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PROJECT REPORT ON
GENERAL INSURANCE & AGENT ACQUISITION
SUBMITTED BY:
ANJANA CHOUDHARY
YEAR: 2007-11
REG. NO. 200712629
1
DECLARATION BY THE LEARNER
This is to declare that I have carried out this project work myself in part fulfillment of the
“Post Graduate Diploma in Business Administration (Finance)” Program of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted to
any other University/Institution for an award of any degree/diploma.
-----------------------------
( Anjana Choudhary)
Date:
Place:
2
CERTIFICATE OF SUPERVISIOR (GUIDE)
Certified that the work incorporated in this Project Report “GENERAL INSURANCE &
AGENT ACQUISITION in ICICI LOMBARD ”, submitted by Anjana Choudhary is his
original work and completed under my supervision. Material obtained from other sources has
been duly acknowledged in the Project Report.
Rahul Dubey
(Project Guide)
Date:
Place:
3
PREFACE
India is on the threshold of being an open and liberated economy. Globalization has changed
the rules of competition, forcing Indian corporations to expand beyond their traditional
markets even as the face incursion of foreign companies at home.
True learning is born out of experience and observation. There is a large gap between
theoretical knowledge and practical knowledge about handling and managing a business.
Only bookish knowledge cannot help me in building up an effective administrator. So as a
part of the syllabus of MBA programmed, we all students are supposed to analyze the
functional working of any of the organization which gives us an opportunity to relate
theoretical knowledge with real corporate situations. A thorough and practical study,
knowledge and learning can only be useful to become more eligible and competitive. It also
helps to improve my analytical skill, communication skill and knowledge.
This project is totally based on primary data and secondary data. Information about Marketing
and different organizational processes has been collected from ICICI Lombard office.
In this project I have tried to analyze how to recruit agents in context of general Insurance
Industry and different organizational processes of ICICI Lombard and sale policies of ICICI
Lombard.
4
ACNOWLEDGEMENT
“Project” words seem to be gigantic. It could not be completed on my own. This is the proper
time where I want to thank all of them who have directly or indirectly help in carrying out the
activities.
It’s my delight to use the opportunity for conveying my thanks to all, who motivate and
supported throughout the project duration.
I would like to say thanks to my company guide Mr. Rahul Dubey (Area Regional Manager)
for his constant support and his guidance, also I extent my gratitude towards Mr. Abhishek
Shah (Unit Sales Manager) for his constant effort for making us better all the time, I would
also like to thank all the staff of ICICI LOMBARD, especially, Ajay Sir who was constantly
inspiring us for incurring our best performance, also to Rasesh Sir, Mr. Nikhil, and also to the
security staff, Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.
I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun Toliya, Ashok
Chauhan, Divya Patel & Pooja Nair who have given their constant support and motivation to
do the task.
I don’t want to miss the opportunity to be thankful of the Almighty God, who rules the world,
& my family who were always been helping hand for me.
Hearty thanks to you all.
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EXECUTIVE SUMMARY
Insurance industry in India has undergone a sea change in terms of delivering value added
services to the rising consumerism in India. The insurers are constantly adopting innovative
distribution channels in alliance with other financial counterparts. Also new custom made
products are introduced in the market after through assessment of current requirements of
customer needs. Insurance companies have realized the need for higher returns on life
insurance product, introduced by many insurance companies, have made returns transparent.
Today insurance companies are getting larger share of their collection through tied agency
channel of distribution. The LIC has channel well developed and of wide reach. The mentality
of most of the people in India is that they are ready to buy insurance from a person whom they
know, who is also doing the business for quite a time, who can give advice in financial
planning, and also collect the premium from them. This shows the importance of tied agency
channel. There is still a wide scope for private life insurers in selection of agencies. The rural
India is almost out of the private life insurer’s functional area, though they are slowly, firmly
and aggressively making their presence felt.
The large part of the mobilization of the rupee by life insurers comes from government
employees. This is because of the fact that government gives tax benefits if employees invest
in life insurance. This is clearly reflected in the study conducted about life time plan among
the employees.
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ICICI Lombard General Insurance Company is a 74:26 joint venture between ICICI Bank
Ltd. & the $ 26 billion Canadian based company Fairfax Financial Holdings Limited.
ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims management
and investment management.
Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of the Canada’s
oldest property and casualty insurer.
ICICI Lombard General Insurance Company received regulatory approvals to commence
general insurance business in August 2001
7
TABLE OF CONTENT
CHAPTER No. TOPIC No. PARTICULAR
CHAPTER-1 Preface
CHAPTER-2 Acknowledgement
CHAPTER-3 Executive Summary
CHAPTER-4 Introduction
Introduction of Insurance sector
Introduction of History
Life Insurance The Time Line
About Industry
Multiple Distribution Channel
Multi Channel Approach
Organization Chart
Role of Insurance
IRDA
About Co.
ICICI Group
Current Scenario
The Opportunity
About us
Product Basket
Rewards
CHAPTER-5 Training
Responsibilities
Awards
About the promoters
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Distribution
Product
Board of Directors
Management Team
Target & Task
Recruitment Strategies
Strategies Adopted
Procedure of Recruitment
Analysis of Performance Vs.
Target
Limitations
CHAPTER-6 Purpose of agency development
Tied agency
CHAPTER-7 Agent the process
agency channel
Scenario of Ahmedabad City
CHAPTER-8 Findings and Solutions
CHAPTER-9 Conclusion
Executive Summary
CHAPTER-10 Bibliography
INTRODUCTION
9
CONTENTS:
_ INTRODUCTION OF INSURANCE SECTOR
_ CURRENT SENARIO
_ MAIN INSURERS
_ IRDA
INTRODUTION TO INSURANCE SECTOR
We face a lot of risks in our daily lives. Some of these lead to financial losses.
Insurance is a way of protecting against these financial losses. For a payment
10
(premium), an insurance company will take the responsibility of compensating
your financial losses.
Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against fire,
burglary etc.
Private Sector Market Share:
Take a look at these statements:
You carry loan on your dream home than it is much important to
11
protect that house from any natural or manmade calamities by
insuring it on that home.
You are securing it against the uncertainty which includes risk in it.
You are carrying huge risk if you are driving car without insurance.
Even your family and kids may be exposed to any risk factor which
may affect their future life and your savings too if you are not
having medical policy
Medical policies are also useful for tax benefit.
If you identify any of the above need as a saving boon for you then, you shall
clearly understand the need of General insurance acts as a buffer against
uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of
your policy premium is eligible for tax rebate under section 80D.
1. What is non-life insurance and why do you need it?
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Whether it is your home, your health or your business, everything is exposed to any danger in
these times. Non-life insurances you for calamities like these at a minimal amount.
2. In what manner is a non-life claim settled?
The following steps are carried out:
The claim is filed by the person suffering the loss
A preliminary survey is conducted
The final survey report is submitted on receipt of all your documents
The claim payment is released
3. Tax implications of taking an insurance cover
A percentage of the amount that you invested mediclaim policy is allowed, depending upon
your total premium, as a tax rebate under section 88 against provisions of the income-tax
liability, subject to provision of the income-tax Act. Presently, there is a 12.36%service tax is
applicable on general insurance premium.
