RIMS,Bangalore

1

CONTENT

S.N. CHAPTER NAME PAGE

1.INTRODUCTION

1.1 General Introduction About the Sector……………………………..4

1.2 Industry Profile………………………………………………….....5-12

a. Origin & Development of the Industry……………………………...5-7

b. Growth & Present Status of the Industry…………………………..8-9

c. Future of the Insurance Sector…………………………………..10-12

2. PROFILE OF THE ORGANIZATION 2.1 Origin of ICICI Lombard GIC Ltd…………………………………..14

2.2 Growth & Development of ICICI Lombard………………………..15

2.3 Present Status of ICICI Lombard………………………………16-17

2.4 Functional Departments of ICICI Lombard……………………18-19

2.5 Organizational Structure & Chart………………………………20-21

2.6 Product & Service Profile of the Competitors…………………22-24

2.7 Market Profile of ICICI Lombard……………………………..…….26

RIMS,Bangalore

2

3. DISCUSSION ON TRAINING 3.1 Work profile (Role and Responsibilities)…………………………..28

3.2 Description of Live Training………………………………………...29

4. STUDY OF SELECTED RESEARCH PROBLEM 4.1 Statement of Research Problem…………………………………...31

4.2 Statement of Research Objectives……………………………...…31

4.3 Research Design & Methodology………………………………32-33

4.4 Analysis of Data………………………………………………….34-49

4.5 Summary of Findings………………………………………………..50

5. SUMMARY AND CONCLUSION 5.1 Summary of Learning Experience…………………………………52

5.2 Recommendations and Conclusion……………………………….53

CONCLUSION…………………………………………………54

ANNEXURE………………………………………………..55-56

BIBLIOGRAPHY……………………………………….……..57

RIMS,Bangalore

3

INTRODUCTION

CHAPTER­1

RIMS,Bangalore

4

1.1 GENERAL INTRODUCTION ABOUT THE SECTOR

Insurance is not the sale of products, but servicing customers. It is a system, by which the losses suffered by a few are spread over many, Exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. The very fundamental principle of spreading of the risk is actually practiced by the insurance companies by reinsuring the risks that they have insured. The opening up of the Insurance Sector to Private Companies, has made available more products and world class service to Indian Customer. This project has been made with an objective to give an insight into various facts of General Insurance sector in India. An attempt has been made to explain the apex body of General Insurance. i.e. General Insurance Corporation of India, its structure, products and subsidiaries. Also the review of latest entrants into insurance sector viz. private players like TATA AIG General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz General Insurance Company, IFFCO Tokyo General Insurance Company, Royal Sundaram General Insurance Company limited and ICICI Lombard General Insurance Company have been described in brief, Due to the growth in the technological sector of the country, the insurance companies have started utilizing these technologies to it‚as optimum level.

RIMS,Bangalore

5

1.2 INDUSTRY PROFILE

a. Origin and Development of the industry

In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

HISTORY OF INSURANCE SECTOR

Some of the important milestones in the life insurance business in India are given in the table 1.

Table 1: milestone’s in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business

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

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

1956 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 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 the Triton Insurance Company Ltd., the first general insurance company

RIMS,Bangalore

6

established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are given in the table 2.

Table 2: milestone’s in the general insurance business in India

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes 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 minimum solvency margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

RIMS,Bangalore

7

INDIAN INSURANCE MARKET – HISTORY

Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre-Nationalization, b) Nationalization, and c) Post-Nationalization. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.

The four subsidiaries formed were as under: 1. The National Insurance Co. Ltd 2. The India Assurance Co. Ltd 3. The Oriental Insurance Co. Ltd 4. The United India Insurance Co. Ltd The four subsidiary companies operated under the all direction of the GIC.Each of these had almost a similar structure with 4 tiers

• The branch at the bottom rung, • The divisional office, • Regional office and • The Head Office at the apex.

RIMS,Bangalore

8

b. Growth and Present status of the industry

At present 12 companies are operating in general insurance market for direct business. The four public sector companies mentioned above and the following companies in the private sector. These private companies were formed after the passing of the IRDA Act, 1999. This removed the prohibition existing in the GIBNA Act relating to formation of insurance companies other than the four Public sector companies. The companies in the private sector are:- 1. Bajaj Allianz General Insurance Co. Ltd. 2. Cholamandalam General Insurance Co. Ltd. 3. HDFC Chubb General Insurance Co. Ltd. 4. ICICI LOMBARD General Insurance Co. Ltd. 5. IFFOCO 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. The General Insurance Corporation is now only Reinsurance Company and operates as the National Reinsures. There are however, some companies in the market, which are formed for a specific purpose only. Deposit insurance company To take care of loss suffered by the depositors of a bank.

