1. A
Project Report
At
CUSTOMER AWARENESS ABOUT ICICI LOMBARD
A Project Report submitted in partial fulfillment of the requirements for the award of
the degree of
BACHOLOR OF BUSINESS MANAGEMENT
Ravindar Nath Tagore PG College kapasan
2. COLLEGE CERTIFICATE
This is to certify that Mr. SHABIR AHMAD BHAT has satisfactorily completed the
project work at entitled “CUSTOMER AWARENESS ABOUT ICICI LOMBAR ”, under
the guidance based on the declaration made by the candidate and my association as guide for
carrying out this work; I recommend this project report for evaluation as a partial requirement
of the BBM of R.N.T PG College Kapasan Affiliated to Mohan Lal Sukhadia University,
Udaipur Rajasthan .
DATE:
PG College Kapasan
DATE
Lecturer . Sonal Trevadi R.N.T
(Project Guide)
Dr.Vaseem Khan
(Managing Director)
3. PREFACE
A man without practical knowledge is just like a rough diamond. To shine like a real
diamond one must have practical exposure of what he has learnt. For the management
students, theoretical knowledge is just like lock without key, so practical knowledge is of
utmost importance.
It is quite true that world outside; your cozy home is many times quite different from what
you have perceived. Similarly it is possible that theoretical knowledge acquired in the
classroom may differ from the practical knowledge.
As a curriculum part of B.B.M. course, I have taken my INTERNSHIP training at ICICI
LAMBORD at Kashmir..
It is my pleasure to present this project work after I had finished my summer training. This
training has expanded my horizon of knowledge in practical as well as theoretical, which is
vital for student in management level studies. Only the basic understanding of the principles
of management is not sufficient but their application is also equally important.
4. ACKNOWLEDGEMENT
To acknowledge is very great way to show your gratitude towards the persons who have
contributed in your success in one or other way. At the very outset of the training I deem it is
my pious duty to express my sincere thanks to Syed Irfan Inayat for his continuous
guidance
during the training period. My most profound thanks to my revered guider
Miss.sonal trevedi whose generous and able guidance has always been an unfailing source of
inspiration throughout my training period.
DATE:
Yours faithfully
Shabir Ahmad Bhat
5. DECLARATION
I the Undersigned Mr. SHABIR AHMAD BHAT student of B.B.M– Sem. IV hereby declare
that the project work presented in this report is my own work and has been carried out under
supervision and guidance of MISS . SONAL TREVEDI Lecturer of R.N.T PG College
Kapasan affiliated with MLSU.
The objective of the training undertaken is to acquire practical knowledge in particular field.
This work has not been previously submitted to any other university for any other
examination.
DATE:
PLACE: R.N.T PG College
6. 1
Executive Summary
Insurance is age-old industry in India. Many nationalized general insurance
companies are serving their services in all areas of India. After liberalization many private
general insurance companies are arrived in the Indian market with foreign partnerships.
These companies are serving mostly in urban areas and high-income classes. They are
not fulfilling obligations towards rural areas. These companies believe that business in the
rural area is not profitable.
Rural insurance should be looked upon as an opportunity and not an obligation. A
smaller bundle of innovative products in sync with rural needs and perception and an efficient
delivery system are the two aspects that have to be developed in order to penetrate the rural
markets.
It is advisable for these companies to carry out market research to find profitability in
the rural areas. Products and services should be found out for rural area that can make the
business profitable.
In this project research is carried out to identify the need of general insurance in rural
area. Also the services which are not serving properly by government companies and the
marketing strategy for implementation.
It is found out in this research that lack of agents and agency in the rural area results
in small business from rural area .So more agents should be appointed so that there would be
profit in future.
7. CONTENT
No.
1
Chapter Name
Page No.
INTRODUCTION
1.1
General Introduction about the sector
1.2
Industry Profile
a
Origin & Development of the Industry
b
Growth & Present Status of the Industry
C
Future of The Insurance Sector
2
PROFILE OF THE ORGANIZATION
2.1
Origion of ICICI Lombard
2.2
Growth & Development of ICICI Lombard
2.3
Present Status of Organization
2.4
Functional Departments of Organization
2.5
Org. Structure & Org. Chart
2.6
Product & Service Profile of the competitors
2.7
Market Profile of ICICI Lombard
8. 3
3.1
3.2
4
STUDY
OF
SELECTED
RESEARCH
PROBLEM
4.1
Statement of Research Problem
4.2
Statement of Research Objective
4.3
Research Design & Methodology
4.4
Analysis of Data
4.5
Summary of Findings
5
SUMMARY AND CONCLUSIONS
5.1
Summary of Learning Experience
5.2
Recommendations & Conclusion
BIBLIOGRAPHY
9. 1.1 GENERAL INTRODUCTION ABOUT THE SECTOR
Insurance is not the sale of products, but servicing customers. It is a system, by which the
losses suffered by a few are spread over many, Exposed to similar risks. Insurance is a
protection against financial loss arising on the happening of an unexpected event. Insurance
companies collect premiums to provide for this protection. A loss is paid out of the premiums
collected from the insuring public and the Insurance Companies act as trustees to the amount
collected. The very fundamental principle of spreading of the risk is actually practiced by the
insurance companies by reinsuring the risks that they have insured. The opening up of the
Insurance Sector to Private Companies, has made available more products and world class
service to Indian Customer.
This project has been made with an objective to give an insight into various facts
of General Insurance sector in India. An attempt has been made to explain the apex body of
General Insurance. i.e. General Insurance Corporation of India, its structure, products and
subsidiaries.
Also the review of latest entrants into insurance sector viz. private players like TATA AIG
General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz
General Insurance Company, IFFCO Tokyo General Insurance Company, Royal Sundaram
General Insurance Company limited and ICICI Lombard General Insurance Company have
been described in brief, Due to the growth in the technological sector of the country, the
insurance companies have started utilizing these technologies to it ‘as optimum level.
1.2 INDUSTRY PROFILE
a. Origin and Development of the industry
Till May, 1971 there were 107 companies operating in the market, both Indian and foreign.
