(FOLLOWING SHOULD BE MENTIONED ON BLACK COVER PAGE)

PROJECT REPORT ON

“STUDY ON GENERAL INSURANCE COMPANIES

PRODUCTS”

IN

EDELWEISS FINANCIAL SERVICES LTD.

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

OF

MASTER OF MANAGEMENT STUDIES

BY

SIDDHESH ASHOK VARERKAR

ROLL NO 2016239

MMS-II (SEM III)

YEAR 2016- 2018

 LALA LAJPATRAI INSTITUTE OF MANAGEMENT
MAHALAXMI, MUMBAI – 400034

PROJECT REPORT ON

“STUDY ON GENERAL INSURANCE COMPANIES

PRODUCTS”

IN

EDELWEISS FINANCIAL SERVICES LTD.

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

OF

MASTER OF MANAGEMENT STUDIES

BY

SIDDHESH ASHOK VARERKAR

ROLL NO 2016239

MMS-II (SEM III)

YEAR 2016-2018
LALA LAJPATRAI INSTITUTE OF MANAGEMENT
MAHALAXMI, MUMBAI - 400034

SUMMER INTERNSHIP PROJECT

SUBMITTED BY

SIDDHESH ASHOK VARERKAR

ROLL NO – 2016239

MMS – II (SEM III)

YEAR 2016 - 2018

COLOURED XEROX OF THE INTERNSHIP CERTIFICATE GIVEN
BY THE COMPANY
 Certificate

This is to certify that the project work titled “ STUDY ON GENERAL

INSURANCE COMPANIES PRODUCTS” is a summer internship
work carried out by SIDDHESH ASHOK VARERKAR

The project was completed for “EDELWEISS FINANCIAL SERVICES

LTD.”, under the guidance of Mr. GOPIKRISNAN NAIR & ASHIM
CHAKRABORTY

I further certify that the said work has not been submitted in the part or in
full, to any other University.

Date:

_____________________
__________________________

Dr. M. Gowri Shankar Dr V.B. Angadi

Project Guide Director
 DECLARATION

I, SIDDHESH ASHOK VARERKAR, student of Lala Lajpatrai Institute

of Management of MMS II (Semester III) hereby declare that I have
completed the summer internship project on “ STUDY ON GENERAL
INSURANCE COMPANIES PRODUCTS” with “EDELWEISS
FINANCIAL SERVICES LTD.” in the Academic year 2016 - 2018. The
information submitted is true & original to the best of my knowledge.

Name of the student

 ACKNOWLEDGEMENT

At the outset of this project, I would like to express my profound thanks to a

few people without whose help, completion of this project would not have
been possible.

First and foremost, I would like to express sincere thanks to EDELWEISS

FINANCIAL SERVICES LTD. for giving me this opportunity to work with

them.

The list is endless but to name a few special people, I would like to thank
Mr. GOPIKRISNAN NAIR & ASHIM CHAKRABORTY for being extremely
supportive and guiding me throughout my internship and giving me constant
motivation and expert advice.

I would also like to thank the entire General Insurance Department for
providing me their precious time and making this internship a successful
learning experience.

I am very grateful to Dr. Angadi, Director of Lala Lajpat Rai Institute of

Management, for giving me the opportunity to do this project in
EDELWEISS FINANCIAL SERVICES LTD.

I would also like to thank Dr. for being an excellent mentor and
helping me whenever I approached him/her.

Last but not the least; I take pride in thanking my parents Mr. Ashok D.
Varerkar & Mrs. Anjana A. Varerkar, siblings and friends for their much
valued support.

METHODOLOGY
The methodology of the study includes the selection of study/survey of
library references and the compilation of the primary and secondary data and
information obtained through structured questionnaires, and certain book
references and articles studied. The methodology of the study is to give brief
overview of STUDY ON GENERAL INSURANCE COMPANIES
PRODUCTS
Research methodology is done by collecting all sorts of information and data
pertaining to the subject in question.

The primary data has been collected with the help of knowledge acquired
from internet, books, newspapers and other forms of social media and
internship done in Edelweiss Financial Services Ltd.

EXECUTIVE SUMMARY

Insurance is not the sale of products, but servicing customers.

It is a system, by which the losses suffered by a few are spread over many, Exposed to
similar risks. Insurance is a protection against financial loss arising: on the happening of
an unexpected event. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring public and the
Insurance Companies act as trustees to the amount collected. The very fundamental
principle of spreading of the risk is actually practiced by the insurance companies by
reinsuring the risks that they have insured. The opening up of the Insurance Sector to
Private Companies, has made available more products and world class service to Indian
Customer.
This project has been made with an objective to give an insight into various facts of
General Insurance sector in India.
An attempt has been made to explain the apex body of General Insurance. i.e. General
Insurance Corporation of India, its structure, products and subsidiaries.

Also the review of latest entrants into insurance sector viz private players like TATA AIG
General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz
General Insurance Company, IFFCO Tokio General Insurance Company, Royal
Sundaram General Insurance Company limited and ICICI Lombard General Insurance
Company have been described in brief, Due to the growth in the technological sector of
the country, the insurance companies have started utilizing these technologies to it’s
optimum level. A case study based on the devastating Mumbai floods on 26 th July 2005 is
been prepared and facts of the case are being listed along with the effect of the particular
situation on the General Insurance Companies is been justified.

INDEX

Serial no. Topic Page no.

1 Introduction
2
The Role And Importance Of Insurance
 3

4
5

6 Edelweiss Group

9 Competitors

10 General Insurance Products

11

12

13

14

15

16

17 Questionnaire

18 Bibliography

INTRODUCTION

INSURANCE:
Insurance is a means of protection from financial loss. It is a form of risk
management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, or
insurance carrier. A person or entity who buys insurance is known as an insured or
policyholder. The insurance 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 the insured in the event of a covered loss. The loss may
or may not be financial, but it must be reducible to financial terms, and must involve
something in which the insured has an insurable interest established by ownership,
possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insured will be financially compensated. The amount
of money charged by the insurer to the insured for the coverage set forth in the insurance
policy is called the premium. If the insured experiences a loss which is potentially
covered by the insurance policy, the insured submits a claim to the insurer for processing
by a claims adjuster.

Insurance policies, a contract between the policyholder and the insurance company, are of
different types depending on the risk they mitigate. Broad categories include life, health,
motor, travel, home, rural, commercial and business insurance.

The Insurance Regulatory and Development Authority, an agency of the Government of

India, is the regulatory body for the insurance sector's supervision and development in
India.

WHAT IS INSURANCE?