4. How much insurance should you have?
Insurance companies often conduct a thorough personal finance review and
use the concept of Human Life Value to ascertain the correct amount of
insurance you should have. “Human life value” is the net present value of
your potential future earning for the rest of your working life span. This is
typically a factor of your annual income.
5. In what manner do you evaluate the policies?
Decide the type of policy you want after asking some basic questions.
13
What are the returns offered by the policy?
What is your risk profile?
Can you sustain payment of the premium amount?
Is there flexibility in premium payment?
How good is the surrender value of the policy?
Once you decide on these, you will be able to select better.
What is insurance?
“Insurance is a financial service for the saving of the public and providing them with risk
coverage”
Thus in insurance,
The Risk
The Insured The Insurer
General definition: “insurance is a plan by which large number of people
associate and transfer to the shoulders of all risks that attach to individuals.”—
JOHN MAGEE
Fundamental definition: “insurance is accumulated contributions of all parties
participating in the schemes”--- D. S. HANSELL.
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Contractual definition: “insurance is a contract in which a sum of money is paid
to the assured as consideration of insurer’s incurring the risk of paying a large
sum upon a given contingency”--- JUSTICE TINDAL.
PRINCIPLES OF INSURANCE
Principle of utmost good faith
Disclosure of all facts
Principle of Indemnity
Loss indemnified
Not to earn profit
Doctrine of Subrogation
Hold negligent person responsible for the loss
Prevent the insured from collecting twice
Principle of Causa Proxima
Cause of loss must be direct and insured
Principle of Insurable Interest
Direct benefit to insured from the asset insured
Why do you need insurance cover?
Insurance provides a protection to the customers from certain and uncertain15
risks. Certain risk involves events like death, retirement, pension, education,
marriage, etc. uncertain risk includes events like theft, accidents, fire and
earthquake risks.
In general insurance fire, accidents, medical claim and because of that if third
party damages occur than it also covered in it. General insurance is only for
unexpected or uncertain risks. Now there are more than 14 companies under
it. Government is more giving priority on medical policies as now medical
expenses are more expensive and for that tax benefits also available for this
kind of policies.
History of insurance sector
16
.
History of Insurance Business
Insurance probably made a beginning in the ancient land of Babylonia In the 18th century
B.C., Babylonian king Hammurabi developed a code of law, known as the Code of
Hammurabi, which codified many specific rules governing the practices of early risk-sharing
activities. For instance, the code dictated that traders had to repay merchants who financed
trading voyages unless thieves stole goods in transit, in which case debts would be cancelled.
This was similar to the system of insurance known as bottomry which existed in Phoenicia in
1200 B.C. In this system, backers loaned money to merchants to finance voyages. Merchants
offered their ships (the hull was known as the ship’s ‘bottom’) as collateral for such loans.
When a trip succeeded, the merchant would pay the trip’s backer the original loan plus
interest, the equivalent of a premium. If a ship went down on its voyage, the trip’s backer
would cancel the merchant’s loan. The Greeks and Romans developed the earliest systems of
life insurance. They formed societies which paid dues that went toward paying for the burial
of members. Sometimes these societies also paid for the living expenses of deceased
members’ families. During the Middle Ages (5th to 15th centuries A.D.), workers joined
together in craft. Many guilds, particularly in England and Italy, provided benefits to workers
and their families in the event of illness or death.
Lloyd’s
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Insurance as we know it today took its shape in 17th century England. There was a place
called Lloyd's Coffee House in London, owned by Edward Lloyd, where merchants, ship-
owners and underwriters met to discuss and transact business. The Lloyd’s Act was passed in
1871 incorporating the members of the association into a single corporate body with perpetual
succession and corporate seal. It extended from marine insurance to other insurance and
guarantee business. Today, Lloyd's has become the world's best known insurance brand. It is
commonly misunderstood that Lloyd's is an insurance company. Actually, it is a society of
members, known as ‘underwriters’, both corporate and individual, who underwrite in
syndicates on whose behalf professional underwriters accept risk. Thus, supporting capital is
provided by investment institutions, specialist investors, international insurance companies
and individuals.
Any insurer who wants to become a member of the association has to deposit a certain fee as
security for the regular payment of his liabilities. The association will inquire about the
financial position of the concern, business reputation and experience. The business is
conducted by these insurers called underwriters, syndicates etc. Anybody desirous of taking
insurance will approach the ‘underwriters’ and not the ‘association’. Each underwriter will be
responsible for his business underwritten. Usually, the policy is underwritten by several
underwriters and their share or portion is fixed individually. If there is claim on the policy, the
insured gets the money from all the underwriters according to their respective shares. If an
underwriter fails to pay, the amount is realized from the security taken at the time of
enrolment from the underwriter. Lloyd’s as a corporation is never liable on any policy.
Lloyd’s brokers bring business to the market. The risks placed with underwriters originate
from clients and other brokers and intermediaries all over the world. Together, the syndicates
underwriting at Lloyd's form one of the world's largest commercial insurers and a leading
reinsurer.
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History of India’s Insurance Business
We find the term ‘Yogakshemam Bahamayam’ in our ancient texts. This suggests that a form
of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. In
modern times, Triton Insurance Co. Ltd. was the first general insurance company to be
established in India in 1850. The Bombay Mutual Life Insurance Society started its business
in 1870. It was the first company to charge same premium for both Indian and non-Indian
lives. The Oriental Assurance Company was established in 1880. Thereafter, many players
emerged. By 1956, there were around 240 private life insurers and more than 100 general
insurers. The Government of India, concerned by the unethical standards adopted by some
players against the consumers, nationalized the industry in two phases in 1956 (life) and in
1972 (non-life). The government brought together life insurers under one nationalized
monopoly corporation and LIC was born. The general insurance business remained in the
private sector till 1972. Then, nearly 107 insurers were amalgamated and grouped into four
companies- National Insurance Company, New India Assurance Company, Oriental Insurance
Company and United India Insurance Company. They were subsidiaries of the General
Insurance Company (GIC).
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Insurance sector reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction. Financial sector reforms were initiated and it was felt that insurance is an important
part of the overall financial system where it was necessary to address the need for similar
reforms. Some of the recommendations of the Malhotra committee included:
Government stake in the insurance Companies to be brought down 50%.
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to
enter the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
The Insurance Act should be changed. An Insurance Regulatory body should be set
up.
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Investments-
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company
Customer Service
LIC should pay interest on delays in payments beyond 30 days
Computerization of operations and updating of technology to be carried out in the
insurance industry.
The committee emphasized that it was essential that the sector was open to
competition to improve the customer services and increase the coverage of the insurance
industry. However, enough precaution should be exercised to prevent failure of the new
entrants .Hence a minimum capital requirement of Rs.100crores was stipulated. To provide
greater autonomy to insurance companies and enable them to act as independent companies, it
proposed setting up an independent regulatory body.
