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  • 1. 1 INTRODUCTION Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated Principles of Insurance Utmost Good Faith • The proposer has a legal duty to disclose all material information (i.e.; the information which affects the underwriting decision of insurer) to the insurers who do not have this information. • In case of non-disclosure or mis-representation with fraudulent intention, the contract becomes void. • If the duty is broken in any other way, the contract becomes voidable. Insurable Interest • The proposer must have a interest in the continuance of the subject matter insured and could suffer a loss, if the risk occurs.
  • 2. 2 • When Insurable Interest should be present? • Life Insurance – At the time of inception • General Insurance - At the time of inception and claim • Marine Cargo - At the time of claim Indemnity • This principle works on the mechanism that “You cannot make profit from the insurance.” • Insurance should place the insured in the same financial position after a loss as he enjoyed before it, not better. • As the insurable interest on own life is unlimited, this principle does not apply to Life insurance. Subrogation • This is the sub principle of principle of Indemnity. • It may be define as the transfer of rights and remedies of the insured to the insurer who has indemnified the insured in respect of loss. • The insurer will get the rights to recover the loss from the third party. Contribution • Insured may have several insurance on the same subject- matter. • At the time of loss, he cannot claim the loss amount from all the insurance companies. • Under this principle, all the insurance companies are liable to pay the amount of loss proportionally. Proximate Cause
  • 3. 3 • Insurance provide the indemnity for such losses as are caused by insured perils. • But in actual situation, the loss may be the result of two or more causes, acting simultaneously or one after the other. Then, it becomes necessary to choose the most effective, important and powerful cause which brought about the loss. This cause is termed the “Proximate Cause”. About IRDA Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India. The agency operates its headquarters at Hyderabad, Andhra Pradesh where it shifted from Delhi in 2001 The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended establishment of an independent regulatory authority for insurance sector in India. Later, It was incorporated as a statutory body in April, 2000. The IRDA Act, 1999 also allows private players to enter the insurance sector in India besides a maximum foreign equity of 26 per cent in a private insurance Company having IRDA LIFE INSURANCE GENERAL INSURANCE STANDERD AUTHORISED HEALTH INSURANCE
  • 4. 4 operations in India. It serves as an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith. Organizational structure IRDA is a ten member body consisting of:  A Chairman,  Five whole-time members and  Four part-time members. All members are appointed by the Government of India.
  • 5. 5 HISTORY OF GENERAL INSURANCE INDUSTRIES The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15- 20 per cent annually. Together with banking services, it adds about 7 per cent 1971 The General Insurance Corporation of India was incorporated as a company 1973 • General insurance business was nationalized with effect from 1st January 1973. • 107 insurers were amalgamated and grouped into four companies namely: 1) National Insurance Company Ltd., 2) The New India Assurance Company Ltd., 3) The Oriental Insurance Company Ltd 4) The United India Insurance Company Ltd. 1993 The Government set up a committee under the chairmanship of RN Malhotra former Governor of RBI to propose recommendations for reforms in the insurance sector 2000 • The IRDA was incorporated as a statutory body in April 2000. • Foreign companies were allowed ownership of up to 26%. 2000- 01 Insurance Industry had 16 new entrants, 10 in Life and 6 in General Insurance 2001- 03 Insurance Industry had 5 new entrants, 2 in Life and 3 in General YEAR Milestones in the general insurance business in India
  • 6. 6 to the country’s GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.
  • 7. 7 HISTORY OF INSURANCE GLOBAL While the world is eyeing India for growth and expansion, Indian companies are becoming increasingly world class. Take the case of LIC, which has set its sight on becoming a major global player following a Rs280-crore investment from the Indian government. The company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations in Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006. The year 2005 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub-continent. 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. Insurance has existed for thousands of years. 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. To pay for the loss the merchant would be sold into slavery to the insurer until the debt was repaid. 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, merchant’s 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. The trader who borrowed the money paid an extra amount for this protection in addition to the usual interest. As for the lender, collecting these premiums from many traders made it possible for him to absorb the losses of the few. 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.
  • 8. 8 Since ancient times, communities have pooled some of their resources to help individuals who suffer loss. Like, about 3500 years ago, Moses instructed the nation of Israel to contribute a portion of their produce periodically for "the alien resident and the fatherless boy and the widow." 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 obtain loans from investor’s to finance their trading expedition. 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.
