Fyp Perception General Insurance

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CHAPTER 1

INTRODUCTION

In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance

business was nationalize with effect fro! 1st "anuar#, 197$% 1&7 insurers were a!alga!ate an

groupe into four co!panies, na!el# National Insurance 'o!pan# t%, the New Inia Assurance

'o!pan# t%, the riental Insurance 'o!pan# t an the *nite Inia Insurance 'o!pan# t%

+he General Insurance 'orporation of Inia was incorporate as a co!pan# in 1971 an it

co!!ence business on "anuar# 1st 197$%

Insurance other than ife Insurance- falls uner the categor# of General Insurance% General

Insurance co!prises of insurance of propert# against fire, burglar# etc, personal insurance such as

Accient an .ealth Insurance, an liabilit# insurance which co/ers legal liabilities% +here are also

other co/ers such as 0rrors an !issions insurance for professionals, creit insurance etc

General insurance or nonlife insurance policies, incluing auto!obile an ho!eowners policies,

pro/ie pa#!ents epening on the loss fro! a particular financial e/ent% General insurance

t#picall# co!prises an# insurance that is not eter!ine to be life insurance% It is calle propert#

an casualt# insurance in the*%%an 'anaa an Nonife Insurance in 'ontinental 0urope%

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In the *3, insurance is broal# i/ie into three areas4 personal lines, co!!ercial lines an

onon !ar5et%

+he onon !ar5et insures large co!!ercial ris5s such as super!ar5ets, football pla#ers an other

/er# specific ris5s% It consists of a nu!ber of insurers, reinsurers, 6I 'lubs, bro5ers an other

co!panies that are t#picall# ph#sicall# locate in the 'it# of onon% +he lo#8s of onon is a

big participant in this !ar5et% +he onon ar5et also participates in personal lines an

co!!ercial lines, o!estic an foreign, through reinsurance%

'o!!ercial lines proucts are usuall# esigne for relati/el# s!all legal entities% +hese woul

inclue wor5ers8 co!p (e!plo#ers liabilit#), public liabilit#, prouct liabilit#, co!!ercial fleet an

other general insurance proucts sol in a relati/el# stanar fashion to !an# organisations% +here

are !an# co!panies that suppl# co!prehensi/e co!!ercial insurance pac5ages for a wie range of

ifferent inustries, incluing shops, restaurants an hotels%

6ersonal lines proucts are esigne to be sol in large :uantities% +his woul inclue autos (pri/ate

car), ho!eowners (househol), pet insurance, creitor insurance an others%

A';< which is the insurance inustr# global stanars organisation% A';< has stanars for

personal an co!!ercial lines an has been wor5ing with the Australian General Insurers to

e/elop those = stanars, stanar applications for insurance, an certificates of currenc#%

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General insurance or nonlife insurance policies, incluing auto!obile an ho!eowners policies,

pro/ie pa#!ents epening on the loss fro! a particular financial e/ent% General insurance

t#picall# co!prises an# insurance that is not eter!ine to be life insurance% It is calle propert#

an casualt# insurance in the *%% an 'anaa an Nonife Insurance in 'ontinental 0urope%

In the *3, insurance is broal# i/ie into three areas4 personal lines, co!!ercial lines an

onon !ar5et%

+he onon !ar5et insures large co!!ercial ris5s such as super!ar5ets, football pla#ers an other

/er# specific ris5s% It consists of a nu!ber of insurers, reinsurers, 6I 'lubs, bro5ers an other

co!panies that are t#picall# ph#sicall# locate in the 'it# of onon% +he lo#8s of onon is a

big participant in this !ar5et% +he onon ar5et also participates in personal lines an

co!!ercial lines, o!estic an foreign, through reinsurance%

'o!!ercial lines proucts are usuall# esigne for relati/el# s!all legal entities% +hese woul

inclue wor5ers8 co!p (e!plo#ers liabilit#), public liabilit#, prouct liabilit#, co!!ercial fleet an

other general insurance proucts sol in a relati/el# stanar fashion to !an# organisations% +here

are !an# co!panies that suppl# co!prehensi/e co!!ercial insurance pac5ages for a wie range of

ifferent inustries, incluing shops, restaurants an hotels%

6ersonal lines proucts are esigne to be sol in large :uantities% +his woul inclue autos (pri/ate

car), ho!eowners (househol), pet insurance, creitor insurance an others%

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A';< which is the insurance inustr# global stanars organisation% A';< has stanars for

personal an co!!ercial lines an has been wor5ing with the Australian General Insurers to

e/elop those = stanars, stanar applications for insurance, an certificates of currenc#%

Insurance other than ife Insurance- falls uner the categor# of General Insurance% General

Insurance co!prises of insurance of propert# against fire, burglar# etc, personal insurance such as

Accient an .ealth Insurance, an liabilit# insurance which co/ers legal liabilities% +here are also

other co/ers such as 0rrors an !issions insurance for professionals, creit insurance etc%

Nonlife insurance co!panies ha/e proucts that co/er propert# against >ire an allie perils, floo

stor! an inunation, earth:ua5e an so on% +here are proucts that co/er propert# against burglar#,

theft etc% +he nonlife co!panies also offer policies co/ering !achiner# against brea5own,there

are policies that co/er the hull of ships an so on% A arine 'argo polic# co/ers goos in transit

incluing b# sea, air an roa% >urther, insurance of !otor /ehicles against a!ages an theft for!s

a !a?or chun5 of nonlife insurance business%

In respect of insurance of propert#, it is i!portant that the co/er is ta5en for the actual /alue of the

propert# to a/oi being i!pose a penalt# shoul there be a clai!% @here a propert# is uner/alue

for the purposes of insurance, the insure will ha/e to bear a rateable proportion of the loss% >or

instance if the /alue of a propert# is ;s%1&& an it is insure for ;s%&, in the e/ent of a loss to the

eCtent of sa# ;s%&, the !aCi!u! clai! a!ount pa#able woul be ;s%2 ( &D of the loss being

borne b# the insure for unerinsuring the propert# b# &D )% +his concept is :uite often not

unerstoo b# !ost insures%

6ersonal insurance co/ers inclue policies for Accient, .ealth etc% 6roucts offering 6ersonal

SHUBHAM SAXENA E



Accient co/er are benefit policies% .ealth insurance co/ers offere b# nonlife insurers are !ainl#

hospitalization co/ers either on rei!burse!ent or cashless basis% +he cashless ser/ice is offere

through +hir 6art# A!inistrators who ha/e arrange!ents with /arious ser/ice pro/iers, i%e%,

hospitals% +he +hir 6art# A!inistrators also pro/ie ser/ice for rei!burse!ent clai!s%

o!eti!es the insurers the!sel/es process rei!burse!ent clai!s%

Accient an health insurance policies are a/ailable for ini/iuals as well as groups% A group coul

be a group of e!plo#ees of an organization or holers of creit cars or eposit holers in a ban5

etc% Nor!all# when a group is co/ere, insurers offer group iscounts%

iabilit# insurance co/ers such as otor +hir 6art# iabilit# Insurance, @or5!en-s 'o!pensation

6olic# etc offer co/er against legal liabilities that !a# arise uner the respecti/e statutesF otor

ehicles Act, +he @or5!en-s 'o!pensation Act etc% o!e of the co/ers such as the foregoing

(otor +hir 6art# an @or5!en-s 'o!pensation polic# ) are co!pulsor# b# statute% iabilit#

Insurance not co!pulsor# b# statute is also gaining popularit# these a#s% an# inustries insure

against 6ublic liabilit#% +here are liabilit# co/ers a/ailable for 6roucts as well%

