SUMMER PROJECT REPORT ON

“CUSTOMER SATISFACTION”

In Partial Fulfillment of Award of Post Graduate Diploma in Business Management

By

(Mohseen)

Under the guidance of

(Prof. Girish Kathuria)

PGDM (BM)

Entrepreneurship and Management Processes International New Delhi – 74

August- 2013

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DECLARATION

This is to certify that I Mohseen Roll No. 19 have carried out my Summer internship

in Future Generali India Insurance Company Limited in the area Marketing. It is also

certified that the work done by me is original with due references of sources, and has

not been submitted elsewhere for the award of any diploma or degree.

Name of the Student

Signature

_____________________

Date :

2

Certificate

This is to certify that Mr. Mohseen has worked under my guidance on the topic title “Customer Satisfaction” in Future Genrali India Insurance Ltd. Bikaner. The summer training project was undertaken for a period of 52 days.

During the period I found his work satisfactory.

Dr. Girish Kathuria

Faculty Guide

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ACKNOWLEDGEMENT

I sincerely acknowledge my thanks to Future Generali India Insurance Company Ltd. Bikaner

for giving me the opportunity to carry out the Summer Internship Program in their well

esteemed organization. The whole period of my internship with the organization has been of

immense learning experience about the Indian Insurance Market.

The entire project ows its credit for the guidance and encouragement rendered by my faculty

mentor Dr.Girish Kathuria. I record my sincere thanks to sir with deep gratitude.

I would also take the opportunity to acknowledge my deep and sincere thanks to my corporate

mentor, Mr. Rajesh Goswami of Future Generali, whose perception and sagacity is always

opened for us and helped me guided me throughout the research project.

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CONTENTS:

Executive Summary

Introduction to Industry

About the Company

Limitations of the Project

Research Methodology

Recommendations

Bibliography

Annexure

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EXECUTIVE SUMMARY

The objective of the project was to understand the Distribution base, understanding

the sales and distribution & to activate the agents & the distribution base. Also the

objective was to find, what are the current trends in the market and what the

competitor’s product offerings are. The main objective was to understand the

functioning of general insurance company, focusing on agency vertical. To aid in a

comparative product analysis of General insurance sector major players was done .

Specifically the research objectives are to:

To know about the Insurance Sector.

To know about the distribution channel employed by the Future Generali.

To do a complete analysis of the features of Motor, Accidental, Travel, Health

insurance and to do a comparative study of these products with other players

in the insurance market

Gauge the consumer sentiment on the various services provided by the various

Insurance players in the city.

To know about the recruitment process of agents in context of Future Generali

Insurance Company.

To know about the sales policies of Future Generali.

During the two months of summer internship I gained extensive practical knowledge

on the entire operating process of agency vertical starting from recruitment of agents,

providing training, issuing policies, the underwriting process and finally claim

coverage.

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INTRODUCTION

INDUSTRY PROFILE

INSURANCE:

Insurance can be defined as assurance for uncertainty. Its’ often about things going

right.; One of the Wonders of human nature is that we never believe anything can

actually go wrong

Insurance is a tool by which fatalities of a small number are compensated out

of funds (premium payment) collected from plenteous. Insurance is a safeguard

against uncertain events that may occur in the future.

It is an arrangement where the losses experienced by a few are extended over

several who are exposed to similar risks. It is a protection against financial loss arising

on the happening of an unexpected event. Insurance companies collect premium to

provide security for the purpose. Loss is paid out of the premium collected from

people and the insurance companies act as trustees to the amount so collected. These

companies have proposal forms which are filled to give details of insurance required.

Depending upon the answers in the proposal form insurance companies assess the risk

and decide on the premium.

They underwrite the risk in return for an insurance premium. the function of

insurance is to provide protection, prevent losses, capital formation etc. hence

insurance can be defined as a tool in which a sum of money as a premium is paid by

the insured in consideration of the insurer’s bearing the risk of paying a large sum .it

may also be defined as a contract wherein one party (insurer) agrees to pay the other

party (insured) or his beneficiary, a certain sum upon a given contingency against

which insurance is required.

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Insurance industry commands massive funds through sales of insurance

products to large number of clients. Insurers also create liabilities and commit

themselves to compensate for losses occurring to the policyholders on future date. It

also plays an important role in process of capital formation.

2. NATURE OF INSURANCE

a) Risk sharing and risk transfer: Insurance is used to share the financial losses that

might occur to an individual or his family on the happening of specified events. The

loss arising from such events are shared by all the insured in the form of premium.

Example: suppose in a village, there are 250 houses, each valued at Rs.200000.Every

year one house gets burnt, resulting into a total loss of Rs 200000.If all the 250

owners come together and contribute Rs.800 each, the common fund would be

Rs200000.This is enough to pay to the owner whose house gets burnt. Thus the risk of

one owner is spread over 250 house owners of the village.

b) Risk assessment in advance: Insurance companies are risk bearers. They assess the

risk before insuring to charge the amount of premium.

c) Its not gambling or charity: The uncertainty is changed to certainty by insuring

property and life because the insurer promises to pay a definite sum at damage or

death. Insurance is antithesis of gambling. Failure of insurance amounts to gambling

because the uncertainty of loss is always looming. Moreover insurance is not possible

without premium. So it is different from charity because charity is given without

consideration.

d) Huge number of insured people: It is essential to insure larger number of people or

property to make cost of insurance less consequently premium would also be less.

e) Assists in capital formation: Insurance provides capital to society. Accumulative

funds are invested in productive channels.

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3. SEMANTICS

1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional

decline in or disappearance of value arising from contingency.

2. Policy: It is the document which embodies the insurance contract

3. Whole life policy: It is the policy under which the amount of policy will be

paid only on death of the insured. Premiums may be payable throughout the

life or for a limited period.

4. Endowment policy: Endowment policies entitle the insured to receive the

amount of the policy on his reaching a certain age and premiums also stops. If

death occurs earlier, amount of the policy will be paid at that time and

payment of premium will also stop at that time.

5. Claim: It is the amount which an insurer has to pay against a policy.

6. Reinsurance: It refers to placing a part of the risk by an insurer with another

insurer. The object is to reduce the possible loss to be borne by the original

insurer, who pays premiums at the ordinary rates to the reinsurer. Reinsure

must pay commission to the original insurer.

7. Premium: A periodic payment made on an insurance policy.

8. Insurance penetration: It is defined as insurance premium as a share of gross

domestic product.

9. Insurance density: Insurance density is defined as per capita expenditure on

insurance premium i.e. premium per capita.

10. Actuary: The actuary is a specialist who combines an understanding of risks

and mathematical technique to develop financial products to manage these

risks, price these products. He helps in designing insurance plans and then

evaluates the financial risk of the company which it takes while selling an

insurance policy.

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4. TYPES OF INSURANCE

Insurance is broadly divided in two segments, based on the nature of insurance, those

are:

1. Life Insurance &

2. Non-Life Insurance or General Insurance. It can be again subdivided into the

following categories:

a) Fire Insurance.

b) Marine Insurance.

c) Social Insurance &

d) Miscellaneous Insurance. (Health insurance, Liability Insurance etc….)

HISTORY OF INSURANCE

For now we know the meaning of insurance, different types of insurance. Now

let us know the history and reasons for and behind different types of insurance.

The first ever type of insurance was Property Insurance. It became popular

about 3000 BC in China. It all started when Chinese merchants, as well as their

investors, wanted to ensure that they would see a profit from their goods that they

shipped overseas. In the event that a ship was lost at sea, an insuring partner would

reimburse the owners of the ship and goods. This was so because, a merchant could

not afford to pay for the lost goods or even to buy a ship unless someone invested.

Property insurance was also seen in Babylon as well. In Babylon, merchants

and investors entered into a contract, in which the supplier of money for a trade

agreed to cancel the loan if the trader was robbed of his goods. Later this contract was

extended to include provisions for a family's home and even the death of the insured,

where life insurance came into existence. Slowly this concept started to spread across

other places like Greek, Roman.

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Later the origin of credit insurance, which was included in the Code of

Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. Credit

insurance means, in ancient times the ship owners obtained loans from investors to

finance their trading expeditions. In case, if a ship was lost, the owners were not

responsible to pay back the loans to the investors. The risk to the lenders was covered

by the interest paid by numerous ship owners, since many ships returned safely.