  • 9. 9 INSURANCE IN INDIA In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance
  • 10. 10 Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies are allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
  • 11. 11 Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country. State Insurers Continue To Dominate There may be room for many more players in a large underinsured market like India with a population of over one billion. But the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market. Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of the non-life market, the public sector companies still call the shots. The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income in November 2005. Similarly, the four public-sector non-life insurers – New India Assurance, National Insurance, Oriental Insurance and United India Insurance – had a combined market share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8.11% market share. ICICI Lombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovate ion and distribution.
  • 12. 12 CURRENT TREND OF INSURANCE INDUSTRY India with about 200 million middle class household shows a huge untapped Potential for players in the insurance industry. Saturation of markets in many developed economies have made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. Foreign players are bringing in international best practices in service through use of latest technologies. The insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. At present the distribution channels That are available in the market are listed below. agents Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are
  • 13. 13 offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money back policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. Health products. The rural consumer is now exhibiting an increasing propensity for insurance Products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughter's marriage, children's education and good return on savings, in that order, the study adds.
  • 14. 14 MAJOR PLAYERS Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited Private Sector Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance e Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd.
  • 15. 15 MAJOR OFFRINGS 1] Health insurance 2] Personal accident 3] Motor insurance 4] Marine and transshipment insurance 5] Building, house, office, school, college insurance 6] Travelling insurance etc.
  • 16. 16 COMPANY PROFILE Parent Companies Latin Manharlal Securities Pvt Ltd (LMSPL), set up in the year 1989, has grown over a period in experience and serving ever growing clientele in the Capital Market and F&O Segment. Spread over many states in the country, we cater to more than 22000 clients in Gujarat, Maharashtra, Rajasthan, Bhubaneswar, Hyderabad, Bangalore, Vishakhapatnam and Chennai. Latin Manharlal Securities has a membership of both the Multi- Commodity Exchange of India (MCX), and National Commodity and Derivatives Exchange (NCDEX) and also a trading member at Dubai Gold Commodity Exchange (DGCX) and is also the member of Bombay Stock Exchange Ltd. (BSE) & National Stock Exchange of India Ltd. (NSE). PMS, Institutional Desk, Merger & Acquisitions are few more divisions we operate. While laying the foundation of LMWM we were guided by a single minded client centric approach with total financial industry products under one roof. A Successful & Leading Provider of Financial Services for over two decades. It has become synonymous name with Reliability & Trust for their customers pan India with more than 200 channel partners and catering to more than 35000 clientele. Latin Manharlal group has evolved itself from mere Equity Broking business to a full fledged Financial Service Provider through its various group companies. Our practice model has built around the needs of a client. Our unique selling point is that we manage the total financial affairs of our clients. At LMWM you will come across good investment advice. Our recommendations will have your long term wealth creation in mind. LMWM is a professional platform of Private Wealth Management services in India LMWM is a leading Investment Advisory Firm which straddles with the entire financial services with our rich and varied experience, a thorough knowledge of the markets, proficiency in risk management and innovative, focused research; we offer advice on investing in the equity markets, fixed income markets, mutual funds and Insurance (Life & General). We provide independent advice and maintain
  • 17. 17 personal relationship with our clients. We want to understand goals, priorities, preferences, concerns and then use our knowledge of products, services, tools and techniques to help you achieve what you aspire for. What is LMWM? • Subsidiary of SKD Broking. • We can deal with major products of all the Insurance companies . • We give the client based solution instead of product based. LATIN MANAHARLAL WEALTH MANAGEMENT Financial Planning  Advisory Services  Wealth Management
  • 18. 18 Corporate Office Address : Latin Manharlal Securities Pvt. Ltd. Viraj 124, S.V. Road , Khar ( West ). Mumbai – 400 052 Tel.- 022-40824082 Fax : 022-26496783 Email : info@lmspl.com www.latinmanharlal.com branch address Latin manharlal wealth management B-103, Itc building majura gate, Surat. MOB NO.9998011122 EMAI ID:JIGNESH@LMWEALTHMANAGEMENT.COM www.latinmanharlal.com
