Copy of Icici Lombard General Insurance

A

PRODUCT STUDY AND

CUSTOMER & SALES OFFICER SURVEY

Conducted at:

ICICI LOMBARD GENERAL INSURANCE

SUBMITTED BY-ANKIT MITTAL

Roll No. 04

In Partial Fulfillment for the Award Of Degree Of Masters in Business Administration

FromINSTITUTE OF MANAGEMENT STUDY,

KURUKSHETRA UNIVERSITY, KURUKSHETRA

PREFACE

Practical training is an important part of management courses. Theoretical studies in class room are not sufficient to understand the functioning of complex and large sized organsition, managerial climate and the real problems coming in the way of management of Man, Material, and Machines and Money.

Practical training supplements the theoretical studies i.e. it covers what is left uncovered in the classrooms .It offers an exposure to real practice of management in business organisition.

It exposures student to an invaluable tresure of experience

I received my training at ICICI LOMBARD INSURANCE , GURGAON as a student of MASTER OF BUSINESS ADMINSTRATION (MBA) in INSTITUTE OF MANAGEMENT STUDIES .I learnt lot of new things , which I could never learn from theory classes .

I have done a project on “PRODUCT STUDY AND CUSTOMER & SALES OFFICER SURVEY

ANKIT MITTAL

ACKNOWLEDGEMENT

I express my sincere and earnest gratitude to all those with whom I interacted and whose insights and thoughts have helped me a lot in expanding the reservoir of my knowledge and completion of my project .

During my training at ICICI I learned a lot and my project would not have been completed without the help and guidance of the employees there.I am thankful to ICICI LOMBARD INSURANCE ,GURGAON for allowing me to undergo training .

I am deeply indebted to Mr DIPESH RELAN, Officer , Investment and Services who extended his full Cooperation and support , subverted his expert guidance wherever necessary which was of paramount importance to me.

I would also like to thank Mr Rohit Goel(Branch Manager), Mr Ashish Mittal, Mr Lovneesh Lamba, MR. Sourabh chalana, Ms Pancham Bajaj, Ms Richa Singh & Ms Shilpa Handa. who helped me a lot in my project.

I would be failing in my duties if I don’t convey my special thanks to my friends and interviewees for sparing their valuable time in providing me information.

(ANKIT MITTAL)

CONTENTS

1) Introduction of Icici Lombard

Overview of Lombard Board Of Members Philosophy of Lombard Partners of Lombard

2) Products of Icici Lombard General Insurance

Health Insurance Home Insurance Motor Insurance Overseas Travel Insurance Merchant Cover Insurance

3) conceptual study

4) challenges & solutions

5) research methodology

6) Annexure

7) Survey result

8) Suggestions

9) Limitations

10) Conclusions& recommendation

INTRODUCTION

OF

ICICI LOMBARD

AND

THEIR PRODUCTS

INTRODUCTIONOF

ICICI LOMBARD

ICICI

ICICI Ltd., was established in 1955 by 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.

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. As of March 31, 2000, ICICI had disbursed a total of Rs. 1,13,070 crores, since inception.

Lombard 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 TSE).

Lombard Canada Ltd. has achieved a reputation for providing solid underwriting performance, diversified books of business and strong capital positions. Has received an A- rating from A.M. Best Company

and claims paying ability received an A+ rating from Duff & Phelps Credit Rating Co.

The Joint Venture ICICI Lombard General Insurance Company Limited, is a 74:26 joint venture between ICICI Bank, India's largest private sector bank and Lombard Canada Limited, one of the oldest property and casualty insurance companies in Canada. Lombard Group companies are amongst the largest equity shareholders in ICICI.

ICICI Lombard leverages ICICI Bank's strong brand equity, extensive distribution network and sound technological infrastructure to service customer needs. ICICI Lombard is assisted by Lombard Canada on domain knowledge, product innovation, business processes based on cutting edge technology and international best practices in the insurance business.

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.

ICICI Lombard is one of the first private sector general insurance players to achieve break-even levels in the first full year of its operations. For the year gone by (2003-04), ICICI Lombard garnered premiums worth Rs. 2.15 billion and its net profits grew to Rs. 33 million.

As on April 31st 2003, ICICI Lombard has offices in 36 cities across the country. Over 125 relationship managers and 800 insurance advisors service customers across the country. The company also

has a state-of-the art call center and an interactive website to enable customers to stay in touch.

ICICI LOMBARD

Hierarchy of ICICI Lombard

Zonal Head

Area Sales Manger (ASM)

Sales Manager (SM)

Unit Manager (UM)

Agents

BOARD OF MEMBERS

Mr K V Kamath Chairman

Mr R Athappan Director,

Mr B V Bhargava Director

Mr Dileep Choksi Director

Mr James F Dowd Director

Ms Lalita D Gupte Director

Ms Kalpana Morparia Director

Mr S Mukherji, Director

Mr Chandran Ratnaswami Director

Mr H N Sinor Director

Mr Sandeep Bakhshi Managing Director & CEO

PHILISOPHY OF ICICI LOMBARD

Claim Settlement

Lightning-fast claim settlement is one of the key areas of focus for ICICI Lombard. Our dedicated relationship managers, wide spread network across

India and presence of 24 *7 call centers assure our customers that we are always on call, day or night. Our tie-up with Cunningham Lindsey, the world’s second largest loss adjustors with its network in 80 locations across India, ensures a surveyor on site in less than 24 hours.