21
About Industry
INSURANCE INDUSTRY AT GLANCE
Many may not be aware that the life insurance industry of India is as old as it is in any other
part of the world. The first Indian life insurance company was the Oriental Life Insurance
Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in
life and about 100 in non life) mainly with regional focus flourished all across the country.
However, the Govt. of India, concerned by the unethical standards adopted by some players
against the consumers, nationalized the industry in two phases in 1956(life) and in 1972(non-
life). The insurance business of the country was then brought under two public sector
companies, Life Insurance Corporation of India (LIC). In line with the economic reforms that
were ushered in India in early nineties, the Government set up a Committee on (popularly
called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The
Committee recommended throwing open the sector to private players to usher in competition
and bring more choice to the consumer. The objective was to improve the penetration of
insurance as a percentage of GDP, which remains low in India even compared to some
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developing countries in Asia. Reforms were initiated with the passage of Insurance
Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an
independent regulatory authority, which has put in place regulations in line with global norms.
So far in the private sector, 12 life insurance companies and 9 general insurance companies
have been registered.
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ROLE OF INSURANCE
The companies conducting business of insurance are referred to as `Insurers’. The
terms `insurance company' and `insurer' are interchangeable.
Various groups of people are exposed to different types of risks, such as:
• People engaged in marine trade are exposed to the risks like damage to goods, sea
piracy, sinking of ship, vessel colliding with another vessel etc.
• Factory owners are exposed to different type of risks like fire, lightning, hailstorm,
flood, earthquake, burglary, etc.
Insurers form a `group' of those persons who are exposed to the same risks. The
shares/contributions (called premium) collected from each of them, are pooled
together to create a common fund. Every premium represents a corresponding risk,
which it seeks to cover. These funds are held in trust for the benefit of the
policyholders. Compensations (claim) to those, who suffer, are paid out of this fund.
Insurer's role is that of a trustee and it has to ensure that nobody takes undue
advantage. The insurer does this by:
• Preventing entry of people carrying higher risks through the process of underwriting
of risks
• Preventing payment of claims on losses that are not accidental.
24
When in government decided to privatize insurance sector in 1999, strong need of a
Regulatory authority was felt. This was in the backdrop of experience of investors who had
been robbed before through various financial scams such as stock exchange frauds, Chit
funds, Plantation Investments etc. thus IRDA (Insurance Regulatory and Development
Authority) was born.
Mission
To protect the interests of the policyholders, to regulate, promote and ensure orderly growth
of the insurance industry and for matters connected therewith or incidental thereto.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority
(IRDA, which was constituted by an act of parliament) specify the composition of Authority.
The Authority is a ten member team consisting of
(a) a Chairman;
(b) five whole whole-time members;
(c) four part-time members,
(all appointed by the Government of India)
25
Duties, Powers and Functions of IRDA
• Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or
cancel such registration;
• Protection of the interests of the policy holders in matters concerning assigning of policy,
nomination by policy holders, insurable interest, settlement of insurance claim, surrender
value of policy and other terms and conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training for intermediary
or insurance intermediaries and agents;
• Specifying the code of conduct for surveyors and loss assessors;
• Promoting efficiency in the conduct of insurance business;
• Promoting and regulating professional organizations connected with the insurance and re-
insurance business;
• Regulating investment of funds by insurance companies;
• Regulating maintenance of margin of solvency;
• Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
• Supervising the functioning of the Tariff Advisory Committee;
• Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause above;
26
• Specifying the percentage of life insurance business and general insurance business to be
undertaken by the insurer in the rural or social sector; and
• Exercising such other powers as may be prescribed.
About company
ICICI Lombard General Insurance Company Limited is 74:26 joint ventures between ICICI
Bank Limited and the Canada based $26 billion Fairfax Financial
27
Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax Financial
Holdings is a diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company
received regulatory approvals to commence general insurance business in August 2001. Also
ICICI Lombard is No. 1 insurance company as far as private sector is concerned. Its core
competency is in highest and fastest claim settlement which attracts most of the customers. As
far as insurance sector is concerned all the insurance companies are under common General
Insurance Company limited same as Life Insurance Corporation. There is cut throat
competition in the market as there as more than PSU as well as private sector player in the
field of insurance. Also still on 0.68% in penetrated, so there are lots of opportunities for
companies to grow and perform well with its core competencies. Its still long way to go,
because there is need of customized insurance that will really be a boon for customer, still we
can see that there is lack of decentralization as underwriter approval are to be taken each and
everywhere. But ignoring that we can say that insurance sector is booming like anything. And
ICICI Lombard is a key player in private sector which is capturing huge part of market. It is
following various marketing
Strategies and huge advertisement campaign that always keeps aware to the people about its
existence and its products. Thus there is still long way to go, also various foreign companies
are yet to come, as they seek lots of business opportunities as there is so much yet to be
explored in India.
(ICICI GROUP)28
ICICI LOMBARD CORE VALUES29
• INTEGRITY
• HUMANITY
• POSITIVITY
• SENSIVITY
• PASSION
Why ICICI Lombard
India's number one private general insurance company
First general insurance company in India to be ISO 9001:2000 certified.
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128- bit encryption in case of
online data exchange.
First company to provide digitally signed documents through an online interface.
Achieved financial breakeven in first full year of operations
Achieved underwriting breakeven in second year of operations
Adjudged as the 'General Insurance Company of the Year' at the 11th Asia Insurance
Industry Awards 2007.
Awarded the NDTV Profit Business Leadership Awards 2007 in the General
Insurance category on July 27, 2007
30
Adjudged as the most Customer Responsive Company in the Insurance category at the
Economic alConnect Customer Responsiveness Award 2006
Awarded the Best Housing Insurance in the Smart Living Awards by 360 degrees, a
Times of India Group subsidiary, in Nov 2006
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31, 2006
Adjudged amongst the top three in the Insurance Website of the Year category at the
9th Asia Insurance Industry Awards function held in Singapore during September,
2005
About ICICI Lombard
Young Company - August 2001
Largest private sector Insurer
Largest Capitalization in private sector
Financial & Underwriting Breakeven in 1st & 2nd year
Pan India presence - Over 227 branches, 176 locations, and 5349 full time
employees on 30 June’07
ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007 &
Avaya Global Customer Responsiveness Award
International operations - UK since May’06
Organizational Structure
31
ICICI Lombard’s organizational structure is designed to be flexible and responsive with the
ability to evolve and re-orient towards market opportunities, while maintaining the required
degree of risk management and controls.
There are four principal groups:-
Wholesale Business,
Ban assurance & Retail Business,
Rural and Agricultural Business
Shared Services.
The Wholesale Business Group
Focuses on large corporations and also on small and medium enterprises, state and central
governments and government enterprises. Key products include Fire, Marine, Engineering,
Liability policies and Group schemes for employees and large scale state level health and
personal accident schemes
The Banc assurance and Retail Business Group
Delivers products through multiple channels including banc assurance, agents, feet- on street,
telesales and the internet. The key products include Motor, Travel, Health and Home
insurance.