By the middle of the 14th century, marine insurance was one of the most

popular types of insurance among nations of Europe. Things changed dramatically in

the 17th century in Europe. In 1666, the Great Fire of London bought the need for fire

insurance .The Great Fire of London burned for four days and nights. It destroyed 436

acres, 13,200 houses, 89 churches (including Saint Paul's Cathedral), the Custom

House, the Royal Exchange and dozens of other public buildings. Only six people

were victims in the flames, but hundreds died from shock and exposure.

By 1688, Edward Lloyd was running a coffeehouse in London. There

financiers who offered insurance contracts to seafarers wrote their names under the

specific amount of risk that they would accept in exchange for a certain payment,

called premium. These insurers are known as underwriters. Finally, in 1769, Lloyd's

became a formal group of underwriters that in time grew as an insurance company.

The concept of insurance developed at a fast pace with the growth of British

commerce in the 17th and 18th century. The first stock companies to engage in

insurance were chartered in England in the year 1720. In 1735, the first insurance

company in the colonies of America was founded at Charleston. Later in the year

1787, fire insurance corporations were formed in New York. Then later in the year

1759, the life insurance corporation was started in Philadelphia, America.

The New York fire which occurred in the year 1835 was the main reason to

draw attention to create reserves to meet unexpected losses. In the year 1837,

Massachusetts was the first state to require companies by law to maintain such

reserves. After 1840, life insurance entered a boom period.

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Until the 1950s, most insurance companies in the United States were restricted

to provide only one type of insurance, but then legislation was passed to permit fire

and casualty companies to underwrite several classes of insurance. Many firms have

since expanded and also were responsible for many mergers. From this brief

accounting of history we can see how insurance came into existence. Fortunately for

us we no longer have to sell ourselves into slavery if our car is stolen nor we have to

be scared of losses due to absence of reserves. Without people wanting to secure their

investments and great tragedies throughout history we may not have insurance as we

know it today resulting in peace of mind.

HISTORY OF INSURANCE INDUSTRY IN INDIA

The insurance industry in India over the past century has gone through big

changes. In India this industry reveals the 360 degree turn. 360 degree turn means that

it started in India from being an open competitive market to nationalization and back

to a liberalized market again.

Insurance industry in India started as a fully private system with no restriction

on foreign participation in the Nineteenth Century. Before independence, a few

British insurance companies dominated the Market. Life insurance was first set up in

India through a British company called the Oriental Life Insurance Company in 1818,

followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life

Insurance Society in 1829.All of these companies operated in India but did not insure

the lives of Indians. They were there insuring the lives of Europeans living in India.

Some of the companies later provide insurance for Indians. But, they were treated as

"substandard" and therefore had to pay an extra premium of 20% or more. The first

company that had policies that could be bought by Indians with "fair value" was the

Bombay Mutual Life Assurance Society starting in 1871.

The first general insurance company, Triton Insurance Company Ltd., was

established in 1850. The first general insurance company was the Indian Mercantile

Insurance Company Limited set up in Bombay in 1907.By 1938; the insurance market

in India had nearly 176 companies (both life and non-life).

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After the independence, the industry went to the other extreme. It became a

state-owned monopoly. The industry started to witness a problem like fraud. Hence

many regulations were put in place to reduce and control the problems in the industry.

After which Insurance was nationalized. In 1956, the then finance minister S. D.

Deshmukh announced nationalization of the life insurance business and then the

general insurance business was nationalized in 1972. Only in 1999 private insurance

companies have been allowed back into the business of insurance with a maximum of

26% of foreign holding.

PURPOSE & NEED OF INSURANCE

1. Assets are insured, because they are likely to be destroyed or made non-

functional before the Expected life-time through accidental occurrences .Such

possible occurrences are called Perils.

Fire, floods, breakdowns, earthquakes, lightning, etc, are called perils. Perils

are the events. Risk is the consequential losses or damages. The risk to a

owner of a building, because of the perils of an earthquake, may be few lacs

or few crores of rupees, depending on the cost of the building, the contents in

it and the extent of the damage.

2. The risk only means that there is a possibility of risk or damage. Insurance is

relevant only if there is certain Uncertainties .If there is no uncertainty about the

occurrence of the event. It cannot not be insured against. In case of human being,

death is certain, but time of death is uncertain. The person is Insured, because the

uncertainty about the time of his death. In the case of a person who is terminally ill,

the time of death is not uncertain, tough not exactly known .It would be ‘soon’. He

cannot be insured.

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3. CLASSIFICATION OF RISKS

1. Risks are classified in various ways .One classification is based on the extent

of damage likely to be caused. It would happen if the loss is total, like

tsunami wiping out everything. It can also happen if the deceased person was

in heavy debt. Important risk may not be spell doom, but may upset family or

business finance badly requiring a lot of time to recover. The adverse effect

of an economic recession is one such unimportant risk like temporary illness

or accidents.

2. Insurance is only concerned with financial risks.

3. The third classification is between Dynamic and Static risks. Dynamic risks

are caused by perils which have national consequences, like inflation,

calamities, technology, political upheavals, etc. Static risks are caused by

perils which has no consequences on national economy. Dynamic risks are

less likely to occur then static risks, but fundamental risks affect the life

insurance companies experience as many persons will be affected at the same

time, when there is an earthquake, flood or riot.

4. Fourth classification is between Pure risks and Speculative risks. The latter

one in the nature of betting or gambling where the risk is, to some extent, under the

control of the person concerned, where pure risk is not so. It is more in the nature of

act of god. Insurance deals with only with pure risks and not speculative risk

5. A human being is an income generating asset. Ones income generating ability

depends on one’s skills,(manual, professional, problem solving,

entrepreneurial, etc).These are assets, the value of assets can be measured by

considering the income that is generated by the person concerned. The

concept of human life value provides the scientific ways to determine the

asset value of human life and therefore, amount of life insurance required.

The techniques like other techniques related to selling.

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HOW INSURANCE WORKS

1. The mechanism of insurance is very simple. People who are exposed to the

same risk come together and agree that if any one of them suffers a loss, the

other will share the loss and make good to the person who lost. All people

who send goods by ships are exposed to the same risks, Which are related to

water damage, sinking of vessel, piracy, etc.Those owning factories are not

exposed to these risks, but they are exposed to different kind of risk like, fire,

hailstorms, earthquakes, lightening burglary, etc.Like this, different kinds of

risks can be identified, and separate groups made, including those exposed to

such risks. By this method, the heavy loss that any one of them in the group

may suffer (all of them may not suffer such losses at the same time) is

divided into bearable small losses by all the others in the group. In other

words the risk is spread among the community and the likely big impact on

one is reduced smaller manageable impact on all.Insurence helps to spread

the costs of risks.

2. There are certain principals which make it possible for insurance to remain a

preferred and fair aarrangement.The first is that it is difficult for any

individual to bear the protect people from the accidental risks they are

exposed to.

3. The collection to be made from each person in advance, determined on the

basis of assumptions. While it may not be possible to tell beforehand, which

person will suffer, it may be possible to tell on the basis of past experiences,

and how many persons on an average may suffer losses. The following

example will explain the above concept of insurance.

THE BUSINESS OF INSURANCE

1. The insurance companies are called insurers, the business of insurance ,is to(a)

bring together persons with common interest(sharing the same risk),(b) collect

the share or contribution(called premium)from all of them, and (c) pay out

compensation(called claims)to those who suffer from the risk. The premium is 15

determined on the same lines as indicated in the examples above, but with

further refinement.

2. In India life insurance business is classified as life and non life insurance or

general .Life insurance includes all risks related to lives of human being and

general insurance covers the rest. General insurance has three classifications

misfire(Dealing all fire related to risks),Marine(Dealing with all transport

related to risks and ships )and Miscellaneous(Dealing with all others like all

others likeliability,fidelity,motor,crop, engineering ,construction, aviation,

personal accident,etc).Personal accident and sickness

Insurance, which are related to human beings, is classified as ‘non-life’ in

India, but is classified as ‘life’, in many other countries. What is ‘non-life’ in

India is termed as ‘property and causality’ in some other countries.

GENERAL INSURANCE

General insurance business in the country was nationalized with effect from 1st

January, 1973 by the General Insurance Business (Nationalization) Act, 1972. All the

companies were amalgamated into National Insurance, New India Assurance, Oriental

Insurance, and United India Insurance which were headquartered in each of the four

metropolitan cities. Ltd. with head offices at Calcutta, Bombay, New Delhi and

Madras,respectively.