Rural Initiative

ICICI Lombard believes in striking the right balance between the commercial and socio-economic aspects of the insurance business. In its endeavour to offer tailor-made products to meet the requirement of the rural population, explore business opportunities in the related segments and build a competitive edge through strong distribution network and product innovation, ICICI Lombard uses intermediaries like ICICI Banks kiosks, direct selling agents, state-level tie-ups, ITC’s e-choupals, NGO’s and other micro- finance institutions (MFIs).

The rural segment offers immense business opportunities for insurers since it constitutes 50% of the GDP. Growing per capita and disposable income and rising financial awareness among rural masses has opened up new avenues for insurers in this segment.

Corporate Business

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

Bancassurance

The company has set up a dedicated SBU to cater to bancassurance business managed by dedicated teams for each bank partner across all locations to ensure highest levels of service to the channel and their customers and to provide complete support and value addition to the bank partners. Our bancassurance philosophy emphasizes on complete respect for the partner’s brand and business model with a clear understanding that the partner owns the customer. The company has tied up with few partners like ABN Amro Bank, ICICI Bank, UTI Bank etc, to ensure complete support and continuous value addition to the partner. The business philosophy behind the bancassurance initiative is to leverage distribution synergies with partners. The channel offers unmatched product suite customized for bank channels and customers.

Retail

ICICI Lombard aims to tap retail segment through multi-product and multi-channel approach to marketing. The company believes that retail segment has immense potential and will drive the company’s growth in future. It has presence in all retail categories -- travel, health, home and motor. It has launched a number of innovative products and features in each category like `Pay-per-day’ in Overseas Travel Insurance and floater cover for individual Health Insurance.

E-Channel

ICICI Lombard’s e-channel initiative has embraced technology with open arms. The effective use of technology platforms has enabled customers to view all their insurance transactions through the web on a real time basis. ICICI Lombard’s e-channel mainly focuses on targeting customers through Internet, intranet (of large corporates and manufacturing companies) and other national level distribution networks. The focus is on targeting customers through the online medium. The model is to develop an integrated and customized product platform with key partners -- ICICI Direct, ICICI Bank, preferred partners – moneycontrol.com and indiatimes.com and other websites.

PARTNERS OF ICICI LOMBARD

ICICI Bank .ABN Amro Bank

Centurion Bank

Online Partners:

Like Indiatimes.com, Moneycontrol.com

ICICI Direct:

ICICI Direct is the retail online initiative of ICICI Web Trade Limited, a subsidiary of ICICI Bank Ltd.

PRODUCTS OF ICICI LOMBARD

ICICI Bank has tied up with ICICI Lombard General Insurance Co Limited (a 74:26 joint venture between ICICI Bank and Fairfax Financial Holdings Limited) as its preferred general insurance partner through a referral arrangement.ICICI Lombard has designed various products for the retail customers keeping in mind their needs.

The various Products offered are:

Health Insurance - "Secure yourself and your family"     - Family Protect Policy

Home Insurance- "Secure valuables in your house"

   - Structure   - Contents

Motor Insurance- Mandatory - "Secure your Vehicle"

   - 4 Wheeler   - 2 Wheeler

Travel Insurance - "Secure yourself during your travel"

   - Overseas Travel Insurance    - Student Travel Insurance

Merchant Cover

- Stock- Cash in safe- Cash in Transit

INTRODUCTION

ABOUT THE

HEALTH INSURANCE

HEALTH INSURANCE

The Family Floater health plan covers medical expenses :

Incurred as an inpatient during hospitalization for more than 24 – hours. 30 days prior to hospitalization.

60 days post hospitalization.Incurred on advanced technological surgeries and procedures that require less than 24 hours of hospitalization.

 Family Floater

This unique single policy takes care of the hospitalization expenses of your entire family. Provides cover for your first relations and offers flexibility in terms of the hospitalization cover offered to each member of your family.

Example: Mr. Kapoor, his wife and son are covered for Rs 1 lac each, under a regular health policy. They would have paid premiums for three 1 lac polices. In an unforeseen situation wherein the surgery and post hospitalization bill of their son amounts to Rs 1.4 lac, the regular health policy would cover Rs 1

lac while Mr. Kapoor would have to shell the balance of Rs 40, 000, even though there was no claim from Mr. Kapoor and his wife.But with our Family Floater Health Plan, the cover of Rs 3 lacs is shared among the entire Kapoor family. Thus, making available to every member a cover of Rs 3 lacs. Mr. Kapoor would have the entire Rs 1.4 lacs of medical expense covered for his son.

Up To 2-Year Cover

We offer family protection for 2 years at a stretch with no increase in the premium in the second year. Thus, no renewal hassles next year. You also have an option for 1- year cover

No Claim Discount

On renewal of your Family Floater Health Plan, you would be entitled to a discount equal to 5% of the premium amount, provided no claim has been made in the previous policy term.

Cashless Facility

Your family can avail Cashless Hospitalization at any of the network hospitals (more than 1100 all over the country). A list of these hospitals will be sent to you along with your policy certificate and Health Insurance cards.

In case of emergency or planned hospitalization just use your Health ID card at our network hospitals and avail of cashless service. Call our toll free number 1600-44-8885 for complete health assistance.

Income Tax Benefit

The premiums payable is eligible for tax benefits as per Section 80D of the Income Tax Act.

ELIGIBILTY

Family Floater Health Plan is open to all people •Aged between 19 to 60 years • In case of individual plan#, the enrolment age is between 3 months and 65 years.

# Plan 6 /12 for people aged between 3 months to 5 yrs and 56 yrs and above can be opted for, only if 1- 5 or   plan 7- 11 is opted for family members.