• Exports Credit Guarantee Corporation - this takes care of the credit risk, which exporters 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. Today the technology is boosting in each and every field. Insurance is not an exception. Companies have started providing customers facility of online payment of premium through their websites. They also provide online assistant to

RIMS,Bangalore

9

the customer 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, and accident covered if any. By filling in this information you can calculate the amount of premium you have to pay. The customer can pay their premiums by means of credit cards or can also give standing instruction to the bank in order to pay their monthly premiums. The insurance companies also provide loan facilities against their policies. At present loans are granted on unencumbered polices as: Up to 90% of the Surrender Value for policies, where the premium due is fully paid-up, and Up to 85% of the Surrender 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 Rs. 150. The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter than six months, or on the security of lost policies (the assured must have the duplicate policies) or on policies issued under certain plans. Certain types of policies are, however, without loan facility. In the first month of financial year 2007-08, private sector insurers grew 37.34 per cent to Rs1272.22 crore over April 2006. In the process, the market shares have further undergone a change. Private sector has grabbed a market share of 40 per cent in the non-life insurance business, from 34 per cent in the financial year 2006-07. Public sector market share is now only 60 per cent.

RIMS,Bangalore

10

c. Future of the Industry With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors.

India is the fifth largest insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information.

The strong growth potential of the country has also made international players to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance players. This research report will help the client to analyze the leading-edge opportunities critical to the success of insurance industry in India. Based on this analysis, the report gives a future forecast of the market that is intended as a rough guide to the direction in which the market is likely to move.

-Total insurance premium in India is projected to grow Rs 1,230,000 crore by 2010-11.

-Total non-life insurance premium is expected to increase at a CAGR of 25% for the period spanning from 2008-09 to 2010-11.

-With the entry of several low-cost airlines, along with fleet expansion by existing ones and increasing corporate aircraft ownership, the Indian aviation insurance market is all set to boom in a big way in coming years.

-Home insurance segment is set to achieve a 100% growth as financial institutions have made home insurance obligatory for housing loan approvals.

-Health insurance is poised to become the second largest business for non-life insurers after motor insurance in next three years.

-A booming life insurance market has propelled the Indian life insurance agents into the ‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT) — an exclusive club for the highest performing life insurance agents.

RIMS,Bangalore

11

To grab the maximum market share, the companies are focusing on the following aspects:-

Information Technology

The Insurance companies are utilizing the Information technology applications for better customer service, cost reduction, new product design and development and many more. The technology has enabled the Insurer to innovate new products, provide better customer service and deeper and wider insurance coverage to them.

Product Innovations

Insurers are continuously innovating new products based on forward-looking models. Understanding the customer better will enable Insurance companies to design appropriate products, determine price correctly and to increase profitability. Product development is made possible by integrating actuarial, rating, claims and illustration systems. Moreover, with increased commoditization of insurance products, brand building is going to play a vital role.

Distribution Network

While companies have been successful in product innovation, most of them are still grappling with right mix of Distribution Channels for capturing maximum market share to build brand equity, building strong and effective customer relationships and cost effective customer service.

Customer Education and Services

In the present competitive scenario, a key differentiator is the professional customer service in terms of quality of advice on product choice along with policy servicing.

MODERN MARKETING APPROACH:

In India Insurance is sold and not bought. The agents/Advisors by using various strategies sell the product by convincing the customers. Here, the customer is seen as a person to be served and not a person to be sold. It helps the purchaser to make an intelligent decision. The four-step process includes:

1) Need discovery 2) Selection of the product 3) Need satisfaction presentation 4) Serving the sale

RIMS,Bangalore

12

This approach to selling their products requires understanding of concepts and principles borrowed from the fields of psychology, communications, and sociology and needs a lot of personal commitments and self – discipline from the seller.

The commitments referred are:

• Finding and understanding the needs of the customers. • Partnering with the customers. • Helping the customers to achieve his business and other objectives by the

purchase of the product or service. • Believing that your products / services are a great fit with your customer's

needs, and • Believing in yourself and your ability to help the customers in solving their

problems.

The demand for health insurance covers has seen a healthy increase, and today the sector is the fastest growing segment in the non-life insurance industry in India, which grew at over 40% last year. It is also emerging as an increasingly significant line of business for life insurance companies. While this rate of growth appears to be very 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 health through commercial insurance, in a country of over 1.1 billion people. Overall, the Indian health sector is still characterized by the near absence of any significant risk protection against major health-related expenditure.