All the five entities are Government companies registered under the company act.

The general insurance business has grown in spread and volume after nationalization.

General insurance in India has been expecting growth except in some portfolios like

motor insurance, fire and engineering. These portfolios are still under tariff- this

means that premium depends on a fixed predetermined rate structure. In India, GDS

as a proportion of GDP at current prices increased from 26.1% in 2002-03 to 28.1% in

2003-04.house hold sector continued to be the major contributor to GDS at 24.3% in

2003-04.this can be attributed to soft interest rates prevailing in housing sector.

General Insurance has low market penetration. It is 1.95% and ranks 51 st. However in

collection of premium it is ranked 23rd. The ratio of the premium collected to that of

GDP is 0.58. The main reason for the general insurance industry to perform very

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poorly was because of the slow settlement of claims. Moreover the rates of claim in

India were highest in the world. It was 70 percent compared to 40 percent

internationally. This meant that out of 100 people who had insured their commodities

70 claimed for a loss or damage. The main reason for the lack of demand for general

insurance is that people consider it as an unnecessary expenditure. However it must be

noted that the general insurance has been earning consistent profits and has an

efficient dividend paying record accompanied by a steady growth in its financial

resources. Some of the private players in this sector are- ICICI – Lombard, Reliance,

Royal-Sundaram, Chholamandalam, Future Generali etc.

CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY

Some surveys have predicted that India and China will play a very vital role in

the years to come. Indian economy can be termed as an emerging economy as it is

doubling its GDP in 3 to 5 years and moreover it is not dependent on any particular

sector for its GDP. If we look at the GDP of the Indian economy very closely over the

years, we can easily come to know the changing structure of the economy. We can

also come to know the changing contribution of the various sectors like agriculture,

manufacturing and the service sector. In the financial year 1993-94, agricultural sector

contributed to 31%, manufacturing accounted to 26.3% and the service sector

contributed to 42.7% of the total GDP of the country. Thus over the years as India

became an emerging economy in 2003-04 manufacturing sector contributed for 21.7

%, manufacturing contributed for 26.8 whereas service sector contributed for 51.4%

of the total GDP.

There has been 7.5% growth in the total GDP of the country and is estimated

to grow at 8.0% in 2006-07. The Indian economy has shown signs of strong

performance despite a rise in oil prices, high inflation rate and abnormal rains in many

parts of the country. The overall growth of the Indian economy has been equally

supported by all the three sectors of the economy, i.e. the agriculture, manufacturing

and the service sector. Insurance, together with the banking sector, contributes to

17

about 7.3 % of the total GDP of India, and the gross premium collected contributes to

about 2% of the total GDP of the country

The insurance sector in India has completed a full circle from being an open

competitive market to nationalization and back to a liberalized market again. Tracing

the developments in the Indian insurance sector reveals the 360 degree turn witnessed

over a period of almost 200 years.

COMPETITORS IN THE MARKET The different private players and public

players in the insurance sector and their equity share capital are being given

18

Insurer 2012-13 2010-11

Non life insurers

Bajaj Allianz 110.23 110.13

Cholamandalam 141.96 141.96

Future Generali 150.00

HDFC Ergo 150.00 125.00

ICICI Lombard 377.36 335.71

IFFCO-TOKIO 220.00 220.00

Reliance 107.15 103.07

Royal Sundaram 170.00 140.00

Tata AIA 225.00 225.00

Universal Sompo 150.00  

Sub-Total (Private Sector)

1801.70 1400.87

National 100.00 100.00

New India 200.00 200.00

The Oriental 100.00 100.00

United India 150.00 150.00

Sub-Total (Public Sector)

550.00 550.00

Total (Non-Life)

2351.70 1950.87

Stand-alone Health insurance companies

Apollo DKV * 100.55

Star Health & Allied 108.60 105.00

Re-insurer

GIC 430.00 430.00

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Market scenario and ranking of the 19 non life players based on annual premium.

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NON-LIFE INSURANCE INDUSTRY PREMIUM DATA – INDIA OverviewRs in crores

Insurer Premium 2012-13 Y-o-Y growth (%) Market Share(%) Premium 2010-11

 for Aug

08Monthly Ranking upto Aug 08

Annual

Rankingupto Aug 08 upto Aug 08

For Aug

08upto Aug 07

New India 364.58 1 2342.82 1 6.67 16.75 344.89 2196.39

National4 301.56 4 1818.42 2 9.37 13 295.38 1666.71

United India 339.51 2 1776.6 3 12.37 12.7 292.55 1581.04

Oriental 314.56 3 1751.21 4 2.61 12.52 282.9 1706.67

ICICI Lombard 292.22 5 1653.66 5 12.97 11.83 301.75 1463.75

Bajaj Allianz General 231.08 6 1203.38 6 27.14 8.61 186.76 946.5

Reliance General 140.24 7 840.22 7 3.99 6.01 154.73 807.95

IFFCO Tokyo 89.98 9 618.19 8 34.83 4.42 61.51 458.51

Tata AIG General 69.65 10 438.11 9 21.98 3.13 61.01 359.16

Royal Sundaram64.08 11 321.95 10 20.05 23 48.16 268.19

Cholamandalam49.51 13 305.11 11 34.75 2.18 40.74 226.43

ECGC 59.01 12 283.26 12 9.73 2.03 54.52 258.15

Star Health & Allied Insurance6.65 16 231.25 13 435.16 1.65 2.91 43.21

Agricultural Insurance Co. of India 99.76 8 213.92 14 1.21 1.53 69.72 211.36

HDFC ERGO General 32.9 14 115.28 15 18.01 0.82 26.78 97.69

Future Generali 14.44 15 57.7 16 N.A. 0.41 0 0

Apollo DKV 1 1.62 17 9.98 17 N.A. 0.07 0 0

Shriram General3 1.29 18 1.53 18 N.A. 0.01 0 0

Universal Sompoo2 0.05 19 1.06 19 N.A. 0.01 0 0

Total 2,472.70   13,983.66   13.77 100 2224.31 12291.7

1. Commenced operations in November 2007

2. Commenced operations in February 2008

3. Commenced operations in July 2008

4. Clarification awaited on segment wise breakup for April-July 2008.

5. Compiled on basis of data submitted by insurance companies.

6. Courtesy: - Ambit Insurance Broking & Advisory pvt. Ltd.

Based on the data one can find that the Non Life Insurance Industry is dominated by

PSUs namely New India, United India, National & Oriental Insurance companies

ranked on the basis of premium collected till AUG-08. as 1st, 2nd ,3rd, and 4th

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respectively. In private companies ICICI Lombard, Bajaj Allianz, Reliance General,

& IFFCO TOKYO are ranked 5th,6th,7th& 8th.Future Generali a new entry in the

market ranked 16th grabbing a market share of 0.41% in the very first year. Some

surveys have predicted that India and China will play a very vital role in the years to

come. Indian economy can be termed as an emerging economy as it is doubling its

GDP in 3 to 5 years and moreover it is not dependent on any particular sector for its

GDP.

If we look at the GDP of the Indian economy very closely over the years, we can

easily come to know the changing structure of the economy. We can also come to

know the changing contribution of the various sectors like agriculture, manufacturing

and the service sector. In the financial year 1993-94, agricultural sector contributed to

31%, manufacturing accounted to 26.3% and the service sector contributed to 42.7%

of the total GDP of the country. Thus over the years as India became an emerging

economy in 2003-04 manufacturing sector contributed for 21.7 %, manufacturing

contributed for 26.8 whereas service sector contributed for 51.4% of the total

GDP.The Indian economy has shown signs of strong performance despite a rise in oil

prices, high inflation rate and abnormal rains in many parts of the country. The overall

growth of the Indian economy has been equally supported by all the three sectors of

the economy, i.e. the agriculture, manufacturing and the service sector. Insurance,

together with the banking sector, contributes to about 7.3 % of the total GDP of India,

and the gross premium collected contributes to about 2% of the total GDP of the

country

The insurance sector in India has completed a full circle from being an open

competitive market to nationalization and back to a liberalized market again. Tracing

the developments in the Indian insurance sector reveals the 360 degree turn witnessed

over a period of almost 200 years.