Medical tests are compulsory for ages above 60 years

Exclusions Under Family Floter Health Plan

Any disease/ injury existing before the inception of the policy as well as congenital disease.

Non- allopathic treatment, pregnancy and childbirth related diseases, cosmetic, aesthetic and obesity related   treatment.

Expenses arising from HIV, AIDS and related diseases, use or misuse of liquor, intoxicating substance or drugs   as well as intentional self-injury.

War, riot, strike, terrorism acts, nuclear weapon induced treatment.

Certain chronic diseases like ulcer, cataract, hernia etc. are not covered for first 2 years.

First 30 days- Only accidents covered.

For complete list of exclusions, please refer to policy document.

TIE UP HOSPITALS OF GURGAON

ARYAN HOSPITAL - OLD RAILWAY STATION ROAD, GURGOAN Telephone: 01242330645/945/3093347Fax: 2330745

FLORENCE NURSING HOME - # 721, SECTOR 14, GURGON Telephone: 2327577/5081353Fax: 5103334

KRITI HOSPITAL - PLOT # 196, BEHIND JALVAYU, TOWERS, SECTOR-56, GURGAON Telephone: (0124) 2820127/2820128Fax: 2820127

LIFE CARE MEDICAL CENTRE -  PATAUDI CHOWK,MADAN PURI ROAD,GURGAON Telephone: 2315254/2315254/2315255Fax: 2315255

LIFEAID MEDICAL CENTRE -  BEHIND. P.N.B.MAHAVIR CHOWK,GURGAON, Telephone: (0124) 2222299/2221003/2225704Fax: 5083867/5083868

MAMTA HOSPITAL -  877/2, MATA ROAD, NEAR ROADWAYS WORKSHOP, GURGAON - 122 001 Telephone: 0124-2220811/2220616/2315283Fax: 2220811

CLAIM PROCEDURE

Cashless Facility:

Your family can avail Cashless Hospitalization at any of the network hospitals (more than 1100 all over thecountry). A list of these hospitals will be sent to you along with your policy certificate and Health Insurance IDcards

In case of emergency or planned hospitalization just use your Health ID card at our network hospitals and avail of cashless service. Call our toll free number 1600-44-8885 for complete health assistance.

Reimbursement in case of non availability of network hospitals:

Call our toll free number 1600-44-8885 and inform us about the hospitalization.

On completion of the hospitalization, please submit the bills for the claimed amount.

The claims will be settled in 15 days, from the time of submission of bills.

INTRODUCTION

ABOUT THE

HOME INSURANCE

HOME INSURANCE

ICICI Lombard presents the most comprehensive Home Insurance Plan that will not only insure your homeagainst fire and burglary but will also covers you and your belongings.

A home insurance available in the market covers broadly 2 things:

- Building structure

- Contents inside your home.

The building structure

This is for the damages that may be caused to the structure (the walls, roof, etc) of the building. Thus, if your home ispartly or fully damaged, then the insurance company would pay you to repair / remake damages to the structure your home.

The insurance covers for a building structure are-

a) The Fire and Special Perils Cover

This is a comprehensive packaged cover that covers

damages to the structure of your home due to:

1) Fire

2) Storm, tempest, flood & inundation

3) Riot, strike & malicious damage

4) Lightning

5) Explosion & implosion

6) Aircraft damage

7) Damage due to impact by vehicles

8) Subsidence, landslides and rockslides

9) Bursting and/or overflowing of water tanks & apparatus

10) Missile testing operation

11) Leakage from automatic Sprinkler installations

b) Earthquake Cover

covers damages to the structure of your house due to earthquake

The extensions that are offered:

c) Terrorism Cover – Covers damages to the structure of your house due to acts of terrorism.

This cover should be taken by people who own a house / bungalow / villa / row-house of their own. If you own / rent a flat, this cover can be availed of, but ideally the society should be taking this cover forthe entire building.

A home insurance does not cover the market value of your home. For e.g. if you have bought your flat / house for Rs. 25 Lacs, you CANNOT insure it for the same amount. The price you have paid includes the cost of the land and the cost of constructing the building structure on this land. and the land cannot be insured.

The insurance cover is only for the cost of constructing the building. And compensation will also be given by the insurance company for the same.

The sum insured is calculated by multiplying your home area by the construction rate per sq. feet.

Thus, if your home is 1000 sq. feet and the construction rate per sq. feet is Rs. 800/-, then the sum insured for your home’s building structure is Rs. 8,00,000/-.The premium for the same would be the rate per lac multiplied by the sum insured. The claims amount would also be calculated in the same manner.

CONTENTS COVER

This cover is only for damages or loss of the contents inside your home – the electronic and electrical goods,the furniture and fixtures, your personal clothing, jewelry and any other contents inside your home.

The covers that can be taken for the contents are as follows:

1) The Fire and Specials Perils Cover – same as above

2) Earthquake Cover – same as above

3) Burglary

4) Loss / damage to contents due to burglary or an attempted burglary

5) Loss of jewelry, gold ornaments, silver articles and precious stones kept under lock & key

All the contents are covered on the market value of the items. This means that if there is a loss, the claim would be paid on the value of purchasing a similar new item, minus depreciation.

The limit for the value that jewelry can be covered is 25% of the chosen sum insured or Rs 1 lac, whichever is lower.Thus, if you have chosen a sum insured of Rs. 3 Lacs, then the value of jewelry that can be covered is Rs. 75,000/- and if you have chosen a sum insured of Rs.6 lacs your jewelry can be covered only for Rs.1 lac even though 25%of your sum insured comes to Rs.1.5 lacs.

