION

JD Power Asia Pacific Award

ICICI Lombard Ranks Highest in Customer Satisfaction among Auto InsuranceProviders in India: J D Power Asia Pacific.

Golden Peacock- Eco Innovation Award of 2009 for weather insurance


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ICICI Lombard has been conferred the Golden Peacock- Eco Innovation Award of2009 for weather insurance.

Customer and Brand Loyalty Award 2009

ICICI Lombard wins the Customer and Brand Loyalty Award in the "Insurance Sector-Non-Life" at the 2nd Loyalty Awards on January 29, 2009.

General Insurance Company of the Year

11th Asia Insurance Industry Awards 2007, Singapore


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ICICI Lombard becomes the first Indian insurance company to win this prestigiousaward.

Brand Leadership Award 16th Asia Brand Congress, Taj Lands End, Mumbai

Awarded the Brand Leadership Award at the 16th Asia Brand Congress held at TajLands End, Mumbai from 26-27th September, 2007.

iAAA rating by ICRA

Assigned the iAAA rating by ICRA indicating highest claims paying ability and afundamentally strong position.


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2.4 Functional Departments of the Organization

Claim Settlement:

Lightning-fast claim settlement is one of the key areas of focus for ICICI Lombard.Our dedicated Relationship Managers, wide spread network across India andpresence of 24 *7 call centers assure our customers that we are always on call, dayor night. Our tie-up with Cunningham Lindsey, the worlds second largest lossadjustors with its network in 80 locations across India, ensures a surveyor on site inless than 24 hours.

Rural Initiative:

ICICI Lombard believes in striking the right balance between the commercial andsocio-economic aspects of the insurance business. In its Endeavour to offer tailor-made products to meet the requirement of the rural population, explore businessopportunities in the related segments and build a competitive edge through strongdistribution network and product innovation, ICICI Lombard usesIntermediaries like ICICI Banks kiosks, direct selling Agents, state-level tie-ups,ITCs e-Chou pals, NGOs and other micro finance Institutions (MFIs). The ruralsegment offers immense business opportunities for insurers since it constitutes 50%of the GDP. Growing per capita and disposable income and rising financialawareness among rural masses has opened up new avenues for insurers in thissegment.

Corporate Business:

ICICI Lombard via its CSG segment aims to tap large corporate with high premiumpotential. The company has emerged as a major player in the corporate segmentwith a well-balanced portfolio. It has made forays into specialized products thatrequire complex product development and strong underwriting skills. In addition, astrong distribution has enabled it to reach out to over 3,000 corporate. It also offerssingle point contact through dedicated relationship managers for both sales andcustomer service.

Bank assurance


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The Company has set up a dedicated SBU to cater to banc assurance businessmanaged by dedicated teams for each bank partner across all locations to ensure

highest levels of service to the channel and their customers and to provide completesupport and value addition to the bank partners. Our banc assurance philosophyemphasizes on complete respect for the partners brand & business model with aclear understanding that the partner owns the customer. The company has tied upwith few partners like ABN Amro Bank, ICICI Bank, UTI Bank etc, to ensurecomplete support and continuous value addition to the partner. The businessphilosophy behind the banc assurance initiative is to leverage distribution synergieswith partners. The channel offers unmatched product suite customized for bankchannels and customers.

Retail

ICICI Lombard aims to tap retail segment through multi-product and multi- channelapproach to marketing. The company believes that retail segment has immensepotential and will drive the companys growth in future. It has presence in all retailcategories -- travel, health, home and motor. It has launched a number of innovativeproducts and features in each category like Pay-per-day in Overseas TravelInsurance and floater cover for individual Health Insurance. The key to success inthis area is effective market segmentation and targeted product offerings that meetcustomer needs.

E-channel

ICICI Lombards e-channel initiative has embraced technology with open arms. Theeffective use of technology platforms has enabled customers to view all theirinsurance transactions through the web on a real time basis. ICICI Lombard s e-channel mainly focuses on targeting customers through Internet, intranet (of largecorporate and manufacturing companies) and other national level distributionnetworks. The focus is on targeting customers through the online medium. Themodel is to develop an integrated and customized product platform with key partners-- ICICI Direct, ICICI Bank, preferred partners moneycontrol.com and indiatimes.com

and other websites.