The Rural and Agricultural Business Group
32
It is responsible for reaching out to rural customers with relevant products such as Weather insurance, Health and Personal Accident covers.
Shared Services
It provides support services to the business verticals. These services include Finance &
Accounts, Administration, Technology, Operations, Reinsurance, Customer service, Human
resources, Legal and Marketing communications.
Product Range
Business Solutions
Burglary Insurance
Industrial All Risk
All Risk Insurance
Consequential Loss(Fire) Insurance
Electronic Equipment Insurance
Fidelity Insurance
Fire and Special Perils
Tea Corp Insurance
Marine export import
Machinery
Boiler Insurance
Inland Transit Insurance
Project Solutions
33
Contractors’ All Risk
Contractors’ Plant & Machinery
Erection All Risk
Performance Guarantee
Liability Solutions
Director’s & Officers Liability
Event Insurance
Product Liability
Public Liability
Workmen’s Compensation
Professional Indemnity
Export Solutions
Export Import Transit
Export Credit
Rural Solutions34
Weather Insurance
Janata Personal Accident
Tractor
Farmer’s Package
Personal Solutions
Health Insurance
Health
Personal Accident
Group Personal Accident
Group Health
Travel Insurance
Domestic Travel
Individual Overseas Travel
Student Overseas Travel
Senior Citizen Overseas Travel
Corporate Overseas Travel
Pravasi Bhartiya Bima Yojana
Motor Insurance
35
Two Wheeler
Four Wheeler
Home Insurance
It covers mainly all natural calamities and also gives covers against man made calamities,
which is very important to protect your dream house. So ICICI Lombard general insurance
company has variety of cover for your dream home
Key Products36
Motor Insurance
37
• What is motor insurance?
• How is motor insurance different from other forms of general insurance?
• Why do I need motor insurance?
• What is the kind of emergency that can strike?
• What are the exclusions under the policy?
• What is the maximum cover that can be availed for occupants of vehicle?
• What is compulsory deductible under Motor insurance?
• What is the difference between private motor insurance and commercial
motor insurance?
What is motor insurance?
Motor insurance protects you and your vehicle against every comprehensible risk related to
your vehicle – theft or damage to it, death of the driver and passengers in an accident, and
damage caused by your vehicle to another person or property (Third Party Liability).
38
How is motor insurance different from other forms of general
insurance?
A motor insurance policy (Third Party Liability) is mandatory under the Motor Vehicle Act,
while other forms of general insurance are optional. The law mandates that every owner of a
motor vehicle must have a motor insurance policy.
Why do I need motor insurance?
You need motor insurance for the following reasons:
• Third Party Liability (injury, death or property damage) is mandatory as per the Motor
Vehicle Act
• Your car is one of your most coveted possessions
• Passengers in your car are mostly your near and dear ones
• Accident, theft, damage and third party liability can arise unexpectedly
What is the kind of emergency that can strike?
• Loss or damage to the vehicle insured
• Own damage
• Partial theft
• Total theft
• Third party injury
• Third party death
• Third party property damage
• Personal accident of owner-driver and other passengers
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What are the exclusions under the policy?
The following are the specific exclusions under the policy:-
• Mechanical breakdown
• Wear & tear
• Consequential loss
• Depreciation
• Deliberate accidental loss
• Intoxicated driving
• Any contractual liability
What is the maximum cover that can be availed for occupants of
vehicle?
Under a package policy, the maximum cover that can be availed for the driver
and each passenger is Rs 1lakh and Rs 2lakh respectively.
What is compulsory deductible under Motor insurance?
Motor insurance policies have a compulsory deductible, wherein the claim
amount has to be borne by the insured.
• For private cars up to 1,500 cc – Rs 500
• For private cars above 1,500 cc- Rs 1,000
• For two wheelers – Rs 50
40
What is the difference between private motor insurance and
commercial motor insurance?
Vehicles owned by individuals and used for their personal purpose fall under the category of
private vehicles However, vehicles owned by companies or individuals used for public
utilities fall under the category of commercial vehicle. The insurer’s liability is lower in
private vehicles than in commercial vehicles, where the third party liability is huge.
41
Home Insurance – Introduction
It is imperative that you secure your home from natural and man-made catastrophes. Our
Home Insurance Plan ensures you peace of mind by protecting the structure and the contents
of your home.
Policy Details
There is wide range of policy details regarding the hypothecation with bank, and what kind of
documentation is needed in acquiring of policy.
42
Policy Coverage
You can choose to buy insurance for only the building (structure) of your home, or only the
contents (belongings) or both.
The policy covers the losses to the structure and contents of your home due to any natural and
manmade calamities.
The calamities covered are:
- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood & inundation
- Damage due to impact by vehicles
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installations
- Aircraft damage
- Bursting and/or overflowing of water tanks, apparatus and pipes
Burglary cover (only for contents):
The contents of your home are also covered against loss due to burglary or an attempted
burglary. It also covers loss of jewelry, silver articles and precious stones kept under lock and
key, up to 25% of the total content sum insured or Rs. 1 Lac, whichever is lower.
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Optional Covers:
Terrorism cover - Covers any damages and losses to the structure and / or contents of your
home due to acts of terrorism.
Additional expenses of rent for alternative accommodation –
If you are forced to shift into an alternative accommodation because your home is destroyed
or damaged by any insured peril, the policy will cover you against the additional rent.
The maximum coverage is up to Rs. 1, 00,000 for up to 6 months. The cover is available only
if you are insuring the structure of your home.
Key Benefits
Comprehensive cover - Covers both structure and contents of your home.
Avail 15% discount on a 3 years home insurance policy and 25% discount on 5 years
policy.
Optional covers available - Terrorism and Additional expenses of rent for alternative
accommodation.
Alternate Covers - A Home Insurance cover allows you to avail an optional cover for
alternative rent & Terrorism cover.
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Need for Policy
FICCI surveys show that realty rates may escalate 10%-15% in next 6 months of 2007.
According to official statistics, the Maharashtra floods on July 26, 2005, has led to
damages to over 1, 87,000 houses all over the State, affecting eight lakh families.
Protect your single largest investment against losses due to natural or man- made
calamities like fire, floods, burglary and earthquake.
Cover your household contents including furniture, durables, clothes, utensils, jewelry
at market value to accommodate inflation
Sum Insured
How to calculate the sum insured for the risk to be covered, also what is to be excluded and
what is included.
Home Structure:
The home insurance policy insures the structure of your home for its reconstruction value
(and not for market value). Reconstruction value is defined as the cost incurred to reconstruct
the home if it is damaged. On the other hand market value is a combination of cost of land,
demand & supply scenario, etc.