It is a commonly acknowledged phenomenon that there are countless risks in every

sphere of life for property, there are fire risk; for shipment of goods. There are perils of
sea; for human life there are risk of death or disability; and so on the chances of
occurrences of the events causing losses are quite uncertain because these may or may
not take place. Therefore, with this view in mind, people facing common risks come
together and make their small contribution to the common fund. While it may not be
possible to tell in advance, which person will suffer the losses, it is possible to work out
how many persons on an average out of the group, may suffer losses. When risk occurs,
the loss is made good out of the common fund .in this way each and every one shares the
risk .in fact they share the loss by payment of premium, which is calculated on the
likelihood of loss .in olden time, the contribution make the above-stated notion of
insurance

DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium is
paid by the insured in consideration of the insurer’s bearings the risk of paying a large
sum upon a given contingency. The insurance thus is a contract whereby:

a. Certain sum, termed as premium, is charged in consideration,

b. Against the said consideration, a large amount is guaranteed to be paid by
the insurer who received the premium,
c. The compensation will be made in certain definite sum, i.e., the loss or the
policy amount which ever may be, and
d. The payment is made only upon a contingency

More specifically, insurance may be defined as a contact between two parties, wherein
one party (the insurer) agrees to pay to the other party (the insured) or the beneficiary, a
certain sum upon a given contingency (the risk) against which insurance is required.
TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of present day
economic system. The different type of insurance have come about by practice within
insurance companies, and by the influence of legislation controlling the transacting of
insurance business, broadly, insurance may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and

b) General insurance

2. Classification on the basis of nature of insurance

a. Life insurance
b. Fire insurance
c. Marine insurance
d. Social insurance, and
e. Miscellaneous insurance

3. Classification from risk point of view

a. Personal insurance
b. Property insurance
c. Liability insurance
d. Fidelity general insurance
THE ROLE AND IMPORTANCE OF INSURANCE
Insurance has evolved as a process of safeguarding the interest of people from
loss and uncertainty. It may be described as a social device to reduce or eliminate risk of
loss to life and property.

Insurance contributes a lot to the general economic growth of the society by

provides stability to the functioning of process. The insurance industries develop
financial institutions and reduce uncertainties by improving financial resources.

Provide safety and security:

Insurance provide financial support and reduce uncertainties in business and
human life. It provides safety and security against particular event. There is always a fear
of sudden loss. Insurance provides a cover against any sudden loss. For example, in case
of life insurance financial assistance is provided to the family of the insured on his death.
In case of other insurance security is provided against the loss due to fire, marine,
accidents etc.

2. Generates financial resources:

Insurance generate funds by collecting premium. These funds are invested in
government securities and stock. These funds are gainfully employed in industrial
development of a country for generating more funds and utilised for the economic
development of the country. Employment opportunities are increased by big investments
leading to capital formation.

3. Life insurance encourages savings:

Insurance does not only protect against risks and uncertainties, but also provides
an investment channel too. Life insurance enables systematic savings due to payment of
regular premium. Life insurance provides a mode of investment. It develops a habit of
saving money by paying premium. The insured get the lump sum amount at the maturity
of the contract. Thus life insurance encourages savings.

4. Promotes economic growth:

Insurance generates significant impact on the economy by mobilizing domestic
savings. Insurance turn accumulated capital into productive investments. Insurance
enables to mitigate loss, financial stability and promotes trade and commerce activities
those results into economic growth and development. Thus, insurance plays a crucial role
in sustainable growth of an economy.

5. Medical support:
A medical insurance considered essential in managing risk in health. Anyone can
be a victim of critical illness unexpectedly. And rising medical expense is of great
concern. Medical Insurance is one of the insurance policies that cater for different type of
health risks. The insured gets a medical support in case of medical insurance policy.

6. Spreading of risk:
Insurance facilitates spreading of risk from the insured to the insurer. The basic
principle of insurance is to spread risk among a large number of people. A large number
of persons get insurance policies and pay premium to the insurer. Whenever a loss occurs,
it is compensated out of funds of the insurer.

7. Source of collecting funds:

Large funds are collected by the way of premium. These funds are utilised in the
industrial development of a country, which accelerates the economic growth.
Employment opportunities are increased by such big investments. Thus, insurance has
become an important source of capital formation

Insurance benefits society by allowing individuals to share the risks faced by many
people. But it also serves many other important economic and societal functions. Because
insurance is available and affordable, banks can make loans with the assurance that the
loan’s collateral (property that can be taken as payment if a loan goes unpaid) is covered
against damage. This increased availability of credit helps people buy homes and cars.
Insurance also provides the capital that communities need to quickly rebuild and recover
economically from natural disasters, such as tornadoes or hurricanes.
Insurance itself has become a significant economic force in most industrialized
countries. Employers buy insurance to cover their employees against work-related
injuries and health problems. Businesses also insure their property, including technology
used in production, against damage and theft. Because it makes business operations safer,
insurance encourages businesses to make economic transactions, which benefits the
economies of countries. In addition, millions of people work for insurance companies and
related businesses. In 1996 more than 2.4 million people worked in the insurance industry
in the United States and Canada. Insurance as an investment that offers a lot more in
terms of returns, risk cover & as also that tax concessions & added bonuses

Not all effects of insurance are positive ones. The possibility of earning insurance
payments motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would think of arson, the
willful destruction of property by fire, as a potential source of money.
INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY OF INDIA
Insurance Regulatory and Development
Authority of India (IRDAI) 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.

What We Do!

IRDA’s Mission

Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the
Mission of IRDA as “to protect the interests of the policyholders, to regulate, promote
and ensure orderly growth of the insurance industry and for matters connected therewith
or incidental thereto”

Functions and Duties of IRDA

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

 Registering and regulating insurance companies

 Protecting policyholders interests
Licensing and establishing norms for insurance intermediaries
 Promoting professional organisations in insurance
 Regulating and overseeing premium rates and terms of non-life insurance covers
 Specifying financial reporting norms of insurance companies
 Regulating investment of policyholders’ funds by insurance companies
 Ensuring the maintenance of solvency margin by insurance companies
THE INSURANCE INDUSTRY TODAY

Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services businesses—
including insurance, banking, and securities trading—the roles, products, and services of
these formerly distinct businesses have become blurred. For instance, citizens in the U.S.
state of California voted in 1988 to allow banks to sell insurance in that state. In Canada,
banks may also soon be allowed to sell insurance.
Advances in communications technology have also allowed traditionally distinct
financial businesses to keep instantaneous track of developments in other businesses and
compete for some of the same customers. Some insurance companies now offer deposit
accounts and mortgages. In the United States, life insurance companies now sell more
pension plans and other asset management services than they do conventional life
insurance.
Developments in computer technology that have given insurance providers the
ability to quickly access and process information have allowed them to custom-design
policies to fit the needs of individual customers. But the increasing complexity of policies
has also made some aspects of buying and selling insurance more difficult.
In addition, improvements in geological and meteorological technology have the
potential to change the way property insurers calculate risks of damage. For example, as
scientists improve their abilities to predict severe weather patterns, such as hurricanes,
and geological disturbances, such as earthquakes, insurers may change how they provide
protection against losses from such events
EVOLUTION OF INSURANCE IN INDIA

The marine insurance is the oldest form of insurance. If we trace Indian history
there are evidence that marine insurance was practiced here about three thousand years
ago. The code of Manu indicates that there was the practice of marine insurance carried
out by the traders in India with those of Srilanka, Egypt and Greece .it is wonderful to see
that Indians had even anticipated the doctrine of average and contribution. Fright was
fixed according to season and was then very much at the mercy of the wind and other
elements. Travellers by sea and land were very much exposed to the risk of losing their
vessels and merchandise because of piracy on open seas and highway robbery of
caravans was very common. The practice of insurance was very common during the rule
of Akbar to Aurangzeb, but the nature and coverage of the insurance in this period is not
well known. It was the British insurer who introduced general insurance in India in the
modern form. The Britishers opened general insurance in India around the year 1700 .the
first company known as the sun insurance office was set up in Calcutta in the year 1710.
This was followed by several insurance companies like London assurance and royal
exchange assurance (1720), Phoenix Assurance Company (1782). Etc. General insurance
business in the country was nationalized with effect from 1st January 1973 by the
General Insurance Business (Nationalization) Act, 1972. More than 100 non-life
insurance companies including branches of foreign companies operating within the
country were amalgamated and grouped into four companies, viz., the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta,
Bombay, New Delhi and Madras, respectively.
 INSURANCE INDUSTRY:
CLASSIFICATION