22

LAW AND REGULATIONS IN INSURANCE

The insurance act 1938 which come into effect from July 1939, and was amended in

1950 and later in 1999,is the principal enacted relating to the business of insurance in

India. The act contains provisions regarding licensing of agents and their

remuneration, prohibition of rebates and protection of policy holders interests. It also

has provisions placing limits on the expenses of insurers, use of funds and patterns of

investment, maintaining solvency levels, and constitution of insurance councils and

tariff advisory committee for general insurance.

IRDA (INSURANCE REGULATORY AND DEVOLOPMENT AUTHORITY)

1. This act passed in December 1999, provided for the establishment of

the IRDA to protect the interest of holders of insurance policies, to

regulate, promote and ensure orderly growth of the insurance industry

and for matters connected therewith or incidental thereto. It also sought

to amend the Insurance act, 1938, the life insurance corporation Act,

1956 and the general insurance business (Nationalization) Act, 1972.

2. The IRDA is a corporate body .It is advised by an insurance advisory

committee consisting of not more than 25 members to represent the

interests of committee

Register insurance companies and also cancel their

registrations.

Make regulations relating to the conduct of business of

insurance.

Inspect documents of insurance.

Appoint additional directors

Issue directions

Take over the management of an insurer and appoint

administrators

Adjudicate on disputes between insurers and intermediaries.

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Decide on disputes relating to the settlement of claims of

amount not exceeding Rs. 2000

The IRDA was set up to protect the interests of holders of insurance policies ,to

regulate ,promote and insure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto.

With the establishment of this act, government amended Insurance act 1938, Life

Insurance Act 1956 and General Insurance Act 1972.IRDA was formed on the

recommendations of Malhotra Committee. In 1999 government of India has set up

Malhotra Committee to examine the structure of insurance industry and recommend

changes, under R.N Malhotra –former governor of RBI.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

(1)    Subject to the provisions of this Act and any other law for the time being in

force, the Authority shall have the duty to regulate, promote and ensure orderly

growth of the insurance business and re-insurance business.

(2)    Without prejudice to the generality of the provisions contained in sub-section

(1), the powers and functions of the Authority shall include, -

    (a) issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

    (b) protection of the interests of the policy holders in matters concerning assigning

of policy, nomination by policy holders, insurable interest, settlement of insurance

claim, surrender value of policy and other terms and conditions of contracts of

insurance

   (c) specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

24

(f) Promoting and regulating professional organizations connected with the insurance

and re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries

and other organizations connected with the insurance business;

(i) control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance Act,

1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained

and statement of accounts shall be rendered by insurers and other insurance

intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes

for promoting and regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed.

25

ABOUT THE COMPANY

Future Group India

Future Group India was established in 1994 with a vision to provide diverse services

in Indian and Global markets. The business areas of Future Group cover BPO

(Business Process Outsourcing), New Media, Security Management, and

Construction. Through their strategic investment and services, the future of Future

Group shows a rising star in the business sky of India.

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of

India’s leading business houses with multiple businesses spanning across the

consumption space. While retail forms the core business activity of Future Group,

group subsidiaries are present in consumer finance, capital, insurance, leisure and

entertainment, brand development, retail real estate development, retail media and

logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million

square feet of retail space in 71 cities and towns and 65 rural locations across India.

Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people

and is listed on the Indian stock exchanges. The company follows a multi-format

retail strategy that captures almost the entire consumption basket of Indian customers.

In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and

Central, a chain of seamless malls. In the value segment, its marquee brand, Big

Bazaar is a hypermarket format that combines the look, touch and feel of Indian

bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic

expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in

Kolkata, Hyderabad and Bangalore.

The group’s speciality retail formats include, books and music chain, Depot,

sportswear retailer, Planet Sports, electronics retailer, eZone, home improvement

chain, Home Town and rural retail chain, Aadhaar, among others. It also operates

popular shopping portal, futurebazaar.com.

26

The latest business activity of Future Group is an investment of Rs. 140 crores in the

next three years in cricket-related marketing. The CEO of Future Group Mr. Kishore

Biyani has planned out association with cricket and to encash the popularity of cricket

in India and globally. Future Group has also organized one-day international cricket

series between India and Australia called "The Future Cup".

DIFFERENT VERTICLES OF FUTURE GROUP:

27

FUTURE RETAIL:

The retails businesses of Future Group in India are divided into three main categories:

Pantaloon Retail India Limited

The leading retail formats under this include:

Pantaloons Stores

Big Bazaar

Food Bazaar

Home Town

E Zone

Depot

Health & Beauty Malls

Online retail through futurebazaar.com

SECURITY MANAGEMENT

Future Group is considered as a reliable tailor-made business and security services

provider. They develop their own software and machines for security services. These

include:

Access Control Systems

Time Attendance Systems

CCTV

Alarm Management Systems

CONSTRUCTION

Future Group brings to you their past experience in quality construction for building

28

and renovating buildings for leasing to business. Future Group is also involved in the

designing, financing and legal considerations of the project undertaken. The

construction activities of Future Group in India include:

Leasing

Landscaping

FUTURE GENERALI

(74%) (26%)

• India’s leading business group * 176 Years of experience

with diversified interest in Retail, * Presence in 40 countries.

Media, Leisure & Financial services. *5th largest insurer in world

• Shopping malls like BIG BAZAAR, * Ranked 30 in Global

PENTALOON, CENTAL. Fortune 500 list (2007)

Future Generali insurance promoters have decided to invest Rs 335 crore by March

20013 in life and non-life insurance sector. Future Generali insurance is a joint

venture between Future Group and Italian insurance major Generali and has started

commercial operations from March 2008.

29

The company officials stated in a press conference, that in the life insurance business,

the company will infuse Rs 265 crore, while Rs 70 crore in the non-life insurance. The

company has set the business target of Rs 300 crore for life business and Rs 200 crore

for non life, for the current year.

In addition, the company aims to achieve combined premium income of around Rs

1,000 crore by 2013.Recently the company has introduced a new concept of Insurance

in the market with the name of ''mall assurance'', which will sell life as well as non-

life insurance products in malls and stores of its own group.

The company is eyeing at 8-10 per cent of total premium income from mall assurance

this year, which it aims to increase to 25-30 per cent in future.

30

Different Products offered by Future Generali

(a) Motor

A Comprehensive Motor Insurance Cover in addition to the mandatory third-party

cover also protects the car owner from financial losses, caused by loss or damage or

theft of the vehicle.

Third party legal liability: protects you against any legal liability arising out of the use

of your vehicle, towards third parties resulting in

Any bodily injury/ death of a person Any damage caused to the property

Loss or damage to your vehicle: The policy covers you against any loss or damage

caused to the vehicle or its accessories due to the following natural and man made

calamities.

Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,

typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,

rockslide. Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake,

flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost,

landslide, rockslide.

Man made Calamities – Burglary, theft, riot, strike, malicious act, accident by external

means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift,

elevator or air.

Sum insured

The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV).

IDV is calculated on the basis of the manufacturer’s listed selling price of the vehicle

(plus the listed price of any accessories) after deducting the depreciation for every

year as per the following rates.

Age of the vehicle % of Depreciation

31

Not exceeding 6 months 5%

Exceeding 6 months but not exceeding 1 year 15%

Exceeding 1 year but not exceeding 2 years 20%

Exceeding 2 years but not exceeding 3 years 30%

Exceeding 3 years but not exceeding 4 years 40%

Exceeding 4 years but not exceeding 5 years 50%

If the price of any electrical and / or electronic item installed in the vehicle is not

included in the manufacturer’s listed selling price, then the actual value (after

depreciation) of this item can be added to the sum insured over and above the IDV.

(b) Fire

Standard Fire and Special Perils Policy

Scope of Cover

The Insurance Policy broadly covers losses due to fire, lightning, explosion and

implosion, aircraft damage, riot, strike, malicious damage and terrorism, storm,

tempest, flood and inundation, impact damage, subsidence and landslide/rockslide,

bursting and/or overflowing of water tanks, apparatus and pipes, missile testing,

leakage from automatic sprinkler installations and bush fire.

Main Exclusions

The Insurance Policy does not cover the first Rs.10, 000 (or as applicable) of each and

every claim. Losses arising out of war and allied perils, theft, willful act or gross

32

negligence, loss of earnings, loss to bullion, documents, currency etc. for an amount

exceeding Rs. 10,000, unless expressly stated.

Sum Insured

Property can be insured on depreciated cost (market value) or replacement cost basis.