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Board Members

Chanda Kochhar, Chairperson

R. Athappan, DirectorSandeep Bakhshi, DirectorB.V. Bhargava, DirectorDileep Choksi, DirectorN.S. Kannan, DirectorS. Mukherji, DirectorChandran Ratnaswami, DirectorM.K. Sharma, DirectorH.N. Sinor, DirectorBhargav Dasgupta, Managing Director & CEO

COMMITTEES

Audit CommitteeMr. S Mukherji, ChairmanMr. Dileep Choksi, DirectorMr. James F Dowd, Director

Investment Committee

Mr. Chandran Ratnaswami, ChairmanMs. Kalpana Morparia, DirectorMr. Sandeep Bakhshi,, Managing Director & CEOMr. S Gopalakrishnan, Head InvestmentsMr. Rakesh Jain, Head-Finance & AccountsMr. Liyaquat Khan, Appointed Actuary

Board Governance Committee

Ms Kalpana Morparia, Chairperson

Mr. Chandran Ratnaswami, DirectorMr. H N Sinor, Director

2.5 Organization Structure and Organization Chart


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ICICI LOMBARD GIC LTD.

BOARD OF DIRECTORS

WHOLE-

SALE RETAIL

AGRICUL

TURERURAL

NATIONAL SALES MANAGER

REGIONAL SALES MANAGER

AREA SALES MANAGER

UNIT SALES MANAGER

SALES

OFFICER


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Revenue Growth

Claims Settled

0

5000

10000

15000

20000

25000

30000

35000

40000

2006-07 2007-08 2008-09

Gross Return Premium(Rs.Mn)

Gross Return Premium(Rs.Mn)

YearGross Return Premium(Rs.Mn)

2006-07 30035

2007-08 36010

2008-09 37492


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Volume Growth

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

2006-07 2007-08 2008-09

No. of Claims Settled

No. of Claims Settled

Year No. of Claims Settled

2006-07 614876

2007-08 818596

2008-09 3313830


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Year No. of Policies Sold

2006-07 3136478

2007-08 3136438

2008-09 3957048

Market Share

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

2006-07 2007-08 2008-09

No. of Policies Sold

No. of Policies Sold


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Year

Total Industry Share in

%

Private Sector Share

in %

2006-07 12 35

2007-08 12 30

2008-09 11 27

2.6 PRODUCT AND SERVICE PROFILE OF ORGANIZATION COMPETITORS

0

5

10

15

20

25

30

35

40

2006-07 2007-08 2008-09

Total Industry Share %

Private Sector Share %


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1. STANDRARD FIRE AND SPECIAL PERILS

FIRE:Excluding destruction or damage caused to the property insured

a. Its own fermentation, natural heating or spontaneous combustion.b. Its undergoing any heating or drying process.c. Burning of property insured by order of non-public authority.

Lighting

Explosion and Implosion

Excluding loss, destruction of or damage.

To boilers (other than domestic boilers), Economizers or other vessel,machinery or apparatus (in which steam is generated) or other contentsresulting from their own explosion- implosion.

Caused by centrifugal forces.

Aircraft damage

Loss, destruction or damage caused by aircraft, other aerial or space devices andarticles dropped there from excluding those caused by pressure waves.

Riot, strike and malicious damage

Loss or visible physical damage or destruction by external violent means directlyCaused to the property insured.

Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation

Loss, destruction or damage directly caused by Storm, cyclone, typhoon, tempest,hurricane tornado, flood and inundation excluding those resulting from earth quake,volcanic eruption or other convulsions of nature.

Impact Damage


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Loss of or visible physical damage or destruction cause to the property insured dueto impact by any rail road vehicle or animal by direct contact not belonging to or

Owned by The insured or any occupier of the premises or

There employees while acting in the course of there employment

Subsidence and land slide including rockslide

Loss, destruction or damage directly caused by subsidence of part of the site Onwhich the property stands or land slide / rockslide excluding:

The normal cracking, settlement or bedding down of new structures. The settlement or movement of made up ground.

Coastal or river erosion.

Defective design or workmanship or use of defective materials.

Demolition, construction, structural alterations or repair of any property orground works or excavations.