INSURANCE

LIFE INSURANCE GENERAL INSURANCE

Fire Insurance Marine Insurance Mediclaim Motor Vehicle

 SOME PLAYERS IN THE INDUSTRY:
Life Insurance
Life Insurance Corporation of India.
Edelweiss Tokio Life Insurance
New Entrants
ICICI Prudential Life Insurance Ltd.
Tata AIG Life Insurance Corporation Ltd.
ING Vysya Life Insurance Corporation Ltd.
Om Kotak Mahindra Life Insurance
Corporation Ltd.
General Insurance
General Insurance Corporation of India.
1. Oriental Insurance Company Ltd.
2. New India Assurance Company Ltd.
3. National Insurance Company Ltd.
4. United India Insurance Company Ltd.
Edelweiss General Insurance Broking
Bajaj Alliaz General Insurance Company Ltd
Reliance General Insurance Company Ltd..
Tata AIG General Insurance Company Ltd
 4 I’s of Insurance Service

The 4 I’s refers to the different dimensions/ characteristics of any service. Unlike pure product,
services have its own characteristics and its related problems. So the service provider needs to
deal with these problems accordingly. The service provider has to design different strategies
according the varying feature of the service. These 4 I’s not only represent the characteristics of
different services but also the problems and advantages attached to it.

These 4 I’s can be broadly classified as:

• Intangibility
• Inconsistency
• Inseparability
• Inventory

• Intangibility:
Insurance is a guarantee against risk and neither the risk nor the guarantee is tangible. Hence,
insurance rightly come under services, which are intangible. Efforts have been made by the
insurance companies to make insurance tangible to some extent by including letters and forms

• Inconsistency

Service quality is often inconsistent. This is because service personnel have different
capabilities, which vary in performance from day to day. This problem of inconsistency in
service quality can be reduced through standardization, training and mechanization.

• Inseparability
Services are produced and consumed simultaneously. Consumers cannot and do not separate the
deliverer of the service from the service itself. Interaction between consumer and the service
provider varies based on whether consumer must be physically present to receive the service.
 • Inventory
No inventory can be maintained for services. Inventory carrying costs are more subjective and
lead to idle production capacity. When the service is available but there is no demand, cost rises
as, cost of paying the people and overhead remains constant even though the people are not
required to provide services due to lack of demand.
In the insurance sector however, commission is paid to the agents on each policy that they sell.
Hence, not much inventory cost is wasted on idle inventory. As the cost of agents is directly
proportionate to the policy sold.
 COMPETITORS
Public Sector Subsidiaries

I. Oriental Insurance Company

The Oriental Insurance Company Ltd. is a public sector general insurance company of
India. The headquarters of the company are located in New Delhi. It has 30 regional offices and
more than 1800 active branches across the country. The company also has branches in Nepal,
Kuwait, and Dubai. The company had recorded a gross premium of Rs. 7282.54 crores in the
financial year 2013-2014. For the Financial year 2016-17, the Company procured a global
premium of Rs. 11,100 crores. The Company offers more than 170 General Insurance products.
The IRDA Registration No. of the Company is "556"

The Oriental Insurance Company Ltd. (OICL) is one of the leading General Insurance
companies in India and is a subsidiary of the General Insurance Corporation (GIC) of India. It is
one of the oldest Insurance. If companies and was established in the year 1947. The Company
transacts all kinds of non-life insurance business ranging from insurance covers for very big
projects to small rural insurance covers.

Reinsurance connections are spread all over the world. The Company has a very high
reputation in the Reinsurance market.
OICL specializes in devising special covers for large projects like Power Plants, Petro-
chemical, Steel Plants and chemical plants. It has a highly technically qualified and competent
team of professionals, to render the best customer service. The Company has a dedicated project
cell at the Head Office as well as major cities of India. A special R & D team has been dedicated
to bring out special innovative covers like Stock-Brokers' Policies, Special Package Policies etc.

MISSION
• To develop general insurance business in the best interest of the community.
• To provide financial security y to individuals, trade and commerce by offering insurance
products and service of high quality at affordable cost

Oriental Insurance Company Ltd Products:

The various products can be grouped under the following categories:

• Individuals/Family
• Marine
• Professionals
• Business/Office/Traders
• Engineering/Industry
• Agriculture/Sericulture/Poultry
• Animals/Birds
• Aviation
• Motor Vehicle – Private/Commercial
• Health-Mediclaim/Overseas Mediclaim/Personal Accident

II. The New India Assurance Company

The New India Assurance Co. Ltd., based in Mumbai, Maharashtra is one of the
five Wholly Government of India owned assurance companies of India.[4] It is the "largest
general insurance company of India on the basis of gross premium collection inclusive of foreign
operations". It was founded by Sir Dorabji Tata in 1919, and was nationalised in 1973.

Previously it was a subsidiary of the General Insurance Corporation of India (GIC). But
when GIC became an re-insurance company as per the IRDA Act 1999, its four primary
insurance subsidiaries New India Assurance, United India Insurance, Oriental
Insuranceand National Insurance got autonomy.

New India Assurance operates both in India and foreign countries. In the recent past it has
collaborated with some of the leading public sector bank of India and Financial Institutions to
increase its distribution network.

Global premium of ₹18,371 crore in the year 2015-16. Assets ₹62,880 crore as on 31
March 2016. New India Assurance is the first Indian non-life company to reach ₹18,000 crore
global gross premium.

The domestic gross premium procured for the period 2015-16 was ₹15,149 crore and
direct claim paid amounted to record ₹13,098 crore. The insurer posted PAT (Profit After Tax) in
excess of ₹828 crore. The company paid a dividend of ₹250 crore to the Government of India
for the fiscal 2015-16.

The state owned company's achievements include :

 1) Market leadership position for four consecutive decades.

2) The ratio of available solvency margin to required solvency margin standing at 2.3
times(Global).

3) Total net worth of Rs.28,895 crores.

4) Total assets - crossed Rs.61720 crores.

5) Only Indian General Insurance Company to have presence in 28 countries.

III. The National Insurance Company

Since incorporation in the year 1906, National Insurance~ Company has been carrying out
general insurance business under private management until 1972, the year of its nationalization.
In the same year 22 foreign and 11 Indian Insurance Companies were amalgamated with
National Insurance Company Limited, as a subsidiary company of General Insurance
Corporation of India

Headquartered in Calcutta it has an organizational network of over 964 offices with

around 20,077 trained workforces. The company also has operations in Hong Kong and Nepal
and ranks among the top global business insurers. Later on in 2002, with the passage of
Insurance amendment Bill (2002), National Insurance Company has been delinked from GlC
and. has been functioning as an independent company
Its product range includes motor vehicle insurance; fire insurance on buildings and other
assets; various crime covers like burglary and theft of cash; machinery breakdown cover for
industrial equipment; transit damage cover for imported or exported goods; as well as legal
liability cover.
Professional indemnity and directors and officer’s liability covers are some of the new
covers. NICO General Insurance seeks to attract clients and intermediaries and flexibility in
claims settlements, and at the same time ensuring that we do not erode shareholder value. The
objective is to add value to the shareholders' funds whilst ensuring customer satisfaction? The
strength of NGI is in its balance sheet.
NICO General Insurance views the future and its prospects as extremely bright, exciting
and rewarding for staff, clientele and shareholders alike.