Some companies were in the co-operative sector. The size of the companies and there reach
varied to a great extent. Whereas many companies used to underwrite all types of covers fire,
marine& miscellaneous insurance.
The government in May, 1971 took over the undertaking of all the
Companies as a prelude to ultimate nationalization. This was brought about under the General
insurance business (Nationalsation) Act, 1972.
Thus, effective 01/01/1973 a single holding company was created named as General
10. Insurance Corporation of India, with 4 subsidiaries to take care of the general insurance
business operation.
Brief History of the Insurance Sector
The business of life insurance in India in its existing form started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in Colkata. Some of the
important milestones in the insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with
a capital contribution of Rs. 5 crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd.,
the first general insurance company established in the year 1850 in Kolkata by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments
and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972.Nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies.
The four subsidiaries formed were as under:
1. The National Insurance Co. Ltd
2. The India Assurance Co. Ltd
3. The Oriental Insurance Co. Ltd
4. The United India Insurance Co. Ltd
11. The four subsidiary companies operated under the all direction of the GIC.Each of these had
almost a similar structure with 4 tiers
The branch at the bottom rung,
The divisional office,
Regional office and
The Head Office at the apex.
b. Growth and Present status of the industry
At present 12 companies are operating in general insurance market for direct business. The
four public sector companies mentioned above and the following companies in the private
sector. These private companies were formed after the passing of the IRDA Act, 1999. This
removed the prohibition existing in the GIBNA Act relating to formation of insurance
companies other than the four Public sector companies.
The companies in the private sector are:1. Bajaj Allianz General Insurance Co.Ltd.
2. Cholamandalam General Insurance Co. Ltd.
3. HDFC Chubb General Insurance Co. Ltd.
4. ICICI LOMBARD General Insurance Co. Ltd.
5. IFFOCO Tokyo General Insurance Co. Ltd.
6. Reliance General Insurance Co. Ltd.
7. Royal Sundaram Alliance Insurance Co. Ltd.
8. Tata AIG General Insurance Co. Ltd.
The General Insurance Corporation is now only Reinsurance Company and operates as the
National Reinsures. There are however, some companies in the market, which are formed for
a specific purpose only.
Deposit insurance company
To take care of loss suffered by the depositors of a bank.
Exports Credit Guarantee Corporation - this takes care of the credit risk, which
exporters face in respect of the goods exported.
Agricultural Insurance Corporation to take care of crop insurance and allied risks.
There are also insurance departments in some of the states.
The four public sector and the 8 private sector companies are authorized to handle direct
business as well as reinsurance business, both inward outward. The buyers of insurance
12. would be property owners, factory owners, traders, vehicle owners, commercial
establishments, professionals etc. In fact the whole population could deemed as potential
costumers for insurance of one type or another.
With the largest number of life insurance policies in force in the world, Indian insurance
sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000, far
ahead of China where insurance accounts for just 1.7 % of the GDP and even the US where
insurance penetration stands at 4 per cent of the GDP.
The time factor plays an important role while providing service to the customer. The
customer expects that the procedures for settling the claim should be short and not much time
consuming. They should get the benefits of the service as soon as possible.
Today the technology is boosting in each and every field. Insurance is not an exception.
Companies have started providing customers facility of online payment of premium through
their websites. They also provide online assistant to the customer the policy status and how to
calculate the premium. To calculate the premium they just need the present age, the type of
police, sum assured, and accident covered if any. By filling in this information you can
calculate the amount of premium you have to pay. The customer can pay their premiums by
means of credit cards or can also give standing instruction to the bank in order to pay their
monthly premiums.
The insurance companies also provide loan facilities against their policies. At present loans
are granted on unencumbered polices as: Up to 90% of the Surrender Value for policies,
where the premium due is fully paid-up, and Up to 85% of the Surrender Value for policies
where the premium due is partly paid- up.
The minimum amount for which a loan can be granted under a policy is Rs150. The rate of
interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter
than six months, or on the security of lost policies (the assured must have the duplicate
policies) or on policies issued under certain plans. Certain types of policies are, however,
without loan facility.
In the first month of financial year 2007-08, private sector insurers grew 37.34 per cent to
Rs1272.22 crore over April 2006. In the process, the market shares have further undergone a
change. Private sector has grabbed a market share of 40 per cent in the non-life insurance
business, from 34 per cent in the financial year 2006-07. Public sector market share is now
13. only 60 per cent.
c. Future of the Industry.
India's insurance sector is zooming to show an unprecedented progressive growth of more
than 200% by the period of 2009-12. The Associated Chambers of Commerce and Industry of
India has clocked out the fact that during this period, private players in the industry will see a
growth of about 140 per cent, owing to the adoption of the aggressive marketing techniques
in comparison of the growth rate of 35-40 per cent achieved by the state owned insurance
companies. The chamber is expected to poise the business of insurance to reach at Rs.2000
billions in coming 2 years from the present level of Rs. 500 billion. With the result of
adoption of the intense marketing strategies by the private players, the declination has been
witnessed in respect of the share of the state owned insurance companies captured in the
market.
The market share fallout has been noticed in context of such companies like GIC, LIC, which
have come down to nearly 70 per cent in the past 4-5 years from the 97 per cent. The experts
have fore casted the more severe competition in the insurance sector likely to be occurred in
the near future. Till recently, insurance sector was majority driven by the government sector
players but now many private sector multinational players have come into the picture. Like
HDFC, ICICI Lombard, Royal Sundram,Tata Aig,etc. Insurance sector has been
characterized as the booming sector of the Indian arena, which has shown the growth rate of
more than 15 per cent to 20 per cent. Insurance in India is put under the federal subject and is
governed by the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General
Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development
Authority (IRDA) Act, 1999 and by various other acts.
Today Insurance Companies in India have grown manifold. The insurance sector in India has
shown immense growth potential. Even today a giant share of Indian population nearly 80%
is not under life insurance coverage, let alone health and non-life insurance policies. This
clearly indicates the potential for insurance companies to grow their market in India. In 1999,
various reforms were suggested in the insurance industry in India. This has changed a lot of
things for the insurance companies in India.