  • 19. 19 COMPANY TEAM CEO > MR VIKRANT SHAH PROMOTER > MR JIGNESH MADHAVANI TRAINING FACILIATER > MR HIMANSAHU JOSHI HEAD DEPT.CLAIM > MR PRIYANK KOTAK BUSINESS MANAGER > MS SAJNEE RANGREJ ASSITANT MANAGER > MS SIDDHI SHAH CO- ODINATE > MS JINAL CHAHWALA
  • 20. 20 COMPANY VISION “To be the MOST ADMIRED WEALTH MANAGEMENT GROUP IN INDIA, with … TEAM • Team of experts with the wide experience of Industry of more than a decade. • In house Product Team with the experience of more than 30 years who identifies the best product from the market based on Price, Service & Unique Features . • In house Certified Financial Planners (CFPs ) – Professionals with specialized skills & knowledge to help you to evaluate your Financial Goals. • Team of trainers with the holistic insights with the experience of more than 15 years. Technology • Website of LMWM is a successful result of the continues efforts of expertise from more than 3 years. • State of the art platform for online Comparison across the Insurance products. • Full Online & Mobile based Accessibility. Team Technology Training Totality
  • 21. 21 TRAINING • LMWM has a team of professional trainers with the wide experience of industry. • We keep on giving training to our Business Associates to help them to walk with the changing scenario of market. TOTALITY We give you the total solution of all your insurance needs whether it is Individual Insurance  Life Insurance  Health Insurance  Motor Insurance  Home and Office Package  Travel Insurance Group Insurance  Group Term Plan  Group Mediclaim  Group Personal Accident  Workmen Compensation Corporate Insurance  Marine Insurance  Fire Insurance  Liability Insurance  Engineering Insurance
  • 22. 22 ORGANISATION CHART PROMOTE R CEO NATIONAL HEAD STATE HEAD BRANCH MANAGER
  • 23. 23 DEPARTMENTS COMPANY NAME MEMBER Latin Manharlal Securities Pvt. Ltd. (Parent Co.) NSE | BSE | CDSL | NSE-Currency | MCX-SX |SEBI Reg. P Latin Manharlal Commodities Pvt. Ltd. NCDEX | MCX. | NSEL Latin Manharlal Commodities Pvt. Ltd. NBFC Latin Manharlal Commodities Pvt. Ltd. Insurance Advisory Services River Oak Capital Partners LLC* (USA) River Oak Capital Advisors Pvt. Ltd* (INDIA) Merger & Acquisitions , Privet Equity , Fund Raising
  • 24. 24 SWOT ANALYSIS COMPANY PHILOSOPHY Trust & Reliability - “Our Customer First “ - Transparency, Right Advice & Ethical Practice. Strength - Team of Professionals for Financial Planning. - Team of Experts for Wealth Management. - State-of-the Art Technology. - Efficient Execution. - Customized Financial Solutions. Weakness -to provide not better brochure about product. -to apply better knowledge and attitude. Opportunity -Revenues or commission are decreasing day by day. -Need to Increase the volume and have better wallet sharing from the customer. -Need professionalism and Holistic advisory approach rather than selling the Product.
  • 25. 25 COMPANY OBJECTIVE  To Protect Family against any Financial Risk.  To achieve various Goals of Life.  To take care of Financial Responsibilities of Family.  To Beat Inflation.  To make provisions for Contingency.  To make provisions for a Longer Lifespan.  To plan sufficient for Healthcare & Medical expenses  To Retire Peacefully & Live Dignified Life.  To Pass Wealth To Next Generation.
  • 26. 26 COMPANY PRODUCT Company Key Strengths for Financial Planning & Wealth Management • Equities, Derivatives & Online Trading Platform. • Commodities Trading with Research Support. • Mutual Funds Distribution. • Currency Derivatives Services. • Team of Financial Planning Professionals ( CFP s ) For Advisory. • PMS (Portfolio Management Services). • WMS (Wealth Management Services). • In house Research Team – Fundamental & Technical. • Depository Services. • Experienced Professionals for Insurance Advisory. • Margin Funding Services. • Investment Banking Services
  • 27. 27 LITARETURE REVIEW Sharma Aparajita (2011) in her study aims to develop the managerial competency framework for the middle level managers of the general insurance sector in India. Secondary research provides the overview of existing generic competency models. The need was observed for a competency based framework in the insurance sector in India. Survey was conducted among ninety eight middle level managers of the public and private sector general insurance companies. The results revealed the fourteen managerial competencies: analytical skills, communication skills, creativity, decision-making, ability to delegate, flexibility, initiative, interpersonal skills, job knowledge, leadership, managerial skills, ability to motivate, ability to plan and team management. Job knowledge, managerial skills, were the most important skills. Other important skills were communication skill, inter- personal skill and team management. Hammond et al. (1971), analyzed the extent to which economies of scale exist in the property and liability insurance industry. The sample for the study was comprised of 173 companies in all, which included 88 mutual insurers and 85 stock insurers in the year 1967. The analysis centers upon operating expenses and claim costs. The cost effects on principal non- size variables, such as the legal form of organization, type of distribution system used, business mix, and the amount of insurance written in relation to policyholder surplus were also considered. The authors concluded that economies generally exist with operating expenses, and diseconomies exist with loss costs. No evidence of U-shaped cost curves was present. The trend showed that the average costs for operating expenses appear to decline with size and to level out as larger premium volumes are achieved. When a person experiences a bad shock to health, their medical expenses typically rise and their contribution to household income and home production (e.g. cooking or childcare) declines (e.g. Wagstaff and Doorslaer,