IV. United India Insurance Company

 United India Insurance is one of the four subsidiaries of the General Insurance Company
carrying on general insurance business with its head office at Chennai. Later on in 2002, with
the passage of Insurance amendment Bill (2002), United India Insurance has been Del inked
from GIC and has been functioning as an independent company.
UI spans the country with a network of 1123 offices and manpower of Over 21,000
employees. The organizational structure comprises 22 regional offices, 327 divisional offices..,
and 777 branch offices, supported by 21,505 employees. ICRA has maintained the iAAA rating,
indicating the claims paying ability of United India Insurance (UII) to be of the highest order.
The rating takes into consideration the favorable prospects for the domestic general insurance
industry following the deregulation of the sector.
UII continues to be a dominant player in the Indian insurance industry, with an overall
market share of 25% and a leadership position in the southern markets. UII is a Pioneer of
Personal Insurance Products in India who specializes in non-life insurance products including
Medical and Accident Insurance. It enjoys a market share of over 25 percent of the non-life
insurance sector in India.

PRIVATE COMPANIES

I. Bajaj Allianz General Insurance Company

Allianz AG:
Allianz group was founded in 1890 and is one of the world's leading insurance companies
with over 100 year's experience in insurance and related services. It is also the largest insurer in
Europe. Allianz group has multi-local structure and presence in over 70 countries. The key
business areas of Allianz group include General Insurance (property, engineering, marine,
motor, casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance,
Asset Management and Pension Funds Management.

Bajaj Auto Ltd.

Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as Bachraj
Trading Corporation. Initially it started by assembling two and three wheelers in collaboration
with Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelers
acquired the brand name of Bajaj. The strength of the company lies in its strong brand image
and ability to offer value for money products leveraging on its large-scale operations.

The Joint Venture

 Bajaj Allianz General Insurance a joint venture non-life company promoted jointly by
Bajaj Auto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26%
in the Joint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham
Norris is the CEO of the company. Bajaj Allianz General Insurance will leverage the customer
base and expertise of Bajaj Auto Ltd and Allianz.
Bajaj Allianz General Insurance received an Insurance Regulatory and Development
Authority of India (IRDAI) certificate of registration on 2 May 2001 to conduct general
insurance business, including health insurance, in India. In the first year of its operations the
company had 36 offices and around 100 employees. The company started its operations with a
paid up capital of ₹1.10 billion. Bajaj Finserv Limited holds 74% and the remaining 26% is
held by Allianz SE. Bajaj Allianz is headquartered in Pune with offices in over 200 cities in
India and more than 3,500 employees as of 2015.
The Company lists 97 filed and approved products, of which 27 are health products.

II. ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is one of the leading private sector
general insurance companies in India. It is engaged in general insurance, reinsurance, insurance
claims management and investment management.[2] The company has a Gross Written
Premium (GWP) of Rs 109.60 billion(FY 2017). The firm offers policy insurance and renewal
through its intermediaries and website. It markets assurance products including Car
Insurance, Health Insurance, International Travel Insurance, Overseas Student Travel
Insurance, Two Wheeler Insurance, Home Insurance and Weather insurance.[3] ICICI Lombard
has 249 branches spread across the nation.

ICICI

ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by .Providing project and corporate
finance to Indian industry.
Since inception, ICICI has grown from a development bank to a financial conglomerate
and has become one of the largest public financial institutions in India. ICICI has thus far
financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects.
Lombard
Lombard Canada Ltd., is a leading insurance management company responsible for
providing insurance management services for all of the Lombard group's commercial, personal,
and specialized insurance companies. Canadian owned and operated, Lombard Canada Ltd. has
its head office in Toronto and has annual sales in excess of$500 million and is a wholly owned
subsidiary of Fairfax Financial Holdings Limited (FFH on the TSF Lombard Canada Ltd. has
achieved a reputation for providing solid underwriting performance, diversified books of
business and strong capital positions

The Joint Venture

ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv Kerkar. ICICI would
hold about 74 percent stake, while Canadian insurer Lombard would hold the maximum
permissible 26 percent and commence business with a start-up capital ofRs.100 crore. ICICl
Lombard has plans to sell covers to the corporate clients of ICICl. St the same time it will sell
property insurance for ICICI home loan seekers and auto insurance for those availing of car
finance.

Financials
ICICI General’s Gross Written Premium (GWP) was Rs 109.60 billion in fiscal 2017. The
company maintained its market leadership in the private sector with an overall market share of
8.4%. The company witnessed an increase in policy volumes by 12.21% from 15.80 million in
fiscal 2016 to 17.73 million in fiscal 2017. ICICI General’s profit before tax increased from Rs
7.08 billion in fiscal 2016 to Rs 9.10 billion in fiscal 2017. ICICI General’s profit after tax
increased from Rs 5.07 billion in fiscal 2016 to Rs 7.02 billion in fiscal 2017. In fiscal 2016,
ICICI Bank sold a 9.0% stake in ICICI General to its joint venture partner, Fairfax Financial
Holdings, at a company valuation of Rs 172.25 billion. Following the transaction, the share
ownership in ICICI Lombard General Insurance Company of ICICI Bank and Fairfax
Financial Holdings Limited is approximately 64% and 35%, respectively.
 Tata AIG General Insurance Company Limited
TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and with an annual
turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown
over years that it is a value driven company and has" pioneering contributions in various fields
including insurance, activation, iron and steel. Tata companies have forged a number of global
alliances with eminent international partners in several fields. In terms of capital market
performance as many as 40 listed Tata companies account for nearly 5% 6fthe total market
capitalization of all listed companies.

TATA Group in Insurance

The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a
group company incorporated way back in 1919.
Government of India took over the management of this company as a part of Nationalization of
general insurance companies in 1972. Not deterred by the move, Tata group have ventured into"
risk management services having tied up with AIG group, back in 1977, with the incorporation
of Tata AIG Risk Management Services Pvt. Ltd.
AIG
“American Insurance Group is the leading U.S. based international insurance and financial
services organization and the largest underwriter of commercial and industrial insurance in the
United States. Its member companies write a wide range of commercial and personal insurance
products through a variety of distribution channels in over 130 countries and jurisdictions
throughout the world.
AIG's global businesses also include financial services and asset management, including
aircraft leasing, financial products, trading and market making, consumer finance, institutional,
retail and direct investment fund asset management, real estate investment management, and
retirement savings products.

The Joint Venture

Tata AIG General Insurance Co. Ltd. has a start-up capital of Rs. 125 crores of which 74
per cent has been brought in by Tata Sons and American partner brings in the balance 26 per
cent.
Tata -AIG plans to be the first Indian insurance company to offer a comprehensive policy
to cover various risks in the IT sector, risk arising out of virus, cyber crime, negligent acts, errors
and omissions and third party liability from a security failure. Other products on offer are
property, casualty, marine, directors and officer’s liability, accident and health, homeowners and
automobile insurance.
 Reliance General Insurance Company
Limited
Reliance Group

Reliance 'Group is India's largest business house has annual sales turnover of Rs. 41,280
crore (US$ 9,003 million) and has posted a net profit of Rs. 2,940 crore (US $ 641 million) for
the 12-month period ending June 30, 2000. The Group has total assets of Rs. 52,100 crore and
net worth of Rs. 22,415 crore. It has a large investor base of over 5 million, as well as a large
customer base in retail (textiles, LPG, Cellular phones, etc.) and commercial segments.