Sum insured is calculated by multiplying the built up area of your home with the construction
rate per sq. feet, e.g. if your built up area of your home is 1000 sq. feet and the construction
rate is Rs. 800 per sq. feet, the sum insured for your home structure is Rs. 8, 00,000.We
recommend the rate of construction for your location when you are buying online. However,
this value can be revised appropriately if expensive material -like marble flooring, etc. – has
been used in construction. If your home has lawn / garden surrounded by a perimeter wall, the
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construction rate can be revised to include the cost of construction of this wall in home
structure sum insured.
Home Contents:
The contents of your home - furniture, durables, clothes, utensils, jewelry, etc - are to be
valued on market value basis i.e. the current market value of similar items after depreciation.
Depreciation does not apply for jewelry.
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ICICI Lombard presents a completely new look to the Mediclaim concept. Health Insurance
(popularly known as Mediclaim) offers protection in case of unexpected medical
emergencies. In case of a sudden illness or accident, the health insurance policy takes care of
the hospitalization, medical and other costs incurred.
We offer a range of innovative policies to choose from. Each plan offers something unique (in
addition to the usual mediclaim policies) to suit your specific needs.
Buy insurance policy online with your ICICI Bank & Citibank Credit Card and pay premium
at interest free installments.
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Health Plans
Critical Care
Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and Procedures,
Personal Accident and Permanent Total Disablement (PTD)
Health Advantage Plus Insurance
A unique policy that covers hospitalization and Outpatient Department Expenses (including
Dental treatment, cost of medicines and drugs) and enables optimum tax savings of up to Rs.
5099 u/s 80D.
Family Floater Plan
A single policy that secures the hospitalization expenses of your entire family.
Personal Accident Insurance
A Policy that covers personal accident, permanent total disablement (PTD) and
loss due to terrorism.
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Travel Plans
Individual Overseas Plan
All overseas travel policies charge premium on a slab basis. Which means if you are on a 16
day trip, you end up paying for 21 days, as the slab is 14 to 21 days. But with us you ‘pay per
day’. (Code: Misc 4030)
Student Medical Insurance
A comprehensive cover, which insures you against unfortunate incidents or unexpected
expenses abroad and provides timely assistance and support when you need it the most.
(Code: Misc 4050)
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Achievements & Ratings
Best Customer Responsiveness:
Awarded the Economic Times Avaya Global Connect Customer Responsiveness
Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in the
Insurance category.
Best Housing Insurance:
Conferred as the Best Housing Insurance in the Smart Living Awards by 360 degrees ,
a Times of India Group subsidiary, in Nov 2006.
Excellence in Financial Reporting:
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31,2006.
Top Insurers of Asia:
Among the top three General Insurance Companies to be awarded the "General
Insurance Company of the Year" at the 10th Asia Insurance Industry Awards.
Insurance Website of the Year:
Among the top three to be awarded at the 9th Asian Insurance awards 2005 for the
'Insurance website of the Year' category.
iAAA Rating by ICRA:50
Granted with IAAA Rating by ICRA (Investment Information & Credit Rating
Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of
Moody's Investors' Services
Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske
Veritas (DNV) for establishing a quality management system for settlement of motor
claims. DNV has issued the ISO certificate for ICICI Lombard's fast and cost-effective
settlement of motor claims.
ICICI LOMBARD - Awards & Reputation’s51
ICICI Lombard awarded the ‘General Insurance company of the year’
ICICI Lombard has been awarded as the 'General Insurance Company of the Year' at
the 11th Asia Insurance Industry Awards 2007 held in Singapore on November 5,
2007. ICICI Lombard becomes the first Indian insurance company to win this
prestigious award.
It was ICICI Lombard’s innovation that caught the eyes of the judging panel. The
innovations credited to ICICI Lombard include introduction of biometric smart cards
to rural customers for availing health insurance, pioneering weather insurance along
with the World Bank for farmers in India and introducing online insurance for the
customers.
With more than 700 nominations received across 15 award categories from various
regions, the submissions of the short-listed candidates were thoroughly scrutinized by
the eminent judges. Audited by KPMG, the distinguished panel of 20 judges
comprised of regulators, industry leaders, practitioners and association heads.
Financial Highlights
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Overview of Operations
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Only General Insurance company having an ISO certification
Product delivery – automated
o Web (remote access, anytime, anywhere)
o ILPOS (Point of Sale)
Number of policies issued : 3.2 million p.a.
Total claims initiated : 11,87,430
Servicing 300 of top 1000 corporate customers,
4 million retail customers and 100 million rural customers
Customer service
o 24x 7 call centre, branch contacts
o Loss assessment and approval decentralized for faster delivery
About Competitor
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The general insurance industry grew 12 per cent till February in 2007-08 with robust
performance by private players including Reliance General, which continues to be the fastest
growing insurer. So Reliance General Insurance Company is the main competitor in this
sector as far the privet players are concerned.
The 14 non-life insurers collected Rs 25,470 crore in premium till February in FY'08, against
Rs 24,998 crore collected in the last fiscal, according to the industry data.
During the period, the four public sector non-life insurance companies collected Rs 15,280
crore, as against Rs 14,686 crore in the same period last fiscal. From this data we can say that
public sector companies have greater market share but because of cut throat competition in
the sector they are not growing as per industry rate.
The private players increased their business from Rs 7,981 crore to Rs 10,190 crore during the
period. The growth in privet sector is much higher than industry average
In percentage terms, while the public sector could increase their premiums by just 4 per cent,
nine private sector players clocked premium growth of 28 per cent.
Private sector players' market share has grown to about 40 per cent in FY'08 so far as
compared to the public sector's 60 per cent share.
Reliance General Insurance continues to be the fastest growing insurer with a premium
collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in the same period last
year.
During the period, market leader New India Assurance premium collection grew by six per
cent to Rs 4,760 crore.
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In the private sector space, the largest player - ICICI Lombard - collected nearly 12 per cent
higher premium at Rs 3,143 crore. But still ICICI Lombard is managed is No.1 position in
spite of high competition.
In future also there are more upcoming players in this industry so competition
might increase further and because of D-Tariff the insurance might get chipper
further. New players like Apollo General insurance company and Future Group
are already started their products in General insurance field.
THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the
industry’s growth and imperil balance sheets of insurers. In the scramble to get
new clients and retain the existing ones, companies are offering to cut old
tariff rates by up to 75%. While discounts are squeezing margins at one end,
the increase in rates by re-insurers is pushing up costs for insurers.
Existing Players: (Government non life players)
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Oriental Insurance Company Limited
New India Assurance Company Limited
National Insurance Company Limited
United India insurance Company Limited
Non life insurers (Private Players)
Baja Allianz General Insurance Company Limited
IFFCO- Tokyo General Insurance Company Limited
National Insurance Company Limited
New India Assurance Company Limited
Oriental insurance Company Limited
Reliance General Insurance Company Limited
Royal Sundaram Insurance Company Limited
Tata AIG General Insurance Company Limited
United India Insurance Company Limited
HDFC Chubb General Insurance Company Ltd.
CustomerICICI LOMBARD General Insurance segment serves a wide range of customers, from
individuals to small and medium-sized businesses, commercial enterprises and major multi-
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national corporations. This subsidiary of ICICI bank focuses on customer segments and key
markets that present the best opportunities for sustained and profitable growth.