RIMS,Bangalore

13

PROFILE OF THE

ORGANIZATION

CHAPTER‐2

RIMS,Bangalore

14

2.1 Origin of the Organization:

The World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry, established the ICICI LTD. in 1955. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects.

Lombard Canada Ltd., is a leading insurance management company responsible for providing 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 excess of $500 million and is a wholly owned subsidiary of Fairfax Financial Holdings Limited (FFH on the TSF Lombard Canada Ltd. has achieved a reputation for providing solid underwriting performance, diversified books of business and strong capital positions.

Mr. Sanjiv Kerkar will head the Joint Venture ICICI Lombard General Insurance Co. ICICI would hold about 74 percent stake, while Canadian insurer Lombard would hold the maximum permissible 26 percent and commence business with a start-up capital of Rs.100 crore. ICICl Lombard has plans to sell covers to the corporate clients of ICICl. At the same time it will sell property insurance for ICICI home loan seekers and auto insurance for those availing of car finance.

RIMS,Bangalore

15

2.2 Growth and Development of the Organization

ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs. 36,948 million for the year ended March 31, 2010. The company issued over 44 lakh policies and settled over 62 lakh claims and has a claim disposal ratio of 96% (percentage of claims settled against claims reported) as on March 31, 2010. The company has 4,634 employees and 350 branches as on March 31, 2010.

The company has been assigned a domestic rating of ‘iAAA’ by ICRA (an associate of Moody’s Investors Service) for highest claim paying ability and a fundamentally strong position, for the fourth consecutive year. ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power Asia Pacific in India among 11 auto insurance providers. The company has 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 3rd Loyalty awards, 2010.

ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power Asia Pacific in India among 11 auto insurance providers. The company has 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 Insurance Company 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 the most Customer Responsive Company in the Insurance category at the Economic Times Avaya Global Connect Customer Responsiveness Award 2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006.

2007 - ICICI Lombard General Insurance Corporation has grabbed the second spot in insurance premiums growth displacing three public sector companies earned the second largest premium of Rs448.65 crore for April but was at top place in terms of premium growth of 35 per cent over the corresponding period of the last financial year.

RIMS,Bangalore

16

2.3 Present status of the organization

J.D. Power Asia Pacific in India has rated ICICI Lombard Auto Insurance highest in customer satisfaction among 11 auto insurance providers. The company has 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, 2010. It was awarded the ‘General Insurance Company 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 the most Customer Responsive Company in the Insurance category at the Economic Times Avaya Global Connect Customer Responsiveness Award 2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006.

AWARDAS AND RECOGNITION

World Business Leader Award 2010

ICICI Lombard GIC Ltd. conferred the ‘World Business Leader’ award at ‘The Bizz 2010’ awards held on April 2, 2010. JD Power Asia Pacific Award

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

RIMS,Bangalore

17

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, SingaporeICICI Lombard becomes the first Indian insurance company to win this prestigious award.

iAAA rating by ICRA

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

RIMS,Bangalore

18

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 and presence of 24 *7 call centers assure our customers that we are always on call, day or night. Our tie-up with Cunningham Lindsey, the worldís second largest loss adjustors with its network in 80 locations across India. Rural Initiative: ICICI Lombard believes in striking the right balance between the commercial and socio-economic aspects of the insurance business. In its Endeavour to offer tailor-made products to meet the requirement of the rural population, explore business opportunities in the related segments and build a competitive edge through strong distribution network and product innovation, ICICI Lombard uses Intermediaries like ICICI Banks kiosks, direct selling Agents, state-level tie-ups, ITC’s e-Chou pals, NGOs and other micro finance Institutions (MFIs).

Corporate Business: ICICI Lombard via it’s CSG segment aims to tap large corporate with high premium potential. The company has emerged as a major player in the corporate segment with a well-balanced portfolio. It has made forays into specialized products that require complex product development and strong underwriting skills. Bank assurance The Company has set up a dedicated SBU to cater to banc assurance business managed by dedicated teams for each bank partner across all locations to ensure highest levels of service to the channel and their customers. The company has tied up with few partners like ABN Amro Bank, ICICI Bank, UTI Bank etc, to ensure complete support and continuous value addition to the partner. Retail ICICI Lombard aims to tap retail segment through multi-product and multi- channel approach to marketing. It has presence in all retail categories -- travel, health, home and motor.