Reliance Industries Limited, India's largest private sector enterprise, is a, major player in the
Indian petrochemicals sector. Relianc6~s operations capture value addition at every stage from
producing crude oil and gas to polyester and polymer products and are vertically integrated to the
production of textiles. Reliance has one of the largest marketing networks in the Indian Industry.
All its brands are market leaders.

Reliance General Insurance Company Limited

Reliance group has announced its plans to enter the Indian insurance sector- both in the
life and general insurance businesses'. Reliance Industries plans to bring in around Rs. 300
Crores into its insurance venture through its financial arm Reliance Capital Ltd.

Reliance group will be the lead investor for this initiative. The two companies will have an initial
authorized capital of Rs.200 crores (US $ 43.62 million) each. This is the first application from
an Indian company without a foreign insurance tie-up. However, Reliance will associate with
international insurance consultants to bring the best practices in the business to India.
 Company Profile

Edelweiss Group

The Edelweiss Group is a diversified financial services with headquarters in Mumbai,

India. It is not backed up by any major conglomerate.

The firm has five major businesses: capital markets, credit, asset management, life
insurance, and commodities. Its main focus is on credit. specifically mortgages for housing and
loans for agriculture. The firm has 237 offices in 128 cities, including 8 offices outside India. The
firm has a client base of 887,000 and employee strength of 6,227. It also has a strong network of
more than 4,700 sub-brokers and authorised persons.

The parent company of the group is Edelweiss Financial Services Limited, founded by
Rashesh Shah, who is also the Chief Executive Officer (CEO) and Chairman. Along with wife,
Vidya Shah, he holds 27% stake in the Group while co-founder Venkat Ramaswamy holds 10%
stake.

The Edelweiss Group is one of India's leading diversified financial services company
providing a broad range of financial products and services to a substantial and diversified client
base that includes corporations, institutions and individuals. Edelweiss's products and services
span multiple asset classes and consumer segments across domestic and global geographies. Its
businesses are broadly divided into Credit Business (Wholesale Credit comprises of Structured
Collateralised Credit to Corporates, Real Estate finance and Distressed Assets Credit Retail
Credit comprises of housing finance, loan against property, LAS, SME and Agri Finance,
and Rural Finance), Non-Credit Business (Capital Markets, Wealth Management, Asset
Management and Agri Services) and Life Insurance. The Balance Sheet Management Unit
operations manage the liquidity and Balance Sheet. Edelweiss has an asset base of over INR
32,000 crore with revenue of INR 5,316 crore and net profit of INR 414 crore for FY16. Its
consistent performance is evidenced by a PAT (excluding insurance) CAGR of 38% over the last
four years.
The group’s research driven approach and proven history of innovation has enabled it to
foster strong relationships across all client segments. The group has sizeable presence in large
retail segment through its businesses such as Life Insurance, Housing Finance, Mutual Fund and
Retail Financial Markets. It serves its 887,000 strong client base through 6,227 employees based
out of 237 offices (including nine international offices) in 122 cities. Together with over 4,500
strong network of Sub-Brokers and Authorized Persons, Edelweiss group has presence across all
major cities in India.
Board of Directors

Rashesh Shah, Chairman and CEO - Edelweiss Group

Venkat Ramaswamy - Executive Director, Edelweiss Financial Services

Himanshu Kaji - Executive Director and Group COO

Rujan Panjwani - Executive Director, Edelweiss Group

Ms. Vidya Shah, Non- Executive Director

Mr. Kunnasagaran Chinniah, Independent Director

Mr. P N Venkatachalam, Independent Director

Mr. Berjis Desai, Independent Director

Mr. Sanjiv Misra, Independent Director

Mr. Navtej S. Nandra, Independent Director

Mr. Biswamohan Mahapatra, Independent Director

Leadership Team

Rashesh Shah, Chairman and CEO, Edelweiss Group

Venkat Ramaswamy, Executive Director, Edelweiss Financial Services

Nitin Jain, CEO, Global Asset & Wealth Management, Edelweiss Financial Services

Vikas Khemani, President & CEO, Edelweiss Securities Limited

Ravi Bubna, President and Co-Head Credit and Fixed Income, ECL Finance

Himanshu Kaji, Executive Director and Group COO, Edelweiss Group

Rujan Panjwani, Executive Director, Edelweiss Group

S. Ranganathan, President and CFO, Edelweiss Financial Services Limited

Deepak Mittal, MD & CEO, Edelweiss Tokio Life Insurance

Anil Kothuri, President & CEO, Edelweiss Retail Finance Limited

Hemant Daga, CEO, Global Markets

Approach
Edelweiss is future-ready. The company has already made proactive business investments to
service emerging customer needs on the one hand, and enhance stakeholder value on the other.

Diversification:
Over the years, Edelweiss progressively widened its services basket by moving into
adjacent business spaces. Edelweiss was a purely capital market-focused player a few years ago;
this business accounts for only about a third of its revenues today. As Edelweiss continues to
broad base revenues, a rising proportion of growth will be derived from its Credit, Asset
Management, Commodities and Insurance businesses.

Strong and liquid balance sheet:

Edelweiss possessed a balance sheet size at the end of FY 15 of over INR 270 Bn with a
net worth of over INR 35 Bn. Edelweiss focuses on low gearing that provided the organisation
with sufficient headroom to fund growth without compromising its balance sheet integrity. With
the significant growth in balance sheet size in the recent years, one focus has been on
diversifying the sources of borrowings and adding liabilities matching the tenure of assets.

Risk management:
Edelweiss’ risk mitigation practices are strengthened through timely investments in
people, processes and IT capabilities on the one hand, and credible governance practices
stewarded by an industry-renowned Board on the other. Edelweiss follows an eight risk
framework covering all the aspects of possible risks that the organization faces.

People:
Edelweiss cultivates a culture of entrepreneurship and ownership among its people. The
Group continues to invest in developing leadership and managerial talent across the organization
through a four-tier system of identifying, nurturing and mentoring leaders. Fountainhead,
Edelweiss’ state-of-the-art leadership centre in Alibaug, is among few such centres in the Indian
Financial Services industry, promoting among others, a culture of training and development
across the group.

Processes:
Edelweiss has undertaken a significant restructuring of its business to enhance
operational efficiencies, dividing the organization into two operational clusters; Wholesale and
Retail and building SBU structures based on commonality of client segments/business activities.
The company has carried out a visioning exercise with a roll-down across the organization to
ensure clear articulation of its growth aspirations.

Execution expertise:
Edelweiss’ focus on error free and timely execution across businesses represent the core
of its success. It possesses strong project teams that focus on processes, reviews and deliverables.
Whenever necessary, it re-engineers processes and innovates state-of-the-art technology
solutions that enhance efficiency.
Brand:
The Edelweiss brand is a much respected brand enjoying widespread recognition due to
consistent investment in diverse set of brand building efforts spanning both conventional and
unconventional channels. The ‘Ideas create, values protect’ tagline underlines all branding
efforts.

Edelweiss General Insurance Broking

Edelweiss Insurance Broking brings unmatched expertise in Risk Analysis, Assessment

and Transfer and a broad spectrum of services from Risk Management to Claim Settlement in
Non-Life Insurance.

Edelweiss commenced operations as a Direct Broker, licensed by IRDA in March 2005

and now acting as Composite Broker since May 2016 and with its unique blend of the experience
of insurance industry veterans and the enthusiasm of young achievers committed to excel in the
field of insurance, it has created a significant niche for itself in the General Insurance Broking
space.

