K.vaghani

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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.

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• 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

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• 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

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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.

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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

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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.

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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.

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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.

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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

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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.

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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.

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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

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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

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ORGANISATION CHART
PROMOTE
R
CEO
NATIONAL
HEAD
STATE
HEAD
BRANCH
MANAGER

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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

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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.

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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.

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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

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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
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

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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.

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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.

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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
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
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
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
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
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:
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
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
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
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:
respondents are says that general insurance is compulsory while 14%
respondents are not agreed.

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:
respondents are go for to cover risk and 28% are not agree to cover risk.

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
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:
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
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:
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
Q.6 Settlement of claims by private sector general insurance companies
is faster than public sector general insurance companies
Frequency Percent
Agree 98 49.0
Disagree 41 20.5
Total 200 100.0
INTERPRETATION:
respondents are agree that private company give you good service rather than public,
20.50% respondents are disagree.

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:
respondents are reliable with public company while 23% respondents are
reliable with private company.

46
Q.8 I am satisfied with the time required for settlement of the claims.
Frequency Percent
Agree 26 13.0
Disagree 77 38.5
Total 200 100.0
INTERPRETATION:
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
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:
initially 8% respondents are see brand image while purchasing,28.5%
respondents are consider low cost and 41.5% respondents are consider quick

48
Q.10 I am aware about various scheme of general insurance product.
Frequency Percent
Agree 28 14.0
Disagree 97 48.5
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
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:
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
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:
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

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
compulsory
44.2% 39.3% 43.5%
% of Total 38.0% 5.5% 43.5%
46-60 Count 35 8 43

52
compulsory
20.3% 28.6% 21.5%
% of Total 17.5% 4.0% 21.5%
>=61 Count 16 1 17
compulsory
9.3% 3.6% 8.5%
% of Total 8.0% .5% 8.5%
Total Count 172 28 200
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
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
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
Cases
Valid Missing Total
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
risk
Yes Count 132 12 144
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
to cover risk
87.5% 12.5% 100.0%
% of Total 24.5% 3.5% 28.0%
to cover risk
90.5% 9.5% 100.0%
% of Total 90.5% 9.5% 100.0%

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
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
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
Cases
Valid Missing Total
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
risk
Yes Count 14 121 9 144
Expected Count 15.8 118.8 9.4 144.0
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
to cover risk
14.3% 78.6% 7.1% 100.0%
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
to cover risk
11.0% 82.5% 6.5% 100.0%
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)
2 .619
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
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
Cases
Valid Missing Total
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
expected count is .52.

59
Decision:
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
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
Cases
Valid Missing Total
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
compulsory
56.4% 43.6% 100.0%
% within satified by the
insurance company
86.6% 85.2% 86.0%
% of Total 48.5% 37.5% 86.0%
No Count 15 13 28
compulsory
53.6% 46.4% 100.0%

61
% within satisfied by the
insurance company
13.4% 14.8% 14.0%
% of Total 7.5% 6.5% 14.0%
compulsory
56.0% 44.0% 100.0%
% within satisfied by the
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)
1 .780
Continuity Correctionb
.005 1 .941
Fisher's Exact Test .839 .468
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
Decision:
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
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
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
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.

K.vaghani

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