  • 28. 28 2003; Gertler, Levine & Moretti, 2003; Gertler and Gruber, 2002). According to the WHO, “Each year, approximately 150 million people experience financial catastrophe, meaning they are obliged to spend on health care more than 40% of the income available to them after meeting their basic needs.” (WHO Factsheet N°320, 2007) Low income and high medical expenses can also lead to debt, sale of assets, and removal of children from school, especially in poor nations. A short-term health shock can thus contribute to long-term poverty (e.g. Van Damme et al, 2004; Annear et al, 2006). At the same time, because households often cannot borrow easily, they may instead forego high-value care. When they do access care it will often be of low quality (Das, Hammer and Leonard, 2008), which can lead to poor health outcomes. Uninsured risk leaves poor households vulnerable to serious or even catastrophic losses from negative shocks. It also forces them to undertake costly strategies to manage their incomes and assets in the face of risk, lowering mean incomes earned. Welfare costs due to shocks and foregone profitable opportunities have been found to be substantial, contributing to persistent poverty (Morduch, 1990; Dercon, 1996, 2004; Rosenzweig and Binswanger, 1993; Elbers et al., 2007, Pan, 2008). Insurance has the potential to reduce these welfare costs. By offering a payout when an insured loss occurs, it avoids other costly ways of coping with the shock leaving future income earning opportunities intact. Furthermore, the security linked to being insured can be expected to allow the avoidance of costly risk-management strategies with positive impacts on poverty reduction. This literature review provides an overview of the current state of research on Insurance identifies key knowledge gaps and develops a conceptual framework to inform and organize the research agenda of the insurance Facility in the area of impact evaluation, demand and supply issues. For the purpose of this review, Insurance is defined in line with Churchill (2006) as an insurance that (i) operates by risk-pooling (ii) is financed through regular premiums and is (iii) tailored to the poor who would otherwise not be able to take out insurance. The main focus of the literature review is on voluntary insurance1. Other ways
  • 29. 29 through which individuals or the public sector can insure against risks, such as precautionary savings, access to credit or through public safety nets are therefore not treated in detail in this review. However, this leads already to one key omission in the existing literature: generally, the benefits of insurance are not compared to alternative mechanisms that may provide insurance- like benefits, possibly in a more cost-effective way, such as savings, consumer or emergency credit, and public safety nets.
  • 30. 30 RESEARCH METHODOLOGY PROBLEM STATEMENT The project lays emphasis on the satisfaction level among customers about the Insurance plans offered by general Insurance Company. It further brings into Light what the customers feel about these insurance plans. The study focuses on the Factors that are related to the objective of the study. The main focus is on the customer satisfaction of insurance and how much they considered insurances important for one’s Life. NEED OF STUDY Growing individualistic ideas are fast penetrating the Indian minds and the joint family and caste system are fast cracking. Insurance has many benefits in store for them. It saves their families from misery, chaos, and destitution. Insurance lays the foundation on which the economic structure of life can be gradually and safely built up and sustained to the end. Uncertainties to the individual are made certainties for the group. This study also helps in making necessary changes in the attributes of the insurance cover offered by the company so that the customers can enjoy the benefits of the insurance cover. The need for the study also arises to identify and offer additional insurance products according to the expectations of the customers.
  • 31. 31 OBJECTIVE • The objective of the study is to find out the “study on customer satisfaction level on general insurance product in surat city’’ • To find out general insurance products and which are the companies involved in it. • To study the awareness of insurance plans in general insurance product. • To study the customer satisfaction of general insurance product. • To analyze the satisfaction level of customers of private Sector and public sector insurance companies. • To find out the Procedure of Claims. SCOPE OF THE STUDY • The important of this research is to recognize the satisfaction of insurance consumer in Surat city. Service quality is very important to consumer where as the problem is less of satisfaction and influence consumer satisfaction towards insurance service. • This research can help the insurance companies to improve the quality of service and change the satisfaction of consumer towards insurance service. For example, to improves and provide the policy insurance with good and to do more promotion about insurance which bring advantage to attract consumer to purchase insurance. • The other important of this research can give Information about service quality and consumer expectation or have a relationship with others.