Our Insurance brokers are committed to act in the best interests of the client. Analysis and
perception of risk is an integral part of their advisory role and helps in fetching favorable pricing
and protecting client assets. We at Edelweiss have always provided support services to our
clients while upholding and remaining true to our fiduciary duties.

Designing Insurance Programs

We create a platform to discuss risks and business strategy and connect them to design a
comprehensive insurance program that effectively protects the company. We have established a
review process that ensures the insurance program is constantly monitored so that any changes to
the business will correlate with the opted coverage.

Our Services include:

 Analyzing the client's business processes

 Providing advice on the existing coverage vis-a-vis the risks and exposures.
Scrutiny of all existing major insurance policies with respect to:

a) Rationalization of basic rate of premium and widening of covers

b) Applicability / eligibility of discounts in premium
c) Application of suitable clauses, warranties and conditions
 Identification of possible areas for premium refund and suggestions
 Selection of insurance coverage on the basis of risk analysis
 Providing guidelines on fixing the sum insured
 Evaluation of business interruption exposure due to identified risks
 Providing guidelines on documentation requirements, procedures for claims under various
policies

Insurance Portfolio Management Services

Our Insurance Portfolio Management Services assist clients with the various insurance
policies required by an organization, and the management and maintenance of these policies.

Our Insurance Portfolio Management Services include:

 Organizing premium quotations for insurance placement

 Analysis of quotes received from insurance companies
 Placement of insurance with optimum coverage at the best available price
 Administrating insurance portfolio on regular basis
 Maintaining systematic records and assurance of timely renewal reminders
 Organizing in-house seminars and educating personnel on insurance related matters
 Periodically reviewing any additional insurance requirements

Claims Management Services

At Edelweiss we recognize that Claims handling is of paramount importance to our
clients and we place the highest emphasis on the Claims services we provide. Our Claims
department is carefully recruited, well resourced and forms an integral part of our client
servicing team.

Our Claims Management Services include:

 Understanding existing processes, philosophies, service needs and challenges in Claims

handling
 Notification of all Claims and Claim circumstances to the appropriate insurers
 Coordination and guidance in submission of all Claims related documents
 Coordination of any issues that arise in the settlement of Claim at all stages
 Management of complex claims
 Consultation and advice on coverage questions prior to Claim notification and issues
likely to arise post Claim notification
 Assistance in Claim settlement negotiation
 Maintaining Claim records
 Producing Claim reports and analysis as required
Edelweiss General Insurance Products
We service a comprehensive range of Insurance products and corresponding services for
Individuals as well as Institutions.

1. Asset / Property Insurance

Fire & Allied Perils Insurance
Burglary & Housebreaking Insurance
Machinery Breakdown Insurance
Boiler Explosion Insurance
Electronic Equipment Insurance
Storage cum Erection Insurance
Contractors All Risk Insurance
Contractors Plant and Machinery Insurance
Customized Policy Coverage as per the requirements

2. Marine Insurance
Marine Hull Insurance
Marine Cargo Insurance
Multimodal Transport Operators Insurance

3. Personal Insurance
Personal Accident / Group Personal Accident
Mediclaim / Group Mediclaim
Overseas Group Mediclaim
Motor Vehicle Insurance
Householders Insurance
Shopkeepers / Traders Insurance

4. Business Interruption Insurance

Loss of profits following fire
Loss of profits following machinery breakdown
Loss of profits following boiler explosion
Advance loss of profits

5. Liability Insurance
 Director’s & Officer’s Insurance
Professional Indemnity Insurance
Public Liability Insurance
Public Liability Act Insurance
Product Liability Insurance
Carriers Legal Liability Insurance
Clinical Trial Liability Insurance

6. Financial Insurance
Credit Insurance
Stock Brokers Indemnity
Banker's Indemnity
Computer Crime

7. Art Insurance

8. Miscellaneous Insurance
Cash in transit / safe Insurance
Workmen Compensation
Fidelity Guarantee Insurance
Port Package Insurance
Special Contingency Insurance
 Case Study

26/7/2005 – Mumbai under water

Mumbai will never be the same again. And so will the insurance sector in Mumbai after the 26/7
floods. Torrential rains which killed thousands and rendered many homeless, also led to loss of
business and vehicles.

The Facts:
As fallout of the torrential rains, the non-life insurance sector was flooded with more than 10000
claims totalling over Rs. 2000 crores. However, these did not include the 50000 cars that have
been damaged in Maharashtra.

While the top four private sector general insurance companies, ICICI Lombard General
Insurance, Bajaj Allianz General Insurance, Iffco Tokio General Insurance and Tata AIG have
together received claims worth over Rs 1,000 crore; the four state-owned general insurance
companies New India Insurance, Oriental Insurance, United Insurance and National Insurance
received claims close to Rs 1,500 crore.

Private insurer, Bajaj Allianz General Insurance Company Ltd (BAGICL) alone had received
claims for at least 10,000 motor vehicles after the recent floods in Mumbai.

As several companies temporarily closed down their operations and godown stocks went
missing, corporate claims were the highest, in terms of value. Next came claims for cars and
household goods and from shopkeepers and traders for their warehouses. A majority of
individuals and small and medium entrepreneurs also submitted claims.
ONGC's insurance claim is considered to be the largest given its loss of $ 500 million after fire
gutted the Bombay High rig.

The Effect:
Here’s a warning to the lakhs of Mumbaikars who are planning to insure their houses in the wake
of the recent deluge. One will have to read the fine print carefully. Public sector insurance firms
are quietly planning to drop the word ‘flood’ from the policy.
As of now, a household insurance policy is basically a fire insurance policy, which also
incorporates a flood insurance policy. However, with 10,000 policy-holders filing claims
totalling Rs 1,500 crores, insurance firms are looking at new ways to keep their heads above
water. After the last calamity—the Latur quake of 1993— insurance firms had dropped
earthquakes from the household insurance policy.

Those wanting to insure their homes against flooding may now have to pay a separate premium.
The insurance sector has suffered losses of about Rs 1,500 crore. These companies may not get
re-insurance for these policies as they had not taken re-insurance for these small individual
polices.
 GENERAL INSURANCE
With the opening up of the insurance industry to the private sector, the need for a strong,
independent and autonomous Insurance Regulatory Authority was felt. As the enacting of
legislation would have taken time, the then Government constituted through a Government
resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive
legislation.

The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the
establishment of 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
or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the
monopoly of the Life Insurance Corporation of India (for life insurance business) and General
Insurance Corporation and its subsidiaries (for general insurance business).

General insurance means managing risk against financial loss arising due to fire, marine
or miscellaneous events as a result of contingencies, which may or may not occur.

General Insurance means to “Cover the risk of the financial loss from any natural
calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyond the
control of the owner of the goods for the things having insurable interest with the utmost good
faith by declaring the facts about the circumstances and the products by paying the stipulated
sum , a premium and not having a motive of making profit from the insurance contract.”

Types of General insurance

General insurance can be categorised in to following:

 Motor Insurance: Motor Insurance can be divided into two group, one is car Four wheeler
insurance and other is two wheeler insurance.

 Health Insurance: Common types of health insurance includes, individual health

insurance, family floater health insurance, comprehensive health insurance and critical
illness insurance.

 Travel Insurance: Travel insurance can be broadly grouped into Individual travel policy,
Family Travel policy, student travel insurance and senior citizen health insurance.

 Home Insurance: Home insurance protects house and its contents in bad time.