In order to get full protection, insurance on reinstatement (replacement) basis is

recommended.

Premium

Premium rate depends on various factors such as construction of building, occupancy,

protection, claim ratio, etc

Excess

5 % of every claim (subject to minimum of Rs.10, 000) resulting from Lightning,

Storm, Tempest, Flood and Inundation, Subsidence and Landslide.

For other perils – Rs.10, 000/-

Main Extensions

Earthquake (Fire & Shock)

Spontaneous Combustion

Deterioration of stocks in cold storage

Impact Damage due to own vehicles

Omission to insure additions

Architect, Surveyors & Consulting engineer’s fees in excess of 3 % of claim

amount

Debris removal in excess of 1 % of claim amount.

33

(c) Accident & Health

Group Health Policy

Accident Suraksha

Health Suraksha

Group Personal Accident Policy

Health Suraksha Family

Accident Suraksha

Accidents can happen to anyone anywhere. They come unasked for and leave an

"imprint" on lives for years to come. The Value of Human Life and Sufferings cannot

be measured with money, but with a view to provide some relief to the injured person

or members of his family in the event of an unfortunate accident, we have designed an

insurance cover, known as "Personal Accident Insurance".

Scope of Cover

The plan covers the risks of

Accidental Death

Permanent Total Disablement

Permanent Partial Disability

Temporary Total Disablement

Premium

Based on age, occupation (class), sum insured & benefits opted. Premium (Rs)

inclusive of 12.36% service tax.

Age Group- for Self & Spouse -21 yr. to 70 yr.

Children – 1yr to 21 yr.

Health Suraksha Individual Plan

34

Presenting 'Health Suraksha', a comprehensive Health Insurance Plan that goes the

extra mile to make your life convenient. Designed to meet the needs for today's health

problems, it allows you to live worry free. And enjoy the reliability of 'Health

Suraksha' as you live your life to the fullest.

Scope of Cover

The plan covers following benefits:

Pre and Post hospitalization expenses incurred 60 days prior to and 90 days

after hospitalization

Ambulance charges

Day care procedures

Hospital cash

Pre-existing disease covered after the 4th year

Free medical check-up after 4th year

Patient Care Expenses

Accompanying Person Expenses

Additional Accidental Hospitalization Limit

Advantages

Cashless Hospitalization facility

Large Hospital Network of more than 4000 Hospitals across India

Innovative covers offered

Fast & Efficient Settlement of claims

Renewal Discounts

Plan Details

Plans Zone wise Classification

35

BASIC Zone C (other cities) excluding Zone A & Zone B

SILVER Zone B (Chennai, Kolkata, Ahmedabad, Hyderabad &

Bangalore)

GOLD Zone A (Mumbai & Delhi)

PLATINUM Across India (Zone A + Zone B + Zone C)

Basic Plan is for insured who has paid the premium for Zone C region which

comprises rest of India excluding Zone A and Zone B. In case treatment is taken in

Zone A or Zone B the payment will be as per our claim payment Annexure.

Silver Plan is for insured who has paid the premium for Zone B region which

comprises Chennai, Kolkata, Bangalore & Hyderabad. In case treatment is taken in

Zone A or Zone C the payment will be as per our claim payment Annexure.

Gold Plan is for insured who has paid the premium for Zone A region which

comprises Mumbai including Thane, Panvel, Delhi including NCR (National Capital

Region). Platinum Plan covers Basic covers with no restrictions and also additional

benefit. This cover is available for sum insured of 6 lacs and above.

Claim Payment Annexure

Benefit Plan Zone A Zone B Zone C

Platinum Plan 100%* 100%* 100%*

Gold Plan 100%* 100%* 100%*

Silver Plan 80%* 100%* 100%*

36

Basic Plan 70%* 80%* 100%*

* The percentage of claim amount shown in the above table is with respect to the

eligible claim amount.

Sum Insured1- 5 Lacs for Basic, Silver & Gold Plan. SI 6 – 10 lacs for Platinum plan.

Premium Based on age, sum insured & Plan opted.

Age Eligibility5 years to 70 years Children entry only after 90 days and would be

eligible if the parents are concurrently insured with Future Generali.

(d) Travel

Travel Suraksha

Overseas Travel

Travel Asia

Presenting 'Travel Suraksha' from Future Generali. It protects you, when unseen

events occur during your overseas travel. Whether it is medical emergencies, or loss

of passport or baggage, Travel Suraksha shields you so that you enjoy your overseas

travels with complete peace of mind.

37

Various Distribution channels

I. INSURANCE AGENT

Every insurance agent shall,---

Identify himself and the insurance company of whom he is an insurance agent;

disclose his license to the prospect on demand;

disseminate the requisite information in respect of insurance products offered for sale

by his insurer and take into account the needs of the prospect while recommending a

specific insurance plan;

disclose the scales of commission in respect of the insurance product offered for sale,

if asked by the prospect;

indicate the premium to be charged by the insurer for the insurance product offered

for sale;

explain to the prospect the nature of information required in the proposal form by the

insurer, and also the importance of disclosure of material information in the purchase

of an insurance contract;

bring to the notice of the insurer any adverse habits or income inconsistency of the

prospect, in the form of a report (called “Insurance Agent’s Confidential Report”)

along with every proposal submitted to the insurer, and any material fact that may

adversely affect the underwriting decision of the insurer as regards acceptance of the

proposal, by making all reasonable enquiries about the prospect;

inform promptly the prospect about the acceptance or rejection of the proposal by the

insurer;

obtain the requisite documents at the time of filing the proposal form with the insurer;

and other documents subsequently asked for by the insurer for completion of the

proposal;

render necessary assistance to the policyholders or claimants or beneficiaries in

complying with the requirements for settlement of claims by the insurer;

38

advise every individual policyholder to effect nomination or assignment or change of

address or exercise of options, as the case may be, and offer necessary assistance in

this behalf, wherever necessary.

II. CORPORATE AGENT

Every Licensed Corporate Agent shall abide by the code of conduct specified below: Every corporate agent shall:

a) be responsible for all acts of omission and commission of its corporate insurance executive and every specified person;

b) ensure that the corporate insurance executive and all specified persons are properly trained, skilled and knowledgeable in the insurance products they market;

c) ensure that the corporate insurance executive and the specified person do not make to the prospect any misrepresentation on policy benefits and returns available under the policy;

d) ensure that no prospect is forced to buy an insurance product;

e) give adequate pre-sales and post-sales advice to the insured in respect of the insurance product;

f) extend all possible help and cooperation to an insured in completion of all formalities and documentation in the event of a claim;

g) give due publicity to the fact that the corporate agent does not underwrite the risk or act as an insurer;

h) Enter into service level agreements with the insurer in which the duties and responsibilities of both are defined.

III. INSURANCE BROKER

Every Insurance Broker shall follow recognized standards of professional conduct and

discharge his functions in the interest of the policyholders.

Conduct in matters relating to clients’ relationship— Every insurance broker shall:

conduct its dealings with clients with utmost good faith and integrity at all times;

act with care and diligence;

39

ensure that the client understands his relationship with the broker and on whose behalf

the broker is acting;

treat all information supplied by the prospective clients as completely confidential to

themselves and to the insurer(s) to which the business is being offered;

take appropriate steps to maintain the security of confidential documents in their

possession;

hold specific authority of client to develop terms;

understand the type of client it is dealing with and the extent of the client’s awareness

of risk and insurance;

obtain written mandate from client to represent the client to the insurer and

communicate the grant of a cover to the client after effecting insurance;

obtain written mandate from client to represent the client to the insurer/ reinsurer; and

confirm cover to the insurer after effecting re-insurance, and submit relevant

reinsurance acceptance and placement slips;

avoid conflict of interest.

Conduct in matters relating to Sales practices— every insurance Broker shall: —

(a) confirm that it is a member of the Insurance Brokers Association of India or such a

body of brokers as approved by the Authority which has a memorandum of

understanding with the Authority;

(b) confirm that he does not employ agents or canvassers to bring in business;

(c) identify itself and explain as soon as possible the degree of choice in the products

that are on offer;

(d) ensure that the client understands the type of service it can offer;

(e) ensure that the policy proposed is suitable to the needs of the prospective client;

(f) give advice only on those matters in which it is knowledgeable and seek or

recommend other specialist for advice when necessary;

40

(g) not make inaccurate or unfair criticisms of any insurer or any member of the

Insurance Brokers Association of India or member of such body of brokers as

approved by the Authority;

(h) Explain why a policy or policies are proposed and provide comparisons in terms

of price cover or service where there is a choice of products;

(i) State the period of cover for which the quotation remains valid if the proposed

cover is not affected immediately;

(j) explain when and how the premium is payable and how such premium is to be

collected, where another party is financing all or part of the premium, full details shall

be given to the client including any obligations that the client may owe to that party;

and

(k) Explain the procedures to follow in the event of a loss.