These reforms were:
Bringing down of the government stake holding to 50%. Only the private companies with a
minimum capital of Rs.100 crores should be allowed to enter the insurance sector.
14. No insurance company can deal in both life and non-life insurance under the same business
entity.
Foreign Insurance Companies can enter India only in collaboration with domestic insurance
companies Interest should be paid on delays of payments by the insurance companies in case
of non-settlement of insurance claims. And many more to bring greater freedom and a wellplanned regulation to the insurance companies in India.
Though, the existing rule says that a foreign partner can hold 26% equity in an insurance
company, a proposal to increase this limit to 49% is pending with the government.
Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have
poured into the Indian market and 22 private companies have been granted licenses.
The demand for health insurance covers has seen a healthy increase, and today the sector is
the fastest growing segment in the non-life insurance industry in India, which grew at over
40% last year. It is also emerging as an increasingly significant line of business for life
insurance companies. While this rate of growth appears to be very healthy, it is on a low base,
and health insurance penetration in the country continues to be low. Only about 25 million
persons are presently covered for health through commercial insurance, in a country of over
1.1 billion people. Overall, the Indian health sector is still characterized by the near absence
of any significant risk protection against major health-related expenditure
15. PROFILE OF THE ORGANIZATION
2.1 Origin of the Organization:
The ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and
corporate finance to Indian industry. Since inception, ICICI has grown from a development
bank to a financial conglomerate and has become one of the largest public financial
institutions in India. ICICI has thus far financed all the major sectors of the economy,
covering 6,848 companies and 16,851 projects.
Lombard Canada Ltd., is a leading insurance management company responsible for
providing insurance management services for all of the Lombard group's commercial,
personal, and specialized insurance companies. Canadian owned and operated, Lombard
Canada Ltd. has its head office in Toronto and has annual sales in excess of $500 million
and is a wholly owned subsidiary of Fairfax Financial Holdings Limited (FFH on the TSF
Lombard Canada Ltd. has achieved a reputation for providing solid underwriting
performance, diversified books of business and strong capital positions.
The Joint Venture ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv
Kerkar. ICICI would hold about 74 percent stake, while Canadian insurer Lombard would
hold the maximum permissible 26 percent and commence business with a start-up capital of
Rs.100 crore. ICICl Lombard has plans to sell covers to the corporate clients of ICICl. At the
same time it will sell property insurance for ICICI home loan seekers and auto insurance for
those availing of car finance.
2.2 Growth and Development of the Organization
ICICI Lombard is the largest private sector general insurance company in India with a Gross
Written Premium (GWP) of Rs. 34,198.4 million for the year ended March 31, 2009. The
company presently has around 4,777 employees in 357 branches. In the financial year ended
March 31, 2009, the company issued over 4 million policies and serviced over 33 lakh
claims. The company has a claim disposal ratio of 97% (percentage of claims) settled against
claims reported as on March 31, 2009
16. ICICI Lombard has been assigned a domestic rating of iAAA by ICRA (an associate of
Moody’s Investors Service) for highest claim paying ability and a fundamentally strong
position. ICICI Lombard allows instant policy issuance and renewal through its website
www.icicilombard.com for all retail insurance products including Car Insurance, Health
Insurance, Travel Insurance, Two Wheeler Insurance and Home Insurance. There are
multiple payment options available including Internet banking, credit card, debit card and
cash card.
ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power
Asia Pacific in India among 11 auto insurance providers. The company has been conferred
the Golden Peacock- Eco Innovation Award of 2009 for weather insurance and the Customer
and Brand Loyalty award in the “Insurance Sector - Non-Life” at the 2nd Loyalty awards,
2009. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia
Insurance Industry Awards. The company also won the NDTV Profit Business Leadership
Award 2007 and was adjudged as the most Customer Responsive Company in the Insurance
category at the Economic Times Avaya Global Connect Customer Responsiveness Award
2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2006.
it is the largest private sector general insurance company in India with a gross written
premium (GWP) of Rs885.1 crore in 2004-2005
2007 - ICICI Lombard General Insurance Corporation has grabbed the second spot in
insurance premiums growth displacing three public sector companies earned the second
largest premium of Rs448.65 crore for April but was at top place in terms of premium growth
of 35 per cent over the corresponding period of the last financial year.
2.3 Present status of the organization
ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power
Asia Pacific in India among 11 auto insurance providers. The company has been conferred
the Golden Peacock- Eco Innovation Award of 2009 for weather insurance and the Customer
and Brand Loyalty award in the “Insurance Sector - Non-Life” at the 2nd Loyalty awards,
2009. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia
17. Insurance Industry Awards. The company also won the NDTV Profit Business Leadership
Award 2007 and was adjudged as the most Customer Responsive Company in the Insurance
category at the Economic Times Avaya Global Connect Customer Responsiveness Award
2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of
Chartered Accountants of India) for the year ended March 31, 2006.
AWARDAS AND RECOGNITION
JD Power Asia Pacific Award
ICICI Lombard Ranks Highest in Customer Satisfaction among Auto Insurance Providers in
India: J D Power Asia Pacific.
Golden
Peacock-
Eco
Innovation
Award
of
2009
for
weather
insurance
ICICI Lombard has been conferred the Golden Peacock- Eco Innovation Award of 2009 for
weather insurance.
Customer and Brand Loyalty Award 2009
ICICI Lombard wins the Customer and Brand Loyalty Award in the "Insurance Sector- NonLife" at the 2nd Loyalty Awards on January 29, 2009.
General Insurance Company of the Year
11th Asia Insurance Industry Awards 2007, Singapore
ICICI Lombard becomes the first Indian insurance company to win this prestigious award.
Brand Leadership Award – 16th Asia Brand Congress, Taj Lands End, Mumbai
Awarded the Brand Leadership Award at the 16th Asia Brand Congress held at Taj Lands
End, Mumbai from 26-27th September, 2007.
iAAA rating by ICRA
Assigned the iAAA rating by ICRA indicating highest claims paying ability and a
fundamentally strong position.