+here are general insurance proucts that are in the nature of pac5age policies offering a

co!bination of the co/ers !entione abo/e% >or instance, there are pac5age policies a/ailable for

householers, shop 5eepers an also for professionals such as octors, chartere accountants etc%

Apart fro! offering stanar co/ers, insurers also offer custo!ize or tailor!ae ones%

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uitable general Insurance co/ers are necessar# for e/er# fa!il#% It is i!portant to protect one-s

propert#, which one !ight ha/e ac:uire fro! one-s har earne inco!e% A loss or a!age to one-s

propert# can lea/e one shattere% osses create b# catastrophes such as the tsuna!i, earth:ua5es,

c#clones etc ha/e left !an# ho!eless an penniless% uch losses can be e/astating but insurance

coul help !itigate the!% 6ropert# can be co/ere, so also the people against 6ersonal Accient% A

.ealth Insurance polic# can pro/ie financial relief to a person unergoing !eical treat!ent

whether ue to a isease or an in?ur#%

Inustries also nee to protect the!sel/es b# obtaining insurance co/ers to protect their builing,

!achiner#, stoc5s etc% +he# nee to co/er their liabilities as well% >inanciers insist on insurance% o,

!ost inustries or businesses that are finance b# ban5s an other institutions o obtain co/ers% But

are the# obtaining the right co/ersH An are the# insuring ae:uatel# are :uestions that nee to be

gi/en so!e thought% Also organizations or inustries that are selffinance shoul ensure that the#

are protecte b# insurance%

ost general insurance co/ers are annual contracts% .owe/er, there are few proucts that are long

ter!%

It is i!portant for proposers to rea an unerstan the ter!s an conitions of a polic# before the#

enter into an insurance contract% +he proposal for! nees to be fille in co!pletel# an correctl# b#

a proposer to ensure that the co/er is ae:uate an the right one%

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1.1 Major Players of General Insurance Companes n !"e Mar#e!$

riental Insurance 'o% t%

*nite Inia Insurance 'o% t%

New Inia Assurance 'o% t%

National Insurance 'o% t%

Bharti A=A General Insurance

>uture Generali Inia Insurance

.<>' 0;G General Insurance

ibert# ieocon General Insurance 'o t

+ General Insurance

ag!a .<I General Insurance 'o t

;o#al unara!

BI General Insurance

hrira! General Insurance

'hola!anala! General Insurance 'o!pan# i!ite

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Ba?a? Allianz General Insurance 'o% t%

I'I'I o!bar General Insurance 'o% t%

I>>'+o5io General Insurance 'o% t%

;eliance General Insurance 'o% t%

;o#al unara! Alliance Insurance 'o% t

+A+A AIG General Insurance 'o% t%

'hola!anala! General Insurance 'o% t%

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1.% Types of Gen e ral Insurance $

1& Mo!or Insurance$ ehicle insurance (also 5nown as auto insurance, GA6 insurance, car

insurance, or !otor insurance) is insurance purchase for cars, truc5s, !otorc#cles, an other

roa /ehicles% Its pri!ar# use is to pro/ie financial protection against ph#sical a!age

anor boil# in?ur# resulting fro! traffic collisions an against liabilit# that coul also arise

therefro!% +he specific ter!s of /ehicle insurance /ar# with legal regulations in each region%

+o a lesser egree /ehicle insurance !a# aitionall# offer financial protection against theft

of the /ehicle an possibl# a!age to the /ehicle, sustaine fro! things other than traffic

collisions%

Its pri!ar# ob?ecti/e is to pro/ie protection against ph#sical a!age resulting fro! traffic

collisions an against liabilit# that coul also arise therefro!%

otor insurance in Inia co/ers for the loss or a!age cause to the auto!obile or its parts

ue to natural an !an!ae cala!ities% It pro/ies accient co/er for ini/iual owners of

the /ehicle while ri/ing an also for passengers an thir part# legal liabilit#%

Nee' of Mo!or Insurance$

otor Insurance(+hir 6art#) is co!pulsor# on purchase of new /ehicles whether

ac:uire for co!!ercial or pri/ate usage as per otor ehicle Act in Inia% ne can

be penalise for ri/ing without a /ali co/er%

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An accient can happen to an#one e/en if the ri/er of the car is not at fault% +his !a#

result into a lot of a!ages cause in person as well as to the car% otor Insurance

turns to be /er# beneficial uner such circu!stances%

If the ri/er is liable for an accient which results in boil# in?uries to a thir part#,

then the eCpenses ha/e to be borne b# the owner of the car% In such a case thir part#

!otor insurance sa/es fro! a e/astating financial blow%

'ars are an eCpensi/e in/est!ent for an ini/iual% An accient can turn this

in/est!ent into a huge loss as well% .ence it is i!portant to ha/e !otor insurance%

It also helps to co/er for a!ages cause other than an accient li5e fire, theft,etc%

%& House Insurance$ .o!e insurance, also co!!onl# calle hazar insurance or

ho!eowner8s insurance (often abbre/iate in the * real estate inustr# as .I), is a t#pe of

propert# insurance that co/ers a pri/ate resience% It is an insurance polic# that co!bines

/arious personal insurance protections, which can inclue losses occurring to one8s ho!e, its

contents, loss of use (aitional li/ing eCpenses), or loss of other personal possessions of the

ho!eowner, as well as liabilit# insurance for accients that !a# happen at the ho!e or at the

hans of the ho!eowner within the polic# territor#%

.o!eowner8s polic# is referre to as a !ultipleline insurance polic#, !eaning that it inclues

both propert# insurance an liabilit# co/erage, with an ini/isible pre!iu! !eaning that a

single pre!iu! is pai for all ris5s% In the * stanar for!s i/ie co/erage into se/eral

categories, an the co/erage pro/ie is t#picall# a percentage of 'o/erage A, which is

SHUBHAM SAXENA 1&



co/erage for the !ain welling%

+he cost of ho!eowner8s insurance often epens on what it woul cost to replace the house

an which aitional enorse!ents or riers are attache to the polic#%+he insurance polic#

is a legal contract between the insurance carrier (insurance co!pan#) an the na!e

insure(s)% It is a contract of ine!nit# an will put the insure bac5 to the state heshe was

in prior to the loss% +#picall#, clai!s ue to floos or war (whose efinition t#picall# inclues

a nuclear eCplosion fro! an# source) are eCclue fro! co/erage, a!ongst other stanar

eCclusions (li5e ter!ites)% pecial insurance can be purchase forthese possibilities,

incluing floo insurance% Insurance is a?uste to reflect replace!ent cost, usuall# upon

application of an inflation factor or a cost ineC%

+he ho!e insurance polic# is usuall# a ter! contract, i%e% a contract that is in effect for a

fiCe perio of ti!e% +he pa#!ent the insure !a5es to the insurer is calle the pre!iu!%