The extensions that are offered:

a) Terrorism Cover – Covers the losses for damages or loss of the contents inside your home due to  acts of terrorism

.b) Rent Expenses for Alternative Accommodation – If the house is badly damaged, and becomes uninhabitable and unsafe for living, you are provided with rent expenses for up to Rs. 1, 00,000/- for up to 6 months.

Conditions

a) The cover will start after 7 days from the date of issuance of the certificate

b) The property insured needs to be used for residential purposes only and should be a “Pukka” construction

c) The property insured should be 500 feet from the water front, unless there is an embankment

d) The property insured should not be located in the basement

e)  The property insured for a building cover should not be more than 50 years of age

INTRODUCTION

ABOUT THE

MOTOR INSURANCE

MOTOR INSURANCE

Two Types of Motor Insurance

1)Four Wheeler Insurance2)Two Wheeler Insurance

Four Wheeler Insurance

Protection from any loss or damage to your vehicle

Protection from liability towards third parties for personal injury A Personal Accident Cover for the Owner of the vehicle while he is driving.

In case of loss or damage to your vehicle or the accessories insured, we will cover you if the accident has occurred due to the following hazards-:

1) Fire, explosion, self ignition or lightning

2) Burglary, housebreaking or theft

3) Riot and strike

4) Earthquake (fire and shock damage)

5) Flood, typhoon, hurricane, storm, tempest, inundation

, cyclone, hailstorm, frost

6) Accident by external means

7) Terrorist activity

8) Goods- in- transit by road rail inland-waterway lift elevator or

air

Get DISCOUNT up to 35%

 Discount up to 35% of the premium is available if you opt for higher Voluntary Deductible.

Voluntary deductible is the minimum amount that you declare to bear at the time of claim. For E.g. if you have a deductible of Rs.2,500 and there is a claim for Rs.8,500 then you will be eligible to be paid the difference of Rs.6000. However, if you choose a deductible of Rs.5000, you will get a 25%discount on OD premium and you will be paid Rs.3,000 at the time of claim. The table of the discounts is mentioned below: 

Deductible Amount

 DISCOUNT

 20% on the OD premium, to a maximum of Rs. 750/ Rs 2500

 25% on the OD premium, to a maximum of Rs. 1,500/ Rs 5000

 30% on the OD premium, to a maximum of Rs.2,000/ Rs 7500

 35% on the OD premium, to a maximum of Rs. 2,500/ Rs 15000

Other Discounts / Benefits:

If you do not make a claim over a period of time, a NO claim Bonus (NCB) is offered on renewals. This discount can go as high as 50%.

Transfer your full benefit of NO Claim Bonus, even when you shift your motor insurance policy to ICICI Lombard from any other insurance company.

• You also get additional discount if you are a member of a recognized Automobile Association of India.• In case you have installed ARAI approved anti theft device in your vehicle, you get a discount of 2.5 % on the OD Premium to a maximum of Rs.500.

Customise your insurance with additional covers

 If electrical and/or non-electrical items are fitted to the vehicle, but excluded from the selling price of the vehicle, it can be insured separately. For example: fog lights, music system, seat covers, etc. In case of vehicles fitted with bi-fuel system such as Petrol/Diesel and CNG/ LPG, permitted by the concerned RTO, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium of 4% on the value of such kit. You need to specifically declare this in the proposal form.

Cover yourself, your family and your driver

The motor insurance provides compulsory personal accident cover for individual owners of the vehicle while driving. However You can also opt for a personal accident cover for other Unnamed passengers in your car, For E.g. your family, relatives, friends etc. You can also cover yourself against any legal liability to your paid driver.

PREMIUM CALCULATOR

 The premium rates are governed by the Government through the India Motor Tariff, as decided by the Tariff Advisory Committee. The premium payable for your vehicle dependents on:

• Type of vehicle • Age of vehicle • City of registration• IDV (Individuals declared value)

By entering the above details in the form, one can calculate the premium to be paid

 Sum Insured

Sum insured in a motor vehicle policy operates on the concept of Insured’s Declared Value (IDV). IDV is calculated on the basis of today’s showroom price of the vehicle multiplied by the depreciation rate that is set by the Tariff Advisory Committee at the commencement of each policy period.

If any electrical and / or electronic items are fitted by the individual to the vehicle and the amount for the same is not included in the manufacturer’s showroom price, then the user can declare the same and its value can be added to the sum insured over and above the IDV.

Multiple payment options

  Credit cards :

Pay through any of your VISA or Master Cards.

Net banking:

Pay through any of your Internet banking accounts with ICICI bank, IDBI Bank, HDFC Bank,

Cheque / DD:

Buy online and pay offline: policy issuance subject to realization of cheque /DD

• Centralized Option. Takes 5-7 days from the time we receive the cheque. Outstation cheque takes longer.• ATM Drop Option: Drop the cheque /DD at any ICICI Bank ATM in 16 cities (2-5 days to clear)

Policy Exclusions

The Motor Insurance Package Policy does not include the following:

• Mechanical breakdown

• Wear & tear

• Consequential loss

• Depreciation.

• Deliberate accidental loss

• Intoxicated driving

• Policy conditions (area, license etc)

• Any contractual liability.

• Being used otherwise than in accordance with Limitations as to use.

• Being driven otherwise than in accordance with driver's clause.