18. 2.4 Functional Departments of the Organization
Claim Settlement:
Lightning-fast claim settlement is one of the key areas of focus for ICICI Lombard. Our
dedicated Relationship Managers, wide spread network across India and presence of 24 *7
call centers assure our customers that we are always on call, day or night. Our tie-up with
Cunningham Lindsey, the worldís second largest loss adjustors with its network in 80
locations across India, ensures a surveyor on site in less than 24 hours.
Rural Initiative:
ICICI Lombard believes in striking the right balance between the commercial and socioeconomic aspects of the insurance business. In its Endeavour to offer tailor-made products to
meet the requirement of the rural population, explore business opportunities in the related
segments and build a competitive edge through strong distribution network and product
innovation, ICICI Lombard uses
Intermediaries like ICICI Banks kiosks, direct selling Agents, state-level tie-ups, ITC’s eChou pals, NGOs and other micro finance Institutions (MFIs). The rural segment offers
immense business opportunities for insurers since it constitutes 50% of the GDP. Growing
per capita and disposable income and rising financial awareness among rural masses has
opened up new avenues for insurers in this segment.
Corporate Business:
ICICI Lombard via its CSG segment aims to tap large corporate with high premium
potential. The company has emerged as a major player in the corporate segment with a wellbalanced portfolio. It has made forays into specialized products that require complex product
development and strong underwriting skills. In addition, a strong distribution has enabled it to
reach out to over 3,000 corporate. It also offers single point contact through dedicated
relationship managers for both sales and customer service.
Bank assurance
The Company has set up a dedicated SBU to cater to banc assurance business managed by
dedicated teams for each bank partner across all locations to ensure
highest levels of service to the channel and their customers and to provide complete support
and value addition to the bank partners. Our banc assurance philosophy emphasizes on
complete respect for the partner’s brand & business model with a clear understanding that the
19. partner owns the customer. The company has tied up with few partners like ABN Amro
Bank, ICICI Bank, UTI Bank etc, to ensure complete support and continuous value
addition to the partner. The business philosophy behind the banc assurance initiative is to
leverage distribution synergies with partners. The channel offers unmatched product suite
customized for bank channels and customers.
Retail
ICICI Lombard aims to tap retail segment through multi-product and multi- channel approach
to marketing. The company believes that retail segment has immense potential and will drive
the company’s growth in future. It has presence in all retail categories -- travel, health, home
and motor. It has launched a number of innovative products and features in each category like
“Pay-per-day” in Overseas Travel Insurance and floater cover for individual Health
Insurance. The key to success in this area is effective market segmentation and targeted
product offerings that meet customer needs.
E-channel
ICICI Lombard’s e-channel initiative has embraced technology with open arms. The
effective use of technology platforms has enabled customers to view all their insurance
transactions through the web on a real time basis. ICICI Lombard’s e-channel mainly focuses
on targeting customers through Internet, intranet (of large corporate and manufacturing
companies) and other national level distribution networks. The focus is on targeting
customers through the online medium. The model is to develop an integrated and customized
product platform with key partners -- ICICI Direct, ICICI Bank, preferred partners
moneycontrol.com and indiatimes.com and other websites.
Board Members
Chanda Kochhar, Chairperson
R. Athappan, Director
Sandeep Bakhshi, Director
B.V. Bhargava, Director
Dileep Choksi, Director
N.S. Kannan, Director
S. Mukherji, Director
Chandran Ratnaswami, Director
M.K. Sharma, Director
20. H.N. Sinor, Director
Bhargav Dasgupta, Managing Director & CEO
COMMITTEES
Audit Committee
Mr. S Mukherji, Chairman
Mr. Dileep Choksi, Director
Mr. James F Dowd, Director
Investment Committee
Mr. Chandran Ratnaswami, Chairman
Ms. Kalpana Morparia, Director
Mr. Sandeep Bakhshi,, Managing Director & CEO
Mr. S Gopalakrishnan, Head ñ Investments
Mr. Rakesh Jain, Head-Finance & Accounts
Board Governance Committee
Ms Kalpana Morparia, Chairperson
Mr. Chandran Ratnaswami, Director
Mr. H N Sinor, Director
2.5 Organization Structure and Organization Chart
ICICI LOMBARD .
BOARD OF DIRECTORS
WHOLESALE
RETAIL
RURAL
AGRICULTURE
21. NATIONAL SALES MANAGER
REGIONAL SALES MANAGER
AREA SALES MANAGER
UNIT SALES MANAGER
SALES
OFFICER
2.6 PRODUCT AND SERVICE PROFILE OF ORGANIZATION COMPETITORS
1. STANDRARD FIRE AND SPECIAL PERILS
FIRE:
Excluding destruction or damage caused to the property insured
a. It’s own fermentation, natural heating or spontaneous combustion.
b. It’s undergoing any heating or drying process.
c. Burning of property insured by order of non-public authority.
Lighting
Explosion and Implosion
Excluding loss, destruction of or damage.
To boilers (other than domestic boilers), Economizers or other
vessel, machinery or
apparatus (in which steam is generated) or other contents resulting from their own
explosion- implosion.
Caused by centrifugal forces.
22. Aircraft damage
Loss, destruction or damage caused by aircraft, other aerial or space devices and articles
dropped there from excluding those caused by pressure waves.
Riot, strike and malicious damage
Loss or visible physical damage or destruction by external violent means directly Caused to
the property insured.
storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation
Loss, destruction or damage directly caused by Storm, cyclone, typhoon, tempest, hurricane
tornado, flood and inundation excluding those resulting from earth quake, volcanic eruption
or other convulsions of nature.
Impact Damage
Loss of or visible physical damage or destruction cause to the property insured due to impact
by any rail road vehicle or animal by direct contact not belonging to or Owned by
The insured or any occupier of the premises or
There employees while acting in the course of there employment
Subsidence and land slide including rockslide
Loss, destruction or damage directly caused by subsidence of part of the site On which the
property stands or land slide / rockslide excluding:
The normal cracking, settlement or bedding down of new structures.