Bursting and/or overflowing of water tanks apparatus & pipes.

Missile testing operations.

Leakage from automatic sprinkler installations.

Excluding loss, destruction or damage caused by

Repairs or alterations to the buildings or premises.

Repairs, removal or extension of the sprinkler installation.

Defects in construction known to the insured.

Bush FireExcluding loss destruction or damage caused by forest fires.

2. BURGLARY:

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

3. CASH IN SAFE:


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The company shall compensate the insured for actual and reasonable medicalexpenses incurred for hospital treatment by the insured in respect of any bodily injurysustained by the insured arising out of operation at an insured peril as provided for in

standard fire and special perils- buildings and standard fire and special perils-contents and / or burglary, coverages in this policy and subject to a deductibleexcess of an amount as may be specified in part 1 of the schedule.

10. PUBLIC LIABILITY:

The company shall indemnify the insured for those sums that insured becomeslegally liable to pay, including litigation expenses and any amount in compensation,by virtue of the following items as specified occurring in and about the insured spremises.

Accidental death or bodily injury to any person other than insured or the insuredemployees / staff. This coverage shall be limited to the sum insured for anyaccident or series of accidents arising from any one event or cause, and for allaccidents during the period of insurance, and,

Accidental damage to property of any person other than the insured or insuredemployees / staff. This coverage shall be limited to the sum insured for anyone accident or series of accidents arising from any one event or cause, and

for all accidents during the period of insurance.

11. FIDELITY:

The company will compensate the insured for any direct pecuniary loss sustained bythe insured through act of fraud or dishonesty committed by any salaried employee ofthe insured in the insured premises, provided that :

The loss shall have occurred in connection with the employees occupation andduties during the uninterrupted continuance of his employment and hediscovered within six months after its happening first of six months after the

death, dismissal or retirement of such person and

The liability of the company in respect of any one person or all persons soemployed and in respect of losses in any one period of insurance shall notexceed the sum insured.

Health Insurance:


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We save money for a better future. But life is full of surprises; a medical emergencycan strain your hard-earned investments. Now, let your savings be untouched, getsecured.

Home Insurance:

Insure your home and its contents against natural calamities like fire, earthquake,flood, gas cylinder explosion, fire due to electric short circuit as well as man-madedisaster like burglary.

Home Plans

Gold Plan:

The Gold plan covers much more than just your home. It offers family protection,covers loss of cash, public liability, temporary resettlement, alternativeaccommodation and baggage insurance. Other adds on offered are loan repaymentfor home and car and cover for terrorism.

Silver Plan:

The Silver plan covers the structure of your home and its contents from natural andman-made calamities like fire, flood, storm and burglary. The adds on offered include

expenses of rent for alternative accommodation and terrorism.

Motor Insurance:

Your vehicle helps you reach destinations and enables you to commute from oneplace to another. But it might face some damage in an accident or get stolen. Thesecurity of your co-passengers can be endangered during accidents. Motorinsurance takes care of all these possibilities and more.

Motor Plans

Four Wheeler Package Policy:

A comprehensive policy that not only covers you against third party but also againstaccidents, damage, injury and much more.

Two Wheeler Package Policies:

A composite policy that protects you against unfortunate accidents, third partyliability, injuries and damages.

Travel Insurance:


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COMPRTITORS

The National Insurance Co. Ltd

The New India Assurance Co. LtdThe Oriental Insurance Co. LtdThe United India Insurance Co. LtdBajaj Allianz GIC Ltd.

COMPARISON FROM COMPETITORS

ICICI Lombard GIC Competitors

Low Premium Better Service High Premium Average Service

Competitive Discount is High Very less Discount

Product range is vast Limited products

Better Customer Retention Retention is very low

No hidden Charges Many hidden charges

Policy wordings are documented No documentation

Main focus is Revenue Main focus is only Profit

Immediate claim settlement Very long process


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2.7 MARKET PROFILE OF THE ORGANIZATION

The company is the largest private sector general insurance company in India with a

Gross Written Premium (GWP) of Rs 30,034 million for the 12 months ended March31, 2007 with a market share of nearly 12.4% and compounded annual growth rateof over 84% in the last two years.

