Organizational Study at Oriental Insurance Company Ltd 1.1 Introduction Oriental Insurance Company Ltd, a subsidiary company of the General Insurance Corporation (GIC) of India, started its operation in India on 12th September 1947 at Bombay (now Mumbai) as a public sector company. The company became a subsidiary of Life Insurance Corporation of India in 1956 and continued to serve as such till 1973. The main goal of the company was to get involved in the business of general insurance thus catering to the needs of all kinds of people and are quite famous for their coverage of products associated with steel and chemical plants, petrochemical and powerplants. In 2002, after the Insurance Amendment bill was passed, the company was de- linked from GIC and all its shares has been transferred to the Central Government. The company has evolved in great respects over the years and slated to become one of the leading insurance company of the country. Presently the company has made its presence felt into the other segments of insurance as well. The company has gone up to accomplish a premium of Rs. 4077.90 crores (2008-09) from the premium of Rs. 99,946 in 1950. A good life is a beautiful dream. We love building our house brick by brick, acquire assets tastefully and aspire to make life comfortable everyday. Business security and Mount Zion College of Engineering, Kadammanitta
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Organizational Study at Oriental Insurance Company Ltd
1.1 Introduction
Oriental Insurance Company Ltd, a subsidiary company of the General
Insurance Corporation (GIC) of India, started its operation in India on 12th September
1947 at Bombay (now Mumbai) as a public sector company. The company became a
subsidiary of Life Insurance Corporation of India in 1956 and continued to serve as such
till 1973. The main goal of the company was to get involved in the business of general
insurance thus catering to the needs of all kinds of people and are quite famous for their
coverage of products associated with steel and chemical plants, petrochemical and
powerplants.
In 2002, after the Insurance Amendment bill was passed, the company was de- linked
from GIC and all its shares has been transferred to the Central Government. The
company has evolved in great respects over the years and slated to become one of the
leading insurance company of the country. Presently the company has made its presence
felt into the other segments of insurance as well. The company has gone up to
accomplish a premium of Rs. 4077.90 crores (2008-09) from the premium of Rs. 99,946
in 1950.
A good life is a beautiful dream. We love building our house brick by brick, acquire
assets tastefully and aspire to make life comfortable everyday. Business security and
personal safety in the present times concern everyone. Measures are taken to prevent
things going out of hand yet and an element of fear keeps dotting us.
Hard earned assets acquired during life time may be under some threat due to unforeseen
circumstances. An industry or establishment may encounter a situation that may get out
of the hands of human beings. Someone on the road may be insensitive to the
precautions being taken to cross the road. Anything may happen anytime. Can we offset
the uncertainty? Probably not. - But this can be transferred very simply through the
means of taking insurance.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
An individual may get insured his property like house and its contents, car etc, against
various perils. Health and Personal Accident Insurance support during hard times. Even
liabilities arising from various situations can also be covered.
A business enterprise can get coverage for its assets against various risks like fire, flood,
earthquake etc., to name a few, at a nominal premium and go on to insure Business
Interruption. Many liabilities arising during course of business are also taken care of.
Likewise industries also find protection through various insurance policies for fire and
allied perils, business interruption and workmen insurance. The transit of the equipment
to the site entails many hazards arising from ocean, rail, air or road. Acts of God or
terrorism may cripple any industry before it starts up or in operation. All can be covered.
Loans advanced by financial institutions may get threatened by operation of unforeseen
events. Many more situations may emerge that one may not have even thought of.
The value of the property (sum insured) which is exposed to the risks should be kept
almost equal to the loss one may sustain considering the present state or market value.
One may also think of taking insurance on replacement (re-instatement) value. The cost
of imperishable may not be taken into account, e.g. land. The basis of fixing sum insured
may vary from property to property or risk to risk but bottom line remains almost same.