The settlement or movement of made up ground.
Coastal or river erosion.
Defective design or workmanship or use of defective materials.
Demolition, construction, structural alterations or repair of any property or ground
works or excavations.
Bursting and/or overflowing of water tanks apparatus & pipes.
Missile testing operations.
Leakage from automatic sprinkler installations.
Excluding loss, destruction or damage caused by
Repairs or alterations to the buildings or premises.
Repairs, removal or extension of the sprinkler installation.
Defects in construction known to the insured.
23. Bush Fire
Excluding loss destruction or damage caused by forest fires.
2.
BURGLARY:
The company shall compensate the insured for any loss or damage, caused by burglary, to the
contents of insured’s premises.
3.
CASH IN SAFE:
The company will compensate the insured in respect of loss of, or damage to, money and/or
valuables caused by burglary and/or attempted burglary when such money and/or valuables
are contained in a domestic safe or vault which is protected by appropriate and adequate
security measures with lock in key.
4.
CASH IN TRANSIT
The company shall compensate the insured for loss of money in coins
and/or notes caused by burglary, robbery or theft occurring while such money is in the
insured’s possession and is being conveyed by the insured to the insured’s premises from the
insured’s bank /ATM from where such money had been withdrawn immediately prior to the
occurrence.
5.
NEON SIGN /GLOW SIGN:
The company will compensate the insured in respect of loss or damage to neon sign/glow
sign belonging to the insured caused by:
Accidental external means Fire, lightning or external explosion or theft Riot, strike or
malicious act Flood, inundation, storm, tempest, typhoon hurricane, tornado, cyclone.
6.
GLASS BREAKAGE:
The company shall compensate the insured for loss or damage to any fixed glass other than
that which are specifically excluded hereunder, caused by any accidental, external and visible
means.
Health Insurance:
We save money for a better future. But life is full of surprises; a medical emergency can
strain your hard-earned investments. Now, let your savings be untouched, get secured.
Home Insurance:
Insure your home and its contents against natural calamities like fire, earthquake, flood, gas
cylinder explosion, fire due to electric short circuit as well as man-made disaster like
burglary.
24. Home Plans
Gold Plan:
The Gold plan covers much more than just your home. It offers family protection, covers loss
of cash, public liability, temporary resettlement, alternative accommodation and baggage
insurance. Other adds on offered are loan repayment for home and car and cover for
terrorism.
Silver Plan:
The Silver plan covers the structure of your home and its contents from natural and manmade calamities like fire, flood, storm and burglary. The adds on offered include expenses of
rent for alternative accommodation and terrorism.
Motor Insurance:
Your vehicle helps you reach destinations and enables you to commute from one place to
another. But it might face some damage in an accident or get stolen. The security of your copassengers can be endangered during accidents. Motor insurance takes care of all these
possibilities and more.
Motor Plans
Four Wheeler Package Policy:
A comprehensive policy that not only covers you against third party but also against
accidents, damage, injury and much more.
Two Wheeler Package Policies:
A composite policy that protects you against unfortunate accidents, third party liability,
injuries and damages.
Travel Insurance:
You do not want anything to ruin your hard earned holiday or your crucial business meeting.
There is a possibility of some unexpected occurrence no matter how perfectly you plan your
trip. Unfortunate events such as baggage loss, passport loss, a medical emergency or an
accident can affect you. Having Travel Insurance protects you from all such perils at a
fraction of the cost of your trip.
Travel Plans
Individual Overseas Plan:
25. All overseas travel policies charge premium on a slab basis. Which means if you are on a 16day trip, you end up paying for 21 days, as the slab is 14 to 21 days. But with us you pay per
day.
Student Travel Plan:
A comprehensive cover, which insures you against unfortunate incidents or unexpected
expenses abroad and provides timely assistance and support when you need it the most.
Domestic Travel Plan:
Domestic Travel policy takes care of you and your valued assets left at home. A policy that
let’s you enjoy your trip leaving your worries with us.
COMPETITORS
The National Insurance Co. Ltd
The New India Assurance Co. Ltd
The Oriental Insurance Co. Ltd
The United India Insurance Co. Ltd
Bajaj Allianz GIC Ltd.
COMPARISON FROM COMPETITORS
ICICI Lombard GIC
Competitors
Low Premium Better Service
High Premium Average Service
Competitive Discount is High
Very less Discount
Product range is vast
Limited products
Better Customer Retention
Retention is very low
No hidden Charges
Many hidden charges
Policy wordings are documented No documentation
Main focus is Revenue
Main focus is only Profit
Immediate claim settlement
Very long process
26. 2.7 MARKET PROFILE OF THE ORGANIZATION
The company is the largest private sector general insurance company in India with a Gross
Written Premium (GWP) of Rs 30,034 million for the 12 months ended March 31, 2007 with
a market share of nearly 12.4% and compounded annual growth rate of over 84% in the last
two years.
The company has over 4,770 personnel in 220 offices spread across 166 locations. From
April – March 2014, the company issued over 3.1 million policies across India and settled
over 5.9 lakh claims. The company has a claim disposal ratio of 96% (percentage of claims
settled against claims reported) as on March 31, 2014.
ICICI Lombard is the largest private sector general insurance company in India with a Gross
Written Premium (GWP) of Rs. 34,198.4 million for the year ended March 31, 2013. The
company presently has around 4,777 employees in 357 branches. In the financial year ended
March 31, 2013, the company issued over 4 million policies and serviced over 33 lakh
claims. The company has a claim disposal ratio of 97% (percentage of claims) settled against
claims reported as on March 31, 2013
Core Value System
ICICI Lombard's value system is the DNA, which molds and determines the growth and
success of the company and its employees. Strongly embedded and staunchly followed, these
values form the very core of our company's spirit.
Transparency
ICICI Lombard encourages total transparency in all channels of communication (internally
and externally) and complete accountability in customer deliverables. In November 2005,
ICICI Lombard became the first private sector general insurance company to cross the Rs. 10
billion Gross Working Profit (GWP) mark. This record target achieved manifests the trust
garnered by our employees nationwide from its customers.