The company has over 4,770 personnel in 220 offices spread across 166 locations.From April March 2007, the company issued over 3.1 million policies across Indiaand settled over 5.9 lakh claims. The company has a claim disposal ratio of 96%(percentage of claims settled against claims reported) as on March 31, 2007.

ICICI Lombard is the largest private sector general insurance company in India with aGross Written Premium (GWP) of Rs. 34,198.4 million for the year ended March 31,2009. The company presently has around 4,777 employees in 357 branches. In thefinancial year ended March 31, 2009, the company issued over 4 million policies andserviced over 33 lakh claims. The company has a claim disposal ratio of 97%(percentage of claims) settled against claims reported as on March 31, 2009

Core Value System

ICICI Lombard's value system is the DNA, which molds and determines the growthand success of the company and its employees. Strongly embedded and staunchlyfollowed, these values form the very core of our company's spirit.

Transparency

ICICI Lombard encourages total transparency in all channels of communication(internally and externally) and complete accountability in customer deliverables. InNovember 2005, ICICI Lombard became the first private sector general insurancecompany to cross the Rs. 10 billion Gross Working Profit (GWP) mark. This recordtarget achieved manifests the trust garnered by our employees nationwide from its

customers.

Empowerment

ICICI Lombard provides you the platform to evolve from an employee to a partner inprogressive growth. Since our origin in 2001, our employees have always beenempowered to make decisions that chart their career path. We do not create jobs butbuild futures.


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Passion

The passion to excel with customer focus in mind is what initiates ICICI Lombard to

attain greater milestones. This inherent principle drives our employees to set higherbenchmarks of excellence and performance.

Integrity

Integrity is about honesty, sincerity, sound moral principles, keeping promises andfulfilling expectations. At ICICI Lombard, integrity is not limited to the organization'scapacity to meet the needs of the stakeholder but also encompasses the vision andvalues of everyone involved.

Humility

True leadership in the service industry like ours requires humility to keep one's egosublime and to serve others. One of the key values we look for and inculcate in ouremployees is humility which allows us to keep the interests of our customer and theorganization before our own and work efficiently as a team.


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CHAPTER 3

DISCUSSION ON TRAINING


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3.1 Discussion on Training

a. Students Work Profile (Role and Responsibilities)

SALES TRAINEE/EXECUTIVE/OFFICER

I was recruited, as a Sales Officer in ICICI Lombard GIC Ltd.It is Corporate selling ofnon-Life Insurance products. It is totally Field work which is called direct selling. Myrole is to fix an appointment with client companys Account, HR and GeneralManagers. And collect information about insurance. If it is already insured then myrole is to get information about present Insurer, Total Sum Insurance Premium andtotal Coverage etc.And If still it is not insured, than my role is to offer proposal, getdetail of Sum-insurance and Desired coverage.

I have conducted a Researched based of Office Insurance products in Koramangalaarea of Bangalore. My target was IT and non-IT, Software companies andCommercial building having Offices.

As a Sales Officer my responsibilities were as under:

Lead Generation

Fix an appointment with Managers (Clients)

Making presentation with USM

Cold Calling

Prepare Database of new clients

Conduct surveys in different segment

Setting a goal and Achieve monthly targets

Getting feedback from existing clients

Making Agents


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3.2 Description of live experiences

This working experience has helped me a lot in understanding the corporate

world and I came to know the meaning of sales and marketing. Each and

every thing you can take, there are two responses (experience) which I got

from the market or field work: Positive and Negative.

How to work in a corporate world and how can we survive in corporate fields-

that all types of practical and theoretical knowledge we can get from corporate

activities. We must have to learn about customers requirement, what and

which type of customer have to expect their need or requirements. This

working experience also helped me in improving communication and

presentation skills. Some of these are:

Real exposure to the corporate world which helped me a lot in

understanding the mind set of executives to a certain extent.

Learned about customer requirements, customer mind set how to

convince others and many.

It helped me in improving my communication skills, presentation skills

and how to behave in front of corporate executives.

Apart from these positive experiences I faced certain problems too

which I would like to discuss here.

It was quite difficult in the beginning to cope with both college studies

and job.


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CHAPTER 4

STUDY OF SELECTED RESEARCHPROBLEM


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Brand:

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

identify the goods/services of one seller/group of sellers and to differentiate themfrom those Of Competitors.