+he insure !ust pa# the insurer the pre!iu! each ter!% ost insurers charge a lower

pre!iu! if it appears less li5el# the ho!e will be a!age or estro#e4 for eCa!ple, if the

house is situate neCt to a fire station or is e:uippe with fire sprin5lers an fire alar!sK if

the house eChibits win !itigation !easures, such as hurricane shuttersK or if the house has a

securit# s#ste! an has insurerappro/e loc5s installe% 6erpetual insurance, a t#pe of ho!e

insurance without a fiCe ter!, can also be obtaine in certain areas%

SHUBHAM SAXENA 11



(& Personal Acc'en! Insurance$ 6ersonal accient insurance co/ers #our eCpenses

fro! an accient with a lu!p su! pa#!ent, a ail# or !onthl# a!ount or a pa#!ent for loss

of life fro! an accient% e/eral t#pes of policies supple!ent an insurance progra!% ften,

acciental eath an is!e!ber!ent is an ineCpensi/e for! of personal accient insurance%

ther for!s are si!ilar to isabilit# inco!e, but the# pa# a cash su! when #ou ha/e an

in?ur# ue to an accient% +here are se/eral wa#s to bu# personal accient insurance% o!e

policies onl# pa# for specific t#pes of accient%

A personal accient insurance is insurance that co/ers all #our eCpenses incurre fro! an

accient% 6a#!ent coul either be a lu!p su! pa#!ent, a ail# or !onthl# a!ount, or a

pa#!ent for loss of life fro! an accient% o!e personal accient insurance policies onl# pa#

for specific t#pes of accients%

)& Me'cal * Heal!" Insurance$ .ealth insurance is insurance against the ris5 of

incurring !eical eCpenses a!ong ini/iuals% B# esti!ating the o/erall ris5 of health care

an health s#ste! eCpenses, a!ong a targete group, an insurer can e/elop a routine finance

structure, such as a !onthl# pre!iu! or pa#roll taC, to ensure that !one# is a/ailable to pa#

for the health care benefits specifie in the insurance agree!ent% +he benefit is a!inistere

b# a central organization such as a go/ern!ent agenc#, pri/ate business, or notforprofit

entit#% Accoring to the .ealth Insurance Association of A!erica, health insurance is efine

as Lco/erage that pro/ies for the pa#!ents of benefits as a result of sic5ness or in?ur#%

Inclues insurance for losses fro! accient, !eical eCpense, isabilit#, or acciental eath

an is!e!ber!entL

A health insurance polic# is4

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a) A contract between an insurance pro/ier (e%g% an insurance co!pan# or a go/ern!ent)

an an ini/iual or hisher sponsor (e%g% an e!plo#er or a co!!unit# organization)% +he

contract can be renewable (e%g% annuall#, !onthl#) or lifelong in the case of pri/ate

insurance, or be !anator# for all citizens in the case of national plans% +he t#pe an a!ount

of health care costs that will be co/ere b# the health insurance pro/ier are specifie in

writing, in a !e!ber contract or L0/ience of 'o/erageL boo5let for pri/ate insurance, or in

a national health polic# for public insurance%

b) 6ro/ie b# an e!plo#ersponsore selffune 0;IA plan% +he co!pan# generall#

a/ertises that the# ha/e one of the big insurance co!panies% .owe/er, in an 0;IA case,

that insurance co!pan# Loesn8t engage in the act of insuranceL, the# ?ust a!inister it%

+herefore 0;IA plans are not sub?ect to state laws% 0;IA plans are go/erne b# feeral

law uner the ?urisiction of the * <epart!ent of abor (*<)% +he specific benefits or

co/erage etails are foun in the u!!ar# 6lan <escription (6<)% An appeal !ust go

through the insurance co!pan#, then to the 0!plo#er8s 6lan >iuciar#% If still re:uire, the

>iuciar#-s ecision can be brought to the *< to re/iew for 0;IA co!pliance, an

then file a lawsuit in feeral court%

SHUBHAM SAXENA 1$



1.( O+,ECTI-E AND COPE

O/jec!0es of !"e s!u'y$

+he research ob?ecti/es for the pro?ect unerta5en can be efine as follows4

1) +o stu# the t#pes of General Insurance ser/ices offere b# ifferent co!panies%

2) A stu# anal#sis of custo!er-s perception acceptabilit# towars General Insurance

ser/ices%

$) Anal#sis of epenenc# of custo!er-s perception towars General Insurance ser/ices on

e!ographic para!eters%

cope of !"e s!u'y$

+his pro?ect ai!s to stu# the perception of General Insurance of the custo!er% +he pro?ect will

anal#se the i!pact of Insurance in the e#e of the custo!ers on the custo!er satisfaction le/els% It

inclues the etaile stu# of custo!ers focusing on the /arious para!eters that lea to ientif#ing

an unerstan the perception of the custo!er in bu#ing the General Insurance% +he scope is li!ite

to the Insurance owners of Bareill# cit# onl#%

SHUBHAM SAXENA 1E



CHAPTER %

ITERATURE RE-IE2

1. Accor'n3 !o !"e recen! repor! of loy' +he Inian insurance !ar5et is li5el# to

change in the neCt few #ears significantl# largel# ue to regulator# changes% In aition, pre!iu!

growth is being ri/en b# other factors such as the growing consu!er class, increase foreign irect

in/est!ent, infrastructure e/elop!ent, an an increase awareness of catastrophe eCposure%

<espite significant positi/e changes, the insurance !ar5et !ust still face the challenge of poor

custo!er perceptions an the anger that the pace of refor! will slow% e/eral significant structural

changes are eCpecte in the insurance !ar5et that will influence the countr#-s e/elop!ent in the

!eiu! to long ter!%

%. Aj! rana'e an' Rajee0 A"uja +he# iscuss about penetration of insurance pre!iu!

in /arious countries% +he# fin that opening up of the insurance sector is an integral part of the

liberazation process being pursue b# !an# e/eloping countries% ince 19J7, when the 3orean an

+aiwanese insurance sectors were liberalize, the 3orean !ar5et has grown three ti!es faster than

its G<6 an in +aiwan the rate of growth has been al!ost four ti!es that of its G<6% +he

6hilippiness opene up its insurance sector in 1992, the !a?or insurance !ar5ets in outh an 0ast

Asia are to /ar#ing egrees open% +hese range fro! the co!parati/el# free !ar5ets of .ong 3ong

SHUBHAM SAXENA 1



an ingapore to the increasingl# !ore liberal !ar5ets of outh 3orea an +aiwan an !ore

ensel# regulate insurance sectors of +hailan an ala#sia%

(. Dr. P. . Palan'e4 R. . "a54 M. . una5a! +he# their boo5 iscuss about

insurance sector at the international le/el an then about insurance in Inia% +his boo5 pro/ies a

co!prehensi/e an uptoate picture of the insurance inustr#% +he# anal#se recent e/elop!ent,

the transfor!ation that has ta5en place after refor!s, an pro/ie a !acro perspecti/e on this

inustr#% Accoring to the!, in the new econo!ic realit#, that is, globalization, insurance co!panies

face a #na!ic global business en/iron!ent% <ra!atic changes are ta5ing place owing to the

internationalization of acti/ities, the appearance of new ris5s, new t#pes of co/ers to !atch with

new ris5 situations an uncon/entional an inno/ati/e ieas on custo!er ser/ice%

+he# further, state that nu!erous go/ern!ents in e/elope an e/eloping countries reefine the

role of the state an pri/atization in the insurance an reinsurance sectors has been part of policies

pursue b# the!% +hus, since 199o, "apan has been liberalizing its insurance sector an 'hina too is

in the course of the last 1& #ears, has cautiousl# starte the process of liberalization%

). G. N. + a jpa. former C"arman of E+I 6ecur!es E7c"an3e +oar' of

In'a& a n' .I.C. 6fe Insurance Corpora!on& 8 +he# states that the insurance

inustr# is a progen# of the econo!ic orer an growth an sustain abilit# of the econo!# has a

irect an proportionate bearing on the le/els of its e/olution an eCpansion, aug!entation an

a/ance!ent , preser/ation an progression% +here is also /er# significant relationship between the

financial sector an insurance% In fact, the three !acro econo!ic en/iron!ent, financial sector an

insurance inustr# are ineCtricabl# interwo/en%

SHUBHAM SAXENA 1



9. Dr . Tapen n"a +he *ni/ersit# of Nottingha!, 'entre for ;is5 an Insurance tuies

foun that in Inia $12 !illion !ile class consu!ers ha/e enough financial resources to purchase

insurance proucts li5e pension, health care, accient benefit, life, propert# an auto insurance% But

onl# 2% of this insurable population howe/er, ha/e insurance co/erage in an# for!% +he potential

pre!iu! inco!e is esti!ate aroun *%% M J& billion% +his will place Inia as the th largest