  • 32. 32 RESEARCH DESIGN TYPE OF DESIGN The project consists of research design based on descriptive study in this project each and every point contains the information which can be helpful to know satisfaction of the respondent towards general insurance product. POPULATION The population in this project is each and every people of Surat city who have general insurance policy. SAMPLE SIZE 200 respondents were randomly taken as sample. SAMPLING METHOD: Convenience sampling refers to the non probability process by which a scientist gathers statistical data from the population. In this study it is more feasible to use the convenience sampling with regard to factors.
  • 33. 33 DATA COLLECTION TOOLS Primary data It is informed that, is obtained directly from first- hand source by means of survey, observation or experimentation or by structured questionnaire. The data for this study was collected through the primary method of collection. The questionnaire act as a tool of collecting data, which was filled by the policy holder, the procedure starts with meeting them personal & also tries to understand their satisfaction towards general insurance product. Secondary data Secondary data are the data which has already collected and used for some other context. I have used secondary data to know the history of general insurance sector and also other information which is available on secondary sources and which can be important to justify my research. Sources of secondary data Internet Magazines News paper Published data Book
  • 34. 34 DATA ANALYSIS 1. Gender INTERPRETATION: From the above table and chart we can say that 77% respondents are male and 22% respondents are female. Frequency Percent Valid male 154 77.0 female 46 23.0 Total 200 100.0
  • 35. 35 2. Age group Frequency Percent Valid 21-30 53 26.5 31-45 87 43.5 46-60 43 21.5 >=61 17 8.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 26.5% respondents are between age of 21-30, 43.5% are of 31-45, 21.5% are of 45- 60 and 8.5% respondents are between age of 60 and above.
  • 36. 36 3. Qualification Frequency Percent Valid below SSC 91 45.5 SSC&HSC 49 24.5 Graduate 38 19.0 post graduate 22 11.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 45.5% respondent are below SSC, 24.5% respondents are covered from SSC&HSC,19% respondent are covered from graduation, and last 11% respondents covered from post graduation.
  • 37. 37 3. Occupation Frequency Percent Valid Student 45 22.5 professional 27 13.5 business 15 7.5 salaried 113 56.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 22.5%respondents are student, 13.5% respondents are professional, and 7.5% respondents doing business, 56.5% respondents are salaried person.
  • 38. 38 Q.1 your annual income is Frequency Percent Valid 0-50000 15 7.5 50001-100000 31 15.5 100001-200000 68 34.0 200001-300000 41 20.5 300001-400000 26 13.0 400001-500000 13 6.5 >=500001 6 3.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that initial stage 7.5% respondets are between income of 0-50000,highest 34% respondents are between income of100001-200000, at last only 3% respondents are between income of more than 500001.
  • 39. 39 Q. 2(A) Do you go for general insurance because it is compulsory? Frequency Percent Valid yes 172 86.0 no 28 14.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 86% respondents are says that general insurance is compulsory while 14% respondents are not agreed.
  • 40. 40 Q.2. (B) Do you go for general insurance to cover risk? Frequency Percent Valid yes 144 72.0 no 56 28.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 72% respondents are go for to cover risk and 28% are not agree to cover risk.
  • 41. 41 Q.3 For which item below you have taken insurance cover? Variables yes No Two wheelers 181 19 Four wheelers 75 125 Home 12 188 Office 9 191 Jewelry - 200 Locker - 200 Computer& laptop - 200 Mobile - 200 Health 38 162 INTERPRETATION: From the above table and chart we can say that 181 respondents having two wheelers insurance policy, 75 respondents having four wheelers insurance policy, and 38 respondents having health insurance policy. 0 20 40 60 80 100 120 140 160 180 200 yes no
  • 42. 42 Q.4 Are you aware of the terms and conditions of the policy which you have taken? Frequency Valid Percent Valid aware 22 11.0 not aware 165 82.5 no idea at all 13 6.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 11% respondents are aware of the terms and condition while 82.5% respondents are not aware of the terms and condition of the general insurance policy.
