`Summer Training Project Report On Consumer Behavior Regarding General Insurance Sector.

Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of MASTER OF BUSINESS ADMININSTRATION

Submitted by: Gourav Gour University Registration No. 10808876 DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2009)

Declaration
I here by declare that this report on Consumer Behavior has been written and prepared by me during the academic year 2009. This project was done under the able guidance and supervision of Dr. Neerja, Lovely Professional University and Mr. Satish Kumar, Branch Manager of The New India Assurance Company Ltd., jalandhar in partial requirement for master of Bussiness Administration Degree Course of the Lovely Professional University. I also declare that this project is the result of my own effort and has not been submitted to any other institution for the award of any Degree or Diploma.

Date:

Gourav Gour

ACKNOWLEDGMENT
Perhaps it is natural to every human being that when you are really thankful and sincerely want to express your gratitude towards someone, just you run out of words and you feel dearth of word in spite of a healthy vocabulary. I sincerely feel that the credit of the project work could not be narrowed down to any one individual. This treatise has been result of most important contribution from my coordinate Miss Neerja . She has been a rich personal source of inspiration and guidance his relentless and always thoughtful questioning was often critical to the honing of ideas in the project. I also express my profound gratitude and heartily thanks to our honorable Branch Manager Mr. Satish Sharma for his valuable guidance I am grateful to the teaching faculties of Lovely Professional University for providing us the moral support and motivation, which supported me throughout my way and helped boosting up my confidence. I owe a special thanks to my parents for their support to me encouraging & Helping me reaching & realizing my inner self.

Gourav Gour MBA Sem-III

TABLE OF CONTENTS

Particulars CHAPTER 1 INTRODUCTION TO THE SUBJECT

Page No. 8-12

1.1 THEORETICAL FOUNDATION 1.2 REVIEW OF LITERATURE

CHAPTER 2

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2.1 OVERVIEW OF THE INDUSTRY

2.2PROFILE OF THE ORGANIZATION

2.21 COMPANYS INTRODUCTION 2.22 RECENT ACHIEVEMENTS AND MILESTONES 2.23 PRODUCT RANGE OF THE COMPANY 2.24 PERFORMANCE OF THE COMPANY 2.25 FINANCIAL STATUS OF THE ORGANIZATION 2.26 FUTURE PROSPECTUS AND PLANS

CHAPTER 3 44-47 NATURE AND SCOPE OBJECTIVES OF THE STUDY AND RESEARCH METHODOLOGY LIMITATION OF STUDY
CHAPTER 4 4859

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

CHAPTER 5 6062

5.1 Swot Analysis 5.2 FINDINGS 5.3 RECOMMENDATIONS 5.4 CONCLUSION 5.5 BIBLIOGRAPHY APPENDIX
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Executive Summary
The subject consumer behavior regarding general insurance sector is a very wider. In this study touches some important aspects of the consumer behavior regarding public and private
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insurance companies like preference between both sector companies, factors that people keep in mind during the time of taking any policy, prefer regarding mode of premium payment and various objectives of my study are: Still near about 60% people of Punjab give the more preference to public companies to get insured. There is lot of potential in the Punjab for general insurance sector mainly in villages. Near about the 30% people have said there is no need of general insurance during the time of research. So, Most of people still are not aware about the importance and necessity of the insurance in their life. They are not aware how useful general insurance can be for their family members if something happens to them. People still consider general insurance just for security and risk cover. In this study I have also find that now people have started to take interest in private insurance companies. They have started to think beyond the issue of public and private companies because now they want better services. Now which company gives them to these things they go for that.

The study also deals with background and current scenario of insurance industry in India. This study also puts light on the History, current market position, product range, financial status, future plans etc.of The New India Assurance company Ltd . This report is supported by the actual facts and figures of Indian General Insurance Industry which is further accompanied by the research methodology used for doing a research of the General Insurance industry in India, particularly Public companies. This report contains the introduction and history of the Indian General Insurance Industry and also contains some literature work review by eminent scholars and researchers. The scope of the study is limited to Batala, Amritsar and Gurdaspur only. The methodology of the research is an exploratory in nature, as it seeks to discover ideas and insight to bring out new
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relationship. Research design is flexible enough to provide opportunity for considering different aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise The primary as well as secondary sources of data have been used for the data collection in the research. The primary data is collected through the questionnaire from the people of age group more than 18 year. Secondary data is collected by joining through company past record, internet, articles in the newspapers and journals. A thriving General insurance sector is of vital importance to every modern economy. First because it risk recover habit, second because it provides a safety net to rural and urban enterprises and productive individuals. The nature of the general insurance business is such that the cash inflow of insurance companies is constant while the payout is deferred and contingency related. The general insurance is short term insurance and the customer has renew the policy yearly. This characteristic of their business makes insurance companies the biggest investors in shortgestation infrastructure development projects in all developed and aspiring nations. This is the most compelling reason why private sector (and foreign) and public companies which will spread the insurance habit in the societal and consumer interest are urgently required in this vital sector of the economy.

CHAPTER 1
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INDUCTION TO THE SUBJECT 1.1 THEORETICAL FOUNDATON Consumer Behavior

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision processes buyer decision making process. It

studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand peoples wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Belch and Belch define consumer behavior as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires. Consumer Behavior and General Insurance Sector The subject consumer behavior regarding General insurance sector is a very wider. In this study touches some important aspects of the consumer behavior regarding General insurance sector like why people make demand of general insurance, preference between public sector general insurance companies and private sector insurance companies, factors that people keep in mind during the time of taking any policy, prefer regarding mode of premium payment etc.