Distribution and its Channels:

Distribution is the process of moving goods/services form the place of production tothe marketing activities involved in the flow of goods/services from the primaryproducer to ultimate consumer.

Accident and accidental

Means a sudden, unforeseen, and unexpected physical event beyond the control ofthe Insured caused by external, visible and violent means.

Bodily injury

Means any accidental physical bodily harm but does not include any sickness ordisease.

Business or business purposes

Means any full or part time, permanent or temporary, activity under taken in thepremises with a view to profit or gain.

Burglary

Means an act involving the unauthorized entry to or exit from the insured s propertyor attempt threat by unexpected, visible, forcible and violent means, with the intent tocommit an act of theft.

BankMeans and includes bank of every description, post office and government treasury.

Contents

Means the following used for business or business purposes, so long as they areowned by the insured and / or for which the insured legally responsible for includingfamily of insured, directors, partners and the like goods such as furniture, stock,machinery, equipment, fixtures, fittings and interior decorations but excluding money,jewelry, and valuables.


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Employee

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

consideration, either expressly or impliedly in the course of employment

Insured or insureds

Means the person named in the policy as the policyholder and / or his family, and / orhis parents, and / or directors and / or karta of HUF, and the like.

Medical expenses

Means expenses incurred on necessary on medical or surgical treatment, services,or supplies.

Period of insurance

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

Policy

Means insureds proposal, the schedule, companys covering letter to the insured,insurance clauses, definitions, exclusions, conditions and other terms contained here

in and any endorsement attaching to or forming part hereof, either at inception orduring the period of insurance.

Premises

Means insureds shop as stated in the schedule, which is used or occupied mainly forbusiness purposes by insured.

Schedule

Means the schedule, and any annexure to it, attached to and forming part of thispolicy.

Sum insured

Means and denotes the amount of cover available under each section as stated inschedule or any revisions thereof based on claim settled, as stated in the scope ofcover of the policy and, where appropriate, as more particularly described.


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SAMPLE SIZE

The sample size for listing questionnaire of research is 100, and the sample size isbroken down in to two samples i.e. a sample size of 80 respondents from the officesand shops and the sample size of 20 respondents from the customers.

SOURCES OF DATA COLLECTION:

Primary data:

The data was collected by using questionnaire and structured direct interviews, whichwere separately conducted to know the market awareness and market potential.

Secondary data:

The secondary data was collected from the company reports, broaches, manuals,text books and Internet. The customer of 20 respondents was provided by thecompany for assessing the service provided by a company.

RESEARCH LIMITATIONS:

This research is company- specific and confined only to Bangalore city, the problemof generalization becomes obvious Limited sample size is taken.


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4.4 Analysis of data

1. Are you aware of Office insurance?

Table1:Particulars No. Of respondents PercentagesYes 67 83.75

No 0 0

Little Bit 13 16.25

Total 80 100

Source: Field Study

Interpretation:

The response given by respondents 83.75 are aware of office insurance and 16.25know very little about office insurance. This clearly shows that there is no properadvertisement reach to the people.

No. of respondents

Yes

No

Little Bit


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5. Would you like to have Office insurance?

Table 5:

Particulars No. Of Respondents Percentages

Yes 20 25

No 60 75

Total 80 100

Source: Field Study

Interpretation:

Out of 80 respondents, 25% of respondents want to have office insurance policy and75% of respondents dont want to have it. The above chart shows that there is apotential market for office insurance products. Most of the respondents those whowant to have office insurance are of newly opened offices & shops.

0

10

20

30

40

50

60

70

80

No. of Respondents Percentages

Yes

No


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6. If yes, Which Company Services do you prefer to avail?

Table 6:

Company No. Of Respondents Percentages

ICICI Lombard 6 30

HDFC Chubb 0 0

New India 7 35

Oriental 3 15

United India 4 20

Total 20 100

Interpretation:

The chart depicts that, 30% of the respondents wants to avail services of ICICILombard, 35% of respondents want to prefer New India,20%of the respondentswants to prefer united India and 15%wants to prefer services of oriental. The datashows around 30% of people are interested in taking insurance in ICICI Lombard. Itmeans there is an opportunity for company to capture the market. Most of therespondents want to avail services in government companies.