Personal accident insurance can be taken for an individual, family or a group. The sum
insured is based on earnings. Health insurance packages are available for individual,
family or group basis.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Oriental Insurance Company Ltd, have a set up of more than 1000 offices. Marketing
staff is also always keen to reach you. Our agents are there to canvas the business. We
can also buy selected insurance products on this Portal as well. In addition the Portal
enables you to view the policies already taken by you and the status of any claim which
may have been reported. What you really need to do is to identify your requirements
where you would need insurance protections and contact Oriental Insurance Company
1.2Objective of the Study
The aim of this study is to know about various functional departments in the
organization.
To make an awareness of the general insurance industry.
To know the roles of managers in various departments.
To understand the different products and their position on the market in
terms circulation and reader ship.
To analyze the present status and future strategy of the company.
To analyze the internal strength and weakness and external threats and
opportunities of the organization.
To integrate practical experience with theoretical concepts.
To analyze the performance of the organization.
1.3 Scope of the study
The organization study will help to attain a first hand experience of over all functioning
of the organization. It provides a chance to interact with the authorities and employees in
the organization. It helps to understand the practical problems faced by the managers for
decision making and other organizational activities.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
1.4 Duration of the study
The duration of this study was for a period of 1 month starting from 1-5-2010 to
31-5-2010
1.5 Methodology
Data‘s are collected in primary sources and secondary sources. The primary
sources are collected from detailed with managers and personnel interviews with
employees.
Research methodology provides various steps that can be adopted by the
researchers in studying his research problems. Research is actually search for knowledge.
Methodology Used In Data Collection
The methods used for collecting data in this study are,
1. Primary Data
The primary data are those collected by the investigation himself for the
first time and thus in original in character. The primary data collected through
Personal interview
These are very useful to know about the persons options of the
employees regarding their job problems. The success of this method largely
depends on the proper drafting of questions
Observation
This method implies the collection of information by way of researchers
own observation The study needed to have a personal visit to the different
departments of the company.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Secondary sources
Secondary sources are journals, company profiles, annual reports, company website
www.orientalinsurance.org.in, and technical files. These are the important information
source of the company.
1.6 Limitation
Time is a major constraint.
Detailed collection of information is impossible.
Performance of executives must access properly , otherwise it will effect the
merit rating process.
Since the officials were busy , it was difficult to spare time with them for
detailed discussion
The incomplete feedback of the executives and customer may be lack of
the organization study.
Lack of experience of researcher is a limiting factor of the study.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
2.1 Industry Profile
Oriental Insurance Company Ltd, a subsidiary company of the General Insurance
Corporation (GIC) of India, Started its operation in India on 12th September 1947 at
Bombay (now Mumbai) as a public sector company. The company became a subsidiary
of Life Insurance Corporation of India in 1956 and continued to serve as such till
1973.The main goal of the company was to get involved in the business of general
insurance thus catering to the needs of all kinds of people and are quite famous for their
coverage of products associated with steel and chemicalplants. In 2002, after the
Insurance Amendment bill was passed, the company was de- linked from GIC and all its
shares has been transferred to the Central government. The company has evolved in great
respects over the years and slated to become one of the leading insurance company of the
country. Presently the company has made its presence felt into the other segments of
insurance as well. The company has gone up to accomplish a premium of Rs. 4077.90
crores (2008-09) from the premium of Rs. 99,946 in 1950.
Abstract of Oriental Insurance Company Ltd
To keep the focus on customer and serve their insurance requirements.
To offer high quality service being customer friendly.
To invest funds for optimum grant and engage in profitable business.
To optimize the retentivity of Indian business and carry on reinsurance policies and
foreign operations.
To establish Risk Management Technologies and minimize the losses.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Growth of Oriental Insurance Company Ltd
Oriental Insurance Company Ltd. has its head office at New Delhi and 26 regional
offices all over the country. Apart from this the company also has over 900operating
offices and overseas operation, mainly in Kuwait, Dubai and Nepal. The company
presently has around 15,000 technically qualified, effective, committed and highly
trained workforce covering various segments.