• Damages due to nuclear weapons material or war

Two Wheeler Insurance

Protection from any loss or damage to your vehicle :

Provides cover for any loss or damage to your vehicle or accessories due to:

 Natural Calamities:

1) Fire, explosion, self-ignition or lightning

2)) Riot and strike

3) Earthquake (fire and shock damage)

4) Flood, typhoon, hurricane, storm, tempest, hailstorm, frost

5) Landslide or rockslide 

Man- made Calamities:

1) Accident by external means

2) Malicious act

3) Terrorist activity

4) Goods- in- transit by road, rail, inland-  waterway, lift, elevator or air

5) Burglary, housebreaking or theft

Get DISCOUNT up to Rs. 250

Discount up to Rs.250 of the premium is available if you opt for higher Voluntary Deductible.

Voluntary deductible is the minimum amount that you declare to bear at the time of claim. For E.g. if you have a deductible of Rs.1,500 and there is a claim for Rs. 3,500 then you will be eligible to be paid the difference of Rs.2,000.

However, if you choose a deductible of Rs. 3,000, you will get a 25% discount on OD premium and you will be paid Rs.500 at the time of claim. The table of the discounts is mentioned below:

Deductible Amount DISCOUNT

Rs.    500   5% on the OD premium subject to a maximum of Rs. 50Rs.    750 10% on the OD premium subject to a maximum of Rs. 75 Rs. 1,000 15% on the OD premium subject to a maximum of Rs. 125Rs. 1,500 20% on the OD premium subject to a maximum of Rs. 200Rs. 3,000 25% on the OD premium subject to a maximum of Rs. 250

Other Discounts / Benefits :

If you do not make a claim over a period of time, a NO claim Bonus (NCB) is offered on renewals. This discount can go as high as 50%. Transfer your full benefit of NO Claim Bonus, even when you shift your motor insurance policy to ICICI Lombard from any other insurance company.

I.   You get additional discount if you are a member of a recognized Automobile Association of India.

II.  In case you have installed ARAI approved anti theft device in your vehicle, discount of 2.5 % on the    OD Premium to a maximum of Rs. 500.

Cover yourself and your family :

The motor insurance provides compulsory personal accident cover for individual owners of the vehicle while driving. However, you can also opt for personal accidents cover for other unnamed passengers in your car. For E.g. your family, relatives, friends etc.

Premium Calculator :

The premium rates are governed by the Government through the India Motor Tariff, as decided by the Tariff Advisory Committee. The premium payable for your vehicle dependents on:

-Type of vehicle-Age of vehicle -City of registration-IDV (Individuals declared value)

Sum Insured :

Sum insured in a two- wheeler policy operates on the concept of Insured’s Declared Value (IDV). IDV is calculated on the basis of today’s showroom price of the vehicle multiplied by the depreciation rate that is set by the Tariff Advisory Committee at the commencement of each policy period.

Multiple Payment Options :

Credit cards: Pay through any of your VISA or Master Cards.

Net banking: Pay through any of your Internet banking accounts with ICICI bank, IDBI Bank, HDFC Bank,

Cheque / DD: Buy online and pay offline: policy issuance subject to realization of cheque /DD

Centralized Option: Takes 5-7 days from the time we receive the cheque. Outstation cheque takes longer.

ATM Drop Option: Drop the cheque /DD at any ICICI Bank ATM in 16 cities (2-5 days to clear)

Policy Exclusions :

The Motor Insurance Package Policy does not include the following:

• Mechanical breakdown • Wear & tear • Consequential loss • Depreciation.• Deliberate accidental loss • Intoxicated driving • Policy conditions (area, license etc) • Any contractual liability. • Being used otherwise than in accordance with Limitations as to use• Being driven otherwise than in accordance with driver's clause.

INTRODUCTION

ABOUT THE

OVERSEAS TRAVEL

INSURANCE

OVERSEAS TRAVEL INSURANCE

A Plan To Suit Every Need

Our Overseas Travel Policy is broadly classified in two covers:

• Gold Plan

• Silver Plan

1)  Gold Plan

Gold Plan is a comprehensive, value-for-money plan that covers you and your family from:

 Medical Cover

You can choose between US $ 50,000 or US $ 100,000 cover

A cashless service that covers the expenses for medical treatment incurred by the insured during the trip abroad and covers the following expenses:

a) Outpatient & inpatient treatment

b) Medical aid & therapies

c) Diagnostic test

d) Cost of transportation, including medically prescribed transportation back to India, and the cost of accompanying person(s), if medically necessary

e) Medical expenses for pre-existing diseases for life threatening situations

Dental Treatment Cover

US $ 250

It covers the medical expenses incurred by you for acute anaesthetic treatment of a natural tooth or teeth.

Repatriation of Remains

US $ 7,000

This covers the expenses incurred in transportation of the remains, in case of death, back to India.

 Personal Accident Compensation

US $ 15,000

A compensation given in case of death or permanent total disability

Passport Loss Expenses Reimbursement

US $ 200

Covers the actual expenses incurred to obtain a duplicate or fresh passport by you

Checked-in Baggage Loss Compensation

US $ 500

Covers the market value of checked-in baggage, in case of total loss of the same

 Checked-in Baggage Delay Compensation

US $ 100

A compensation that you receive for purchase of emergency items like toiletries, medication and clothing in case your checked-in baggage is delayed more than 12 hours.

Personal Liability Coverage

US $ 100,000

Covers financial liability caused due to unintentional damage to the health or property of someone else by you while on your trip abroad. This covers the legal fees and compensation if any that needs to be paid. For e.g. if you have rented a car and accidentally hit another car, and the person in the other car sues you for damages.

Financial Emergency Assistance

US $ 300

A fixed sum of money that is given as assistance to you, in case of robbery of your travel funds

 Hijack Distress Allowance

US $ 125 per day, for maximum of 7 days

A compensation that is offered in case the carrier you are traveling in is hijacked

Our customers are serviced through Corris International, a renowned third party administrator. Customers can contact their toll free numbers in Europe and USA for any assistance.