Empowerment
ICICI Lombard provides you the platform to evolve from an employee to a partner in
progressive growth. Since our origin in 2001, our employees have always been empowered to
make decisions that chart their career path. We do not create jobs but build futures.
27. Passion
The passion to excel with customer focus in mind is what initiates ICICI Lombard to attain
greater milestones. This inherent principle drives our employees to set higher benchmarks of
excellence and performance.
Integrity
Integrity is about honesty, sincerity, sound moral principles, keeping promises and fulfilling
expectations. At ICICI Lombard, integrity is not limited to the organization's capacity to meet
the needs of the stakeholder but also encompasses the vision and values of everyone
involved.
Humility
True leadership in the service industry like ours requires humility to keep one's ego sublime
and to serve others. One of the key values we look for and inculcate in our employees is
humility which allows us to keep the interests of our customer and the organization before
our own and work efficiently as a team.
29. 4.1 Statement of research problem
How can one assess the market awareness of insurance products?
How can we tap this potential after assigning, through strategic marketing of services?
4.2 Statement of research objectives
To find out the customer awareness level for office insurance products.
To assess the effectiveness of company service.
To suggest remedial measures to exploit the market potential.
OPERATIOANAL DEFINATIONS:
Market:
Traditionally, market was a physical place where buyers and sellers gathered to exchange
goods. It is also a collection of buyers and sellers who transact over a particular product.
Marketing:
It is a societal process by which individual and groups obtain what they need and want
through creating, offering and freely exchanging products and services of values with others.
Marketing research:
It is a systematic and objective study of problems pertaining to the marketing of good and
services. It may be emphasized that it is not restricted to any particular area of marketing but
is applicable to its all phases and aspects.
Product:
A product is anything that can be offered to a market to satisfy a want/need. Products that are
marketed include physical goods, Services, Experiences, events, persons, properties,
organizations, information and ideas.
Brand:
A Brand is a name, term, sign, symbol, design or a combination of them intended to identify
the goods/services of one seller/group of sellers and to differentiate them from those Of
Competitors.
Distribution and its Channels:
Distribution is the process of moving goods/services form the place of production to the
marketing activities involved in the flow of goods/services from the primary producer to
ultimate consumer.
30. Accident and accidental
Means a sudden, unforeseen, and unexpected physical event beyond the control of the
Insured caused by external, visible and violent means.
Bodily injury
Means any accidental physical bodily harm but does not include any sickness or disease.
Business or business purposes
Means any full or part time, permanent or temporary, activity under taken in the premises
with a view to profit or gain.
Burglary
Means an act involving the unauthorized entry to or exit from the insured’s property or
attempt threat by unexpected, visible, forcible and violent means, with the intent to commit
an act of theft.
Bank
Means and includes bank of every description, post office and government treasury.
Contents
Means the following used for business or business purposes, so long as they are owned by the
insured and / or for which the insured legally responsible for including family of insured,
directors, partners and the like goods such as furniture, stock, machinery, equipment, fixtures,
fittings and interior decorations but excluding money, jewelry, and valuables.
Employee
Means any person employed by the insured to perform certain duties for consideration, either
expressly or impliedly in the course of employment.
Insured or insured’s
Means the person named in the policy as the policyholder and / or his family, and / or his
parents, and / or directors and / or karta of HUF, and the like.
Medical expenses
Means expenses incurred on necessary on medical or surgical treatment, services, or supplies.
Period of insurance
Means the period of time stated in the schedule for which the policy is valid.
Policy
Means insured’s proposal, the schedule, company’s covering letter to the insured, insurance
clauses, definitions, exclusions, conditions and other terms contained here in and any
31. endorsement attaching to or forming part hereof, either at inception or during the period of
insurance.
Premises
Means insured’s shop as stated in the schedule, which is used or occupied mainly for business
purposes by insured.
Schedule
Means the schedule, and any annexure to it, attached to and forming part of this policy.
Sum insured
Means and denotes the amount of cover available under each section as stated in schedule or
any revisions thereof based on claim settled, as stated in the scope of cover of the policy and,
where appropriate, as more particularly described.
4.3 Research design and methodology
TYPE OF RESEARCH
The type of research used in this project is a Descriptive research design. The major purpose
of descriptive research is a description of the state of the affairs, as it exists at present. Thus a
Descriptive study is a fact-finding investigation with adequate interpretation.
Descriptive study objectives aim at identifying the various characteristics of a company
problem under study. It can reveal potential relationships between variables with exploratory
research.
SAMPLING TECHNIQUE:
The sampling technique used is convenient sampling. It is also called as purposive sampling
or non-probability sampling.
SAMPLING DESIGN:
SAMPLING UNIT
The samples include various offices & shops in srinager and chadoora Area .
SAMPLE SIZE
The sample size for listing questionnaire of research is 100, and the sample size is broken
down in to two samples i.e. a sample size of 80 respondents from the offices and shops and
the sample size of 20 respondents from the customers.
32. SOURCES OF DATA COLLECTION:
Primary data:
The data was collected by using questionnaire and structured direct interviews, which were
separately conducted to know the market awareness and market potential.
Secondary data:
The secondary data was collected from the company reports, broachers, manuals, text books
and Internet. The customer of 20 respondents was provided by the company for assessing the
service provided by a company.
RESEARCH LIMITATIONS:
Limited sample size is taken.
33. 4.4 Analysis of data
1. Are you aware of about ICICI LAMBORD insurance?
Table1:
Particulars
No. Of respondents
Percentages
Yes
67
83.75
No
0
0
Little Bit
13
16.25
Total
80
100
Source: Field Study
No. of respondents
Yes
No
Little Bit
Interpretation:
The response given by respondents 83.75 are aware of ICICI LAMBORD insurance and
16.25 know very little about it. This clearly shows that there is no proper advertisement reach
to the people.
34. 2. If Yes, How do you come to know about ICICI LAMBORD Insurance?