Individual customers may take insurance for their Home Insurance, Health Insurance, Motor
insurance, Student medical insurance and Domestic travel insurance. So they are the main
focus area as far as the customer is concerned. ICICI Lombard is also providing the business
products also so corporate is also a one of the major area for customers. In business segment
Fire insurance, Marine insurance, Industrial insurance, corporate insurance is the main
insurance service is mainly use by clients in corporate segment. ICICI Lombard is also
providing service to the NRI they are also contributing very high to Lombard’s revenue. In
NRI service main focus area of the products are Health insurance, Parents’ overseas
insurance, Student medical, Home insurance, and Motor insurance. ICICI has major market
share of 25% in Travel insurance.
ICICI Lombard is providing services to rural area and for them also Home insurance, Health
Insurance, Tractor insurance, Weather insurance and Shop insurance are available.
Corporate agents are also plying the major role in Motor insurance to increase
the customers and increase the market share in the sector.
Customer support
Wherever you are, we strive to provide excellent service to you. We welcome you to
Customer Service, our single point-of-contact for all your service requests/needs. We are
committed to resolving your concern fairly and quickly.
Now reaching us has become a whole lot easier. Choose the channel suited to
your convenience and get an instant access to our services.
Self-Help58
Choose the products, service request and we will contact you. Click here
Track Your Interaction Status
Enter your Request/Complaint No. or Policy Number to track your previous
interaction status. Click here
Email Us
Click here to e-mail us
24x7 Insurance Helpline
Call Toll free at 1800 209 8888 for your insurance needs.
Letters
send us a letter
All India Branches
ICICI Lombard has over 257 offices across 196 locations. Find one near you.
Grievance Reddressal
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If you are not satisfied with the resolution provided to you by the above channels, we will
connect you to the grievance reddressal.
Compliments
If you are happy and satisfied with our service and products, Please provide feedback.
Corporate Profile
Genesis
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI
Bank, India's largest private sector bank and Fairfax Financial Holdings Limited; a Canada
based $26 billion diversified financial services company engaged in general insurance,
reinsurance, insurance claims management and investment management.
Lombard Canada Limited, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers.
ICICI Lombard Corporate Highlights
Strong Percentage:
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive distribution network
and sound technological infrastructure to service customer needs. Lombard Canada assists on
domain knowledge, product innovation, business processes based on cutting edge technology
and international best practices in the insurance business.
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Resourceful Customer Service:
ICICI Lombard services a wider foot - print of customers with its offices located in 127 cities
across India. With a network of 3500 hospitals in 200 cities and around 1500 garages in 255
cities, ICICI Lombard offers cashless claim settlement to its customers. We also have an
online customer support system which allows customers to track their claim status and
facilitate quick response to service requests. Click here
Highest Levels of Security:
Security and privacy for customers remain our highest concern.
Click to view our security certifications:
-TRUSTe Privacy Seal Program
- VeriSign Certification
Strong Claims paying ability:
We have been assigned the iAAA rating, indicating highest claims paying ability. As
of 2005-2006 over 14, 51,000 policies have been issued across India and over 2.4 lakh
claims settled.
Comprehensive Products:
We have over 32 customized and innovative insurance solutions which are offered to
the customer for their best insurance solution.
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S.W.O.T. ANALYSIS OF ICICI Lombard GIC
Ltd.
Strength
Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line
Highest security level offered through 128 - 128-bit encryption in case of online data
exchange
First company to provide digitally signed documents through an online interface
Weakness
Have to take underwriters approval for every process
Less agent payout that is (10 %to15%)
Opportunity
95% 2-wheelers are not insured
Beneficial in business sector because of corporate growth
Low market share in insurance sector
There is lots of innovation to be done62
Customized insurance solution
Getting Fleet owners
Threats
• There will be too many competitors in future
• Because of d-tariff margin may further shrink
• Threat of new entries
• Threat of substitute products
• Government Policies
• PSU Companies
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MARKET SHARE
ICICI is holding 36% market share of insurance industry and other 13 insurance companies
are with 66% market shares.
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About the Promoters
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with
assets of Rs. 2958.32 billion as on December 31, 2006. ICICI Bank provides a broad spectrum
of financial services to individuals and companies. This includes mortgages, car and personal
loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing
customer base through a multi-channel access network which includes over 695 branches and
extension counters, 3051 ATMs, call centers and Internet banking.
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more than 21
million customers, policyholder and unit holders worldwide. Today, Prudential has millions
of customers worldwide and over £238 billion (as of 30 June 2006) of fund under
management. In Asia, Prudential is the leading European life insurance company with a vast
network of life and fund management operations in thirteen countries - China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand,
Vietnam and United Arab Emirates.
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Distribution
ICICI Lombard has one of the largest distribution networks amongst private general insurers
in India. As of January 31, 2007 the company has over 200 offices across the country and
over 16,000 agents.
Thus this is the short and brief history of the ICICI Lombard as No1 private company. It
awareness amongst the customer is rated quite high, as its marketing vertical is quite advance
also they carry on large advertisement campaigns. Through advertisement it is creating its
brand value in the mind of customer. As we can clearly see from the chart that ICICI
Lombard grabs huge amount of market share and its Product Bouquet is of wide range with
meets the customer requirement to its solutions, which the customer appreciates by buying the
product with faith in the company. Also its core competency of fastest claim settlement makes
customer to prefer ICICI Lombard as their first choice. We can find n number of hoarding,
banners, sign board which reflects the brand image of ICICI Lombard.
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Management Team
“The ICICI Lombard General Insurance Company
Limited Management team comprises very young
and energetic people in its management team.”
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Mr. Sandip Bakshi – M.D & CEO
Mr. Rakesh Jain – CFO
Mr. B. Anant - Head HR
Mr. Ritesh Kumar - Head-Retail, Rural
and Reinsurance
Mr. Neelesh Garg - Head-Retail and Bancassurance
Mr. Bharathan K - Head GCG
Mr. Alok Agarwal - Head Corporate
Business
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SCOPE
Purpose of Making of agents
Expansion of business has always proved as a sign of profit, same is in the business of
insurance. Agency development means recruitment of educated, aware individuals with
marketing flair, an elite group. In short companies are recruiting an advisor who comes with a
handsome business; in return they get commission, incentives, and other benefits also.
The targeted segments are:
LIC Agents
R.T.O agents
Stock Brokers
Tax consultants/CA
Fleet Truck Owners
Education consultants
Financial service executives (Savings account etc.)
Tour & Traveler
Global consultant
Auto Dealers
Used car dealers
Overseas consultant
Earth movers
Contractors
Labour Union leader
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And there are many other upcoming segments in which agent acquisition is proving to be
boon for the company for generating more and more business.
Tied agency channel
An Agent
Today’s insurance agent has to know which product will appeal to the customer, and also
know his competitor’s products in the same space to be an effective salesman who can sell his
company’s product, and himself to the customer. To the average customer, every new
company is the same. Perception about the public sector companies are also cemented in his
mind.