2) SILVER PLAN

Our Silver Plan is a no- frills; cost effective pure health policy that covers

Medical Cover

You can choose between US $ 50,000 or US $ 100,000 cover

A cashless service that covers the expenses for medical treatment incurred by the insured during the trip abroad and covers the following expenses,

a) Outpatient & inpatient treatment

b) Medical aid & therapies

c) Diagnostic test

d) Cost of transportation, including medically prescribed transportation back to India, and the cost of accompanying person(s), if medically necessary

e) Medical expenses for pre-existing diseases for life threatening situations

f) Medical treatment expenses incurred in India for an additional 30 days, for the illness or injury contracted  abroad

 Dental Treatment Cover

US $ 250

It covers the medical expenses incurred by you for acute anesthetic treatment of a natural tooth or teeth.

Repatriation of Remains

US $ 7,000

This covers the expenses incurred in transportation of the remains, in case of death, back to India. Our customers are serviced through Corris International, a renowned third party administrator. Customers can contact their toll free numbers in Europe and USA for any assistance.

Premium :

Your premium depends on the following factors:

• The plan chosen

• The sum insured chosen

• Your age

• The number of days travelled for

• The geographical scope

Worldwide Cashless Claims Service :

We offer worldwide cashless claims service in all hospitals. We have tie up with Coris International as our claims assistance company. The toll free numbers in Paris and France is (00 33) 800 4141 4444 and in Miami, USA is (001) 866 239 6095.

In case of any claim related to hospitalization, to avail cashless facility, you just have to:

• Inform the Third Party Agent (TPA) on the no.s above

• TPA registers and validates claim.

• The TPA settles the bills directly with the hospital / provides remittance.

For other claims you have to

• Inform the Third Party Agent (TPA) on the no.s above

.• TPA registers and validated claim.

• You submit the required documents as per the TPA guidance

• Within 7 working days the TPA will check and reimburse the payment to you.

INTRODUCTION

ABOUT THE

MERCHANT COVER

MERCHANT COVER

Introduction

Shop Insurance is a comprehensive policy offered by ICICI Lombard General Insurance Company for your shop. It covers both the structure and its contents of your shop and protects you against financial loss in case of an unfortunate incident of fire, earthquake, fraud, burglary, etc. It also provides compensation of liability claims and accidental benefits.

Scope of Cover

Fire (Building and Contents) –

Covers losses caused by fire, lightening, riot, strike, storm, cyclone, flood and terrorism.

Burglary –

Protects contents of your shop against any loss or damage caused by burglary or attempted burglary.Burglary of cash in safe –

Provides for losses resulting from the burglary of cash kept in safe.

Cash in transit -

Covers losses because of burglary of cash while it is being carried from the bank/ATM to your shop

.

Glass breakage –

Covers loss or damage to any fixed plain glass caused by any accident, external and visible means.

Damage to neon sign –

Covers neon or glow signs displayed at your shop premises against damage caused by fire, accident, riot, and flood.

Cheque forgery –

Covers loss caused by forgery or material alteration of cheques, drafts or any other negotiable instruments issued by you or in your favour.

Fidelity –

Covers direct financial losses sustained due to fraud or any dishonest act by your salaried employees.

Tenant’s legal liability –

This cover provides for legal liability imposed on you by the property owner on account of damage to property by fire, earthquake, flood and riots.

.MARKET SHARE

The above graph shows the relative market share of Private and

Public ltd companies in the insurance sector in India. Earlier the

market share of private companies was very low because of the

monopoly of public insurer. After the liberalization, private companies

came into existence and started giving the diversified services as per

the needs of the customer and their market share started growing

after a strong struggle. They adopted the new and aggressive

marketing strategies. This Aggressive marketing has clearly

increased the brand recall factor in the mind of the consumers, As

such the sales has seen increased a lot for the private players also.

Innovation in marketing and continuous improvement in the product

should be done to consolidate the growth and to further increase the

sales. Steps to improve the brand positioning of ICICI Lombard can

be done by the following ways-

1. Making easy the Claim process.

1. Giving more discount to the customer as the premium

taken by public Insurer is still very low as compared to

private Insurer.

2. Close link with the agents and the corporate house

(worksite programs).

3. Regular customer feedback and review.

4. And finally there is a great need to improve the

infrastructure regarding the servicing aspect.

GRAPHICAL REPRESENTATION OF MARKET SHARES OF PUBLIC PLAYERS

The above graph shows the market share of various public Insurers.

Their total market share is very large as compared to private Insurers.

New India Insurance is the Market leader among the Public players

and united India Insurance is second in the race to be No 1. This was

the scenario when the Public players have just entered into this

sector. Once they are in, they started to attract customers because of

their aggressive marketing strategies and they tried to approach large

customer base. Now the market share of Private players have started

to rise and public players are worried as there market share is

declining. To limit this decline they have also started to care about

their customers and started marketing for their products. Earlier the

public players do not care to approach the general public and their

policies were not very flexible. But still they have a good market share

in the rural areas and they have tie up with certain govt. companies.

CHALLENGE

The key challenge for the company is to develop and implement a marketing strategy that would maximize the limited marketing funds. “It’s a position that both private and public entities face in getting the most effective use of your marketing funds. To us that means having a better understanding of our most valuable customers and marketing effectively to them.