  • 43. 43 Q.5 your general insurance company gives you good service Frequency Percent Valid strongly agree 41 20.5 Agree 58 29.0 neither agree or disagree 25 12.5 Disagree 40 20.0 strongly disagree 36 18.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 20.50% respondents are strongly agree to company gives good services, 29% respondents are agree, 20% respondents are disagree while 18% respondents are strongly disagree to company give good service.
  • 44. 44 Q.6 Settlement of claims by private sector general insurance companies is faster than public sector general insurance companies Frequency Percent Valid strongly agree 29 14.5 Agree 98 49.0 neither agree or disagree 15 7.5 Disagree 41 20.5 strongly disagree 17 8.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 49% respondents are agree that private company give you good service rather than public, 20.50% respondents are disagree.
  • 45. 45 Q.7 which types of general insurance companies are more reliable according to you? Frequency Percent Valid public sector 154 77.0 private sector 46 23.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 77% respondents are reliable with public company while 23% respondents are reliable with private company.
  • 46. 46 Q.8 I am satisfied with the time required for settlement of the claims. Frequency Percent Valid strongly agree 9 4.5 Agree 26 13.0 neither agree or disagree 42 21.0 Disagree 77 38.5 strongly disagree 46 23.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 38.50% respondents are disagree to time required for claim settlement, 21% respondents are neutral while 23% respondents are strongly disagree to settlement of claims.
  • 47. 47 Q.9 what made you choose your current general insurance company? Frequency Percent Valid brand image 16 8.0 efficient services 27 13.5 low cost 57 28.5 quick settlement of claims 83 41.5 Others 17 8.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that initially 8% respondents are see brand image while purchasing,28.5% respondents are consider low cost and 41.5% respondents are consider quick settlement of claims.
  • 48. 48 Q.10 I am aware about various scheme of general insurance product. Frequency Percent Valid strongly agree 8 4.0 Agree 28 14.0 neither agree or disagree 39 19.5 Disagree 97 48.5 strongly disagree 28 14.0 Total 200 100.0 INTERPRETATION: From the above chart we can say that only 14% respondents are aware about scheme of general insurance product, 19.5% respondents are neutral, 48.5% respondents are not aware about scheme of general insurance product.
  • 49. 49 Q.11 how do you rate your satisfaction with the service you received? Frequency Percent Valid excellent 9 4.5 very good 35 17.5 Good 92 46.0 Poor 45 22.5 very poor 19 9.5 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 17.5% respondents are satisfied with the excellent service received by company, highest 46% respondents are satisfied with good service and 9.5% respondents are satisfied with poor service provided by company.
  • 50. 50 Q.12 Are you satisfied by the services provided by your general insurance company? Frequency Percent Valid yes 112 56.0 no 88 44.0 Total 200 100.0 INTERPRETATION: From the above table and chart we can say that 56% respondents are satisfied with the service provided by general insurance company and 44% respondent are not satisfied with service provided by the company and majority of negative response of respondents is problem of settlement of claims.
  • 51. 51 HYPOTHESIS TESTING Chi square test Test no.1 H0: there is no relationship between age and compulsoriness of general insurance H1: there is relationship between age and compulsoriness of general insurance Significance level 5% Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent Age in years * General insurance compulsory 200 100.0% 0 .0% 200 100.0% Age in years * General insurance compulsory Cross tabulation General insurance compulsory Totalyes No Age in years 21-30 Count 45 8 53 Expected Count 45.6 7.4 53.0 % within Age in years 84.9% 15.1% 100.0% % within General insurance compulsory 26.2% 28.6% 26.5% % of Total 22.5% 4.0% 26.5% 31-45 Count 76 11 87 Expected Count 74.8 12.2 87.0 % within Age in years 87.4% 12.6% 100.0% % within General insurance compulsory 44.2% 39.3% 43.5% % of Total 38.0% 5.5% 43.5% 46-60 Count 35 8 43 Expected Count 37.0 6.0 43.0
  • 52. 52 % within Age in years 81.4% 18.6% 100.0% % within General insurance compulsory 20.3% 28.6% 21.5% % of Total 17.5% 4.0% 21.5% >=61 Count 16 1 17 Expected Count 14.6 2.4 17.0 % within Age in years 94.1% 5.9% 100.0% % within General insurance compulsory 9.3% 3.6% 8.5% % of Total 8.0% .5% 8.5% Total Count 172 28 200 Expected Count 172.0 28.0 200.0 % within Age in years 86.0% 14.0% 100.0% % within General insurance compulsory 100.0% 100.0% 100.0% % of Total 86.0% 14.0% 100.0% Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 1.873a 3 .599 Likelihood Ratio 2.038 3 .565 Linear-by-Linear Association .095 1 .758 N of Valid Cases 200 a. 1 cells (12.5%) have expected count less than 5. The minimum expected count is 2.38.