Table 2:
Media
No. Of Respondents
Percentages
TV
40
50
News Paper
19
23.75
Agents
21
26.25
Total
80
100
Source: Field Study
No. of Respondents
TV
News Paper
Agents
Interpretation:
It is depicted from the chart that,
50% of respondents came to know through television.
23.75% of respondents came to know through newspapers.
26.25% of respondents came to know through agents
Major of the respondents came to know through television.
35. 3. Which factor is important in your eye for purchasing ICICI LOMBORD insurance policy?
Table 3:
Factors
No. Of Respondents
Percentages
Company
43
53.75
Premium
17
21.25
Service
20
25
Total
80
100
Source: Field Study
Interpretation:
The chart depicts that 53.75% prefer company as an important factor where as 21.25%prefer
for premium and 25% prefer service as an important factor for purchase of insurance policy.
36. 4. How many employees are there in your office?
Table 4:
Employees
No. Of Respondents
Percentages
More Than 5
53
66.25
More Than 10
17
21.25
More Than 20
10
12.5
Total
80
100
No. of Respondents
More Than 5
More Than 10
More Than 20
Interpretation:
The above chart shows that,
66.25% of respondents have more then 5,
21.25% of respondents have more then 10 and
12.5% of respondents have more then 20.
37. 5. Would you like to have office insurance?
Table 5:
Particulars
No. Of Respondents
Percentages
Yes
20
25
No
60
75
Total
80
100
Source: Field Study
80
70
60
50
Yes
40
No
30
20
10
0
No. of Respondents
Percentages
Interpretation:
Out of 80 respondents, 25% of respondents want to have office insurance policy and 75% of
respondents don’t want to have it. The above chart shows that there is a potential market for
office insurance products. Most of the respondents those who want to have office insurance
are of newly opened offices & shops.
38. 6. If yes, Which Company Services do you prefer to avail?
Table 6:
Company
No. Of Respondents
Percentages
ICICI Lombard
6
30
HDFC Chubb
0
0
New India
7
35
Oriental
3
15
United India
4
20
Total
20
100
No. of Respondents
More Than 5
More Than 10
More Than 20
Interpretation:
The chart depicts that, 30% of the respondents wants to avail services of ICICI Lombard,
35% of respondents want to prefer New India,20%of the respondents wants to prefer united
India and 15%wants to prefer services of oriental. The data shows around 30% of people are
interested in taking insurance in ICICI Lombard. It means there is an opportunity for
company to capture the market. Most of the respondents want to avail services in government
companies.
39. 7. Which type of insurance policy you would like to have?
Table 7:
Type
No. Of Respondents
Percentages
Yearly Renewal
17
85
Auto Renewal
3
15
Total
20
100
90
80
70
60
50
Yearly Renewal
40
Auto Renewal
30
20
10
0
1
2
Interpretation:
The above chart shows that 85% of respondents would like to have Yearly renewal policy
and 15% of respondents want to have Auto Renewal.
40. 8. Which product services you are planning to avail?
Table 8:
Product Services
No. Of Respondents
Percentages
Fire Insurance
10
50
Electronic Insurance
5
25
Burglary Insurance
3
15
All of Above
2
10
Total
20
100
Source: Field Study
50
45
40
35
30
25
No. of Respondents
20
Percentages
15
10
5
0
Fire Insurance
Electronic
Insurance
Burglary
Insurance
All of Above
Interpretation:
It is depicted from the chart that 50% of respondents trying to avail Fire insurance, 25% of
respondents planning to avail Electronic insurance,15% of respondents trying to avail
Burglary insurance and 10% of respondents trying to avail all Fire, Electronics and Burglary
insurance policies.
41. 9. When you are going to have new insurance policy?
Table 9:
Particulars
No. Of Respondents
Percentages
Within 15 Days
7
35
15 to 30 Days
13
65
30 to 60 Days
0
0
Total
20
100
Source: Field Study
No. of Respondents
Within 15 Days
15 to 30 Days
30 to 60 Days
Interpretation:
Out of 20 respondents, 35% of respondents wants to have insurance policy with in 15 days,
65% of respondents wants to have with in 30 days.
42. 10. How do you rate about services?
Table 10:
Opinion
No. Of Respondents
Percentages
Very Good
6
30
Good
9
45
Normal
4
20
Not Good
1
5
Total
20
100
Source: Field Study
No. of Respondents
Very Good
Good
Normal
Not Good
Interpretation:
ICICI Lombard customers rated the services are as,
30% of respondents said very well
45% of respondents said well
20% of respondents said normal and
5% of respondents said not well.
43. 11. How much premium are you paying now?
Table 11:
Amount
No. Of Respondents
Percentages
More Than 5000
4
20
More Than 10000
5
25
More Than 20000
11
55
Total
20
100
Source: Field Study
No. of Respondents
More Than 5000
More Than 10000
More Than 20000
Interpretation:
The above chart depicts that
20% of respondents paying premium more then Rs.5000,
25% of respondents paying premium more then Rs.10000 and
55% of respondents paying more then Rs.20000.
Major of the respondents are paying more then Rs.20000 are of big offices and important
customers to the company.
44. 12. Do you feel it’s really economical?
Table 12:
Particulars
No. of Respondents
Percentages
Yes
14
70
No
6
30
Total
20
100
Source : Field Study
70
60
50
Yes
40
No
30
20
10
0
No. of Respondents
Percentages
Interpretation:
Customers believed of policy economical like this,
70% of respondents said YES.
30% of respondents said NO
45. 13. Have you ever-contacted customer help desk?
Table 13:
Particulars
No. Of Respondents
Percentages
Yes
16
80
No
4
20
Total
20
100
Source : Field Study
No. of Respondents
More Than 5000
More Than 10000
More Than 20000
Interpretation:
The above chart depicts that
80% of respondents contacted customer help desk and
20% of respondents did not contact customer help desk.
46. 14. If yes, what is your opinion about customer help desk?
Table 14:
Opinion
No. Of Respondents
Percentages
Good
10
50
OK
8
40
Poor
2
10
Total
20
100
Good
OK
Poor
Interpretation:
Out of 20 respondents, 50% of respondents’ opinions about customer help desk is good, 40%
of respondents told ok and 10% of respondents told poor. Major of the respondents told they
are happy regarding the information and service provided by customer help desk.