The Solvency Margin as of 31st March, 2009 is 1.66 in comparison to the desired
Solvency Margin of 1.5 made compulsory by the Indian Regulatory Body, IRDA.
A pre-tax loss of Rs 82.66 crores& post-tax loss of Rs. 52.66 crores for the year 2008-
09 was recorded after considering the income from the dividend, interest and rent of
Rs 608.23,crores and ProfitonsaleofInvestmentsofRs387.39.
The company recorded the gross premium income in India during the year 2008-09 at
Rs. 3964.26 and abroad at Rs. 113.64 crores in comparison to Rs. 92,07 in the
previous year registering a growth of 4.55%. On the other hand the net premium
income both in domestic and foreign operations recorded a rise of 12.38% from
Rs.2878.67 crores in 2007-.08 to Rs. 3235.10 crores in 2008-09. An overall surplus of
Rs. 15.27 crores was registered in the company's foreign operations.
The company has gone ahead to make itself more technologically updated and IT
friendly and have their very own websites. The implementation of Integrated Non-
Life Insurance Application Software (INLIAS) in their company has ascertained a
better customer service. Furthermore, the company has been credited with the highest
rating by leading Indian Credit Rating Agenciagency, rated the company as B++(Very
Good).
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
2.2 Company Profile
The Oriental Insurance Company Ltd was incorporated at Bombay on 12th
September 1947. The Company was a wholly owned subsidiary of the Oriental
Government Security Life Assurance Company Ltd and was formed to carry out General
Insurance business. The Company was a subsidiary of Life Insurance Corporation of India
from 1956 to 1973 ( till the General Insurance Business was nationalized in the country).
In 2003 all shares of our company held by the General Insurance Corporation of India has
been transferred to Central Government.
The Company is a pioneer in laying down systems for smooth and orderly conduct of the
business. The strength of the company lies in its highly trained and motivated work force
that covers various disciplines and has vast expertise. Oriental specializes in devising
special covers for large projects like power plants, petrochemical, steel and chemical
plants. The company has developed various types of insurance covers to cater to the needs
of both the urban and rural population of India. The Company has a highly technically
qualified and competent team of professionals to render the best customer service.
Oriental Insurance made a modest beginning with a first year premium of Rs.99,946 in
1950. The goal of the Company was “Service to clients” and achievement thereof was
helped by the strong traditions built up overtime.
ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+
operating Offices in various cities of the country. The Company has overseas operations in
Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+
employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores
in 1973 and during 2008-09 the figure stood at a mammoth Rs. 4077.90 crores.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Corporate Mission
To contribute to the socio economic objectives of the nation by being a vibrant
and viable organization catering to the growing insurance needs of the community.
Towards this end we will strive for effective management of business operations.
Corporate Objectives
1. To serve better the insurance needs of the entire community, keeping CUSTOMER as
the focus.
2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide
quality
service.
3. To manage Business profitably, manage funds judiciously and deploy investible funds for
optimum yield.
4. To optimise the retention of Indian business and conduct reinsurance and international
operations in the best interest of the country.
5. To work towards minimisation of losses and develop Risk Management Technologies.
6. To function as a strong and dynamic non-life insurer.
Values:
• Highest priority to customer needs.
• High standards of public conduct.
• Transparency in operations.
Commitment
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
TO THE CITIZENS WE WILL
• In areas coming within competence of GIC respond to all commercially viable
general insurance requirements of the citizens, not hitherto available within three months
from the date on which such a demand is received.
• In areas covered by tariff, appropriate proposals will be submitted to the Tariff
Advisory Committee with appropriate comments within two months.
• Continue to provide customized insurance products for weaker sections of the
society at affordable price within six months of receipt of a request for a specific type of
cover.
• Establish customer information counters at all regional centers by December, 1997
and computerise these centers by March, 1998. These computerised centers will be
extended to divisional offices in stages by December, 1999.