!ar5et in the worl (after the *%%, "apan, Ger!an#% *%3% an >rance)%

.e also !entions the !ain ifferences in the wa# which 'hina an Inia hanle eregulation%

+he# are as follows4

a) Both ha/e followe the path of eregulation an pri/atization F 'hina starte it in 1979 an

Inia in 1991%

b) +he Insurance business in Inia has a pre!iu! /olu!e of M J%$ billion in 1999 whereas in 'hina

the pre!iu! /olu!e is M 1%J billion in 1999%

c) In 'hina, the people-s insurance co!pan# of 'hina (6I'') ha a !onopol# between 19E9 an

199% In 199, insurance business was ee!e capitalistic an all for!s of insurance were

suspene% +he insurance business reopene in 1979, the 61'' reassu!e its ol role as the

!onopol#%

) In 'hina, the 'hina Insurance ;egulator# 'onunission ('I;') was set up in No/e!ber 199J,

well after the first Insurance law was pro!ulgate in 199% In Inia, the Insurance ;egulator#

<e/elop!ent Authorit# (I;<A) was launche first with the authorit# to issue licenses%

SHUBHAM SAXENA 17



:. In !"e paper ;Capac!y /ul' up an' 3ro5!" !"rou3" re3onal rensu ra nce co<

opera!on=4 Al/er!. ,. N'una4 Group C"ef E7ecu!0e >m Re Hol'n3s m!e' +he#

show in this report that the insurance en/iron!ent in the ifferent parts of the worl toa# is full of

challenges of ifferent sizes an co!pleCities incluing ifferent t#pes of eCpectations% .is stu#

re/eals that insurance can be use as an e!power!ent tool for local people irectl# as ini/iuals

an go/ern!ents% +he# coul pla# e/elop!ental role b# aressing the issues of po/ert#

alle/iation, the nees of the rural sector an the for!al an infor!al sectors of the econo!#% +he

insurance co!panies of the e/eloping countries were eCpecte an are still eCpecte to be

responsi/e to the nees of the societies in which the# operate% .e also sa#s that the worl a/erage

for insurance penetration for nonlife was E%9D whereas insurance penetration in e/eloping

countries was about 1D% +his signifies the gap between e/elope an e/eloping countries in the

le/el of isnsurance e/elop!ent an at the sa!e ti!e the potential which is still to be unloc5e in

the latter%

?. N. Ran3ac"ary4 former c"a rm an of IRDA +he# iscuss about the reasons for

opening up of the insurance inustr#% Accoring to hi!, one of the preo!inant reasons for

liberalizing the insurance inustr# is to create a !ore contestable !ar5et in the insurance that will

foster the e/elop!ent of an efficient an forwar loo5ing inustr#% An the eregulation of

insurance will lea to a greater range of inno/ati/e an custo!er oriente proucts% Another

a/antage of opening up of the insurance sector, he !entions, is that the foreign participation in

locall# owne irect insurers will enable local pla#ers to for! alliances with foreign partners an

benefit fro! transfer of technical 5nowhow an increase financial strength%

SHUBHAM SAXENA 1J



@. -.,a3nna!"ar OI!perati/es of co!petitionP reports that a !a?or change in the last couple

of #ears has been the is!antling of the !onopolistic status of the state run insurers% +he fiel is no

longer confine to the! an has been thrown open to pri/ate pla#ers also% .e also feels that the

opening up of the insurance sector has gi/en a nw i!ension to the co!petiti/e !ar5et while in the

pre/ious era co!petition was a!ong four organizations which were si!ilar in al!ost all respects,

now the fight is a!ong co!panies with ifferent cultures, capabilities an /alue s#ste!s%

. ,a3en'ra Bu m ar In the paper Ochanging scenario of insurance inustr#P, reports that

pri/ate insurance co!panies can gi/e goo co!petition to the public sector unerta5ings (6*s) in

ter!s of custo!er orientation an :uic5 settle!ents% +here is a big scope for financiers to loo5 a

goo fee base inco!e b# beco!ing corporate agents% Before the inustr# was opene up, the four

public sector insurance co!panies were unerwriting ;s% 1E&&& crores pre!ia a #ear% o far, the

eight pri/ate insurers ha ta5en awa# onl# 1ED of the business% .e further states that, insurance

co!panies are toa# loo5ing at ifferent seg!ents where there is business potential an are tr#ing to

custo!ize policies to suit the specific nees of their clients%

1. T"e Econo m c an' Pol!cal 2ee#ly4 un'er !"e !!le Pr0a!sa!on of

nsurance n'us!ry= +he# reporte that, the nationalise ife insurance 'orporation of

Inia an General Insurance 'orporation of Inia ha/e contribute not onl# for social securit# of the

insure public but for the sustenance of Inia-s planne e/elop!ent of its econo!# catering to

social nees% +he athotra co!!ittee reco!!enations, if accepte, will estro# these i!portant

sources of !obilisation of people-s sa/ings for the econo!ic growth of the countr#%

+he go/ern!ent-s !o/e will bring into pla# all the ills that afflicte this inustr# before

SHUBHAM SAXENA 19



nationQlisation when people-s !one# was grossl# abuse for the pri/ate gain of the !onopolists%+he

concept of co!petition, which is being tal5e about, woul onl# lea to a rate war an !aipractices

enangering, in the process, polic# !onies% +he I' an GI' in the public sector ha/e, b#

conser/ing pre!iu!s an builing up enor!ous resources, successfull# protecte polic# !onies%

+he urunatche clai! settle!ent recor of I' an GI' woul bear this out%

11. M 0a Narayana. Depu!y Mana3er4 T"e Oren!al Insurance Co. !'.. n

" s ar!cle ;or3o!!en mones of !"e non<lfe nsurers= +he# eCplore the alternate

wa#s an !eans to i!pro/e the non pre!iu! re/enue of nonlife insurers in orer to reuce their

*ner writing losses an to aug!ent their net worth% .e iscusse about the !ost i!portant but

least bothere or !ost neglecte concept the ;0'0;I0 which arise !ostl# fro! the clai!s

pa#!ents !ae b# the insurers where the# ha/e legal rights to reco/er the sa!e fro! the thir

partiesR clai!antscarriers etc% An he also eCplains the i!portant source of reco/eries for the non

life insurers, where the insurers neglect put in col storage after pa#!ent of clai!s% l-he# are

otor Accient 'lai!s +ribunal (A'+), arine 'lai!s, >ire 'lai!s% otor 'lai!s, an

iscellaneous 'lai!s etc% .e conclue b# proposing to establish a ;0'0;S '0 at <;

le/el b# the insurers to reco/er their forgotten !one#%

SHUBHAM SAXENA 2&



1%. Dr. M. -'ysa3ar Re''y ;A Deca'e of /eralsa!on of Insurance ec!or

n n'a = +he# reporte that the global financial !eltown has left Inia largel# unaffecte%

+here is uni/ersal ac5nowlege!ent that this is ue to the strong presence of public sector in the