1.2 REVIEW OF LITERATURE Studies on General insurance consumption dates back to Heubner (1942) who postulated that human and products security value has certain qualitative aspects that gives rise to its economic value. But his idea was normative in nature as it suggested how much general insurance to be purchased and not what will be purchased. There were no guidelines regarding the kind of general policies to be selected depending upon the consumers capacity and the amount of risk to
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be carried in the product. The ongoing discussion also reveals that individuals current income and future anticipated consumption expenditure plays a crucial role in determining the amount of general insurance purchased (we are, for a while ignoring the form in which insurance is purchased). The importance of rate of interest or the impatience factor there are qualitative factors which affects such preferences. Using the expected utility framework in a continuous time model, Yaari (1965) studied the problem of uncertain lifetime and life insurance . Including the risk of dying in life cycle model, he showed conceptually that an individual increases expected lifetime utility by purchasing fair annuities. Simple models of insurance demand were proposed by Pratt (1964), Mossin (1969), Smith (1968) and others; considering a risk averse decision maker with an initial wealth .. The results indicate that demand for life insurance varies inversely with the wealth of the individuals. Hakansson (1969) used a discrete-time model of demand for financial assets and life insurance purchase in particular to examine bequest motive in considerable detail. Headen and Lee (1974) studied the effects of short run financial market behavior and consumer expectations on purchase of ordinar life insurance and developed structural determinants of life insurance demand. They considered three different sets of variables: first, variables stimulating demand as a result of insurer efforts (e.g. industry advertising expenditure, size of the sales force, new products and policies, etc.); second, variables affecting household saving decision (e.g. disposable, permanent and transitory income, expenditure expectation, number of births, marriages, etc.) and lastly, variables determining ability to pay and size of potential markets (e.g. net savings by households, financial assets, and consumer expectation regarding future economic condition). They concluded that life insurance demand is inelastic and positively affected by change in consumer sentiments; interest rates playing a role in the short run as well as in the long run. Pissarides (1980) further extending Yaaris work proved thatlife insurance was theoretically capable of absorbing all fluctuations in lifetime income. Lewis (1989) found out that the number of dependents as an influence on the demand for life insurance. is also worth considering. Preferences over different consumption pattern vary from person to person and

To sum up, the theoretical review yields macroeconomic variables like income, rate of interest, and accumulated savings in wealth form; along with a set of demographic or social variables having potential impact on an individuals decision to opt for or not to demand insurance. Life insurance consumption increases with the breadwinners probability of death, the present level of familys consumption and the degree of risk aversion.

Doherty and Dionne (1987), found that, some Current Insurance Markets Are Troubled by the Presence of Systematic Risk Or by the Inability of the Parties to Specify the Distribution for Aggregate Loss. Such Circumstances Partly Characterize the Topical "Liability Insurance Crisis". We Compare the Performance of Alternative Vehicles for Risk Sharing Under These Circumstances. Specifically, We Show That Mutals Appear to Outperform Stock Insurance Companies When There Is Undiversifiable Risk. Pauly and Hirth (1995), proposed a guaranteed renewability (GR) insurance in which a sequence of premiums would enable insurers to break even and would be chosen by both low- and high-risk buyers, whether or not they had suffered a loss. The premium schedule would continually decline over time, as the insurer collects more information to determine who the low-risk individuals leave for the spot market. The concluding portion of the article discusses the limitations of a GR policy in the health and environmental liability area, the most serious being instability in estimates of underlying loss trends. Copyright 1995 by Kluwer Academic Publisher Zheng, Liu and Deng (1998), this paper makes a new assessment and comparison of insurance growth levels of certain countries as well as certain economic groups, and further discusses the policy implications. The main conclusions of this paper are as follows. First, it is necessary to have a new recognition of the international insurance growth pattern: the relative level of insurance growth in developed markets has declined as compared with that indicated by traditional indicators, and the relative level of insurance growth in developing markets has increased. Vuorinen, Jarvinen and Lehtine (1998), explained, the widely used strategy to cope with the

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dangers of foreign investment by hedging against potential losses is political risk insurance. All multinational corporations are subject to political risk perils. Broadly speaking, there are six different types of political risk: confiscation, expropriation and nationalization; contract repudiation and frustration; unfair regulatory environment; currency inconvertibility; contingency; and war risk. Similarly, policies available can be defined according to these six categories. Pauly and Mark(2000), in this paper discuss the theoretical and empirical findings concerning insurance reimbursement of patients or providers by insurers operating in private markets or in mixed public and private systems. Most insurances other than health insurance do not "reimburse"; instead they pay cash to insured conditional on the occurrence of a pre specified event. In contrast, health insurance ties the payment to medical expenditures or costs incurred in some fashion, often making payments directly to medical providers. Bhattacharya, Goldman and Sood (2004), explained that secondary life insurance markets are growing rapidly. From nearly no transactions in 1980, a wide variety of similar products in this market has developed, including viatical settlements, accelerated death benefits, and life settlements and as the population ages, these markets will become increasingly popular. upper-limit insurance, and proportional coinsurance. Mitu and Eduard (2007), explained that in the new context of globalization, it is apparent the growth of insurances industry. The insurance world is continuously changing. New insurance types come into sight, while the old ones are constantly revised. Most of the developed countries turned the insurance industry into a motor generator of powerful social-economic progress. Therefore, for the economic and social national environment, it appears to be more and more necessary to surpass the actual state of research and to develop a longlasting environment in which insurance specialists could have credibility and a powerfully positive influence. Plat, Pelsser and Antoon,feb(2009),explained that, Life insurance products have profit sharing features in combination with guarantees. These so-called embedded options are often dependent on or approximated by forward swap rates. However, for risk management calculations and reporting processes, lots of valuations are needed. Therefore, a more efficient method to value these options would be helpful. In this paper analytical approximations are derived for these
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kinds of options, based on an underlying multi-factor Gaussian interest rate model. Bernoth and Pick (Feb 2009), in this paper considers the issue of forecasting financial fragility of banks and insurances using a panel data set of performance indicators, namely distance-todefault, taking unobserved common factors into account.They show that common factors are important in the performance of banks and insurances, analyze the influences of a number of observable factors on banking and insurance performance, evaluate the forecasts from our model

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CHAPTER 2

INSURANCE Man is a social animal. He contributes to societys well being and gets livelihood protection from the society in which he lives. Man has always sought protection from risks which in fact compelled him to live in groups. He remained exposed to various kind of risks like death, accidents, loss of wealth, poverty etc. 1.1.1 Meaning of Insurance
Insurance is the most important aspect a novice to insurance market should be conversant with. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future. Insurances are bought in order to hedge the possible risks of the future which might/might not take place. This is a mode of financially insuring that if such a incident happens then the loss does not affect the present well-being of the person. Thus, through insurance, a person buys the future happiness and smooth living.

DEFINATION OF INSURANCE
Insurance can be defined in two ways; 1. Functional Definition 2. Legal Definition

FUNCTIONAL DEF: According to MAC GILL, insurance is a process in which uncertainties

are made certain

JHON MEGI, Insurance is a plan wherein persons collectively share the losses of the risks.