  • 53. 53 Decision: Since the asymptotic value is 0.599, which is greater than table value 0.05 so we accept the H0. i.e. H0: there is no relationship between age and compulsoriness of general insurance.
  • 54. 54 Test no.2 H0: there is no relationship between risk cover and two wheeler product H1: there is relationship between risk cover and two wheeler product Significance level 5% Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent General insurance to cover risk * two wheelers 200 100.0% 0 .0% 200 100.0% General insurance to cover risk * two wheelers Cross tabulation two wheelers TotalYes no General insurance to cover risk Yes Count 132 12 144 Expected Count 130.3 13.7 144.0 % within General insurance to cover risk 91.7% 8.3% 100.0% % within two wheelers 72.9% 63.2% 72.0% % of Total 66.0% 6.0% 72.0% No Count 49 7 56 Expected Count 50.7 5.3 56.0 % within General insurance to cover risk 87.5% 12.5% 100.0% % within two wheelers 27.1% 36.8% 28.0% % of Total 24.5% 3.5% 28.0% Total Count 181 19 200 Expected Count 181.0 19.0 200.0 % within General insurance to cover risk 90.5% 9.5% 100.0% % within two wheelers 100.0% 100.0% 100.0% % of Total 90.5% 9.5% 100.0%
  • 55. 55 Chi-Square Tests Value Df Asymp. Sig. (2- sided) Exact Sig. (2- sided) Exact Sig. (1- sided) Pearson Chi-Square .814a 1 .367 Continuity Correction .402 1 .526 Likelihood Ratio .775 1 .379 Fisher's Exact Test .422 .257 Linear-by-Linear Association .810 1 .368 N of Valid Cases 200 a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.32. b. Computed only for a 2x2 table Decision: Since the asymptotic value is 0.367, which is greater than table value 0.05 so we accept the H0. i.e. H0: there is no relationship between risk cover and two wheeler product
  • 56. 56 Test no.3 H0: there is no relationship between risk cover and awareness of the terms and condition of the policy H1: there is relationship between risk cover and awareness of the terms and condition of the policy Significance level 5% Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent General insurance to cover risk * Terms & Conditions of policy 200 100.0% 0 .0% 200 100.0% General insurance to cover risk * Terms & Conditions of policy Crosstabulation Terms & Conditions of policy Totalaware not aware no idea at all General insurance to cover risk Yes Count 14 121 9 144 Expected Count 15.8 118.8 9.4 144.0 % within General insurance to cover risk 9.7% 84.0% 6.3% 100.0% % within Terms & Conditions of policy 63.6% 73.3% 69.2% 72.0% % of Total 7.0% 60.5% 4.5% 72.0% no Count 8 44 4 56 Expected Count 6.2 46.2 3.6 56.0 % within General insurance to cover risk 14.3% 78.6% 7.1% 100.0% % within Terms & Conditions of policy 36.4% 26.7% 30.8% 28.0% % of Total 4.0% 22.0% 2.0% 28.0% Total Count 22 165 13 200 Expected Count 22.0 165.0 13.0 200.0
  • 57. 57 % within General insurance to cover risk 11.0% 82.5% 6.5% 100.0% % within Terms & Conditions of policy 100.0% 100.0% 100.0% 100.0% % of Total 11.0% 82.5% 6.5% 100.0% Chi-Square Tests Value Df Asymp. Sig. (2- sided) Pearson Chi-Square .958a 2 .619 Likelihood Ratio .920 2 .631 Linear-by-Linear Association .312 1 .576 N of Valid Cases 200 a. 1 cells (16.7%) have expected count less than 5. The minimum expected count is 3.64. Decision: Since the asymptotic value is 0.619., which is greater than table value 0.05 so we accept the H0. i.e. H0: there is no relationship between risk cover awareness of the terms and condition of the policy
  • 58. 58 Test no.4 H0: there is no relationship between awareness of the terms and condition of the policy and various scheme of general insurance product H1: there is relationship between awareness of the terms and condition of the policy and various scheme of general insurance product Significance level 5% Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent Terms & Conditions of policy * scheme of general insurance product 200 100.0% 0 .0% 200 100.0% Chi-Square Tests Value Df Asymp. Sig. (2- sided) Pearson Chi-Square 6.458a 8 .596 Likelihood Ratio 8.777 8 .361 Linear-by-Linear Association .460 1 .498 N of Valid Cases 200 a. 8 cells (53.3%) have expected count less than 5. The minimum expected count is .52.