Major challenges for the company are:

Lack of Trained Professional – As this Insurance sector is

new; there is a shortage of trained Professionals. Agents are

not qualified enough to clarify the terms of the policy to the

customers.

Market is not fully open – The Indian market for

Insurance products like Home Insurance, Health Insurance is

not fully open. People are not fully aware about the benefits

of these products. So it becomes difficult to broaden the

product bouquet.

Public sector Companies – These public sector companies

have a large customer base because of their existence for a

long time. Moreover there Premium amount is very low as

compared to private companies. An Indian customer has

good faith over them. These Public sector companies are

located in rural places as well.

Increase in the FDI – More private companies would like to

operate in India as FDI limit has increased. It would create an

environment of healthy competition for the private players.

Reliance General Insurance Company – Although the

market shares of Reliance Insurance is low as compared to

ICICI Lombard but it is gaining the market share at a very

fast Pace. They are offering more cash back discounts to the

customers. Due to this the customer is negotiating the

premium and IDV value.

Ban on Telecalling – The govt. has imposed a ban on

telecalling Process. This can create a problem in the future

to follow up the customer.

SOLUTIONS

In order to get the competitive edge and remain it’s position

as a market leader, the company should follow these steps

as a solutions to the above mentioned Challenges :-

Recruit the Qualified Professional – As Insurance is a

growing sector in India and the Industry is lacking the

qualified Professionals. Keeping this in mind various

Universities and Institutes have started a course in Insurance

Management so as to fulfill the demand of the Industry. To

get the competitive edge the company should recruit the

qualified Professional from these Universities.

Cover the Rural areas – PSU’s are a big challenge for ICICI

lomabrd. They have the largest market share in the rural

areas because of their long presence over there. So

company can give them a healthy challenge in the rural

areas as well.

Aggressive marketing – It has to be launched in order to

create more awareness among the consumers. As I have

already quoted that the public is not aware of the benefits,

so make them aware through aggressive marketing.

Providing attractive incentive schemes to the Agents

– it would make the agents happy and keep them motivated

to do more business. This is turns increase the sales volume

of the company.

Reduce the Premium Amount - The premium amount of

all the private players is high as compared to the public ltd

companies. So ICICI Lombard should reduce their premium

amount in order to beat the public ltd com. as well as the

private players.

CRM – Customer is the king for the company. This is the

reason why most of the companies are customer-oriented

rather than business or profit-oriented. To give them better

services the company has launched a tool called Talisma V6

CRM (Customer Relationship Manager) as a solution to keep

track of the important customer information and integrate

that into marketing pieces.

More Branches (DSA/DST) - To enhance the market

coverage, it is advisable that ICICI Lombard should allow to

open more DSA/DST. This would also make the customer and

the company closer.

Periodic review of sales figures - to keep an eye on the

position of the company in the market.

RESEARCH METHODOLOGY

The section includes the overall research design, the

sampling procedure, the data collection method, the field

method, and analysis and procedure.

Research design:-

For this research project exploratory method is used .In

exploratory method new things are found out from the given

topic.

Data collection method :-

The data collect for the research can be classified as primary

data and secondary data.

(i) Primary data: - The data collected for the first time is

known as primary data. It is collected by visiting

existing and previous customers of ICICI Lombard

and making them fill up the questionnaire.

Sometimes probing is also helpful to get the actual

response of the customer.

(ii) Secondary data: - The data which has been already

collected by someone is known as secondary data

which is collected from internet, books, etc.

Research instrument

The instrument used for data collection is

structured questionnaire. Questions were open and close

ended depending upon the information that needed to be

elicited. I have also used the scaling technique to assess the

attitude of the customer.

Sampling plan:-

Keeping all the constrains in mind a sample size of

123 people is selected from Gurgaon Branch. This sample

contains a mix type of customer (Existing customers,

Previous customers, customers who have problem in

the claim procedure, customers who had never

applied for the claim process) so as to remove any type

be biased results. There now the results would be fair and

actual. As was doing a research for the motor insurance in

which the customer interacts with the company only for

once. Therefore it becomes very difficult to get the actual

feedback from the customer. That’s why I have designed a

Questionnaire for the sales Officer/Agent as well. Agent is

the only person who interacts with a lot of customers having

varied taste. He can predict the actual scenario of the

market. Sampling procedure is systematic sampling

Break up of Sample:

Figure 3 : Customer Sampling Plan

The above mentioned graph represents the base of the

research work. It shows the various type of Customers from

whom the questionnaire was filled.

Total Sample Size= 123 Customers

Customer Sample PlanCustomer Type Quantity

Existing customers 35Customers of other co. 41

Customer who had claimed 16Customer who had not

claimed 21Sales Officer/Agent 10

Questionnaire to Be Filled by the Sales Officer/Agent

Name: _________________Employee ID: __________________

Ph: ___________________

1. How many Customers do you meet in a day on an average?

Less then 5 Between 5-10 Between 10-15 15 or more

2. Which is more important to retain the customers?

Better Services

Better Commitment & Communication Levels.

Fast claim Process.

Follow up of the Customer.

Brand Image of the company.

3. What is the problem that customer faces maximum?

Poor Services.

Commitment by company/agent.

Lengthy Claim Process.

No problem

4. What problem do you face while interacting with the customer

Customer is not ready to listen.

Constant follow up.

You are not clear about the policy.

Customer is not willing to give you the cheque.

Customer has bad experience with the company.

5. How frequently do you get demotivated and reason?

Questionnaire to Be Filled by the Customer

General Particulars:Name: _________________

Address: _______________ Ph: ___________________

1. Are you a customer of ICICI Lombard ?........................ If yes,

(a) You are using our services for –

Less than 1 year.