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Prof. R.S. SHARMA, Insurance is a cooperative device to spread loss caused due to a
particular risk over a number of persons exposed to it, who agree to insurance themselves against the risk.

LEGEL DEF: Like other forms of the business, the business of insurance is also based on Law
of Contract. According to Chief justice Tindal, Insurance is a contract in which sum of money is paid by the insured in consideration of the insurers incurring the risk of paying a large sum upon a given contingencies. Acc. To Britannica encyclopedia, Insurance may be described as a social device whereby a large group of individuals through a system of equitable contribution to reduce or eliminate certain measurable risks of economic loss common to all members of the group. As such all contracts of insurance, except for life insurance contract are contract of indemnity. To conclude insurance is a contract in which a person whose risk is shifted is called

INSURED and the party to whom it is shifted is called INSURER. Price consideration which
is paid by insured to insurer is called PREMIUM.

INSURANCE CONTRACT in which terms and conditions of insurance are mentioned is called INSURANCE POLICY.

INSURANCE TYPES
LIFE INSURANCE It insures the life of the person buying the Life Insurance Certificate. Once a Life Insurance is sold by a company then the company remains legally entitled to make payment to the beneficiary after the death of the policy holder. Acc. To INSURANCE ACT , 1938 sec2(2) of life insurance (Amendments) ACT 1950 , Life insurance is the business of effecting contracts of insurance upon human life including any contract whereby the payment of money is assured
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on death except death by accident on happening of any contingency dependent on human life and any contract which is subject of premium for a term dependent on human life. In simple words Life insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financial crises.In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme. MEDICAL INSURANCE This is also known as med claim. Here, the policy holder is entitled to receive the amount spent for his health purposes from the insurance company. GENERAL INSURANCE This insurance type involves insuring the risks associated with the general life such as automobiles, business related, natural incidents, commercial and residential properties, etc.

Overview of General Insurance:

General Insurance products to serve all clients in order to protect all business risk occurrence. Deductible: This is what you agree to pay when you get the insurance. This is taken whenever there are claims on the insurable. Think of this as you pay until a certain amount, then the insurance company takes over. Policy: This is the main part. It is the written contract that has the details of your insurance coverage. This also talks about the premium that you are agreeing to pay. Insurance Agent: This is the person that is authorized to actually sell you the insurance. This is the person that you are trusting.

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Adjuster: Whenever you file a claim, you will go through an adjuster. They evaluate the claim and look at all the details. Then they determine the amount that will be paid based on the relevant information. Premium: This is the amount you will be charged for your insurance policy. This is all determined by the type of coverage you choose and the amount of coverage you want. There are other factors like age, credit record, driving record, marital status and what car you drive. The premium is the aspect you want to be aware of the most. It is truly important because it controls how your finances and your insurance intersect. Need for General Insurance
General Insurance protects the people from future mishappening and risk occurrence. General Insurance
products to serve all clients in order to protect all business risk occurrence. It legally needs for every person. General Insurance secures the person from any future accident. It is also secure the third party in accident claim. People cannot worry about the future bad incident. Some unique benefits of General Insurance. Accident Claims Medical Claims Fair Claim Third Party Claim Import-export Claim Vehicle claim

History of general Insurance:

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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 17 th 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 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 be 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
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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 reinsurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

General Insurance companies

IRDA has so far granted registration to 9 general insurance companies. If the existing public sector insurance companies are 13 companies operating in general insurance business. General Insurance Corporation has been approved as the Indian reinsurer for underwriting only reinsurance business. general insurance companies including their web address is given below: GENERAL INSURERS Public Sector National Insurance Company Limited
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www.nationalinsuranceindia.com

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 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. REINSURER General Insurance Corporation of India

www.niacl.com www.orientalinsurance.nic.in www.uiic.co.in www.bajajallianz.co.in www.icicilombard.com www.itgi.co.in www.ril.com www.royalsun.com www.tata-aig.com www.cholainsurance.com www.ecgcindia.com

www.gicindia.com

Types of General insurance:

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise

to claims are known as "perils". An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). A homeowners insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of coverage for medical expenses of guests who are injured on the owner's property. Business insurance can be any kind of insurance that protects businesses against risks. Some principal subtypes of business insurance are (a) the various kinds of professional liability insurance, also called professional indemnity insurance, which are discussed below under that name; and (b) the business owner's policy (BOP), which bundles into one policy many of the

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kinds of coverage that a business owner needs, in a way analogous to how homeowners insurance bundles the coverages that a homeowner needs. Auto insurance: Vehicle insurance

A wrecked vehicle Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to or theft of your car. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy comprises six kinds of coverage. Most countries require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. In the United States, your insurance company should notify you by mail when its time to renew the policy and to pay your premium. Home insurance:

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Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances excludes certain types of disasters, such as flood and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.[12] Health: Health insurance and Dental insurance:

NHS Facility Health insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S., dental insurance is often part of an employer's benefits package, along with health insurance. Accident, Sickness and Unemployment Insurance Disability insurance policies provide financial support in the event the policyholder is unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgages and credit cards. Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work. Total permanent disability insurance provides benefits when a person is permanently disabled and
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can no longer work in their profession, often taken as an adjunct to life insurance. Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury. Casualty Casualty insurance insures against accidents, not necessarily tied to any specific property. Casualty insurance Crime insurance is a form of casualty insurance that covers the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement. Political risk insurance is a form of casualty insurance that can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loses Property insurance:

This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposes Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance. Automobile insurance, known in the UK as motor insurance, is probably the most common form
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of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. Throughout the United States an auto insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no-fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits. Credit card companies insure against damage on rented cars. Driving School Insurance insurance provides cover for any authorized driver whilst undergoing tuition, cover also unlike other motor policies provides cover for instructor liability where both the pupil and driving instructor are equally liable in the event of a claim. Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks. Boiler insurance (also known as boiler and machinery insurance or equipment breakdown insurance) insures against accidental physical damage to equipment or machinery. Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded. Crop insurance "Farmers use crop insurance to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance."[13] Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductible. Rates depend on location and the probability of an earthquake, as well as the construction of the home. A fidelity bond is a form of casualty insurance that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees. Flood insurance protects against property loss due to flooding. Many insurers in the U.S. do not provide flood insurance in some portions of the country. In response to this, the federal
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government created the National Flood Insurance Program which serves as the insurer of last resort. Home insurance or homeowners' insurance: See "Property insurance". Landlord insurance is specifically designed for people who own properties which they rent out. Most house insurance cover in the U.K will not be valid if the property is rented out therefore landlords must take out this specialist form of home insurance. Marine insurance and marine cargo insurance cover the loss or damage of ships at sea or on inland waterways, and of the cargo that may be on them. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss. Surety bond insurance is a three party insurance guaranteeing the performance of the principal. Terrorism insurance provides protection against any loss or damage caused by terrorist activities. Volcano insurance is an insurance that covers volcano damage in Hawaii. Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical cyclones. Liability insurance Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability insurance that indemnifies against the harm that a crashing car can cause to others' lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder and indemnification