The new companies are looking for educated, aware individuals with marketing flair, an elite
group.
Role of agents
The insurance agent is the interface between the customer and the insurance company. The
agents should be able to accomplish the following to improve service.
• Assessing and analyzing the client’s risk profile
• Finding the best products available in the market
• Negotiating the best deal available
• Continuity of service throughout the period of insurance
• Claims advisory service
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In tied agency thus an agent has important role to play. It becomes his duty to give the
customer best service. Once that is done a customer is satisfied and this in longer period is
bound to bring in more business.
General insurance agency: the process
Once the right profile is found and he/she is ready to take up the agency there is a fixed
process that has to be followed.
Documentation:
A form has to be filled by the person who intends to take up the agency. He has to submit
documents related to Address proof, Education proof, Pan Card copy, Photo and Cancel
cheque.
Training:
Once the form is filled up and necessary documents submitted according to IRDA guidelines
the individual has to undergo a 50 hours training. Thus an individual undergoes a total 50
hours or two weeks training which is compulsory and product training is given by company.
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IRDA Exams and license:
Once the training has been imparted to the individual then to start working as a general
insurance agent than he needs an IRDA license which is given upon clearing the IRDA exam
taken by IRDA itself. This exam is written as well as online. After clearing exam person gets
the license. It is then that individual become a General insurance agent and can start working.
Facilities provided by the company
• There is 100% management support to agents. For them agent service desk is also available
from there they can get solve any query and get premium quotation.
• Company gives brochures, pamphlets and other material free of cost.
• In the initial time the unit Sales Manager or Unit Sales Manager also go
with the agent to reap the business and thus gives the practical
knowledge of marketing.
• At any point of time the unit managers are ready help their agents.
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Returns to an agent
A life insurance advisor earns in form of commissions, bonus, and incentives. This
commission is counted as some percentage of the policy premium. This commission varies
with different policies of a company as well as the policy terms. It’s high in the year of policy,
then decreases and later becomes constant. For example an advisor can reap 10 to 15 % of
commission. An agent gets the commission till the client pays the premium. According to
IRDA norms certain cap for commission has fixed on various policies.
Apart from regular commission the advisors also gets the gifts as per their performance. But
this is totally an individual life insurance companies’ discretion. Different companies may
adopt different strategies for the advisors.
Recruitment strategies
In recruitment of the agents I have targeted the fleet owners who are the transporter. They
own more then 15 trucks with them so they are the initial beneficial for acquiring the agency,
as insurance on the goods carrying vehicle is compulsory and also they are exposed to n
number of risk as they are constantly into to & fro on the highway road. The main benefit of
targeting this segment is that the owner is itself aware about the risk he is going to have. And
also he has a satisfaction that his property is insured and it would not affect his financial
position is case of any mishaps.
And the best part is that the agent himself can take 20% discount on his Own Damage
premium amount, which is known as OD discount. Still not over, he will also get 10% payout
of the business he gives to the company, so overall he will be benefited by paying 30% on his
own policy premium amount. And not only will this but they also get No Claim Bonus (NCB)
if there is no claim history in Past. Also company is giving RED CARPET service which is
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only for the fleet owners as they are considered to be the Gold / Platinum category of the
agent.
The red carpet service is the extra benefits which includes many things which are not
rendered by any other competitors.
It includes following benefits:
• Free cashless service in the more than 2000 garages across the country.
• Access to the nearest garage at the highway
• No documents required at the time of surveying
• Free eye check up camp for the drivers
• Free driving training at advance level for the drivers
• Payment of 50% of claim amount at the time of service if claim is more
than 1lakh Rs.
• Settling claims in less than 21days.
• He can insure the vehicle more than 5years of age which no company in
private sector does.
Thus the red carpet service is proving to be win-win situation for both the company and the
agent himself as this is very much beneficial scheme for the agent himself who is a fleet
owner. And thus he is easily convinced however it is still difficult to trace fleet owner as they
are quite busy in their schedule itself, so taking a prior appointment is difficult task to do.
Also I would like to introduce other specialty which helps agent as a back up support.
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They can insure vehicles above the age of 5 years which generally Reliance and Iffco
tokio is not taking.
We have agent desk department who is catering agent queries such like policy,
premium calculation if they have any problem regarding their status and also their
payout and claim problems.
The retention team work as a back up support for the agent which deals in renewing
the old policy of the old customer. So the retention team intimates the agent and
inform about the nearest renewal date and amount which the agent has to collect from
his customer.
Procedure of Recruitment:
To achieve a goal successfully one need to sketch a perfect roadmap & also adopt a strategy
to the destination and also need to follow the path strictly.
My plan to achieve target is as follows:
a. Generating Database
In the very first step of recruiting agents is to prepare contact numbers’ list for that I have
used natural market contacts, referral contacts and also I have done cold calling for that. In
cold calling I take name and number of that person and also profile of that person.
b. Tele calling
Tele calling is one way of convincing customers by doing phone calls and explaining whole
procedure of becoming agents and their pay roll structure and how ICICI providing service to
agents. And if possible tele callers may take appointment so that face to face conformations
can be Beneficial to understand the policy. This support was given by Divya Patel & Pooja
Nair who was on Agent Service Desk support.
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c. Appointments
After Tele calling if customers are interested they give appointment for meet. Both our self
and customer conveniently decide the place for meet.
d. Collecting documents and filling the forms
There are criteria for customer for becoming a. So, after fulfilling criteria forms are filled and
documents attached.
e. Submitted forms in company
After attaching documents and taking signature of customer forms are submitted in the
company. This is to be handover to the operations department, as entry would be done in MIS
after checking the details and eligibility of the Agent from the document he has submitted, his
signature is verified, also his identity is cross checked, by the document itself or but
telephonic questioning if required.
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Limitations
• Generating the Data base of the customers is a quite time consuming for me.
• Appointments at improper timings. Set the time according to the customer convenience.
• Getting Quality Customers who would really trust IPRU was very difficult at initial phase.
Aware them about the other company policy and differentiate between IPRU and its
competitors products.
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Limitations
Learning at Executive Training
• Improvement in my convincing skill.
• Time management.
• Leadership.
• Get the knowledge of corporate world.
• Working effectively and efficiently.
• Team work
• Working according to the company policies.
• Regular follow up the agents who are in pipeline.
• It is really important to know what the customer’s requirement is.
• How business & ethics work together
• Regular reporting with my company guide.
• Interacting with different type of agents
• Provide me an opportunity to apply the concepts learned in real –life situations.
• It sensitizes us about nuances of work place by the time-bound projects assigned by the
company.
• It creates awareness about the strengths & weaknesses in the work environment
• It provides a platform to develop a network while OJT (On-the-job- Training), which would
be useful in enhancing career prospectus.
• Know the day-to-day functions of the company.
• It provides a unique opportunity to get exposed to corporate culture, professional experience
& professional behavior & putting the theoretical concepts learned in the classroom for
developing managerial skills.