 Marine Insurance: Marine cargo insurance covers goods, freight, cargo and other interests
against loss or damage during transit by rail, road, sea and/or air.

 Commercial Insurance: Commercial insurance encompasses solutions for all sectors of

the industry arising out of business operations
 Some of the General Rules:

1. Mis-description :
The insurance policy shall be void and all the premiums paid by insured may be forfeited
by the insurance company in the event of mis-presentation or mis-declaration and/or non-
disclosure of any material facts.

2. Reasonable care :
The insured shall take all reasonable steps to safeguard the property insured against any
loss or damage. Insured shall exercise reasonable care that only competent employees are
employed and shall take all reasonable precautions to prevent all accidents and shall
comply with all statuary or other regulations
3. Fraud :
If any claim under the policy may be in any respect fraudulent or if any fraudulent
means or device are used by the insured or any one acting on the insured’s behalf
to obtain any benefit under the insurance policy, all the benefits under the
insurance policy may be forfeited.

4. Few basic principles of general insurance are :

1. Insurable interest
2. Utmost good faith
3. Subrogation
4. Contribution
5. Indemnity
5 Risks of loss not covered under general insurance are:
The loss or damage or liability or expenses whether direct or indirect occasion by
happening through or arising from any consequences of war, invasion, act of foreign
enemy, hostilities (whether war be declared or not), civil war, rebellion revolution, civil
commotion or loot or pillage in connection therewith and loss or damage caused by
depreciation or wear and tear. However the risk of loss or damage by war can be insured
by payment of additional premium in some cases only.
 Product levels
In this figure there is a nucleus or core in the center, which is supported by series of
tangible and intangible features and benefits and these form a cluster around the core
product.
Level Type of Contents Insurance sector
service

1 Core service Basic service product • Life

• Non-life insurance
policy

2 Expected Basic product and minimum • After sales service

service purchase conditions that must be • Low claim settling
met. period.

3 Augmented Something different, which • Technology

service enables one product to be • Online premium
differentiated from other payment
• Payment through credit
cards
• Standing instruction to
bank

4 Potential Features that attract the customers • Maturity claims settled

service and are useful to them. on or before the maturity
date.
• Loans

The core product of insurance company is insuring life and non life products. People opt for
this service as they want to secure their life, people dependent on them and other valuable
things in life.

The time factor plays an important role while providing service to the customer. The customer
expects that the procedures for settling the claim should be short and not much time
consuming. They should get the benefits of the service as soon as possible.
Today the technology is boosting in each and every field. Insurance is not an exception.
Companies have started providing customers facility of online payment of premium through their
websites. They also provide online assistant to the customer the policy status and how to
calculate the premium. To calculate the premium they just need the present age, the type of
police, sum assured, and accident covered if any. By filling in this information you can calculate
the amount of premium you have to pay. The customer can pay their premiums by means of
credit cards or can also give standing instruction to the bank in order to pay their monthly
premiums.
The insurance companies also provide loan facilities against their policies. At present loans are
granted on unencumbered polices as follows:

• Up to 90% of the Surrender Value for policies, where the premium due is fully paid-up, and
• Up to 85% of the Surrender Value for policies where the premium due is partly paid-up.

The minimum amount for which a loan can be granted under a policy is Rs150. The rate of
interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter
than six months, or on the security of lost policies (the assured must have the duplicate policies)
or on policies issued under certain plans. Certain types of policies are, however, without loan
facility.
 FREQUENT TERMS USED

Agent:

An insurance company representative licensed by the state, who solicits, negotiates or effects
contracts of insurance, and provides service to the policyholder far the insurer.

Actual Total Loss:

It is a loss where the goods are completely lost and become irrecoverable.

Additional cover:

An insurance policy extended to cover additional risk perils such as strikes. Riots and Civil
commotion etc on payment of extra premium.

Agreed value policy:

Policy which undertakes to pay a specified amount in case of total loss. Under this case the
policy does not take into account the current market value.

Assessor:

Person who estimates the value of goods for the purpose of apportioning the sum payable by the
underwriters to settle the claims. Also called as Surveyor.

Assured:

A person protected by insurance coverage against loss or damage stipulated by the provisions of
a policy purchased from an insurance company or an underwriter.

Burglary:

It is a theft committed by breaking into or out of the premises. Evidence of breaking In, Is
necessary.

Coverage:

The scope of protection provided under a contract of insurance; any of several risks covered by a
policy.

Cargo insurance:

A generic term used in both inland marine and ocean marine insurance to designate the type’s of
insurance available to provide coverage for cargo that is being transported by truck, rail, air,
ship, or boat.

Certificate of Insurance:

A statement of coverage issued to an individual insured, specifying the insurance benefits and
principal provisions applicable to the member.

Claim:

The formal request by a policyholder or a claimant for payment of loss under an insurance
policy.

Co-insurance:

A provision under which an insured who carries less than the stipulated percentage of insurance
to value, will receive a loss payment that is limited to the same ration which the amount of
insurance bears to the amount required

Cover Note:

Is the document that is issued provisionary pending issuance of insurance Policy.

Indemnity:

Legal principle that specifies an insured should not collect more than the actual cash value of a
loss but should be restored to approximately the same financial position as existed before the
loss
Insurable Interest:

A condition in which the person applying for insurance and the person who is to receive the
policy benefit will suffer all emotional or financial loss, if any untouched event occurs.
Without insurable interest, an insurance contract is invalid,

Insurance:

Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a
large enough number of similar exposures to predict the individual chance of loss.

Net Premium:

The portion of premium rate which is designed to cover benefits of the policy, excluding
expenses, contingencies and profit.

Policy:

Is the legal document that has the conditions of the insurance contract.

Premium:

It is the amount paid to secure an insurance policy.

Salvage:

Recovery made by an insurance company by the sale of property which has been taken over
from that insured as a part of loss settlement. The remains of damaged vehicle or any other
property.

Third party:

Any person other than the two parties signing an insurance, contract.

Underwriting:

Underwriting of a risk involves consideration of material, facts on the basis of which a

decision will be taken whether to accept the risk and if so at what rate of premium.

General Insurance Products

51
The different types of General insurance products are listed below.

1. Motor Insurance
A motor insurance policy is a mandatory policy issued by an insurance company as
part of prevention of public liability to protect the general public from any accident that
might take place on the road. The law mandates that every owner of a motor vehicle must
have one motor insurance policy.

This policy covers all types of vehicles plying on public roads such as:-

• Scooters &Motorcycles
• Private cars
• All types of commercial vehicles
• Motor Trade (vehicles in show rooms and garages)

As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle
plying on public roads, to take an insurance policy, to cover the amount, which the owner
becomes legally liable to pay as damages to third parties as a result of accidental death,
bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle
as a proof of such insurance.

Two types of covers are available:

1. Liability only policy: This covers third party liability for bodily injury liability
and /or death and property damage. Personal Accident cover for Owner-driver is also
included.

2. Package policy: This cover loss or damage to the vehicle insured in addition to (1)
above.

Policies under Motor Insurance :

1. Car Insurance
Car insurance will protect you from any financial losses incurred while driving which
you would likely need to pay if not covered.

2. Two Wheeler Policy

Two Wheeler Policy will cover any type of two wheeler that you may own,
protecting you against liabilities that may arise from an accident.

Third-Party / Liability Only - Motor Insurance

Third Party /Liability Only insurance will secure you from expenses you may incur
from any third party damages.