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(payment on behalf of the insured) with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of wilful or intentional acts by the insured. Directors and officers liability insurance protects an organization (usually a corporation) from costs associated with litigation resulting from mistakes made by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short. Environmental liability insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants. Errors and omissions insurance: See "Professional liability insurance" under "Liability insurance". Prize indemnity insurance protects the insured from giving away a large prize at a specific event. Examples would include offering prizes to contestants who can make a half-court shot at a basketball game, or a hole-in-one at a golf tournament. Professional liability insurance, also called professional indemnity insurance, protects insured professionals such as architectural corporation and medical practice against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called malpractice insurance. Notaries public may take out errors and omissions insurance (E&O). Other potential E&O policyholders include, for example, real estate brokers, Insurance agents, home inspectors, appraisers, and website developers. Insurance companies may be classified into two groups: Life insurance companies, which sell life insurance, annuities and pensions products. Non-life, General, or Property/Casualty insurance companies, which sell other types of insurance. General insurance companies can be further divided into these sub categories. Standard Lines Excess Lines

In most countries, life and non-life insurers are subject to different regulatory regimes and
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different tax and accounting rules. The main reason for the distinction between the two types of company is that life, annuity, and pension business is very long-term in nature coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year. In the United States, standard line insurance companies are "mainstream" insurers. These are the companies that typically insure autos, homes or businesses. They use pattern or "cookie-cutter" policies without variation from one person to the next. They usually have lower premiums than excess lines and can sell directly to individuals. They are regulated by state laws that can restrict the amount they can charge for insurance policies. Excess line insurance companies (aka Excess and Surplus) typically insure risks not covered by the standard lines market. They are broadly referred as being all insurance placed with nonadmitted insurers. Non-admitted insurers are not licensed in the states where the risks are located. These companies have more flexibility and can react faster than standard insurance companies because they are not required to file rates and forms as the "admitted" carriers do. However, they still have substantial regulatory requirements placed upon them. State laws generally require insurance placed with surplus line agents and brokers not to be available through standard licensed insurers. Insurance companies are generally classified as either mutual or stock companies. Mutual companies are owned by the policyholders, while stockholders (who may or may not own policies) own stock insurance companies. Demutualization of mutual insurers to form stock companies, as well as the formation of a hybrid known as a mutual holding company, became common in some countries, such as the United States, in the late 20th century. Other possible forms for an insurance company include reciprocals, in which policyholders 'reciprocate' in sharing risks, and Lloyds organizations. Insurance companies are rated by various agencies such as A. M. Best. The ratings include the company's financial strength, which measures its ability to pay claims. It also rates financial instruments issued by the insurance company, such as bonds, notes, and securitization products. Reinsurance companies are insurance companies that sell policies to other insurance companies,
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allowing them to reduce their risks and protect themselves from very large losses. The reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer may also be a direct writer of insurance risks as well. Captive insurance companies may be defined as limited-purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups. This definition can sometimes be extended to include some of the risks of the parent company's customers. In short, it is an in-house self-insurance vehicle. Captives may take the form of a "pure" entity (which is a 100% subsidiary of the self-insured parent company); of a "mutual" captive (which insures the collective risks of members of an industry); and of an "association" captive (which self-insures individual risks of the members of a professional, commercial or industrial association). Captives represent commercial, economic and tax advantages to their sponsors because of the reductions in costs they help create and for the ease of insurance risk management and the flexibility for cash flows they generate. Additionally, they may provide coverage of risks which is neither available nor offered in the traditional insurance market at reasonable prices. The types of risk that a captive can underwrite for their parents include property damage, public and product liability, professional indemnity, employee benefits, employers' liability, motor and medical aid expenses. The captive's exposure to such risks may be limited by the use of reinsurance. Captives are becoming an increasingly important component of the risk management and risk financing strategy of their parent. This can be understood against the following background: 1) heavy and increasing premium costs in almost every line of coverage; 2) difficulties in insuring certain types of fortuitous risk; 3) differential coverage standards in various parts of the world; 4) rating structures which reflect market trends rather than individual loss experience; 5) Insufficient credit for deductibles and/or loss control efforts.

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There are also companies known as 'insurance consultants'. Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy amongst many companies. Similar to an insurance consultant, an 'insurance broker' also shops around for the best insurance policy amongst many companies. However, with insurance brokers, the fee is usually paid in the form of commission from the insurer that is selected rather than directly from the client. Neither insurance consultants nor insurance brokers are insurance companies and no risks are transferred to them in insurance transactions. Third party administrators are companies that perform underwriting and sometimes claim handling services for insurance companies. These companies often have special expertise that the insurance companies do not have. The financial stability and strength of an insurance company should be a major consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a governmentbacked insurance pool or other arrangement with less attractive payouts for losses). A number of independent rating agencies, such as Best's, Fitch, Standard & Poor's, and Moody's Investors Service, provide information and rate the financial viability of insurance company

Growth of general insurance industry:

The general insurance industry has recorded a 24.1% increase in premium collection at Rs 16,577.7 crore in the first eight months of the fiscal against Rs 13,350.1 crore during same period previous year, according to data compiled by Insurance Regulatory and Development Authority (IRDA).

The market share of new players continued to stay at 35% in the current fiscal, up from 26% last year. While 35% was contributed by the eight private players and remaining 65% came from the four public sector players New India, Oriental Insurance, National Insurance and United India.

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ICICI Lombard grew premium collection by over 90% to Rs 2,078.6 crore in the AprilNovember period followed by Bajaj Allianz General Insurance, which saw 35.3% increase in premium income at rs. 1158.8 crore. Market leader New India grew business by 10% to Rs 3,337.1 crore in April-November, the highest premium collection by any company during the period. Clocking 13.6% growth, Oriental Insurance collected Rs 2,647.8 crore in premium, while National Insurance witnessed a mere 5.06% growth in business at Rs 2,311.6 crore during the period. United India increased premium collection by 12.3% to Rs 2,093 crore. Among the private players, Reliance General posted a record growth in premium of 419.53% at Rs 100.25 crore during the period under review.