RIMS,Bangalore

19

E-channel ICICI Lombard’s e-channel mainly focuses on targeting customers through Internet, intranet (of large corporate and manufacturing companies) and other national level distribution networks. The focus is on targeting customers through the online medium. Board Members Chanda Kochhar, Chairperson R. Athappan, Director Sandeep Bakhshi, Director B.V. Bhargava, Director Dileep Choksi, Director N.S. Kannan, Director S. Mukherji, Director Chandran Ratnaswami, Director M.K. Sharma, Director H.N. Sinor, Director Bhargav Dasgupta, Managing Director & CEO COMMITTEES Audit Committee Mr. S Mukherji, Chairman Mr. Dileep Choksi, Director Mr. James F Dowd, Director Investment Committee Mr. Chandran Ratnaswami, Chairman Ms. Kalpana Morparia, Director Mr. Sandeep Bakhshi,, Managing Director & CEO Mr. S Gopalakrishnan, Head ñ Investments Mr. Rakesh Jain, Head-Finance & Accounts Mr. Liyaquat Khan, Appointed Actuary

RIMS,Bangalore

20

2.5 Organization Structure and Organization Chart

• ICICI Lombard has a Hierarchical structure

• It has different levels of management and supervision

• There is a long chain of command running from top of the organization

Ex: Board of Directors down to the bottom of the organization

In ICICI Lombard there is a narrow span of control that is each manager has a

small number under their control and employees can be closely supervised.

• There is a clear management structure

• The function of each layer is clear and distinct

• There is a clear line of responsibility and control

There is a clear progression in the organization

RIMS,Bangalore

21

ICICI LOMBARD GIC LTD.

BOARD OF DIRECTORS

WHOLE-

SALE

RETAIL AGRICULTURE

RURAL

NATIONAL SALES MANAGER

REGIONAL SALES MANAGER

AREA SALES MANAGER

UNIT SALES MANAGER

SALES OFFICER

RIMS,Bangalore

22

2.6 PRODUCT AND SERVICE PROFILE OF ORGANIZATION COMPETITORS A. Fire Insurance 1. STANDRARD FIRE AND SPECIAL PERILS FIRE and Lighting Explosion and Implosion Aircraft damage Riot, strike and malicious damage Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation Impact Damage Subsidence and land slide including rockslide Bursting and/or overflowing of water tanks apparatus & pipes. Missile testing operations. Leakage from automatic sprinkler installations. Bush Fire 2. BURGLARY: The company shall compensate the insured for any loss or damage, caused by burglary, to the contents of insured’s premises. 3. CASH IN SAFE: The company will compensate the insured in respect of loss of, or damage to, money and/or valuables caused by burglary and/or attempted burglary when such money and/or valuables are contained in a domestic safe or vault which is protected by appropriate and adequate security measures with lock in key. 4. CASH IN TRANSIT The company shall compensate the insured for loss of money in coins and/or notes caused by burglary, robbery or theft occurring while such money is in the insured’s possession and is being conveyed by the insured to the insured’s

RIMS,Bangalore

23

premises from the insured’s bank /ATM from where such money had been withdrawn immediately prior to the occurrence. 5. NEON SIGN /GLOW SIGN: The company will compensate the insured in respect of loss or damage to neon sign/glow sign belonging to the insured. 6. GLASS BREAKAGE: The company shall compensate the insured for loss or damage to any fixed glass other than that which are specifically excluded hereunder, caused by any accidental, external and visible means. 7. CHEQUE FORGERY: The company shall compensate the insured for any loss to the insured caused by forgery or material alteration of cheques, drafts or other negotiable instruments issued by, or in favor of, the insured. 8. EMPLOYERS LIABILITY: The company shall indemnify the insured against the legal liability of the insured in respect of any bodily injury sustained by, or the loss of life of, the insured’s employees arising out of and in the course of their employment. 9. ACCIDENTAL, MEDICAL/HOSPITAL EXPENSES TO INSURED: The company shall compensate the insured for actual and reasonable medical expenses incurred for hospital treatment by the insured in respect of any bodily injury sustained by the insured arising out of operation at an insured peril as provided for in standard fire and special perils- buildings and standard fire and special perils- contents and / or burglary, coverage’s in this policy and subject to a deductible excess of an amount as may be specified in part 1 of the schedule. 10. PUBLIC LIABILITY: The company shall indemnify the insured for those sums that insured becomes legally liable to pay, including litigation expenses and any amount in compensation, by virtue of the following items as specified occurring in and about the insured’s premises.

• Accidental death or bodily injury to any person other than insured or the insured employees / staff.