  • 59. 59 Decision: Since the asymptotic value is 0.596, which is greater than table value 0.05 so we accept the H0. i.e. H0: there is no relationship between awareness of the terms and condition of the policy and various scheme of general insurance product
  • 60. 60 Test no.5 H0: there is no relationship between compulsoriness of general insurance satisfaction of general insurance company H1: there is relationship between compulsoriness of general insurance and satisfaction of general insurance company Significance level 5% Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent General insurance compulsory * satisfied by the services provided by general insurance company 200 100.0% 0 .0% 200 100.0% General insurance compulsory * satisfied by the services provided by general insurance company Cross tabulation satified by the services provided by general insurance company Totalyes no General insurance compulsory Yes Count 97 75 172 Expected Count 96.3 75.7 172.0 % within General insurance compulsory 56.4% 43.6% 100.0% % within satified by the services provided by general insurance company 86.6% 85.2% 86.0% % of Total 48.5% 37.5% 86.0% No Count 15 13 28 Expected Count 15.7 12.3 28.0 % within General insurance compulsory 53.6% 46.4% 100.0%
  • 61. 61 % within satisfied by the services provided by general insurance company 13.4% 14.8% 14.0% % of Total 7.5% 6.5% 14.0% Total Count 112 88 200 Expected Count 112.0 88.0 200.0 % within General insurance compulsory 56.0% 44.0% 100.0% % within satisfied by the services provided by general insurance company 100.0% 100.0% 100.0% % of Total 56.0% 44.0% 100.0% Chi-Square Tests Value Df Asymp. Sig. (2- sided) Exact Sig. (2- sided) Exact Sig. (1- sided) Pearson Chi-Square .078a 1 .780 Continuity Correctionb .005 1 .941 Likelihood Ratio .078 1 .780 Fisher's Exact Test .839 .468 Linear-by-Linear Association .078 1 .781 N of Valid Cases 200 a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.32. b. Computed only for a 2x2 table
  • 62. 62 Decision: Since the asymptotic value is 0.780, which is greater than table value 0.05 so we accept the H0. i.e. H0: there is no relationship between compulsoriness of general insurance and satisfaction of general insurance company
  • 63. 63 LIMITATIONS OF THE STUDY The study suffers from a few limitations, which will have to be kept in mind for the findings to be fairly interpreted • The recommendations are subjected to time and cost constraint • Sampling has its own limitations, which would have resulted in minor errors • There can be errors due to bias of respondents • The size of the sampling was not big enough to arrive at strong conclusion. The results should be interpreted with the above limitations in perspective.
  • 64. 64 FINDING OF THE STUDY 1. It is found from study that there is no relationship between age and compulsoriness of general insurance. That’s mean age and compulsoriness of general insurance is completely different aspect. 2. It is found from the study that 86% policy holder is taken the general insurance policy to cover risk. 3. It is found from study that there is no relationship between awareness of the terms and condition of the policy and various scheme of general insurance product. The reason is that policy holder is not aware about both things. 4. It is found from the study that out of 200 respondent’s 38 respondents is taken health insurance policy against cover risk. 5. It is found from the study that 56% respondents are satisfied by the general insurance company. 6. It is found from study that there is no relationship between compulsoriness of general insurance and satisfaction of general insurance company. as we know that general insurance is compulsory for some of the product i.e. two wheelers and four Wheelers, policy holder are compulsory to take this type of insurance policy. So because of compulsoriness of the policy majority of the policy holder are satisfied by the general insurance company. 7. It is found from the study that most of the respondents are not aware about terms& condition and scheme of general insurance product.
  • 65. 65 Conclusion Insurance happens to be a mega opportunity in India. Yet, nearly 80% of Indian population is without general insurance cover, continue to be below international standards which offer greater opportunities in this sector. With other investments avenues remaining unmoved, insurance and mutual funds offer comparatively better returns to customers. With tax and investment planning as its main targeting tools, insurance is bound to grow at a rapid pace. The project helped the researcher to find out the customer satisfaction level from the various plans offered by insurance companies with specific reference to market linked insurance plans. Appropriate suggestions have been given based on the research findings. It was a great learning experience and the researcher will carry this experience in all his future endeavors.

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