Landmarks of general insurance:

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 .

Different Market sharer of general insurance:

FTM rank Apr-09 1 2 Company National Insurance New India Insurance
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Private market share In % 8.10 35.74

3 4 5 6 7 8 9 Others Total Private Public Total market

Oriental General Insurance United India Bajaj Allianz General ICICI Lombard IFFCO-TOKIO Reliance General Tata AIG General Insurance

17.16 4 10.06 6.42 1.2 4.78 3.38 9.16 35 % 65 % 100.00%

In general insurance public sector has 65 percent and private sector has 35 percent share in India. In public sector The New India Assurance is largest company which share is near about 35.74 % in the Indian market and second largest general insurance company is oriental Assurance .The private sector largest company in India is Bajaj Allianz General Insurance.

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PROFILE OF ORGANIZATION HEAD OFFICE ADRESS:

The New India Assurance Building, 87,M.G. Road,Fort,Mumbai-400 001 Website:www.niacl.com

Chairman-cum-Managing Director: B.Chakrabarti Directors:

1) Tarun Bajaj 2) T.S.Narayanasami 3) Sarat Pattanayak 4) N.S.R. Chandra Prasad 5) A.R. Sekar

General Manager:
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1) J.K. Gupta 2) V.Jayaprakash 3) I.S. Phukela 4) Mrs. Asha Nair 5) S.Gopalkrishnan

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INTRODUCTION TO THE NEW INDIA ASSURANCE COMPANY LIMITED

New India Insurance:

Founded by the House of Tata Founder member - Sir Dorab Tata, The New India Assurance Company came into being on July 23, 1919 and is today, ranked as number 1 insurance company in the Indian market. Consequent to passing of the General Insurance Business Nationalization Act in 1972, wherein 21 Foreign and 11 Indian Companies were amalgamated, The New India Assurance was one of them. It was nationalized in 1973. The company is credited with a lot of firsts in its 90 years of service. A pioneer in satellite insurance, it holds a large number of offices, both in India and abroad. The New India Assurance Company boasts of having highly skilled personnel and a total of 1068 fully automated offices, across India. With a superior capital position, strong operating performance and strong market position as its base, The New India Assurance has become the sole company to extend noteworthy operations, in the international forum. Initiated its overseas operations in 1920, the company has gone a long way, since then. Presently, the company is functioning in 24 countries such as Japan, U.K, Middle East, Fiji, Australia, and so on, with a network of 19 branches, 12 agencies, 2 each of associate companies and subsidiary companies.

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Features:
It was the first company to set up an Aviation Insurance Department, in 1946. It was the first company to handle the Hull Insurance requirements of the Indian Shipping Fleet. It was the first company to establish its own Training School. It was the first company to introduce the concept of 'Model Office Training'. It was the first company to create department in Engineering insurance. It was the first domestic company to be rated 'A-' (Excellent) by an International Rating Agency Rating, A.M.Best & Co (Europe). It was the first Indian non-life company to cross Rs. 5000 crores Gross Premium.

Present Position:
The New India Assurance Company overseas premium is recorded at Rs. 892.35 crores in the year 2004-05, (more than 80% of total overseas premium in India). In India, it has 26 Regional Offices, 393 Divisional Offices, 614 Branches and 34 Direct Agent Branches. In terms of financial status in India, the gross premium of The New India Assurance Company stands at Rs. 5017.20 crores ( as per 2006-07), as against Rs. 4791.49crores in the year 2005-2006. Assets Rs. 27444.57crores as on 31st March 2007. Network of Offices-26 Regional Offices, 393 Divisional Offices, 614 Branches and 34 Direct Agent Branches. Rank No. 1 in the Indian market. Largest Non-Life insurer in Afro-Asia excluding Japan. First Indian non-life company to cross Rs. 5000 crores Gross Premium. Global Re-insurance facilities. Over-seas presence in countries like Japan, U.K, Middle East, Fiji and Australia.

International Presence:
Overseas operations commenced in 1920. Operations in 24 countries in the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs. 892.35 crores in the year 2004-05, which accounts for more than 80% of total overseas premium in India.
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Strength of the company:

Largest number of Offices - In India and Abroad Trained and technically qualified staff 1068 fully computerized offices across India. "A-" (Excellent) rating by A.M.Best & Co (Europe) First domestic company to be rated by an International Rating Agency Rating based upon following factors: Superior capital position Strong operating performance Strong market position Only company to develop significant International operations, long record of successful trading outside India.

Pioneers of the company:

First company to set up an Aviation Insurance Department in 1946. First company to handle the Hull Insurance requirements of the Indian Shipping Fleet. First company to establish its own Training School. First company to introduce the concept of 'Model Office Training'. First company to create department in Engineering insurance. Citizens charter

Our Mission:
To develop general insurance business in the best interest of the community. To provide financial security to individuals, trade, commerce and all other segments of the society by offering insurance products and services of high quality at affordable cost

Our Values:
Highest priority to customer needs. High standards of public conduct. Transparency in operations. Our Commitment to the citizens We will respond to all commercially viable general insurance requirements of the citizens, including products for weaker sections of the society at affordable price within three months from the date on which such a requirement is received. 35

We will ensure issuance of 100% of documents within a period of seven days. We will ensure that prospectus of the various insurance products are provided to the customers and the extent of coverage is explained for his choosing the appropriate product. A written proposal will be obtained from the insured wherever necessary and accordingly the policy will be prepared.

We will settle all claims within a time schedule envisaged hereunder: A. Personal line insurance claims within 30 days on completion of all requirements. B. Property claims within 30 days on completion of all requirements. C. Liability claims within 30 days on completion of process of law.

We will promote customer education in general insurance products/services by holding workshops in various centers. We will open a customer service cell in all ROs/DOs in addition to the existing 'May I Help You' counters. We will set up proper grievance redressal mechanism in every operating office and will educate the clients about the same including the system of grievance redressal thorough ombudsman.

On request to the policy issuing office, we will make available to a customer, the status of his claim and/or claim settlement details within seven working days. We will adhere to the IRDA guidelines in protecting the policyholders' interest.