CLAIMS INCIDENCE AND SETTLEMENT PROCESS

An insured event can arise at any time within the risk period under the contract of insurance.

The following sequence of actions is involved in the processing of the resulting claim to settlement:

(i) Insured event occurs;

(ii) The insured or the third party claimant decides whether to make a claim under the insurance contract;

(iii) A claim is notified to the insurer; such notification may be immediate or may be delayed; the notification may come from the insured or in case of a third party liability claim, it may come from the third party claimant or his lawyer or through process of court where the claimant files his claim;

(iv) The insurer verifies the insurance particulars, registers the claim and makes an initial provision for it based on information available and past experience;

(v) The insurer arranges for survey and assessment of the loss or investigation related to the claim;

41

(vi) Based on the survey findings, the insurer reviews the provision for the claim and processes the claim for settlement. This may take the form of cash payment or authorization for repairs or replacement or authorization for medical treatment etc.;

(vii) Where the liability for the loss is questioned, the insurer may decline the claim or offer a compromise settlement;

(viii) The insured may accept the offer or negotiate further or take the matter to court;

(ix) Provision for all outstanding claims are expected to be reviewed periodically by the insurer’s staff;

(x) Eventually, the liability and the amount payable are crystallized and the settlement takes place;

(xi) In case of property claims, the insurer may take over the damaged property as salvage or may make an agreed deduction for the salvage value and leave the damaged property with the insured;

(xii) In case of some claims there may be the possibility of making a recovery

for the loss from other parties responsible for the loss; in such cases, the

insurer may pursue such recovery under right of subrogation;

(xiii) As soon as the survey report or investigation report is received, the insurer pays

the related fees. Where the claim is pursued in court by the claimant, the insurer bears

the legal fees of defending the action; likewise, where the insurer pursues recovery of

claim through court or through recovery agents, it incurs costs on such action that are

also paid as claims cost.

Customer Attitudes

In my research I have tried to find out what the customer attitude towards the product of Future Generali. The study has been carried out in Bikaner. It has been carried out with the purpose to study the customer attitude towards Future Generali .In my study I have used parameter like tax benefit, return, saving, future uncertainty, and other benefit provided by the company.

42

An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item. Attitudes are generally positive or negative views of a person, place, thing, or event—this is often referred to as the attitude object. Customer attitude plays an important role while purchasing the product. It helps to purchasing the product. When customer have positive attitude he purchase the product and if he has negative attitude he not purchase the product.

HEALTH INSURANCE-

The health insurance sector offers more or less similar options to the customers. The

offerings mainly covers hospitalization, day care hospitalization, pre & post

hospitalization, pre existing illness, expenses on accompanying person at hospital,

local road ambulance services health checkups costs, tax benefits etc.

The market leader in private sector Bajaj Allianz grabs the major chunk on behalf of

its broad access over 2400 hospital network all over India for cashless facility. It is the

first company to provide the higher coverage of SI 10 lacs. The offerings at National

insurance are not as exciting as its private counterparts, but match them in the basic

Hospitalization cover i.e. pre & post hospitalization, outpatient expenses etc. The

national insurance company targets the different segments of people with different set

of policies e.g. it have BOI National Swasthya (mediclaim policy) for Bank Of India

account holders covering ac. Holders, spouse & 2 children. National insurance

company offers Varishtha mediclaim for senior citizens, UCO Medicare Bima

policy, Mediclaim policy,BOI National swasthya policy, Mediclaim insurance,

Baroda health policy, Critical illness insurance, Vidyarthi –mediclaim for students,

Parivar –mediclaim for family, Star national Swasthya Bima policy under Health

insurance. The novice Future Generali has a extensive range of offerings with a

Innovative Covers .It must focus on them to find possibilities .It has a clear edge over

ICICI Lombard in terms of offerings.

COVERAGE Bajaj Allianz ICICI Future Generali National

43

Lombard Insurance company

Sum Insured Limited to max. 10 lacs

Limited to max.3 lacs

Si up to 5 lacs up to 45 years & 3lacs for 46-55 years

5 to 25 Lakh

Pre Hospitalization Up to max of 60 days

Up to max of 30 days

Up to max of 60 days

Up to max of 30 days

Post Hospitalization 90 days 60 days 90 days 60 days

Pre existing Covered after continuous 4 year renewal

Covered after 5 year

Covered after 4 year

Covered after 5 year

Expenses on accompanying person at hospital

NO NO YES NO

Local road ambulance services

Limit of 1000/- NO YES NO

Cost of health checkups

Limited to max of 1000/-

No Free Yes

Family floater No Yes Yes Yes

Insurance tax benefit Yes Yes Yes Yes

Nursing allowance NO NO YES NO

Age slabs Restricted to 55 yrs.

Restricted to max of 60 yrs.& on renewable up to 70 yrs

5 to 70 yrs 3 months to 65 years

Yes Yes Yes yes

Cashless facilityRenewal discount 5% for each

cashless year ,10% for family floater

5% for each claimless year up to 50%

yes

44

Are you availing any of the below mentioned products? _HEALTH

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?_FUTURE GENERALI

YES 22 27 49

NO

72 29 101

Total 94 56 150

45

YES NO

From which company you have taken up the insurance/s of the above mention product/s ?

_FUTURE GENERALI

0

20

40

60

80

Co

un

t

Are you availing any

of the below

mentioned

products?

_HEALTH

INSURANCE

YES

NO

Bar Chart

Are you availing any of the below mentioned products? _HEALTH

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?_ICICI

YES 77 44 121

NO

17 12 29

Total 94 56 150

46

YES NO

From which company you have taken up the insurance/s of the above mention product/s ?

_ICICI

0

20

40

60

80

Co

un

t

Are you availing any

of the below

mentioned

products?

_HEALTH

INSURANCE

YES

NO

Bar Chart

From the above cross tabulation graphs, the analysis that can be drawn is that how many people is availing health insurance from

the sample size. Also it defines the share of three major insurance companies in health

Are you availing any of the below mentioned products? _HEALTH

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?_BAJAJ ALLIANZ

YES 80 29 109

NO

14 27 41

Total 94 56 150

47

insurance. From this we can interpret the market penetration rate of these companies and customer awareness.

MOTOR INSURANCE-

In motor insurance earlier Government companies were good at two and four

wheeler insurance as they accept all including third party, where private sector were

very choosy. But now the private sector is also including the third party liability. Till

September 2006 public sector covers 68% while private sector have 32% share.

Bajaj Allianz is the best company in terms of services. National insurance is doing the

business on basis of services & reliability. Policy covers at ICICI are very

good .Future Generali offers policy only for 4-wheelers ,where it is pushed back as

compared to its compititors.Otherwise the offerings in motor insurance by all

companies are very similar. Future Generali can also stretch the motor policy cover to

personal accident also.

Bajaj Allianz ICICI Lombard Future Generali

National Insurance Co.

Offerings Two wheelers and four wheelers policies

Two wheelers and four wheelers policies

Four wheelers policy only

Two wheelers and four wheelers policies

Policy Covers Vehicle damage and Third party liability (mandatory)

Vehicle damage & third party liability (mandatory), plus compulsory personal accident cover of 2 lakh for individual owner/driver

Vehicle damage and Third party liability (mandatory)

Vehicle damage and Third party liability (mandatory), up to 6000/=. Full coverage of TPL on payment of additional premium

Cashless Claims

At over 1500 preferred workshops

At over 2700 preferred workshops

Only on access to Future Generali workshops, insured has to bear only the depreciation

No mention of cashless availability

48

Period of the policy

Annual Policy Annual Policy Annual Policy Annual Policy as well as long term policy for two wheelers as long as vehicle is fit as per RTA

Additional Benefits

Towing facility, 24/7 online assistance

Towing facility up to Rs 1500, online renew of policy possible

Towing assistance, Toll free customer care no., automated renewal reminder service

NA

Discounts No claim discounts, transfer of NCB from any existing insurance provider up to 20 – 50 %, discounts on installation of anti-theft devices & memberships with approved automobile association

NCB, 2.5% discount on any anti-theft device, 5% discount on membership of automobile association of India, additional cover option for electrical/ non-electrical items installed, voluntary excess discount

NCB up to 50% in case of 6 claim free continuous years, 2.5% discount on any anti-theft device, discount on membership of automobile association of India, voluntary excess discount

NA

Are you availing any of the below mentioned products? _MOTOR

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?_FUTURE GENERALI

YES 37 12 49

NO

78 23 101

49

Total 115 35 150

YES NO

From which company you have taken up the insurance/s of the above mention product/s ?