• Establish ‘May I Help You’ facility to cater to customers information requirements at
the Headquarters of the insurance companies by 15th August, 1997.
• Ensure issuance of 90% of documents within a period of 30 days from 15th August,
1997 and progressively reduce the period to 15 days by August, 1998 and to 7 days by
August, 1999.
• Prepare booklets on standard policy covers setting out essential information and make
such booklets readily available for purchase at suitable places.
• Set up Zonal Advisory Committees at the four metropolitan cities by December, 1997
to interact with customers and get feedback on insurance services.
• Promote customer education in general insurance service by holding workshops in
important regional centers.
• Make available to a customer, on request to the policy issuing office, the status of his
claimand/or claim settlement details within 7 working days.
• Settle all claims within a times schedule envisaged hereunder :-
a) Personal line insurance claims within 30 days on completion of all requirements.
b) Property claims within 60 days on completion of all requirements.
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
c) Liability claims within 30 days on completion of process of law.
• Endeavour to set up a system of Ombudsman at the four metropolitan cities to
conciliate disputes on personal line insurance claims.
Management
Oriental Insurance is a professionally managed independent Board-run Company.
Illustrious personalities like ShriT.A.Pai ( who later became Cabinet Minister in the Union
Government ), Shri K. R. Puri, who rose to be the Governor of RBI and ShriB.D.Pande
(who later became the Governor of West Bengal) were among our past Chairmen. At
present Dr. R.K.Kaul is Chairman-Cum-Managing Director of our Company. The Board of
Directors of our Company include eminent personalities in various fields.
Goal Setting Flow
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Exclusive Features
Immediate policy issuance through online facility.
On line approval for minor claims through cashless network dealers.
Availability of 24x7 call centers.
Lightning fast claims settlement.
Simple and fast documentation.
Tax saving health insurance plans.
Performance Flow
Mount Zion College of Engineering, Kadammanitta
Vision, Mission, Business Goals Strategy Budget
Annual Business plan
Company Objectives
Regional/ Departmental/
Functional Business Plan
Individual Objectives
Organizational Study at Oriental Insurance Company Ltd
2.3 Product Profile
Mount Zion College of Engineering, Kadammanitta
Performance
Planning/Objective Setting
Performance
Assessment Annual Review
Performance
Development
Rewards and
Recognition
Organizational Study at Oriental Insurance Company Ltd
A few of Oriental Insurance most widely sold and most useful policies are:
PNB - Oriental Royal Mediclaim Policy
Exclusively for Punjab National Bank Customers with Elaborate Coverage & Most
Competitive Cost
Motor Policy
Motor insurance is mandatory for every vehicle. This is one of the reasons why we
take it for granted. The Oriental Insurance Company Ltd, motor insurance policy is
comprehensive vehicle insurance as governed by the Indian motor Tariff.
It covers For:
Loss or Damage to the Vehicle, due to Natural Calamities:
Fire, explosion, self ignition or lighting, earthquake, flood, typhoon, storm etc.
Man-made Calamities:
Burglary, theft, riot, strike, malicious act, accident by external means etc.
Personal Accident Cover:
The motor insurance provides compulsory personal accident cover for individual
owners and optional for passengers.
Third Party Legal Liability
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Covers for legal liability due to accidental damage for:-
Any permanent injury/ death of a person
Any damage caused to the property.
Additional Covers
Electrical/ Non-electrical accessories, bi-fuel system etc can be covered.
Motor Policies - Terms & Conditions
1. Two wheeler Package Policy
2. Private Car Package Policy
3. Commercial Vehicle Package Policy
4. Liability Only Policies (Applicable for all types of vehicles) Motor Trade Policy
wordings.
(i) Standard Form for Motor Trade Package Policies
(ii) Motor Trade Internal Risk
5. India Motor Tariff (IMT) Endorsements .
6. OIC Endorsements: New Endorsements for Add-On Covers for Motor Package
Policy.