Products & Services:

Personal
Pravasi Bharatiya Bima Yojana Policy Personal Accident Policy Householders Policy Motor Policy Money Insurance Rasta Apatti Kavach (Road Safety Insurance) TV/VCR/VCP Insurance 36

Mobile/Cellular Phone Insurance Other Personal Insurance Commercial Jewellers Block Policy Bankers Indemnity Policy Shopkeepers Policy Marine Cargo Policy Plate Glass Insurance Special Contigency Policy Neon Sign Insurance Multi Peril Policy for L.P.G. Dealers Fidelity Guarantee Insurance Policy Marine Hull Policy Aviation Insurance Industrial Fire Policy Burglary Policy o Machinery Breakdown Policy

Electronics Equipment Policy Consequential Loss Policy Contractors All Risk Policy Marine cum Erection / Storage cum Erection Policy Advanced Loss of Profit / Delay in Startup Policy Contractor Plant and Machinery Policy Mega Package Policies Liability Public Liability Policy Products Liability Policy Professional Indemnity Policy Directors and Officers Liability Policy 37

Lift (Third Party) Insurance Employers' Liability Policy Carrier's Liability Insurance Liability Insurance Act Policy Golfers Indemnity Insurance Social Universal Health Insurance Scheme Jan Arogya Bima Policy Raj Rajeshwari Mahila Kalyan Yojana Bhagyashree Child Welfare Policy Janata Personal Accident Insurance Student Safety Insurance Ashrya Bima Yojana Rural Insurance Credit Business Credit Shield (Domestic Risks) Business Credit Shield (Export Risks)

Performance of company:
For the sixth consecutive year, the Company has been rated as "A-" (Excellent) by M/s. A.M. Best Europe Ltd. The rating reflects Company's excellent risk adjusted capitalisation, prospective improvement in underwriting performance and its leading business profile in the direct insurance market in India. A partially off-setting factor is the Company's reliance on investment income which counter balances underwriting losses. But the outlook is stable. A.M. Best believes the Company's risk adjusted capitalisation is excellent and anticipates that it will remain sufficient to absorb the likely growth in the net premium. Further it also expects that there will be a reduction in the combined ratio in the years to come. The Company is likely to maintain its leading business position as the largest direct insurer in India, despite increased competition from private players.
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39

Workforce of the company:

Employee Strength (as on 01.01.2009) Total Number of Employees 4754 2899 9793 2148 391 19985

Category Class I Class II Class III Class IV P. T. S. Total

Function Supervisory Development Force Clerical/Secretarial Substaff/Drivers

Financial Status:
GROSS DIRECT PREMIUM:
Percentage change over previous year: 5.18 4.71 Gross Direct Premium in India has increased from Rs. 5017.20 Cr. in 2006-07 to Rs. 5276.91 Cr. in 07-08 recording a growth of 5.18% as against 4.71% growth registered during 2006-07. The growth in business, in the backdrop of de-tariffing of Fire, Engineering, Motor OD and W.C. business during the year, which resulted in substantial reduction in the premium rates in these classes of business

40

may be considered satisfactory. Marine business (Cargo + Hull) has increased by 36% and Companys market share has reasonably improved in this line of business Health business in India has increased from

41

Rs.765.29 Cr. in 06-07 to Rs.1209.42 Cr. in 07-08 owing to increase in premium rates and an increase in market share of the Company. Foreign (Direct) business has marginally declined from Rs. 919.57 Cr. to Rs. 874.55 Cr. Company has continued to be the market leader during 07-08 in India. With global premium having crossed Rs. 6000 Cr., the Company has crossed yet another milestone during 2007-08..

NET PREMIUM (GLOBAL) Percentage change over previous year: 3.42 9.42 The Net Premium grew from Rs.4751.76 Cr. to Rs. 4914.28 Crs. (i.e. by Rs. 162.52 Crs.) with a stable retention ratio of 79.89% in the current year, against previous years ratio of 80.04%.

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Domestic: The company has procured a Gross Direct Premium of Rs. 5,276.91 crores from domestic market during 2007-08 as against premium of Rs. 5017.20 crores procured in the previous year, registering a growth of 5.18%. Companys growth is to be viewed in the context of dwarfing of Fire, Engineering and Motor (Own Damage) business segments during 2007 08 which resulted in softening of premium rates. The Company has set up a target of Rs. 5,700.00 crores for the year 2008-09 at a targeted growth rate of 8%. The premium rates in Fire, Engineering and Motor own damage segments have been reduced considerably after the complete detariffing in these segments, which is likely to affect the growth despite overall industrial growth. Butthe Company is sanguine about retaining the existing clientele and getting the patronage of non- clients as well, in the prevailing detariffed regime. Further the Company expects another year of reasonable growth in Health segment due to increase in market demand, upward revision of premium rates and introduction of new customized products. Another area of growth is likely to be in the retail sector wherein the Company intends to market in abig way. This segment is likely to grow rapidly due to increase in income of middle class and new value proposition given to the growing distribution channels like Banc assurance, Brokers, and Corporate Agency by way of setting up specialized offices with focused approach. Moreover the current low premium rates in property insurance are expected to improve and stabilize during the year 2008-09. Foreign:
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The premium objective for 2008-09 is Rs.1257 crores (Gross) against completion of Rs.1143.63 crores and Rs. 1000 Crores (Net) against completion of Rs. 932.07 crores.

FUTURE PROSPECTUS AND PLANS

The organization use the New software Regarding fast working process. The organization open new branches in villages and cities. The organization recruit New class -1 officers. Previous claims sorted fastly.

CHAPTER 3 OBJECTIVES OF STUDY AND RESEARCH METHODOLOG 3.1Meaning of research

Research is the search for knowledge. Its an art of science investigation discover the hidden trust. Its the movement from the known to the unknown to discover real fact. Systematized efforts to gain new knowledge. Redman & Mory

3.2 OBJECTIVES OF THE STUDY

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To find out the customer preference between public and Private Insurance Sector. To find that which factors people keep in their mind at the time of getting general insurance policy. To find out how general insurance sector has been developed from starting to till date and who are the major players of this sector. To analyze the past and current position of The New India Insurance company ltd. To learn the general insurance polices To learn the procedure fills the cover note.