No. of Respondents

More Than 5

More Than 10

More Than 20


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7. Which type of insurance policy you would like to have?

Table 7:

Type No. Of Respondents Percentages

Yearly Renewal 17 85

Auto Renewal 3 15

Total 20 100

Interpretation:

The above chart shows that 85% of respondents would like to have Yearly renewalpolicy and 15% of respondents want to have Auto Renewal.

0

10

20

30

40

50

60

70

80

90

1 2

Yearly Renewal

Auto Renewal


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8. Which product services you are planning to avail?

Table 8:

Product Services No. Of Respondents Percentages

Fire Insurance 10 50

Electronic Insurance 5 25

Burglary Insurance 3 15

All of Above 2 10

Total 20 100

Source: Field Study

Interpretation:

It is depicted from the chart that 50% of respondents trying to avail Fire insurance,25% of respondents planning to avail Electronic insurance,15% of respondents tryingto avail Burglary insurance and 10% of respondents trying to avail all Fire,Electronics and Burglary insurance policies.

0

5

10

15

20

25

30

35

40

45

50

Fire Insurance Electronic

Insurance

Burglary

Insurance

All of Above

No. of Respondents

Percentages


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9. When you are going to have new insurance policy?

Table 9:


Within 15 Days 7 35

15 to 30 Days 13 65

30 to 60 Days 0 0

Total 20 100

Source: Field Study

Interpretation:

Out of 20 respondents, 35% of respondents wants to have insurance policy with in 15days, 65% of respondents wants to have with in 30 days.

No. of Respondents

Within 15 Days

15 to 30 Days

30 to 60 Days


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10. How do you rate about services?

Table 10:

Opinion No. Of Respondents Percentages

Very Good 6 30

Good 9 45

Normal 4 20

Not Good 1 5

Total 20 100

Source: Field Study

Interpretation:

ICICI Lombard customers rated the services are as,30% of respondents said very well45% of respondents said well20% of respondents said normal and5% of respondents said not well.

No. of Respondents

Very Good

Good

Normal

Not Good


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11. How much premium are you paying now?

Table 11:

Amount No. Of Respondents Percentages

More Than 5000 4 20

More Than 10000 5 25

More Than 20000 11 55

Total 20 100

Source: Field Study

Interpretation:

The above chart depicts that20% of respondents paying premium more then Rs.5000,25% of respondents paying premium more then Rs.10000 and55% of respondents paying more then Rs.20000.Major of the respondents are paying more then Rs.20000 are of big offices andimportant customers to the company.

No. of Respondents

More Than 5000

More Than 10000

More Than 20000


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12. Do you feel its really economical?

Table 12:

Particulars No. of Respondents Percentages

Yes 14 70

No 6 30

Total 20 100

Source : Field Study

Interpretation:

Customers believed of policy economical like this,70% of respondents said YES.30% of respondents said NO

0

10

20

30

40

50

60

70

No. of Respondents Percentages

Yes

No


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13. Have you ever-contacted customer help desk?

Table 13:


Yes 16 80

No 4 20

Total 20 100

Source : Field Study

Interpretation:

The above chart depicts that80% of respondents contacted customer help desk and20% of respondents did not contact customer help desk.

No. of Respondents

More Than 5000

More Than 10000

More Than 20000


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15. For what reason you dial to our customer help desk?

Table15:


Product Related Inquiry 11 55

To Renew Policy 8 40

To Complaint 1 5

Total 20 100

Source: Field Study

Interpretation:

The customers dial up to customer help desk for the following reasons:55% customer dial up for product related enquiry40% customers dial up for to renew policy and5% customers dial up for file a complaint.

No. of Respondents

More Than 5000

More Than 10000

More Than 20000


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4.5 Summary of findings

All respondents have awareness about office insurance.

Majority of respondents told they were come to know about office insurancethrough television and agents.

Majority of respondents told employees are more then 5.

There is a market potential for office insurance products.

Majority of respondents believe in Government owned insurance companies.

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

Majority of respondents told they are trying to avail Fire insurance andelectronic equipment insurance for their offices.

Most of the respondents said they are going to have insurance with in 15 to 30days.