COMPREHENSIVE HEALTH INSURANCE SCHEME
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Under National Common Minimum Programme, Comprehensive Health Insurance
Scheme for one district in each state in 2004-05 has been formulated for implementation
with community participation.
The Salient Features of the Scheme are:
Primary focus of Health Insurance in the Pilot District would be the poorer section of
the society i.e. both BPL and Non-BPL.
The experience gained from the outcome in implementing the scheme in these Pilot
Districts would form the basis for possible expansion and its replication in other districts
in future.
To focus on the health insurance needs of the Population by marketing the entire range
of existing Health Insurance products catering to the needs of all income groups such as
Mediclaim,BhavishyaArogya, Jan Arogya, Universal Health, SwasthyaBima
Policies etc.
All the existing Health Insurance products would be marketed to the population in the
Pilot District in a holistic manner by mobilizing support from different agencies viz.
State Government, Local bodies,Community based organizations, NGOs, Cooperatives
and other organizations involved in Social Sector activities.
The four Public Sector Insurance Companies would market the product by utilizing
the existing marketing channels.
The claims settlement process would be simplified depending upon the availability of
the Third Party Administrators (TPAs) or throughTie-up arrangements with Service
Providers, medical facilities would be provided cash-less, as far as possible
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
.
Theprogramme will be undertaken, in one District in each State ideally be the one that
have a strong presence of Community Based Organizations and having a reasonable
health infrastructure and delivery mechanism.
Electronic Equipment Insurance Policy
This policy offers financial protection in case your electronic equipment suffers
accidental electrical and machinery breakdown requiring repairs and /or replacement.
This policy covers all types of computers including micro - processors, word -
processors, tele - communication instruments, machine for medical use, films and
television studio equipment, electronic score boards etc.
Covered Risks :
Under this insurance are covered against all kinds of accidental, Electrical and
Mechanical breakdowns due to internal causes ,external causes and operational
deficiencies.
Major Exclusions :
Damage due to any cause for which the manufacture and/ or supplier is responsible,
Defects existing at the time of taking insurance known to the insured but not known to
the Insurers, Loss or damage due to interruption caused by the failure of electricity
service or supply.
Group Mediclaim Policy
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
Mediclaim Insurance is a cover which takes care of medical expenses following
Hospitalisation/Domiciliary Hospitalisation of the Insured in respect of the following
situations: (A) In case of a sudden illness (B) In case of an accident (C) In case of any
surgery which is required in respect of any disease which has arisen during the policy
period. The major benefit for taking a Group Mediclaim policy is that the insured gets a
Group discount, hence the premium per person is lower.
Covered Risks :
This cover is a hospitalisation cover and reimburse the medical expenses incurred in
respect of covered disease /surgery while the insured was admitted in the hospital as an
in patient.The cover also extends to pre- hospitalsation and post- hospitalisation for
periods of 30 days and 60 days respectively.
Major Exclusions :
Any pre-existing disease,any expense incurred during first 30 days of cover except injury
due to accident,all expenses incurred in respect of any treatment relating to pregnancy
and child birth. Treatment for Cataracts,Benign prostatic hypertrophy,Hysterectomy,
Menorrhagia or
Fibromyoma, Hernia,Fitula of anus,Piles, Sinusitis, Asthma,Bronchitis, All Psychiatric
or Psychosomatic disorders are excluded from the scope of the cover.
Householders Insurance Policy
Mount Zion College of Engineering, Kadammanitta
Organizational Study at Oriental Insurance Company Ltd
The House holder's Insurance Policy is a comprehensive shelter that protects your house
and the various contents in it against a variety of risks. It is a single policy that takes care
of a number of contingencies. The policy is divided into 10 sections. Sec 1(B) and a
minimum of any 2 other sections are compulsory. Section 1 : Fire and Allied Perils.