3.3 Nature and Scope of the study

The study is mainly limited to the three major cities/towns Gurdaspur, Amritsar, Batala of the Punjab. The study also covers the analysis of different products offered by The New India Assurance company limited and market position of the company market position of different players of public and private sector companies (i.e. market share of different players).

3.4 SOURCE OF DATA

The primary as well as secondary sources of data has been used for the data collection in the research. The primary data is collected through the questionnaire from the people of age group more than 18 year. Secondary data is collected by joining through company past record, internet, articles in the newspapers and journals. Moreover, I have given the first preference to collection of data through primary source due to the following reasons: Primary source contains latest data.
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Secondary data may have some sort of errors during transcription. Primary source provides data with greater details.

3.5 METHODOLOGY OF REARCH

(A) SAMPLE SIZE About one hundred people whom age is more than 18 year were asked to fill questionnaire in order to know responses and priorities. Research is done around cities of Punjab. The geographical distribution of sample is given below.

Sr No. 1 2 3

City/Town Gurdaspur Amritsar Batala

No. of People 20 40 40

(B) SAMPLING TECNIQUE

Convenience sampling technique is used in sampling but keeping in view to those whose age is more than 18 year .

(C) METHOD 0F DATA COLLECTION

Questionnaires are asked to fill in order to collect the data from the respondents. The method is chosen mainly because of the speed, accuracy and other benefits added to this particular method.

(D) TOOLS OF DATA COLLECTION

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A structure questionnaire is used as an aid to collect data. The questionnaire included close ended, multiple choice and ranking questions, which can very well bring out the responses from the respondents.

(E) DATA ANALYSIS

The collected data is statistically analyzed using various analysis techniques such as percentage analysis, cross tabulation and ranking etc.

3.4 LIMITATIONS OF THE STUDY

Due to the time and financial constraints, the research is limited to the few areas of Punjab only. Some of the respondents were less co-operative. They did not show any interest in filling the questionnaire. They had taken this work just as wastage of time Some respondents did not know the English language very well, it also leads to inaccurate responses. Personal biasness is also one of the major limitations of the study because some people who are related to public sector they give more importance to public sector and those who are engaged in private sector they give more weight age to private sector without considering the advantages and disadvantages of both sectors.

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CHAPTER 4

4.1DATA PRESENTATION, ANALYSIS AND INTERPRETATION 1. Which Insurance Policy do you have?
POLICY TYPE NO. OF RESPONDENTS LIFE POLICY 52 52 SHARE (%)

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NON LIFE POLICY BOTH

17 31

17 31

INTERPRETATION
52% of the respondents have Life Insurance Policy and 17% have general insurance while 31% have both.

2. Which sector you would like to insured? (a) Public

RATIONALS: The question was put forward in order to know the preference of people about the companies through which they want to be get insured.

(b) Private

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RESULT Out of 100, 65% of respondents like the public sector companies i.e The new India ass.com. Ltd. and remaining 35% respondents like the private sector insurance companies.

INTERPRETATION: It can be interpreted from above results that public sector insurance companies have a very strong faith in the market of Punjab as comparative to private sector insurance companies.

3. Which feature of your insurance policy attracts you to buy it? RATIONALS: To know about which factor is attracted consumer to buy insurance policy.
FEATURE Larger Risk Coverage Easy Access to Agents Low Premium
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NO.OF RESPONDENTS 37 7 30

SHARE (%) 37 7 30

Companys Reputation TOTAL

26 100

26 100

INTERPRETATION 37 percent of the respondents choose larger risk coverage as the most attracting feature to buy a general insurance policy, while 26 % of the people choose Companys reputation, 30 % choose low premium and the rest for Easy access to agents 4. From which of the following companies you have invested your money to buy policy?

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(a) Bajaj Allianz General (b) The New India Assurance Company Ltd. (c) National Insurance (d) ICICI Lombard (e) Others RATIONALS: This question is put forward in order to know the market here of public sector companies. RESULT: 48% of the respondents invested in The new India assurance company ltd. 28% of the respondents invested in National Insurance. 4% of the respondents invested in AVIVA. 4% of the respondents invested in Bajaj Allianz General. 6% of the respondents invested in ICICI Lombard. 10% of the respondents invested in Others.

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INTERPRETATION: It can be interpreted from above results that in public sector insurance companies The New India Assurance co. ltd has the most strongest position in Punjab. National Insurance has also a good position in the market of this region. 5. Through which medium you came to know about the New India Assurance Company(i.e. source of advertisement)? (a) Electronic Media (b) Printed media (c) Others RATIONALS: This question is put forward in order to know ,which is strongest medium of advertisement that provide the information about the private insurance companies to the people. RESULT: 60% of the respondents came to know through the electronic media. 20% of the respondents came to know through the print media.
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20% of the respondents came to know through the other medium.

20
20% 60%

INTERPRETATION:

It can be interpreted from above results that people give most preference to T.V. as a source of information. So, insurance companies should make attractive T.V ads to promote their products. 6. According to you, whose services are better?

(a) Public Sector

RATIONALS:

(b) Private Sector

This question is put forward in order to know the respondents regarded whose services are better. RESULTS: 60% of the respondents choose the public sector companies services as the best. Remaining 40% like the private sector companies.

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INTERPRETATION: It can be interpreted from above results that most of the people believe that insurance services of public sector are better than private sector.

7. Which mode of payment do you prefer for premium? (a) Cash RATIONALS: This question is put forward in order to know that which mode of payment people like most. RESULTS: 65% people like cash as mode of payment of mode. 20% people like cheque as mode of payment 15% people like draft as mode of payment. (b) Cheque (c) Draft

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INTERPRETATION:

It can be interpreted from above results that cash payment is the most convenient mode of payment for the people. This tendency of people of Punjab can help to insurance companies in time savings and quick payments of claims and mature funds. 8. How did you buy an insurance?

BUYING PROCESS

NO. OF RESPONDENTS

SHARE (%)

Customer approached Insurance company/Agent Company/agent approached customer Total

44

44%

56

56%

100
56

100%

 INTERPRETATION: 44 % of the respondents approached the Insurance Company / Agent. Whereas, 56 % of the respondents were approached by the Company /Agent.

9. Are you satisfied with the services of organization? RESPONSE NO. OF RESPONDENTS Satisfied Not satisfied Not Responded Total 45 55 0 100 45% 55% 0.0% 100% SHARE (%)

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INTERPRETATION 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded.