_FUTURE GENERALI

0

20

40

60

80

Co

un

t

Are you availing any

of the below

mentioned

products? _MOTOR

INSURANCE

YES

NO

Bar Chart

Count

Are you availing any of the below mentioned products? _MOTOR

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?

YES 90 31 121

NO 25 4 29

50

_ICICI

Total 115 35 150

YES NO

From which company you have taken up the insurance/s of the above mention product/s

?_ICICI

0

20

40

60

80

100

Co

un

t

Are you availing any

of the below

mentioned

products? _MOTOR

INSURANCE

YES

NO

Bar Chart

Count

Are you availing any of the below mentioned products? _MOTOR

INSURANCE

TotalYES NO

From which company you have taken up the insurance/s of the above mention product/s ?_BAJAJ ALLIANZ

YES 82 27 109

NO

33 8 41

Total 115 35 150

51

YES NO

From which company you have taken up the insurance/s of the above mention product/s

?_BAJAJ ALLIANZ

0

20

40

60

80

100

Co

un

t

Are you availing any

of the below

mentioned

products? _MOTOR

INSURANCE

YES

NO

Bar Chart

Similar interpretation can be drawn from the above cross tabulation data, that how many people are availing motor insurance from the sample size and the share of each company.

Travel insurance-

In travel insurance Bajaj Allianz is offering many diversified policies tapping

different types of clients. It is offering Travel companion, Student companion, Pravasi

Bhartiya Bima yojna, Travel Asia, Travel Elite, wades Yatra.ICICI LOMBARD is

offering 4 products Platinum plan, Gold plan, Annual multi trip plan,& senior citizen

plan. Future generali have 4 types of plans – standard, silver, gold & platinum under

52

single trip and annual multi trip plan. Basic covers are almost similar covers, medical

expenses, delay or loss in baggage etc. National insurance company is not offering

travel insurance as a whole but have baggage policy & overseas travel policy .

National insurance company have different plans under overseas mediclaim namely-

Plan A-1,A-2,Plan B-1,B-2,plan C , plan D,Plan E-1,E-2. Besides the additional, add-

on benefits are available under Business & Holiday trips. Bajaj Allianz comes out

with innovative offers for different segments of people and is the only one with Senior

citizen plan. The plan is for senior citizens between 71 to 85 years. One can avail

Senior Citizen Plan instantly with no medical check up with a claim benefit of

$15,000 per illness or injury. Future generali matches very well with the offerings but

like Bajaj Allianz it can also plan some innovative offers for senior citizen, students,

and businessmen doing multitrips.

COVERAGE BAJAJ ALLIANZ

ICICI LOMBARD

FUTURE GENRALI

Medical Cover US $15000-25000

US$ 50,000 to 250,000

US$ 50,000 TO 100000

Cashless hospitalization YES YES YES

Daily allowance for hospital na US $ 25( for 5 days)

US $ 25( max for 5 days)

Passport loss US $ 100 US $ 200 US $ 200-250

Checked baggage loss US $ 200 US $ 500 US $ 250 – 1000

Checked baggage delay US $ 100 US $ 100 US $ 50- 200

Personal accident Us $ 50000-10000

US $ 15000 US $ 5000-20000

Personal liability US $ 100000 US $ 100000 US $ 100000-200000

Hijack allowances US $ 200 US $125 US$ 50-150

Financial emergency assistance

Na US $300 US$200-500

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Trip Cancellation & Interruption

Na US $500 US$ 500

Missed connection Na US $500 US $500

Trip delay Na US $500 US $500

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Product Awareness-

The survey suggested that customers are most aware of motor & health insurance

policies. The motor insurance policy is most known among customers as because of

government regulations .Health is another most known as lifestyle nowadays is very

hectic & people are more engaged with health issues. Marine, travel & fire are least

known among the customers.

Which general insurance companies are you aware of ?

Future Generali Bajaj Allianz Bharati AXA

TATA- AIG ICICI LOMBARD others (specify)

All of the above None of the above

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Consumer Awareness

When asked about the company awareness among the customers it appears that

ICICI & Bajaj Allianz are most known among the customers ,followed by Tata

Aig.The common fact which comes out when the most known companies are seen

that they are already big names in other sectors, e.g., Bajaj , ICICI and Tata group of

industries. The Future Group although a big name in retail sector, but a very novice in

insurance industry .So consumer awareness of Future Generali is very low.

Are you availing any of the below mentioned products?

Health Insurance Fire Insurance Travel Insurance

Motor Insurance Marine Insurance Home insurance

All of the above None of the above

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Products Availed by Consumer

Due to Govt. regulations and mandate for motor insurance, it is the most availed insurance

product among the consumers. It is then followed by health insurance. But other insurance

products like fire, marine and travel insurance are not very popular among the people. The

reason behind is that they target a very small segment of customers, e.g., shipping firms,

SMEs, etc.

From which company you have taken up the insurance/s of the above mention product/s?

Future Generali Bajaj Allianz Bharati AXA

Tata AIG Reliance others (specify)

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COMPETITORS IN THE MARKET

When people were asked for the insurance service providers for the insurance policies

availed by them, it was found that Bajaj Allianz is the market leaders in this industry,

followed by Reliance. The reason being is more customer awareness about these co.s .

Future Generali is a new entry and grabs a motivating two percent market share in the

very first two years.

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0-2 LAKH

2-4 LAKH

4-6 LAKH

6 & ABOVE

S1

0

10

20

30

40

50

60

70

AMOUNTCUSTOMERS

SUM INSURED PREFERRED BY CUSTOMERS

4-6 lakhs sum insured amount is the most preferred by the customers at that time of

purchase. The medium ranged sum insured amount are the most preferred ones

because the sample selected for survey includes middle salaried people and executives

and people generally don’t go for big investments in general insurance.

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What made you to choose this particular insurance company?

Short procedure Timely coverage of claims

After Sales Goodwill and reputation of company

Others (specify )

Why Customers prefer LIC more than private insurance companies?

It's a Government 55%

Better Return 45%

If Future Generali Gives Better assurance will you switch over?

Yes 32%

Will Think 45%

No 23%

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ATTRIBUTES PREFFERED BY CUSTOMERS

Claim coverage and premium rates are the most motivating factors while selecting the

insurance policies .People seems to be least interested in after sales as it was found

out in this study. The customers are more awarded of cost & claim coverages of

policies.

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Limitations of the project

There was difficulties/obstacle faced during the initial part of the project, which were

however overcome successfully. To list:-

Due to lack of time and resources the scope of the project is limited only to

Bikaner.At the time of telecalling and survey, it was difficult to break the

ice with the common people initially. It was a daunting task to convince

them to fill in the personal details of the questionnaire where they have to

mention the monthly income, occupation.

The competitor analysis in the manual could only be compiled for a rough

idea to the nature of the product. The product features and premium slabs,

discounts keep on changing on a daily basis.

Compilation of data on competitor analysis was difficult due to non-

availability of correct information.

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RESEARCH METHODOLOGY

1. Objective Of The Study: The main purpose of the present study is to accomplish the following objectives.

Proper understanding and analysis of general insurance industry.

To know about the sales and distribution channel.

To activate and motivate the advisors for business and add to the

revenues of Future Generali.

According the market survey came to know about the customer

awareness and preferences in the insurance policy purchased.

And based on analysis of the result thus obtained make a report on that

research.

Training aims at facilitating the management in Churning up the

distribution base and activating as much advisors as possible.

Along with it I will be gaining the thorough knowledge of general

insurance sector. This will give me in more confidence in marketing

products given to me.

As Future group is itself a big name in retail sector, so it was a great

chance for me to get a closer look on how different new products were

launched and advertised in the market.