Inian ban5ing an insurance inustries% +he worl realize at great peril that finance capital is

funa!entall# in search of :uic5 profits an hence speculati/e in character ratir than ha/ing an#

enuring lin5s with the inustr#% +herefore, efforts are being !ae to ta!e the finance capital an as

a result !an# of the financial institutions incluing insurance co!panies ha/e been ta5en o/er b#

the go/ern!ents in the e/elope countries% +herefore, Inia !ust re!ain cautious% +he plans to

further liberalise the insurance inustr# !ust be gi/en up% +oa#, there is a conflict between the

I;<A an 0BI o/er *I6s an between ;BI an 0BI o/er interest futures%

+he go/ern!ent !ust ta5e steps to settle these conflicts an strengthen the regulator# !echanis!

for the orerl# growth of the financial sector, insurance inclue%

1(. H. Ansa r .is article OInsurance ;efor! sP repote that nationalization of insurance

helpe in eplo#!ent of !assi/e financial resources% It also helpe in sprea of insurance with I'

beco!ing a househol na!e in the countr#% .owe/er, as was then the pre/ailing culture in public

sector, with the passage of ti!e, the responsibilit# arl accountabilit# para!eters eteriorate

resulting in consu!er etri!ent% +hough insurance business in the countr# grew b# leaps an

bouns both in the life an nonlife sectors an a uni:ue lowcost !oel of insurance was

e/elope for the first ti!e in the worl b# public sector co!panies, the ser/icing para!eters in the

insurance sector ca!e own an the chalta hai- (laibac5) attitue pre/aile% Accoring to hi!

Insurance is peoplecentric- in character% Insurers eal with people who are their polic#holers,

beneficiaries, clai!ants, inter!eiaries an e/en e!plo#ees% +he go/ern!ent since inception

SHUBHAM SAXENA 21



perhaps has eCercise !ore control o/er the business of insurance than an# other business acti/it#%

0/en when this business was in the hans of pri/ate pla#ers prior to 19 (for life insurance) an

197$ (pertaining to general insurance), regulator# control was eCercise eCclusi/el# at the state

le/el%

1). Dr. .C. Das .is paper O'ost anage!ent 6ractices in Nonife Insurance 'o!panies4 A

'o!parati/e tu#P, presente that the perfor!ance of the general insurance inustr# in the first

three ecaes after nationalization has been i!pressi/e in ter!s of growth% But while pre!iu!s

ha/e shown strong growth, clai!s an operating eCpenses, both in absolute ter!s an relati/e to

pre!iu!s, ha/e grown faster% 'lai!s as a proportion of pre!iu!s, ha/e increase fro! 1 per cent

in 19727$ to 9 per cent in 199&91 to 7$ per cent in 19929$, largel# ue to the !otor insurance

business% But since the opening up of Inian insurance !ar5et, o/er the #ears with the eflTcti/e cost

control !easures, the clai!s cost has been reuce to E% 11 per cent in 2&&E& (D of clai!s

eCpenses to gross irect prenuu!)% perating eCpenses in 19727$ (when the sector was

nationalize), which were $& per cent of gross pre!iu!, reuce sustantiall# ue to !erger

efficiencies to 2E per cent in 199&91 an further to 22 per cent in 2&&E&% +he steep increase in

!otor clai!s o/er the #ears has resulte in an unerwriting profit of J per cent in 19727$ being

con/erte into a loss of E per cent an 2& per cent in 199&9 1 an 2&&E&% respecti/el#% In/est!ent

inco!e has shown strong growth o/er the #ears largel# ri/en b# increasing #iel ue to higher

interest rates% /erall, espite unerwriting losses, net profits ha/e grown fro! %$ per cent in 1972

197$ to 12 per cent an 1$ per cent in 199&91 an 2&&E&, respecti/el# ue to increasing

in/est!ent inco!e% Internationall#, !an# insurers lose !one# on proucts an !a5e up with

in/est!ent inco!e%

SHUBHAM SAXENA 22



19. ICRA Moo'ys Glo/al Insurance4 In'an General Insurance Ou!loo#

Major C"an3es E7pec!e' as Dere3ula!on Con!nues= +he# reporte that with the

Inian econo!# forecast to grow at 7%D in 2&&J an gi/en rising inco!e le/els an higher ris5

awareness a!ong insurers, the countr#-s insurers are opti!istic about e!an for their proucts%

.owe/er, intense co!petition fro! new entrants, eregulation an a !oeration in returns fro! the

e:uities !ar5et will pressure pricing an ulti!atel# short ter! profitabilit#% At the sa!e ti!e,

espite rising inflation an a se/ere correction in the stoc5 !ar5et, the pre/ailing /iew in Asia is

that while 'hina an Inia are not insulate fro! the creit crisis afflicting the * an 0*,

o!estic e!an is strong enough to support G<6 growth% Being less eCport epenent, Inia is

also less /ulnerable than so!e of its neighbours% ;ising inco!e le/els, low penetration for !ost

consu!er proucts, a/ailabilit# of financing an changes in lifest#les aspirations are li5el# to

sustain consu!er e!an o/er the neCt few #ears% in the short ter!, the focus on infrastructure

e/elop!ent will 5eep the econo!# going, e/en if the tightening in creit leas to a slowown in

cons*!er spening%

1:. Accor'n3 !o - Mony .is article New initiati/es in the insurance sector4

opportunities an challengesP, reports that the insurance sector in Inia is nearl# 1& #ears ol% It is

now in the thir phase of its eCistence% +he first phase was the longgrowth phase before the two

nationalizations in 19 an 1971 of life an general insurance respecti/el#% At that point of ti!e,

there were !ore than 2&& life insunince co!panies an 1&J general insurance co!panies% +he#

were all pri/ate sector insurers with the eCception of one stateowne general insurer e/eral

o/erseas insureis were operating in Inia through branches% In the secon phase, the entire sector

beca!e a state !onopol#% In the thir phase, we now ha/e se/eral new pri/ate sector pla#ers

co!peting with the large public sector insurers% Base on the current trens, it see!s that, in ten

SHUBHAM SAXENA 2$



#ears% the !ar5et will ha/e about $ to E& pla#ers, e:uall# istribute between life an general

insurance sectors% e/eral large global insurers operate in Inia through ?oint /entures% In the short

ti!e since the !ar5et was opene up, a co!prehensi/e set of legislati/e instru!ents has been

introuce%

SHUBHAM SAXENA 2E



CHAPTER (

REEARCH METHODOOGF

Researc" Me!"o'olo3y

;esearch is a co!!on language refers to a search of 5nowlege% ;esearch is scientific s#ste!atic

search for pertinent infor!ation on a specific topic, in fact research is an art of scientific

in/estigation% ;esearch ethoolog# is a scientific wa# to sol/e research proble!% It !a# be

unerstoo as a science of stu#ing how research is oing scientificall#% In it we stu# /arious steps

that are generall# aopte b# researchers in stu#ing their research proble!% It is necessar# for

researchers to 5now not onl# 5now research !etho techni:ues but also technolog#%

+he research proble! consists of series of closel# relate acti/ities% At ti!es, the first step

eter!ines the nati/e of the last step to be unerta5en% @h# a research has been efine, what ata

has been collecte an what a particular !ethos ha/e been aopte an a host of si!ilar other

:uestions are usuall# answere when we tal5 of research !ethoolog# concerning a research

proble! or stu#%

SHUBHAM SAXENA 2



(.1 Researc" Des3n

A research esign is efine as the specific !ethos an proceures for ac:uiring the infor!ation

neee% It is a plant or organizing fra!ewor5 for oing the stu# an collecting the ata% <esigning

a research plan re:uires ecisions all the ata sources, research approaches, research instru!ents,

sa!pling plan an contact !ethos%

;esearch esign is !ainl# of following t#pes4

1% 0Cplorator# research

2% <escripti/e research

$% 'asual research

1. E7plora!ory Researc"

+he !a?or purposes of eCplorator# stuies are the ientification of proble!s, the !ore precise

for!ulation of proble!s an the for!ulations of new alternati/e courses of action% +he esign of

eCplorator# stuies is characterize b# a great a!ount of fleCibilit# an ahoc /eracit#%