More than 1 year.

More than 2 years.

(b) If less than 1 year, then the name of the company you were using

earlier?

Reliance Insurance ______________

National Insurance ______________

United Insurance ______________

Bajaj Allianz ______________

Any other ______________

(c) Why you left the services from that company?

Problem in the claim procedure.

Poor services from that company.

Problem interacting with the employee/that

company.

(d)If more than 2 years, then what makes you stick to us?

Our Services.

Our Brand Name.

Fast Claim Process.

(e) Rate the following companiesICICI Lombard ______________

TATA AIG ______________

Reliance Insurance ______________

National Insurance ______________

United Insurance ______________

Bajaj Allianz ______________

(f) How would you rate our employee/agent?

Excellent

Good

Average

Poor

(g) If below average then why?

Less knowledge about the product/services.

His communication & commitment level.

Any other reason, please specify

2. If No,(a) With which company you are having insurance policy?

TATA AIG ______________

Reliance Insurance ______________

National Insurance _______________

United Insurance _______________

Bajaj Allianz _______________

(b)Are you satisfy with the services of the company ?

Yes……. No……………

Give reasons ……………..

_

SUGGESTIONS

This is the final step in the research work to suggest some

tips so as to improve the performance of the company..

Some other parameters are also evaluated like customer’s

expectation. Based upon the facts I would like to suggest the

following tips to the company:-

The company should make its claim process as fast as

possible and should inform the customer regarding its

status of the claim process.

The company should recruit some insurance

professionals at higher level in the management .

To get the competitive edge, the company should

improve it’s services by keeping in mind the

expectations of the customers.

Periodical review of the performance of the employees

is must.

Motivational sessions should be conducted so that the

employees feel motivated most of the time. Incentives

should be revised from time to time to boost the morale

of the employees.

Reliance Insurance is cutting their Market share by

giving more CASH BACK DISCOUNTS, GIFTS etc. They

should take some action to beat this situation.

The training of the employees should be very sound so

that they solve the queries of the customer and make

the process fast. Soft skills of the sales officers should

be improved.

Aggressive marketing should be done so as to make

people aware about their benefits.

More branches (DSA / DST) should be open and make

the company within the reach of the customer. Public

sector companies are in the core competition with the

ICICI Lombard.

Sometimes the Constant follow up of the customer irate

the customer. It is very important to analyze the mood

of the customer.

LIMITATIONS

My project report consists of the survey and analysis of the

customers of ICCI Lombard GIC Ltd. Despite every precaution

has been taken into consideration but there are some

limitations:-

The survey is conducted in the GURGAON so, it might

be possible that it’s results might not be applicable to

other areas as well.

The fact reveals that only 10% customers applied for

the claim process last year and the remaining 90%

customers do not interact with the company after

getting the policy. Moreover the customers who do not

interact with the company are supposed to stick with

the company for the next year. Generally they are

satisfied with the company.

It is not possible to get the actual feedback from the

customers by just getting the questionnaire filled.

Probing is also require sometimes.

CONCLUSION

CONCLUSION

It was found that their service provider satisfied most of the customers.

In the present world of competition there is a race existence in which those who are having a will to come forward succeed.

As the popular theory goes “SURVIVAL OF THE FITTEST”, the corporate world has to follow the same to survive.

Project is like bridge between theoretical and practical working and with the willing to took the project and came out with the following conclusion and problem being faced by the customers of ICICI Bank Ltd.

RESPONSE OF SALES OFFICERS –

Better services and fast settlement of the claim Process

is necessary to retain the customers.

The problem which is max faced by the customer is the

Lengthy Claim process.

To get the competitive edge, the company should

improve it’s services by keeping in mind the

expectations of the customers.

The previous bad experience of the customer affects

harshly to the business of the company.

Reliance Insurance is cutting their Market share by

giving more CASH BACK DISCOUNTS, GIFTS etc.

The sales officer feels Demotivated when the whole

amount of his commission goes as a CASH BACK

DISCOUNT to the customer.

The sales officer achieves the target given to him

easily.

The Sales officer used to visit 3-4 Customers in a day on

an average.

Home Insurance is the least Preferred Policy sold

RESPONCE OF THE CUSTOMERS-

Public Sector companies (mainly New India Insurance)

are the Core Competitor of ICICI Lombard.

Customer expects the timely and better services from

the company Like – Timely issuance of the cover note

and policy.

Commitment either on the side of the agent or

company effects badly to the decision of the customer.

Customer is having problem with the claim Deptt.-

Claim Process is not fast, settlement of the claim

amount, awareness about the claim process.

Customer is demanding more CASH BACK DISCOUNT.

At present the company is giving a discount of 15%

whereas Reliance is giving a Discount of 20%.

The customers who had not applied for the claim is

likely to be retained for the next year. It reveals that

the main problem lies with the Claim deptt.

The Follow up of the Company is good i.e. Sales Officer

cares for its Customers.

Most of the Customers are not willing to get the HOME

INSURANCE POLICY.

Customer says that sometimes the Sales Officers is not

in a position to clarify their doubts regarding policy

coverage. Training should be given to the customers so

as to make them more clear about the policy coverage

and Wordings.

BIBLIOGRAPHY

1) THROUGH WEB SITES

a) www.icicibank.comb) www.icicilombard.comc) www.bimaonline.comd) www.indiatimes.come) www.valuenotes.com

2) THROUGH SEARCH SITES

a) www.google.comb) www.ask.comc) www.altavista.comd) www.yahoosearch.com

3) ICICI MANUAL& BROUCHERS