Methodology of study:

Company basically means business and in business, collection of raw data allows the

managers to see the real picture and then take a decision as per the data obtained. The

Churning exercise is very important as advisors base are very important part of the

distribution channel as people prefer to buy policies from a person whom they know

& the one who can advice them in financial investments. The lack of activity of these

advisors cost in loss of large revenues. In the Churn management exercise there are

several implications in this statement:

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The Company gets a clear picture of the active advisors out of the total data

base.

They can diagnose the problem for non working advisors e.g. Foot loss, low

level of confidence, lack of knowledge etc.

They can examine the available information in the form of data to make a

decision.

This will help the organization in making necessary decision.

The information can only be gathered by data collection and then analyzing the

available data

Procedure:

1) Procedure followed for the Customer awareness survey-

It plays an important part as it gives a clear perception of people about the product,

their expectations & preferences while buying a policy.

Step: 1 Research objective of the study- Customer awareness about general

Insurance sector with special reference to Future Generali.

Step: 2 Research design - Descriptive research

Step: 3 Data source -Primary and Secondary data

Step: 4 Data collection method -Interview and survey

Step: 5 Data collection tools -Questionnaires

Step: 6 sampling universe -New Delhi (south region)

Step: 7 Sample size -100

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SAMPLE DESIGN-

The target population of the study consists of various respondents of various places.

This survey was done by collecting the data from the respondents.

SAMPLE SIZE-

After due consultation with the Industrial guide & also keeping in mind the

requirements of the survey for the research, the sample size that was found to be

appropriate for the study was 150.

SAMPLING TECHNIQUE-

The sampling technique that adapted to conduct the survey was ‘Convenient Random

Sampling’ and the area of the research was concentrated in the city of Erode only. The

survey was conducted by visiting different places like markets, restaurants, financial

institutional areas, respondent’s home etc...

DATA SOURCE-

The task of data collection begins after a research problem has been defined. In this

study data was collected through both primary and secondary data source.

A. PRIMARY DATA

A primary data is a data, which is collected for gathering information first time

and to analyze the problem. In this study the primary data was collected among the

consumers using questionnaire.

B. SECONDARY DATA

Secondary data consist of information that already exits somewhere, having

been collected for some other purpose. In this study secondary data was collected

from company websites, magazines and brochures.

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A thorough study had to be done on the competitors’ moves , the customers’

preference in the insurance sector and what is lacking. Company owned products have

very less market share as compared to the other players in the market and the

shortcomings had to be found out.

For attainment of my objective the following activities were performed:

1. During the initial days of my training, took a brief from the industry guide

2. Attended three days training session with the national training head, which helped

in gauging the problems faced by the agents

3. Went to the operations dept. to understand the underwriting process and the legal

procedure of issuing policies

4. Called upon the agents, tried to motivate the existing agents and to convince the

agents working for other companies to work for Future Generali

5. Further to aid them a product comparison of major general insurance players

including three private and one public company was done. A primary research was

conducted (with the help of questionnaire survey) about consumer awareness of

general insurance in the various places within Delhi which includes urban areas like

South Ext., GK 2, Cannaught Place, Nehru Place and sub – urban areas like Dwarka,

Janakpuri, etc. The target consumers were of various Age–group, sex, monthly

income, investment time frame and occupation. The total field work was done for 10

days in which a total sample size of 150 consumers was covered.

The questions covered a wide range of issues including:

1. Know about the company awareness amongst the different sections of the

society.

2. Identify the types of Insurance cover taken by a consumers and whether he or she is

happy with the services.

3. Identify the main purpose and the main concerns while investment by a customer.

4. Determine the customer investment trend and their preference amongst various

options available to them including Motor, Health, Accidental, House, Travel, etc.

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5. Factors affecting the decision making while taking the insurance policy for example

low premium, large risk cover, pre and post paid services, after sales services,

discounts offered etc.

6. Identifying the company from which a consumer takes Insurance policy and

whether he or she is happy with the services.

7. Determine the characteristics of the various Insurance features that are

important.

8. Seek demographic information of the respondents.

9. Analyze the demographic information of the respondents with respect to the

Insurance prospects.

For the purpose of this research, it was absolutely imperative to find out what the

consumers want from their Policy provider.

It was also necessary to find out the consumer’s profile, i.e. his age, monthly income,

occupation, investment time frame and sex and also the current policy taken. This

required us to get a detailed questionnaire filled by the concerned person.

For competitor analysis further help was taken from bank websites and journals. A

detailed area wise analysis was also carried out to find out which Insurance Company

is most prevalent in a particular area.

The analysis of consumer survey lead to the findings that although most people from

our sample population were aware about General Insurance sector and had invested

in it yet a significant number almost 75% were still unaware, hence a lot of brand

awareness needs to be created among the working class. In the list of private players,

ICICI Lombard ranked first in gathering the maximum number of customers. Among

the non private i.e. the government players, New India Insurance company ranked 1.

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Regarding the buying behavior of customers, it was seen that much importance was

given to claim coverage, after sales services & brand name as one of the major

reasons for purchase.

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Recommendations The private players like Future Generali should try to establish Brand

awareness and credibility among the customers so as to divert their interest

from the clean sweep made by its competitors like ICICI, BAJAZ ALLIANZ

as well as the public players like New India Insurance, National Insurance etc.

The insurance companies must ensure regular presence and frequent meetings

with its advisors; otherwise it may lead to non activity of them & leads to loss

of sales revenues.

Adequate advertisement via appropriate media should be done by the various

companies as is done by Bajaj Allianz in case of both life & Non life. Another

way of advertisement for Future Generali could be through its other verticals

e.g. Pantaloon, BIG BAZAAR .They could easily promotes the insurance

products offered by Future Generali to its own customers who have their

accounts etc with them.

Certain discount charges should be made available because of the severe

competition within the private players as well as the biggest threat posed by

the public sector companies.

Most of the customers as per our sample are inclined towards Bajaj Allianz &

ICICI Lombard because of the fast claim settlements, low premium and easy

accessibility. So other competitors really need to make a new brand awareness

policy.

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Bibliography

BOOKS:

1. IC-34 LIFE INSURANCE BY INSURANCE INSTITUTE OF INDIA

2. “Kotler Philip (2004), Marketing Management”

Websites:

1. www.futuregenerali.com

2. www.google.com

3. www.icicilombard.com

4. www.bajajallianz.com

5. www.nationalinsurance.com

NEWS PAPERS:

The Times of India

Hindustan Times

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ANNEXURE

SAMPLE OF QUESTIONNAIRE FOR MARKETING SURVEY

NAME:

AGE :

OCCUPATION:

Family Detail (Who are there in your family) -------------------------------------------------

Address-------------------

Contact No------------------------------

Q1 What do you understand by GENERAL INSURANCE?

…………………………………………………………………………………………………………..

Q2 Which general insurance companies are you aware of ?

Future Generali Bajaj Allianz Bharati AXA

TATA- AIG ICICI LOMBARD Others (specify) _________________

All of the above None of the above

Q3 Mark the particulars products you are aware of:

Health Insurance Fire Insurance Travel Insurance

Motor Insurance Marine Insurance Home Insurance

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All of the above None of the above

Q4 Are you availing any of the below mentioned products?

Health Insurance Fire Insurance Travel Insurance

Motor Insurance Marine Insurance Home insurance

All of the above None of the above

Q5 From which company you have taken up the insurance/s of the above mention product/s?

Future Generali Bajaj Allianz Bharati AXA

Tata AIG Reliance Others (specify)

Q6 What made you to choose this particular insurance company?

Short procedure Timely coverage of claims

After Sales Goodwill and reputation of company

Others (specify) ______________________________________

Q7 Rank the attributes you look upon while choosing insurer: (rank between 1 – 5)

Claim coverage Premium Rates

Discounts and benefits Company Name

After sales

Q 8 Health is very uncertain, don’t you feel your health should be insured. Y\N

……………………………………………………………………………

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Q 9 What are the diseases you feel should be covered.

…………………………………………………………………………….

…………………………………………………………………………….

Q 10Coverage of what amount you feel you require for you and your family

…………………………….

Q11 Every one insures is vehicles but there are very few who care for his other assets like house/shop/office

Are you among those Y/N.?

Q 12 If yes which asset you like to insure first -----------------------------

Detail of asset.--------------------------------------

--------------------------------------

-------------------------------------

SIGNATURE:

74