%. Descrp!0e Researc"

<escripti/e research in contrast to eCplorator# research is !ar5e b# the prior for!ulation of

specific research :uestions% +he in/estigator alrea# 5nows a substantial a!ount about the research

proble!% 6erhaps as a result of an eCplorator# stu#, before the pro?ect is initiate% <escripti/e

research is also characterize b# a preplanne an structure esign%

SHUBHAM SAXENA 2



(. Casual or E7permen!al Researc"

A casual esign in/estigates the cause an effect relationships between two or !ore /ariables% +he

h#pothesis is teste an the eCperi!ent is one% +here are following t#pes of casual esigns4

1% After onl# esign

2% Before after esign

$% Before after with control group esign

E% >our groups, siC stuies esign

% After onl# with control group esign

% 'onsu!er panel esign

7% 0Cposit factor esign

SHUBHAM SAXENA 27



(.% Me!"o' of !"e ampln3

Pro/a/l!y ampln3

It is also 5nown as rano! sa!pling% .ere, e/er# ite! of the uni/erse has an e:ual chance or

probabilit# of being chosen for sa!ple% 6robabilit# sa!pling !a# be ta5en infor! of4

1. mple Ran'om ampln3

A si!ple rano! sa!ple gi/es each !e!ber of the population an e:ual chance of being chosen% It

is not a haphazar sa!ple as so!e people thin5% ne wa# of achie/ing a si!ple rano! sa!ple is

to nu!ber each ele!ent in the sa!pling fra!e (e%g% gi/e e/er#one on the 0lectoral register a

nu!ber) an then use rano! nu!bers to select the re:uire sa!ple%

;ano! nu!bers can be obtaine using #our calculator, a spreasheet, an printe tables of rano!

nu!bers, or b# the !ore traitional !ethos of rawing slips of paper fro! a hat, tossing coins or

rolling ice%

%. ys!ema!c Ran'om ampln3

+his is rano! sa!pling with a s#ste! fro! the sa!pling fra!e, a starting point is chosen at

rano!, an thereafter at regular inter/als%

SHUBHAM SAXENA 2J



(. !ra!fe' Ran'om ampln3

@ith stratifie rano! sa!pling, the population is first i/ie into a nu!ber of parts or 8strata8

accoring to so!e characteristic, chosen to be relate to the !a?or /ariables being stuie% >or

this sur/e#, the /ariable of interest is the citizen8s attitue to the ree/elop!ent sche!e, an the

stratification factor will be the /alues of the responents8 ho!es% +his factor was chosen because it

see!s reasonable to suppose that it will be relate to people8s attitues%

). Clus!er an' Area ampln3

'luster sa!pling is a sa!pling techni:ue use when LnaturalL groupings are e/ient in a statistical

population% It is often use in !ar5eting research% In this techni:ue, the total population is i/ie

into these groups (or clusters) an a sa!ple of the groups is selecte%

+hen the re:uire infor!ation is collecte fro! the ele!ents within each selecte group% +his

!a# be one for e/er# ele!ent in these groups or a subsa!ple of ele!ents !a# be selecte within

each of these groups%

SHUBHAM SAXENA 29



Non Pro/a/l!y ampln3

It is also 5nown as eliberate or purposi/e or ?uge!ental sa!pling% In this t#pe of sa!pling, e/er#

ite! in the uni/erse oes not ha/e an e:ual, chance of being inclue in a sa!ple% It is of following

t#pe4

Con0enence ampln3

A con/enience sa!ple chooses the ini/iuals on the basis of easiness to reach or con/enience%

'on/enience sa!pling oes not represent the entire population so it is consiere bias%

uo!a ampln3

In :uota sa!pling the selection of the sa!ple is !ae b# the inter/iewer, who has been gi/en

:uotas to fill for! fro! specifie subgroups of the population%

,u'3men! ampln3

+he sa!pling techni:ue use here in probabilit# U ;ano! a!pling%

SHUBHAM SAXENA $&



(.( DATA COECTION

+he !ain source of infor!ation for this stu# is base on the ata collection% <ata collecte are both

pri!ar# an seconar# in nature%

Prmary Da!a

6ri!ar# ata ha/e been irectl# collecte fro! the clients of V'6ANS NA0W as well fro! the

clients of other insurance co!panies b# sur/e# !etho through unisguise structure

:uestionnaire%

Xuestions li5e open ene, close ene, !ultiple choice, ichoto!ous an ran5ing t#pe ha/e been

use for the purpose of ata collection%

econ'ary Da!a

econar# ata ha/e been collecte fro! official website of V'6ANS NA0W an also fro!

other official websites relate to general insurance inustr#%

).( ampln3 Des3n$<

i% 6opulation4< Infinite population% ( onl# polic# holers )

ii% a!pling ize$< &

iii% a!pling +echni:ues$< >or !# research wor5 I will use con/enience sa!pling techni:ue

because I a! going to perfor! !# research wor5 in ifferent areas of Bareill# 'it#%

SHUBHAM SAXENA $1



SHUBHAM SAXENA $2



CHAPTER )

DATA ANAFI * INTERPRETATION

X1% @hich t#pe of General Insurance #ou ha/eH (Sou can tic5 !ore than one)

Ta/le No ).1

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

+; IN*;AN'0 $J 2E%JE

.*0 IN*;AN'0 1J 11%7

60;NA A''I<0N+ IN*;AN'0 E1 2%79

0<I'A .0A+. IN*;AN'0 2$ 1%&E

+;A0 IN*;AN'0 2E 1%9

>I;0 IN*;AN'0 &9 &%JJ

TOTA 19( 1&&

SHUBHAM SAXENA $$



3ure No ).1

INTERPRETATAION$

It is :uite e/ient fro! the abo/e graph that personal an househol insurance are the !ost popular

insurances% +he# account for !ore than half ( J%$$D) of the insurance !ar5et% otor insurance is

also one of the co!!on insurancesY 1$%$$D% the popularit# of .ealth an fire insurance is at par

Y nearl# 12D% In a countr# li5e inia, tra/el insurance is not too popular%

SHUBHAM SAXENA $E



X2% @hat is #our 6urchase tenure perioH

Ta/le No ).%

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

ess than 1 #ear 22 $%

1 #ear 1& 1%7

2 #ears 12 2&%&&

2 to #ears 1& 1%7

ore than #ears & 1&%&&

TOTA : 1

3ure No ).%

INTERPRETATION$

It is :uite e/ient fro! the abo/e graph that !ost of the persons ta5e the insurance for less than 1

#ear an for 1 #ear i%e% !ore than a half($%$$D) an 2&D for 2 #ears, 1%7D for 2 to #ears an

onl# 1&D responents ta5e the insurance for !ore than #ears%

SHUBHAM SAXENA $



X$% .ow o #ou want to pa# #our pre!iu!H

Ta/le No ).(

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

'ash 1E 2$%$$

'he:ue 'reit 'ar 2 E1%7

<e!an <raft 11 1J%$$

nline 1& 1%7

TOTA : 1

3ure No ).(

INTERPRETATION$

It is :uite e/ient fro! the abo/e graph that E1%7D of the custo!ers prefer to pa# their pre!iu!s

b# che:ues an creit car, 2$%$$D custo!ers pa# b# cash, 1J%$$D pa# b# <e!an <raft an onl#

1%7 D custo!ers prefer to pa# their pre!iu!s b# online%

SHUBHAM SAXENA $



XE% In what inter/al #ou want to gi/e #our pre!iu!H

Ta/le No ).)