Majority of respondents told they have satisfaction with the service of thecompany. and customer help disk.

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

All general insurance policies are yearly renewal policies.

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

Majority of respondents told their paying premium is economical.

Majority of respondents are frequently contacting customer help desk.

Majority of respondents told company is the main factor for purchasinginsurance Policy.


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CHAPTER 5

SUMMARY AND CONCLUSION

5.1 SUMMARY OF LEARNING EXPERIENCE


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I went through a good learning practice in ICICI Lombard for the nearly past

three months which has developed me to heights of understanding the

customers mind as well their taste and preferences in the field of services

sector. The uncertain world or market structure existing in India has very

typical way of expectation when it comes to insurance and the institutions

have realized their needs and desires and working towards satisfying their

requirements and my organization is also in its run for customer satisfaction.

The working environment was excellent which enabled me to learn the

products and services features as well as the internal aspects of management

level. This project has opened up the new window of learning, which enables

me into the clear understanding of corporate world. The proper understanding

of customers is must when it comes to service industry and that exactly what I

went through in this period of management training period.

Tele calling: Converting all the leads given by Manager in

appointments.

To make presentations with clients.

Collection previous policy details, so that we can give competitive

quotation.

Preparation of customer feedback report about our companys products

and services.


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5.2 CONCLUSIONS AND RECOMMENDATION

RECOMMENDATIONS

Respondents do not have enough knowledge about the insurance policies providedby the ICICI LOMBARD. Therefore ICICI LOMBARD Company should bringawareness in the customers.

The recommendations I would like to make are:

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

Insurance Company through TV, newspapers, magazines and pamphlets tomake aware the customers about the insurance provided by them.

Need for proper channel to reach to the customer. Marketing executives and agents should maintain good communication with

the customers to create the awareness of the policies like Mediclaim, GPA(Group personnel accidental) burglary, and other insurance policies providedby the company.

The employees should be given incentives and bonus to motivate toaccomplish their targets.

ICICI LOMBARD is concentrating only urban areas it should concentrate onsemi urban and rural areas also.

As it was found that customers preparing only Government companies fortheir office insurance so create trust in costumers about private insurancecompanies by rendering good services like proper claims, good response tocostumer queries and maintaining good relationship with costumers.

Building internal technical expertise requiring well stacked library resource byway of settled cases of claims at every zonal office is an immediate necessity.

The staff of the insurers should be encouraged to refer to these referencesoften with a view to bring about early settlement to the satisfaction ofclaimants.

CONCLUSION


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It is concluded from the survey that all respondents are aware about office insuranceand they think they need insurance for their offices.

It is concluded from the survey that customers preparing only Governmentcompanies for their office insurance so create trust in costumers about privateinsurance companies by rendering good services like proper claims, good responseto costumer queries and maintaining good relationship with costumers.

Most of customers are using only Fire and electronic equipment insurance policies somarketing executives and agents maintain good communication with the customersto create the awareness of the policies like Mediclaim, burglary and GPA.

ANNEXURE:

1. Are you aware of Office insurance?


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A. Yes

B. No

2. If Yes, How do you come to know about Office Insurance?

A. TV

B. Newspaper

C. Agents

3. Which factor is important in your eye for purchasing insurance policy?

A. Company

B. Premium

C. Service

4. How many employees are there in your office?

A. More than 5

B. More than 10

C. More than 20

5. Would you like to have Office insurance?

A. Yes

B. No

6. If yes, Which Company Services do you prefer to avail?

A. ICICI Lombard


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C. More than20000

12. Do you feel its really economical?

A. Yes

B. No

13. Have you ever contacted customer help desk?

A. Yes

B. No

14. If yes, what is your opinion about customer help desk?

A. Good

B. OK

C. Poor

15. For what reason you dial to our customer help desk?

A. Product related

B. To renew policy

C. To complaint

BIBLIOGRAPHY


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BOOKS AND MAGAZINES

Essentials of Marketing Reddy and Appaniah

Marketing Management Phillip Kotler

India Today

Business World and Money Regulator.

News Papers

The Times of India

The Economic Times

The Business Standards

INTERNET

www.google .com

www.icicilombard.c.com

Documents

Project on Icici Lombard General Insurance