RIMS,Bangalore

24

• Accidental damage to property of any person other than the insured or insured employees / staff.

11. FIDELITY: The company will compensate the insured for any direct pecuniary loss sustained by the insured through act of fraud or dishonesty committed by any salaried employee of the insured in the insured premises. B. Health Insurance: We save money for a better future. But life is full of surprises; a medical emergency can strain your hard-earned investments. Now, let your savings be untouched, get secured. C. 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-made disaster like burglary. Home Plans Gold Plan Silver Plan D. Motor Insurance: Your vehicle helps you reach destinations and enables you to commute from one place to another. But it might face some damage in an accident or get stolen. The security of your co-passengers can be endangered during accidents. Motor insurance takes care of all these possibilities and more. Motor Plans Four Wheeler Package Policy Two Wheeler Package Policies

RIMS,Bangalore

25

E. Travel Insurance: You do not want anything to ruin your hard earned holiday or your crucial business meeting. Unfortunate events such as baggage loss, passport loss, a medical emergency or an accident can affect you. Having Travel Insurance protects you from all such perils at a fraction of the cost of your trip. Travel Plans Individual Overseas Plan Student Travel Plan Domestic Travel Plan COMPRTITORS The National Insurance Co. Ltd The New India Assurance Co. Ltd The Oriental Insurance Co. Ltd The United India Insurance Co. Ltd Bajaj 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

RIMS,Bangalore

26

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 March 31, 2007 with a market share of nearly 12.4% and compounded annual growth rate of over 84% in the last two years. ICICI Lombard is the largest private sector general insurance company in India with a Gross 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 and serviced 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 growth and success of the company and its employees. Transparency ICICI Lombard encourages total transparency in all channels of communication (internally and externally) and complete accountability in customer deliverables. In November 2005, ICICI Lombard became the first private sector general insurance company to cross the Rs. 10 billion Gross Working Profit (GWP) marks. Empowerment ICICI Lombard provides you the platform to evolve from an employee to a partner in progressive growth. Since our origin in 2001, our employees have always been empowered to make decisions that chart their career path. We do not create jobs but build futures. Passion The passion to excel with customer focus in mind is what initiates ICICI Lombard to attain greater milestones. Integrity At ICICI Lombard, integrity is not limited to the organization's capacity to meet the needs of the stakeholder but also encompasses the vision and values of everyone involved.

RIMS,Bangalore

27

CHAPTER‐3

RIMS,Bangalore

28

3.1 Discussion on Training a. Student’s Work Profile (Role and Responsibilities) CORPORATE SALES TRAINEE

I was recruited, as a Corporate Sales Trainee in ICICI Lombard GIC Ltd. My role was to fix appointments with client company’s Account-, HR- and General-Managers and Lead Generation, and collect information about existing policies.

I have conducted a Research for General Insurance products in Koramangala area of Bangalore. My target was IT and non-IT companies, Hotels, Construction Sights and Commercial building having Offices.

As a Sales Trainee my responsibilities were as under:

Develop new relationships and maintain the existing ones.

Develop the channel partners for insurance products so as to ensure that it is made available across all the locations and the in catchments.

Responsible for sales budget of the business

Manage the partner relation at location level and co-ordinate internally with various functions to ensure efficient delivery of day to day service requirements

Lead Generation, Cold callings

Fixing appointments with Managers (Clients)

Prepare Database of new clients

Conduct surveys in different segments

Getting feedback from existing clients

Appointing Agents

RIMS,Bangalore

29

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.

Every aspect of life has two responses (experience) which I got from the

market or field work: Positive and Negative.

The experience that I procured from this training has made me understand

the difference between text book learning and real world experience.

Some of the experiences are:

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

understanding the mind set of executives to a certain extent.

Learnt about customer requirements, customer mind set, how to

convince others, etc.

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.

RIMS,Bangalore

30

STUDY OF SELECTED RESEARCH PROBLEM

CHAPTER‐4

RIMS,Bangalore

31

4.1 Statement of research problem

“Assessing the market awareness of office insurance products” “The purpose of this project is to understand how potentially the office insurance

products be sold through strategic marketing of services.”

4.2 Statement of research objectives

• To find out the customer awareness level for office insurance products. • To assess the effectiveness of company service.

• To make an independent assessment of the magnitude of the market

potential in the light of the competitive scenario. • To suggest remedial measures to exploit the market potential.