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

Xuarterl# $1 1%7

.alf Searl# 1J $&%&&

Annuall# 11 1J%$$

TOTA : 1

3ure ).)

INTERPRETATION$

It is :uite e/ient fro! the abo/e graph that about 1%7D of the custo!ers prefer to pa# their

pre!iu!s at Xuarterl# basis, $&D custo!ers prefer to pa# their pre!iu! at .alf Searl# basis an

1J%$$D custo!er-s prefer to pa# their pre!iu! at annuall# basis%

SHUBHAM SAXENA $7



X% @hich co!panies o #ou percei/e to be better in pro/iing general insurance ser/icesH

Ta/le No ).9

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

6ublic 22 $%7

6ri/ate $J $%$$

TOTA : 1

3ure No ).9

INTERPRETATION$

>ro! the abo/e graph, we can infer that the custo!er perception about the 6ri/ate Insurance

co!panies is better than the 6ublic co!panies% +his is e/ient fro! their preference4 !ore than $D

custo!ers prefer pri/ate co!panies an onl# $D people li5e to in/est in 6ublic co!panies

SHUBHAM SAXENA $J



X% >ro! which co!pan# #ou ha/e Genaral InsuranceH

Ta/le No ).:

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)I'I'I o!bar General Insurance & 1&%&&

Apollo unich .ealth Insurance &2 &$%$$

Bharti A=A General Insurance &2 &$%$E

;eliance General Insurance &E &%7

.<>' 0;G General Insurance &$ &%&&

BI General Insurance &J 1$%$$

*nite Inia 'o!p% t &J 1$%$$

aC Bupa .ealth Insurance &$ &%&&

+ata AIG .ealth Insurance &2 &$%$E

Ba?a? Allianz General Insurance &$ &%&&

New Inia 'o!p% t &7 11%

If an# other(please specif#)ZZZZZZZZZZZZZZZZ 12 2&%&&

TOTA : 1

SHUBHAM SAXENA $9



3ure No ).:

INTERPRETATION$

+he graph shows that the GI' ubsiiaries (onl# 2 out of E ha/e been inclue in the research)

na!el# +he New Inia Assurance 'o!pan# t% An the *nite Inia Insurance 'o!pan#,

together capture the highest !ar5et share 2D% BI is another !a?or !ar5et pla#er at 1$%$$D

!ar5et share% All other co!panies hol /er# s!all portions of the total General Insurance !ar5et,

ranging fro! I'I'I o!bar at 1&D to +ata AIG at $%$$D% +his clearl# inicates that e/en though

there are a huge nu!ber of 6ri/ate pla#ers in the General insurance !ar5et, the public co!panies

ha/e a /er# strong hol%

SHUBHAM SAXENA E&



X7% .ow !uch !one# o #ou want to in/est in General Insurance plan per #earH

Ta/le No ).?

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

ess than &&& $1 1%7

&&11&&&& 1 2%7

1&&&11&&& &J 1$%$$

1&&12&&&& &E &%7

ore than 2&&&& &1 &1%

TOTA : 1

3ure No ).?

INTERPRETATION$

Al!ost J&D of the custo!ers are retail s!all in/estors since their a/erage polic# pre!iu! for a

#ear is up to ;s% 1&,&&& onl#% er# few of the custo!ers (about 7D) bu# policies of !ore than

1,&&& rupees per #ear for general insurance%

SHUBHAM SAXENA E1



XJ% @hile bu#ing an insurance polic#, #our ecision influence b#H

Ta/le No ).@

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

>a!il# 1J $&%&&

>riens 17 2J%$$

6rofessional Group 1& 1%7

A/ertise!ent 1 2%&&

TOTA : 1

3ure No ).@

INTERPRETATION$

+his inicates that !a?orit# of ecisions are influence b# friens, fa!il# an peer professionals%

+he a/ertise!ents o not ha/e a /er# high i!pact on people for bu#ing general insurance policies%

SHUBHAM SAXENA E2



X9% ;an5 the following factors

;an5 1 ost I!portant

;an5 2 >airl# i!portant

;an5 $ I!portant

;an5 E lightl# i!portant

;an5 Not i!portant

1& 6re!iu! A!ount

%&6re!iu! >re:uenc#

(& ;is5 'o/er

)& 0ase in clai! settle!ent

9& +aC i!plications

SHUBHAM SAXENA E$



or Premum Amoun!$

Ta/le No ).

>A'+; N > ;06N<0N+ 60;'0N+AG0 (D)

;ating 1 1& 1%7

;ating 2 1 2%&&

;ating $ 1 2%7

;ating E 1& 1%7

;ating &9 1%&&

TOTA : 1

3ure No ).

INTERPRETATION$

About JD polic# holers feel that pre!iu! a!ount is an i!portant eter!inant for ecision

!a5ing% a?orit# of polic# holers ha/e !ar5e it as I!portant at 2%7D% >or 1%7D polic#

holers it is the !ost i!portant eciing factor% About 1D polic# holers feel that it is not at all

i!portant%

SHUBHAM SAXENA EE



or Premum reuency$

Ta/le No ).1

>A'+; N > ;06N<0N+ 60;'0N+AG0 (D)

;ating 1 12 2&%&&

;ating 2 &J 1$%$$

;ating $ 1 2%&&

;ating E 1$ 21%7

;ating 12 2&%&&

TOTA : 1

3ure No ).1

INTERPRETATION$

ApproCi!atel# JD polic# holers feel it is an i!portant factor in ecision !a5ing but al!ost E2D

polic# holers feel it is not of !uch significance as to how often we pa# the pre!iu!s% >or 2&D

polic# holers it is the !ost i!portant factor in ecision !a5ing%

or Rs# Co0er$

SHUBHAM SAXENA E



Ta/le No ).11

>A'+; N > ;06N<0N+ 60;'0N+AG0 (D)

;ating 1 1 2%7

;ating 2 1 2%&&

;ating $ 1& 1%7

;ating E 11 1J%$$

;ating &J 1$%$$

TOTA : 1

3ure No ).11

INTERPRETATION$

ince !ore than 2D polic# holers feel that general insurance is pri!aril# ta5en for ris5 co/er,

the# ha/e !ar5e it as the !ost i!portant influencer% 'ollecti/el#, about 9D polic# holers sa#

that ris5 co/er is an i!portant factor for ta5ing general insurance%

or Ease n Clam e!!lemen!$

Ta/le No ).1%

>A'+; N > ;06N<0N+ 60;'0N+AG0 (D)

SHUBHAM SAXENA E



;ating 1 1$ 21%

;ating 2 1 2%7

;ating $ &9 1%&&

;ating E 1 2%7

;ating & 1&%&&

TOTA : 1

3ure No ).1%

INTERPRETATION$

Al!ost 22D polic# holers belie/e that it is the !ost significant factor in purchase ecision%

.owe/er, e:ual nu!ber of polic# holers sa#s that it is O/er# i!portant Oan Oslightl# i!portant

O(2%7D)%

SHUBHAM SAXENA E7



or Ta7 Implca!ons$

Ta/le No ).1(

>A'+; N > ;06N<0N+ 60;'0N+AG0 (D)

;ating 1 1 2%&&

;ating 2 1E 2$%$$

;ating $ &9 1%&&

;ating E 12 2&%&&

;ating 1& 1%7

TOTA : 1

3ure No ).1(

INTERPRETATION$

>or about 2D of the polic# holers (highest), taC i!plications is the !ost i!portant factor in their

ecision !a5ing process% .owe/er, 1D polic# holers feel, it is not such an i!portant factor%