10. Can the tag of Public or Private Limited would make any difference in insurance sector after 10 years? (a) Yes RATIONALS: This question is put forward in order to know that strength of brand image of private insurance sector is increasing among people or not (b) No (c) Dont know

RESULTS:
Still 40% people think that also after 10 years tag of public & private will matter in insurance industry.
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On the other hand 30% people think after 10 years tag of public, private will not matter in insurance industry. Remaining 30% people tick the do not know option.

INTERPRETATION: After making this analysis we can interpret that there is almost an equal responses of the people that the tag of the company will matter or not in the future. LIMITATIONS OF GENERAL INSURANCE SECTOR After doing the research and making the analysis of the getting results the following limitations of insurance sector are come out: Lack of awareness among people: This is the biggest limitation in this sector. Most of people are not aware about the importance and necessity of the insurance

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in the general. They are not aware how useful general insurance can be for their family members if something happens to them.. Some time general Insurance does not give claim easily: So people dont believe in general assurance companies . Lack of awareness of general insurance policy: People still today are not aware about how the general insurance protect or secure the people from future mishappening. Increased competition: Today 13 general insurance companies are working in the market including Private companies that has made the competition very stiff. Today each and every company is trying to increase their insurance Advisors so that they can increase their reach in the market.

CHAPTER 5
5.1 SWOT ANALYSIS

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STRENGHTS 1. The Polices offered by The New India Assurance Company Ltd are Excellent . 2. The New India Assurance Company Provides a wide range of polices for each section of society i.e for both rich and medium class and younger and older . 3. The New India Assurance companys offices are in foreign. 4. The New India Assurance company is a very Sound company in general insurance sector. 5. Working procedure is very fast.

WEAKNESS 1. The New India lags behind from its competitors in the field of advertisement. 2. The New India does not have enough branch offices in comparison to its competitors. 3. Marketing strategies of The New India Assurance Company are weak.

OPPURTUNITIES 1. The New India Assurance has a lot of market to explore which still insured. 2. The New India Assurance can do their business more successfully if they improve their marketing policies.

THREATS 1. The New India Assurance has to face a lot of competition from its existing rival companies. 2. The New India Assurance has to develop its faith in people as till date most of the people trust on other companies. 3. Many more new players are entering the general Insurance business providing more competition for The New India Assurance.

Findings
Still near about 60% people of Punjab give the more preference to public companies to get insured. There is lot of potential in the Punjab for general insurance sector mainly in villages.
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Near about the 30% people have said there is no need of general insurance during the time of research. So, Most of people still are not aware about the importance and necessity of the insurance in their life. They are not aware how useful general insurance can be for their family members if something happens to them.

People still consider insurance just for security and risk cover. In this study I have also find that now people have started to take interest in private insurance companies. They have started to think beyond the issue of public and private companies because now they want better services. Now which company gives them to these things they go for that.

RECOMMENDATIONS AND SUGGESTIONS

The public Sector general insurance companies should reposition their products in a better way by adding few attributes to their products. Office in every major city/town will help companies as it will the confidence of people and they premium in these companies. Mostly insurance buyers are service conscious, so service of these public sector companies should be the better .. Insurance business depends a lot on the insurance agents/consultants. Advertising through electronic media i.e T.V. must be helpful. Also wall advertisement may be very fruitful. Printed media of advertisement is also proved very helpful where electronic media does not reaches. Like Banners, Posters etc. in every village, town must help to grab the attention of people. Gifts or incentives scheme should be there for general advisors/agents. Who show to job, so as to motivate them to do the best in future.

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 After every month, there should be meeting by the companies, as it helps to solve any problem faced by them. Public companies should offer sponsorship to various helpful events from time to time. This would certainly enhance the brand image plus an impetus to the sale.

CONCLUSION
Over the past three years, around 13 companies have expressed interest in entering the sector and many foreign and Indian companies have arranged anticipatory alliances. The threat of new players taking over the market has been overplayed. As is witnessed in other countries where liberalization took place in recent years we can safely conclude that nationalized players will continue to hold strong market share positions, but there will be enough business for new entrants to be profitable. Opening up the sector will certainly mean new polices premium are very less, and improved customer service. Both new and existing players will have to explore new distribution and marketing channels. Potential buyers for most of this insurance lie in the middle class. New insurers must segment the market carefully to arrive at appropriate products and pricing. Recognizing the potential, in the past three years.

BIBLIOGRAPHY

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Reference to book
Insurance Institute of India (2009) , IC-33 Insurance, Universal Publishers Ltd, Mumbai.

Reference to web pages www.insurance.com www.irda.com www.niacl.com www.marketreseaech.com www.moneycontrol.com

indiainsured.blogspot.com/2007/12/general-insurance.htm www.managementparadise.com/forums/financial-management-fm/41825- The New India-insurance.html www.indiahousing.com/the-new-india.html

www.generalinsurance.com

APPENDIX QUESTIONNAIRE on Consumer Behavior of general assurance sector .

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Dear Sir/Madam, We are conducting a survey on Consumer Behavior study of The New India Assurance company ltd. by Insurance organizations. We hope for your kind coordination. Name: Age: Sex: Male [ ] Female [ ] Name and address of the organization: . Contact Number: .. E-mail address: ..

Q1:Which insurance policy do you have? (a) Life insurance (b)Non life insurance (c)Both

Q2: If yes then which sector you would like to insured? (a) Public (b) Private

Q3:Which feature of your policy attracted you to buy it? (a) Low premium (b)Larger risk coverage (e) other

(c) Reputation of company (d)Easy access to agent

Q4: From which of the following companies you have invested your money to buy policy? (a) Bajaj Allianz General

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(b) THE NEW INDIA ASSURANCE COM. LTD. (C) NATIONAL INSURANCE (d) ICICI Lombard
(e) Others

Q5: From which medium you came to know about the companies (i.e. source of advertisement)? (a) Electronic Media (b) Printed media (c) others Q6: According to you, whose services are the better ? (a) Public Sector (b) Private Sector

Q7: Which mode of Premium do you prefer?

(a) Cash

(b ) Draft

(c) Cheque

Q8:How has/would you bought/buy an insurance? (a)Customer approached insurance cos (b)Insurace cos approached customer Q9: Are you satisfied with the services of organization? (a)Yes (b) No

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Q10: Can the tag of Public or Private Limited would make any difference in insurance sector after 10 years? (a) Yes (b) No (c) Dont know

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