RIMS,Bangalore

32

4.3 Research design and methodology TYPE OF RESEARCH The type of research used in this project is a Descriptive research design. The major purpose of descriptive research is a description of the state of the affairs, as it exists at present. Thus a Descriptive study is a fact-finding investigation with adequate interpretation. It is the simplest type of research. It focuses on particular aspects or dimensions of the problem studied. It is so designed that it gathers descriptive information and provides information for formulating more sophisticated studies. There is a cause effective relationship. The criteria for selecting this particular design are that, the problem of the project must be described and not arguable. The data collected is amenable to statistical analysis and has accuracy and significance. It is possible to develop valid standards of comparison. It lends itself to the verifiable procedure of collection and analysis of data. Descriptive study objectives aim at identifying the various characteristics of a company problem under study. It can reveal potential relationships between variables with exploratory research. SAMPLING TECHNIQUE: The sampling technique used is convenient sampling. It is also called as purposive sampling or non-probability sampling. This sampling method involves purposive or deliberate selection of particular units of the universe for constituting the sample, which represents the universe. When population elements are selected for inclusion in the sample based on the ease of access, it can be called as convenient sampling. Empirical field studies required collection of first hand information and data pertaining to the units of study from the field. SAMPLING DESIGN: SAMPLING UNIT The samples include various offices & shops in Bangalore city.

RIMS,Bangalore

33

SAMPLE SIZE The sample size for listing questionnaire of research is 100, and the sample size is broken down in to two samples i.e. a sample size of 80 respondents from the offices and shops and the sample size of 20 respondents from the customers. SOURCES OF DATA COLLECTION: Primary data: The data was collected by using questionnaire and structured direct interviews, which were separately conducted to know the market awareness and market potential. Secondary data: The secondary data was collected from the company reports, broaches, manuals, text books and Internet. The customer of 20 respondents was provided by the company for assessing the service provided by a company. RESEARCH LIMITATIONS: This research is company- specific and confined only to Bangalore city, the problem of generalization becomes obvious Limited sample size is taken.

RIMS,Bangalore

34

4.4. Analysis of Data

The given below questions were being asked in every sector.

1. Are you aware of ICICI Lombard GIC Ltd.? Table1: Particulars No. Of respondents Percentages Yes 67 67 No 10 10 Little Bit 23 23 Total 100 100

Source: Field Study

Source: Field Study

Interpretation: The responses given by respondents are: 67% - aware of ICICI Lombard General Insurance and 23% know very little about General Insurance. This clearly shows that marketing strategies are working well to reach the people.

RIMS,Bangalore

35

2. If Yes, How do you come to know about Lombard Insurance Policies? Table 2: Media No. Of Respondents Percentages TV 42 42 News Paper 25 25 Agents 20 20 By Reference 13 13 Total 100 100

Source: Field Study

Source: Field Study

Interpretation:

It is depicted from the chart that, 42% of respondents came to know through television. 25% of respondents came to know through newspapers. 20% of respondents came to know through agents Major of the respondents came to know through television which shows that Mass media advertisement is Perfect source of communication.

RIMS,Bangalore

36

3. Which factor is important in your eye for purchasing insurance policy? Table 3: Factors No. Of Respondents Percentages Company 53 53 Premium 22 22 Service 25 25 Total 100 100

Source: Field Study

Interpretation: The chart depicts that 53% of respondents prefer company as an important factor where as 22% prefer for premium and 25% prefer service as an important factor for purchase of insurance policy, which shows that Brand is creating good value.

RIMS,Bangalore

37

4. How many employees are there in your office? Table 4:

Employees No. Of Respondents Percentages

More Than 5 66 66

More Than 10 22 22

More Than 20 12 12

Total 100 100 Source: Field Study

Interpretation: The above chart shows that, 66% of respondents have more then 5 employees, 22% of respondents have more then 10 and 12% of respondents have more then 20.

RIMS,Bangalore

38

5. If yes, Which Company Services do you prefer to avail? Table 5: Company No. Of Respondents Percentages ICICI Lombard 28 28 HDFC Chubb 07 07 New India 30 30 Oriental 15 15 United India 20 20 Total 100 100

Source: Field Study

Interpretation: The chart depicts that, 28% of the respondents wants to avail services of ICICI Lombard, 30% of respondents prefer New India, 20%of the respondents prefer united India and 15% prefer services of oriental. The data shows around 28% of people are interested in taking insurance in ICICI Lombard. It means there is an opportunity for company to capture the market. Most of the respondents want to avail services in government companies but the services, various types of policies and easy renewal facilities and quick response of ICICI Lombard attract the customers’ attention.