SHUBHAM SAXENA EJ



X1&% @hat is the pri!ar# purpose of ta5ing a general Insurance polic#H

Ta/le No ).1)

6+IN N > ;06N<0N+ 60;'0N+AG0 (D)

;is5 'o/er 2& $$%$$

+aC Benefit 2E E&%&&

egal 'o!pliance 1 2%7

TOTA : 1

3ure No ).1)

INTERPRETATION$

It is :uite e/ient fro! the abo/e graph that E&D custo!ers ta5e the insurance for ta5ing the +aC

Benefit, $$%$$D custo!ers ta5e for ris5 co/erage an onl# 2%7D custo!er ta5e the insurance for

legal co!pliance% +his is also e/ient fro! X9 anal#sis also, since !ost of the polic# holers sai

that taC i!plication is the !ost i!portant factor in eciing which general insurance polic# to bu#%

SHUBHAM SAXENA E9



INDING

6ersonal an househol insurance are the !ost popular insurances% +he# account for !ore

than half ( J%$$D) of the insurance !ar5et% otor insurance is also one of the co!!on

insurancesY 1$%$$D% the popularit# of .ealth an fire insurance is at par Y nearl# 12D% In a

countr# li5e inia, tra/el insurance is not too popular%

!ost of the persons ta5e the insurance for less than 1 #ear an for 1 #ear i%e% !ore than a

half($%$$D) an 2&D for 2 #ears, 1%7D for 2 to #ears an onl# 1&D responents ta5e

the insurance for !ore than #ears%

about 1%7D of the custo!ers prefer to pa# their pre!iu!s at Xuarterl# basis, $&D

custo!ers prefer to pa# their pre!iu! at .alf Searl# basis an 1J%$$D custo!er-s prefer to

pa# their pre!iu! at annuall# basis%

the GI' ubsiiaries (onl# 2 out of E ha/e been inclue in the research) na!el# +he New

Inia Assurance 'o!pan# t% An the *nite Inia Insurance 'o!pan#, together capture

the highest !ar5et share 2D% BI is another !a?or !ar5et pla#er at 1$%$$D !ar5et share%

All other co!panies hol /er# s!all portions of the total General Insurance !ar5et, ranging

fro! I'I'I o!bar at 1&D to +ata AIG at $%$$D% +his clearl# inicates that e/en though

there are a huge nu!ber of 6ri/ate pla#ers in the General insurance !ar5et, the public

co!panies ha/e a /er# strong hol%

Al!ost J&D of the custo!ers are retail s!all in/estors since their a/erage polic# pre!iu!

for a #ear is up to ;s% 1&,&&& onl#% er# few of the custo!ers (about 7D) bu# policies of

!ore than 1,&&& rupees per #ear for general insurance%

SHUBHAM SAXENA &



a?orit# of ecisions are influence b# friens, fa!il# an peer professionals% +he

a/ertise!ents o not ha/e a /er# high i!pact on people for bu#ing general insurance

policies%

ore than 2D polic# holers feel that general insurance is pri!aril# ta5en for ris5 co/er,

the# ha/e !ar5e it as the !ost i!portant influencer% 'ollecti/el#, about 9D polic# holers

sa# that ris5 co/er is an i!portant factor for ta5ing general insurance%

Al!ost 22D polic# holers belie/e that it is the !ost significant factor in purchase ecision%

.owe/er, e:ual nu!ber of polic# holers sa#s that it is O/er# i!portant Oan Oslightl#

i!portant O(2%7D)%

About E&D custo!ers ta5e the insurance for ta5ing the +aC Benefit, $$%$$D custo!ers ta5e

for ris5 co/erage an onl# 2%7D custo!er ta5e the insurance for legal co!pliance% ost of

the polic# holers sai that taC i!plication is the !ost i!portant factor in eciing which

general insurance polic# to bu#%

SHUBHAM SAXENA 1



CONCUION

0/en though the polic# holers ha/e bought General insurance policies fro! the 6ublic

i!ite co!panies, the 6olic# holers are shifting their lo#alties fro! these public li!ite

co!panies to the pri/ate fir!s% +his i!plies that the polic# holer-s perception is that the

6ri/ate co!panies pro/ie better ser/ices than the 6ublic t% 'o!panies%

ost of the polic# holers sai that taC i!plication is the !ost i!portant factor in eciing

which general insurance polic# to bu#%

SHUBHAM SAXENA 2



UGGETION

SHUBHAM SAXENA $



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2e/s!es$

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'% ;% 3othari

SHUBHAM SAXENA E

http://www.google.com/

http://www.google.com/



ANNEURE

UETIONNAIREX1% @hich t#pe of General Insurance #ou ha/eH (Sou can tic5 !ore than one)

1& otor Insurance ( )

%& .ouseholers.ouseowners Insurance ( )

(& 6ersonal Accient Insurance ( )

)& eical .ealth Insurance ( )

9& +ra/el Insurance ( )

:& >ire Insurance ( )

X2% @hat is #our 6urchase tenure perioH

1) 1 #ear ( )

2) 2 #ears ( )

$) 2 #ears to #ears ( )

E) ore than #ears ( )

X$% .ow o #ou want to pa# #our pre!iu!H

1) 'ash ( )

2) 'he:ue 'reit 'ar ( )

$) <e!an <raft ( )

E) nline ( )

XE% In what inter/al #ou want to gi/e #our pre!iu!H

1) Xuarterl# ( )

2) .alf Searl# ( )

$) Annual# ( )

X% @hich co!panies o #ou percei/e to be better in pro/iing general insurance ser/ices4

1% 6ublic ector Insurance co!panies ( )

SHUBHAM SAXENA



2% 6ri/ate ector Insurance co!panies ( )

X% >ro! which co!pan# #ou ha/e Genaral InsuranceH

1% I'I'I o!bar General Insurance ( )

2% Apollo unich .ealth Insurance ( )

$% Bharti A=A General Insurance ( )

E% ;eliance General Insurance ( )

% .<>' 0;G Genaral Insurance ( )

% BI General Insurance ( )

7% *nite Inia Insurance 'o!p% t ( )

J% aC Bupa .ealth Insurance ( )

9% +ata AIG General Insurance ( )

1&% Ba?a? Allianz General Insurance ( )

11% New Inia Assurance 'o!p% t ( )

12% If an# other(6lease specif#)ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

X7% .ow !uch !one# o #ou want to in/est in General Insurance plan per #earH

1) ess than &&& ( )

2) ;s% &&1 to ;s% 1&&&& ( )

$) ;s% 1&&&1 to ;s% 1&&& ( )

E) ;s% 1&&1 to ;s% 2&&&& ( )

) Abo/e ;s% 2&&&1 ( )

XJ% @hile bu#ing an insurance polic#, #our ecision influence b#H

1) >a!il# ( )

2) >riens ( )

$) 6rofessional Group ( )

E) A/ertise!ent ( )

X%9 ;an5 the following factors

;an5 1 ost I!portant

;an5 east i!portant

SHUBHAM SAXENA



ac!ors Ran#

6re!iu! A!ount

6re!iu! >re:uenc#

;is5 'o/er

0ase in 'lai! settle!ent

+aC i!plications

X%1& @hat is the pri!ar# purpose of ta5ing a general Insurance polic#4

1) ;is5 'o/er ( )

2) +aC benefit ( )

$) egal 'o!pliance ( )

X11% @hat eCtra facilities or i!pro/e!ents in the policies o #ou want fro! 'o!pan#HAnsZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

Fyp Perception General Insurance

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