• To gain a deeper understanding of the work culture, deadlines, pressure etc. of an
organization.
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• It gives a flavor of teamwork, organization culture, team dynamics, result orientation,
organizational pressures, complexities in achieving the desired results etc.
• It provides direct exposure to the execution & support functions of the departments.
• It provides a good scope for developing necessary managerial skills & positive attitude.
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Looking forward in insurance market in 2010
The Indian non-life market has experienced significant changes that are likely to influence the
country’s development of its insurance market in the medium to long term. So far, the entry of
a large number of Indian and foreign private companies has led to greater choice in terms of
products and services for Indian consumers. A growing realization of the benefits and
importance of sophisticated insurance and reinsurance tools has broadened the pool of
potential buyers of insurance. Given this backdrop, the Indian insurance market has
experienced considerable growth since its liberalization in 2000. Over the next three years,
the Indian insurance market is. Likely to see its process of maturation accelerate.
Regulatory drivers
Regulatory changes in the four areas discussed in the previous section – products, market
players, distribution and reinsurance – will drive change in the Indian insurance market in the
medium term. In some areas, such as detariffication, the majority of reform has already taken
place, although the consequences are yet to be seen. In other areas, while the reform is
promised, it is difficult to anticipate when it will occur. As a result, there is a lot of
uncertainty in the Indian insurance market. The four main areas of change are now considered
in turn.
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Detariffication
The process of detariffication, first begun in 1994, has gradually moved the Indian market to a
position where the overwhelming majority of insurance is transacted without a tariff. As of 1
January 2007, tariff rates have been withdrawn from all lines of business except for motor
third-party (TP) liability. While hitherto, insurance professionals had limited exposure to
Sophisticated technical pricing based on actuarial data analysis, in a detariffed market, this is
increasingly a necessity for businesses in order for them to remain profitable.
Foreign ownership
As discussed earlier, foreign ownership is currently restricted to 26%, although there are plans
to increase this limit. The typical structure adopted by the Indian government for the Phasing
in of foreign-owned entities across other industries (such as construction and pharma) has
been as follows:
1. Phase I: Allow foreign entity to have 26% stake in joint venture.
2. Phase II: Increase foreign entity maximum stake from 26% to 49%.
3. Phase III: Increase foreign entity maximum stake from 49% to 74%.
4. Phase IV: Allow 100% foreign-owned entity to operate in market.
In January 2007, the Indian government reiterated its claim to
Increase the cap from 26% to 49%
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In January 2007, the Indian government reiterated that it would introduce legislation to hike
the FDI cap in the insurance sector to 49%. No time limit has been set for taking a decision on
it although consultations with the industry and stakeholders are underway. There is ample
opposition from the left, but analysts expect that this change will be made effective in. The
next one to two years. The effect of this change will be twofold. Firstly, it will increase the
focus of the existing Private insurers operating within the Indian market. As discussed in the
previous section, the private companies are increasingly diverging on strategy as they are
influenced by their foreign partners. It is likely that increased foreign ownership will lead to
differentiated strategy, more niche players and a wider product range.
Secondly, it is expected to increase the supply of capacity in the market as new investors will
decide to enter the market. Indeed, a number of insurers have commented that, as soon as
foreign companies are allowed more than 26% ownership, they would move as quickly as
possible to participate in the market.
Broker distribution
The broker channel was recognized in 2002; again, foreign capital providers can take up to a
26% stake in an Indian brokerage operation. There is also no indication at the time of writing
as to whether the constraints placed on Brokers, such as high set-up costs and activity
restrictions will eventually be removed. What remains clear, however, is the fact that in a
detariffed market, the broker has more opportunity to demonstrate value to both the customer
as well as the insurer. Value-added services can be in the form of consulting regarding risk
management responsibilities as well as more traditional insurance-related roles.
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Compulsory Sessions
In line with detariffication, there has been some progress in reducing the compulsory session
to the GIC from 20% to 15%. The 20% compulsory cession has been reduced to 10% in 2007
However, a complete abolishment of the remaining 15% compulsory cession to the GIC is
unlikely to occur in the medium term. Although it would seem natural to liberalise this
position as the broader non-life market begins to open up, the Indian government and
Legislator reiterated their desire to retain insurance premium in India in the central legislation
of 2000, and there is no reason to believe that this position has since changed. In addition,
many local companies are happy with the automatic reinsurance support that they receive
from the GIC.
The PSUs are pleased that they are able to cede 15% of their poorly performing motor book
on to their parent whereas the growing number of private insurers are grateful for the
additional capacity that they receive from the GIC’s de facto proportional treaty coverage.
While a further reduction to 10% is expected in 2008, abolishing compulsory cessions
Altogether is not at the top of the legislator’s agenda.
Growth driversOverall, sales of both commercial and retail products are expected to benefit from India’s
surging economic output over the medium term. Economists expect India’s output to grow by
around 6% per annum over the next ten to 15 years, and the political and business
environments are expected to stabilize further.79 The combination of this economic growth,
Increased stability and the liberalization of the non-life sector is expected to provide premium
growth in the range of 10% to 15% per annum over the short to medium term.
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Personal lines insurance premium growth drivers:
Personal lines products are expected to develop quickly as Indians grow wealthier although
probably not of immediate interest to Lloyd’s underwriters, a developing economy’s initial
growth in insurance penetration is often driven by personal lines products, especially motor
cover as this tends to compulsory. Indeed, India’s fast-developing private insurers expect
retail products to provide them with their main source of premium growth over the medium
term.
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Conclusion
It was really a great experience to be associated with such a great corporate company. Its was
a great pleasure to work with reputed firm ICICI Lombard which is No. 1 player as far as
private company in insurance sector. Also I am once again thankful to my company guide and
staff of ICICI Lombard who really worked hard as far as my training was in process. I have
learned enormous things during these 2 months, which will prove a solid platform as far as
my future career is concerned. It really enhanced my marketing skills, and also it gave me
solid motivation to face the critical situation, also I came across to the various people and
cultures which are in the corporate culture. I can say that SIP was like net practice before
playing any big game. It gave me ample of knowledge regarding my study on Agent
Acquisition.
I also got experience of hardcore selling as it was part of my SIP training. Thus this 2months
of SIP has pumped in lot of motivation and enthusiasm in me. It also upgraded my confidence
level and gave me boosting to face new challenges and gave me path of not only surviving but
also to grow in this competitive work. I can say that my dedication and hard work towards my
decided task really gave me good result in the end.
I also learned to work in a team and how to cope up with team spirit. Positive reinforcement
was the most motivating factor which makes us to work in a healthy atmosphere.
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BIBLOGRAPHY
Address:-
ICICI Lombard General insurance co. LTD.
6th floor,BBC Tower, Law Garden Road,Near Mithakhali Six Road,Ahmedabad.
WEBSITES
www.ICICIbank.com
www.icicilombard.com
Search engine like: www.google.com
Magazine
The Economic Times
The business times
News paper
The Times of India
Gujarat samachar
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