RIMS,Bangalore

39

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

Table 6:

Type No. Of Respondents Percentages

Yearly Renewal 69 69

Auto Renewal 31 31

Total 100 100 Source: Field Study

Interpretation: The above chart shows that 69% of respondents would like to have Yearly renewal policy and 31% of respondents want to have Auto Renewal.

RIMS,Bangalore

40

7. When you are going to have new insurance policy? Table 7: Particulars No. Of Respondents Percentages Within 15 Days 37 37

15 to 30 Days 43 43

30 to 60 Days 20 20

Total 100 100 Source: Field Study

Interpretation: Out of 20 respondents, 37% of respondents wants to have insurance policy within 15 days, 43% of respondents wants to have with in 30 days.

RIMS,Bangalore

41

8. How do you rate about services? Table 8:

Opinion No. Of Respondents Percentages

Very Good 30 30

Good 45 45

Normal 20 20

Not Good 05 05

Total 100 100 Source: Field Study

Interpretation: ICICI Lombard customers rated the services are as: 30% of respondents said very well, 45% of respondents said well, 20% of respondents said normal and 5% of respondents said not well. Company’s online renewal and new policy documentation, 24hrs free helpline and one to one interaction helps to attract new clients and retention.

RIMS,Bangalore

42

9. Have you ever-contacted customer help desk? Table 9:

Particulars No. Of Respondents Percentages

Yes 80 80

No 20 20

Total 100 100 Source : Field Study

Interpretation: The above chart depicts that 80% of respondents contacted customer help desk and 20% of respondents did not contact customer help desk. This shows the importance of Help Desk as far as Office insurances are concerned.

RIMS,Bangalore

43

10. If yes, what is your opinion about customer help desk? Table 10: Opinion No. Of Respondents Percentages Good 50 50 Normal 40 40 Poor 10 10

Total 100 100 Source: Field Study

Interpretation: Out of 20 respondents, 50% of respondents’ opinions about customer help desk is good, 40% of respondents told ok and 10% of respondents told poor. Major of the respondents told they are happy regarding the information and service provided by customer help desk.

RIMS,Bangalore

44

HOTEL INDUSTRY

Below given opinions and data were collected from Hotel Industry.

11. Are you aware about Hotel Insurance policies? Table 5:

Particulars No. Of Respondents Percentages

Yes 45 45

No 55 55

Total 100 100 Source: Field Study

Interpretation: The response given by respondents 45% is aware of office insurance and 55% know very little about office insurance. This shows the potentiality of General Insurance and this needs more attraction towards advertisement and marketing.

RIMS,Bangalore

45

12. We have Fire Insurance Policy, Electronic Equipment Insurance, Group Health policy and Terrorism Insurance Policy. Which policy do you prefer?

Table: 12

No. Particulars No. of respondents Percentages

1 Only Fire Policy 10 10

2 Only Electronic Equipment 07 07

3 Only Terrorism Insurance 09 09

4 Only GHI 05 05

5 Both 1 & 2 31 31

6 Option 1,2 & 3 23 23

7 All Policies 15 15

Total 100 100

Source: Field Study

Interpretation:

Above graph shows that clients wants to be full secure are 23%.This policy is based more on the no. of employees because where employees are more, premium would be high and some hotels would like to have different policies with different companies.

RIMS,Bangalore

46

HEALTH POLICY

13. Are you aware about General Health insurance policy? Table 13:

Particulars No. Of Respondents Percentages

Yes 30 30

No 70 70

Total 100 100 Source: Field Study

Source: Field Study

Interpretation:

The response given by respondents 30% is aware of office insurance and 70% know very little about office insurance. This shows that company needs more advertisement and new marketing strategies.

RIMS,Bangalore

47

14.We have Personal Care, Individual Health policy, Critical care policy, Family Health Policy. Which policy do you prefer?

Table 14:

Particulars No. of Respondents Percentages

Personal Care 13 13

Individual Health Policy 27 27

Critical Care 21 21

Family Health Policy 39 39

Total 100 100

Source: Field Study

Interpretation:

Table 14 shows that 39% clients wants to avail Family health policy, which has more coverage and can, protect all family members. Other policies are also having attractive premiums and coverage’s.27% of respondents showed interest in Individual policy which shows that we should target young employees and bachelors.

RIMS,Bangalore

48

PROJECT INSURANCE

15. Are you aware about Project insurance Policies? Table 15:

Particulars No. Of Respondents Percentages

Yes 40 40

No 60 60

Total 100 100 Source: Field Study

Interpretation:

The response given by respondents 40% is aware of office insurance and 60% know very little about office insurance. This shows that construction and builders groups are more aware about ICICI Lombard. Though its risky factor for company but premium is higher than other policies which has more than 25% share in total revenue.