47. 15. For what reason you dial to our customer help desk?
Table15:
Particulars
No. Of Respondents
Percentages
Product Related Inquiry
11
55
To Renew Policy
8
40
To Complaint
1
5
Total
20
100
Source: Field Study
No. of Respondents
More Than 5000
More Than 10000
More Than 20000
Interpretation:
The customers dial up to customer help desk for the following reasons:
55% customer dial up for product related enquiry
40% customers dial up for to renew policy and
5% customers dial up for file a complaint.
48. 4.5 Summary of findings
All respondents have awareness about ICICI LAMBARD insurance.
Majority of respondents told they were come to know about ICICI
insurance
through television and agents.
Majority of respondents told employees are more then 5.
Majority of respondents believe in Government owned insurance companies.
There is a market potential for ICCI Lombard office insurance products.
Majority of respondents told they are trying to avail Fire insurance and electronic
equipment insurance for their offices.
Most of the respondents said they are going to have insurance with in 15 to 30 days.
Majority of respondents told they have satisfaction with the service of the company.
and customer help disk.
Most of the customers told they dial to customer help disk for product related
enquiry.
All general insurance policies are yearly renewal policies.
Premium amount for general insurance policy is low and it is not refundable.
Majority of respondents told their paying premium is economical.
Majority of respondents are frequently contacting customer help desk.
Majority of respondents told company is the main factor for purchasing insurance
Policy.
50. 5.1 SUMMARY OF LEARNING EXPERIENCE
I went through a good learning practice in ICICI Lombard for the nearly past three
months which has developed me to heights of understanding the customers mind as
well their taste and preferences in the field of services sector. The uncertain world or
market structure existing in India has very typical way of expectation when it comes
to insurance and the institutions have realized their needs and desires and working
towards satisfying their requirements and my organization is also in its run for
customer satisfaction.. This project has opened up the new window of learning, which
enables me into the clear understanding of corporate world. The proper understanding
of customers is must when it comes to service industry and that exactly what I went
through in this period of management training period.
Tele calling: Converting all the leads given by Manager in appointments.
To make presentations with clients.
Collection previous policy details, so that we can give competitive quotation.
Preparation of customer feedback report about our company’s products and
services.
51. 5.2 CONCLUSIONS AND RECOMMENDATION
RECOMMENDATIONS
Respondents do not have enough knowledge about the insurance policies provided by the
ICICI LOMBARD. Therefore ICICI LOMBARD Company should bring awareness in the
customers.
The recommendations I would like to make are:
There is a necessity to make more advertising and
promotions by the Insurance
Company through TV, newspapers, magazines and pamphlets to make aware the
customers about the insurance provided by them.
Need for proper channel to reach to the customer.
Marketing executives and agents should maintain good communication with the
customers to create the awareness of the policies like Mediclaim, GPA (Group
personnel accidental) burglary, and other insurance policies provided by the company.
The employees should be given incentives and bonus to motivate to accomplish their
targets.
ICICI LOMBARD is concentrating only urban areas it should concentrate on semi
urban and rural areas also.
As it was found that customers preparing only Government companies for their office
insurance so create trust in costumers about private insurance companies by rendering
good services like proper claims, good response to costumer queries and maintaining
good relationship with costumers.
Building internal technical expertise requiring well –stacked library resource by way
of settled cases of claims at every zonal office is an immediate necessity.
The staff of the insurers should be encouraged to refer to these references often with a
view to bring about early settlement to the satisfaction of claimants.
52. CONCLUSION
It is concluded from the survey that all respondents are aware about office insurance and
they think they need insurance for their offices.
It is concluded from the survey that customers preparing only Government companies for
their office insurance so create trust in costumers about private insurance companies by
rendering good services like proper claims, good response to costumer queries and
maintaining good relationship with costumers.
Most of customers are using only Fire and electronic equipment insurance policies so
marketing executives and agents maintain good communication with the customers to create
the awareness of the policies like Mediclaim, burglary and GPA.
53. ANNEXURE:
1. Are you aware of ICICI LAMBORD ?
A. Yes
B. No
2. If Yes, How do you come to know about ICICI LAMBORD?
A. TV
B. Newspaper
C. Agents
3. Which factor is important in your eye for purchasing insurance policy?
A. Company
B. Premium
C. Service
4. How many employees are there in your office?
A. More than 5
B. More than 10
C. More than 20
54. 5. Would you like to have Office insurance?
A. Yes
B. No
6. If yes, Which Company Services do you prefer to avail?
A. ICICI Lombard
B. HDFC Chubb
C. Oriental Insurance
D. New India Insurance
7. Which type of insurance policy you would like to have?
A. Yearly renewal
B. Auto renewal
8. Which product services you are planning to avail?
A. Fire Policy
B. Burglary
C. Electronic equipment
D. All of the above
9. When you are going to have new insurance policy?
A. Within 15 days
B. 15 to 30 days
C. 30 to 60 days
10. How do you rate about services?
A. Very Good
B. Good
C. Normal
55. 11. How much premium are you paying now?
A. More than5000
B. More than10000
C. More than20000
12. Do you feel it’s really economical?
A. Yes
B. No
13. Have you ever contacted customer help desk?
A. Yes
B. No
14. If yes, what is your opinion about customer help desk?
A. Good
B. OK
C. Poor
15. For what reason you dial to our customer help desk?
A. Product related
B. To renew policy
C. To complaint
56. BIBLIOGRAPHY
BOOKS AND MAGAZINES
Essentials of Marketing – Reddy and Appaniah Edition 12th publication Prentice Hall
Marketing Management – Phillip Kotler, Edition 14th publication
India Today weekly 2013
Business World and Money Regulator.
News Papers
The Times of India
The Economic Times
The Business Standards
INTERNET
www.google .com
www.icicilombard.c.com
www.TheEconomist.com
WWW.Investopedia.com
www.Harvard Business Review.com