RIMS,Bangalore

49

16.We have Liability Insurance, Full Project Coverage, Workers’ Insurance and Fire under-Construction policies. Which would you prefer?

Table 16:

No. Particulars No. of Respondents %

1 Liability Insurance 18 18

2 Total Coverage 29 29

3 WC Policy 25 25

4 Fire Under Construction 09 09

5 Both 1 & 3 19 19

Total 100 100

Source: Field Study

Interpretation:

Table 16 shows clients attention is towards total coverage, which is 29%. Some (19%) respondents want to avail only liability and WC policy and 25% respondents are interested in WC policy.

RIMS,Bangalore

50

4.5 Summary of Findings

All respondents have awareness about office insurance.

Majority of respondents told they were come to know about office insurance through 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 and electronic equipment insurance for their offices.

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

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

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

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 purchasing insurance Policy.

RIMS,Bangalore

51

SUMMARY AND CONCLUSION

CHAPTER-5

RIMS,Bangalore

52

5.1 SUMMARY OF LEARNING EXPERIENCE

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.

Collecting previous policy details, so that we can give competitive

quotation.

Preparation of customer feedback report about our company’s

products and services.

RIMS,Bangalore

53

5.2 CONCLUSIONS AND RECOMMENDATION

RECOMMENDATIONS Respondents do not have enough knowledge about the insurance policies provided by the ICICI LOMBARD. Therefore ICICI LOMBARD Company should bring awareness in the customers. The recommendations I would like to make are:

There is a necessity to make more advertising and promotions by the Insurance Company through TV, newspapers, magazines and pamphlets to make aware the customers about the insurance provided by them.

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

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

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

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

Since private insurances are seldom looked into because of security reasons, ICICI Lombard should find out a way to inculcate the confidence of its products among the customers.

To ensure that the customer queries are answered whenever they approach with problems, past reference materials should be made available to them at the zonal offices for problem solving

RIMS,Bangalore

54

CONCLUSION It is concluded from the survey that all respondents are aware about office insurance and they think they need insurance for their offices. It has been found that private insurance companies, like ICICI Lombard, etc do not get the required patronage from the customers, because of fear of losing their investments. This mindset needs to be removed from the customers. This can happen only when people start believing that private insurance companies like ICICI Lombard create confidence in them by providing quality service and reliability over the years.

RIMS,Bangalore

55

ANNEXURE

1. Are you aware of ICICI Lombard GIC Ltd.? A.Yes B.No C.Little Bit 2. If Yes, How do you come to know about Lombard Insurance Policies? A.TV B.Newspaper C.Agents D.Reference 3. Which factor is important in your eye for purchasing insurance policy? A.Company B.Premium C.Service D.All of the above 4. How many employees are there in your office? A.More than5 B.More than 10 C.More than 20 5. If yes, Which Company Services do you prefer to avail? A.ICICI Lombard B.HDFC Chubb C.United India Assurance D.New India Insurance E.Oriental Insurance 6. Which type of insurance policy you would like to have? A.Yearly Renewal B.Auto Renewal 7. When you are going to have new insurance policy? A.Within 15 days B.15 to 30 days C.30 to 60 days 8. How do you rate about services? A.Very good B.Good C.Normal D.Not good

RIMS,Bangalore

56

9. Have you ever-contacted customer help desk? A.Yes B.No 10. If yes, what is your opinion about customer help desk? A.Good B.Normal C.Poor 11. Are you aware about Hotel Insurance policies? A.yes B.No 12.We have Fire Insurance Policy, Electronic Equipment Insurance, Group Health policy and Terrorism Insurance Policy. Which policy do you prefer? A.Fire Policy B.Electronic Equipment Insurance C.Terrorism Insurance D.GHI E.Both A & B F.All of above 13. Are you aware about General Health insurance policy? A.Yes B.No 14.We have Personal Care, Individual Health policy, Critical care policy, Family Health Policy. Which policy do you prefer? A.Personal Care Policy B.Individual Health Policy C.Critical Care Policy D.Family Health Policy 15. Are you aware about Project insurance Policies? A.Yes B.No 16.We have Liability Insurance, Full Project Coverage, Workers’ Insurance and Fire under-Construction policies. Which would you prefer? A.Liability Insurance B.Total Project Coverage C.Workmen Compensation Policy D.Fire under-construction policy

RIMS,Bangalore

57

BIBLIOGRAPHY

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