Commercial Vehicle Insurance

52
 This policy will safeguard your vehicle that you use for commercial purpose by
protecting it from damages due to an accident

2. Health Insurance
Health insurance policy gives you access to the best medical care and treatment while
being financially protected. In case of a health emergency, your mediclaim health care policy
guarantees peace of mind and ensures that you and your family are protected from medical
expenses while receiving the best treatment at a hospital of your choice.

Policyholders can avail multiple benefits like pre and post hospitalization expenses,
cashless treatment, room rent, ambulance charges, and much more. The health insurance
premium amount mainly depends on the sum insured amount as well as the number of
members covered under the health insurance policy.

Policies under Health Insurance :

1. Health Insurance Plan for Individual
Health Insurance Plan for Individual is an affordable health insurance policy
that will shield you against rising medical costs incurred during hospitalization and
medical emergencies.
2. Health Insurance Plan for Family
Health Insurance Family provides health cover for the whole family. It acts as
a single umbrella under which you can protect the health of you and your family
members.

3. Travel Insurance
Travelling can be a beautiful experience. But it also brings with it the risk of things
going wrong despite careful planning. Although you may not be able to control external
factors that might cause disruptions in your travel plans, you can definitely choose to opt for
travel insurance from Bajaj Allianz to help you face any financial setbacks that might occur.
This way you can travel overseas with your loved ones keeping all your worries aside.

Policies under Travel Insurance :

Individual Travel Insurance

Travelling abroad to a foreign land alone entails a lot of risk. Medical
emergencies, losses, and delays can be expensive and cause great inconvenience to
you.

Family Travel Insurance

A hundred things can go wrong when you travel. Something that's an

inconvenience at home can ruin your holiday when you're abroad. This policy will
reimburse your expenses caused due to any accident or injuries to your family
members.
53
 1. Corporate travel insurance
Corporate travel insurance policy is a comprehensive package which provides
complete medical and health cover to the international business traveller

2. Overseas Mediclaim Policy

Policies issued in India under Overseas Mediclaim Scheme, as approved by

Reserve Bank Of Indian residents travelling abroad for any approved visits viz.
Business, Study Tour, Specialized training conferences, Employment or higher
studies. Premium on such policies may be collected in rupees but for employment
in foreign currency.

This policy was originally introduced in 1984, to provide for payment of

medical expenses in respect of illness suffered or accident sustained by Indian
residents during their overseas trips for official or holiday purposes.

In. 1998, a new policy known as VIDESH YATRA MITRA, was made
available for Business and Holiday Travellers. Cover for corporate frequent travellers
were also introduced.

The policy provides for following Sections:-

1. Medical Cover
2. Repatriation Of Remains
3. Checked Baggage Loss / Baggage Delay
4. Passport Loss
5. Personal Accident – Overseas
6. Personal Liability
7. Hijack Relief Benefit

The plan available now with various companies are however not the same as each
company has introduced. Some variation in the cover to suit the varying requirements.

Types of overseas Mediclaim insurance policy

1) Individual Overseas Mediclaim insurance policy

2) Student Overseas Mediclaim insurance policy
3) Senior Citizen Mediclaim insurance policy.

4. Property Insurance

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 Property insurance is a policy that provides financial reimbursement to the owner or
renter of a structure and its contents, in the event of damage or theft. Property insurance can
include homeowners insurance, renters insurance, flood insurance and earthquake insurance.

Homeowner's insurance is a form of property insurance that covers losses and

damages to an individual's house and to assets in the home. Homeowner’s insurance also
provides liability coverage against accidents in the home or on the property

Policies under Property/Home Insurance :

1. Home Insurance
Home Insurance/House Insurance Policy is a service that you can purchase for your
home and/or it's contents to stay protected from risks of losses or damages that may
be caused to them by any unforeseen events. Certain incidents can lead to sudden and
huge expenses, which you are generally not prepared for

2. Renter's Insurance

A form of property insurance that provides coverage for a policy holder's belongings
and liability within a rental property. Renter's insurance applies to persons renting or
subletting a single family home, apartment, duplex, condo, studio, loft or town home.

A renters insurance policy is a group of coverages designed to help protect you and
your belongings. A typical renters insurance policy includes liability coverage,
protection for your belongings and coverage for additional living expenses, should the
home you're renting become temporarily uninhabitable. While you may not always be
able to prevent certain situations, such as a break-in or visitor's injury, renters
insurance, sometimes referred to as "tenant insurance," may help minimize the
impact, whether you're renting a single-family home or an apartment.

3. Flood Insurance

Flood insurance is a financial instrument that protects real property owners

from water damage to the structure and contents of their property. While flood
insurance can be purchased through many different insurance companies, all
policies are federally regulated so the same policy costs the same amount no
matter which company it is purchased through.

4. Contractors All Risk Insurance

Contractors' All Risks (CAR) insurance is an insurance policy that provides

coverage for both damage to a property and third-party injury or damage claims.
Contractors' all risk (CAR) insurance policies are considered non-standard insurance
policies.
Construction projects typically involve two primary types of risk: damage to
the property, and third-party claims of injury or damage. Damage to the property
could include the structure not being properly constructed, or receiving damage
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 during a renovation. Third-parties, including subcontractors, may become injured
while working at the construction site. Contractors' all risk (CAR) insurance bridges
these two risks into a common policy, and helps cover the gap between exclusions
that would otherwise exist when using separate policies.

5. Asset All Risk Insurance

This is a combined policy that combines various covers like Fire, Burglary,
Consequential loss, Machinery breakdown, Electronic Equipment, All risks, Plate Glass,
Money, Fidelity Guarantee, Public Liability etc. All sections will have specific sums
insured’s and will also be subject to that class normal terms, conditions and warranties.
All Risk insurance provides protection for business property that is accidentally
physically lost, destroyed or damaged by anything other than the excluded causes listed
below. This means that you’re covered for almost every eventuality, which makes your
coverage broader and easier to understand too.

Policies under Asset All Risk Insurance :

1. Burglary and Housebreaking Insurance
“Burglary and Housebreaking Insurance” is the most important insurance
among other insurances when talking about a business or a store or even a small
cafeteria in a public space. With riots and thieves threatening police officials and
public round the clock, and lack of proper monitoring in public places, there is every
need for a company or a firm, or even a store at the end of the road, to opt for a
Burglary and Housebreaking Insurance.

Why we need such kind of Insurance?

Inspite of the tight security measures taken by the respective possessors, thefts
and other criminal activities do happen by misleading or breaking into the property
premises by unlawful and illegal means. At this juncture, when security fails, there is
every need to have an insurance cover over the precious and valuable items and things
present in the premises, along with the property itself. This is where “Burglary and
Housebreaking Insurance” helps the possessor to compensate with the loss financially.

Insurance companies usually cover cash, jewellery, securities and any other
valuables if they are kept in a locked vault and in a locked steel cupboard on special
request. The policies usually cover the cost of the lost / damaged items at the market
value upto the sum insured. However, incase the sum insured is inadequate, the policy
usually pays proportionate loss.

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 2. Electronic Equipment Insurance
This is a specially designed policy which covers accidental loss or damage to
electronic equipment.

Electronic equipment insurance covers all sudden and unforeseen physical

losses, which are not subject of exclusions, listed in insurance conditions. Subject
of insurance are individual pieces of equipment or computer and data processing
equipment of the Insured.

1. Electronic data processing machine.

3. Telecommunication equipment.

4. Transmitting and receiving installations (including Radio, TV, Cinema Sound

Reproduction and Studio Equipment).

5. Material testing and research equipment.

6. Electro-Medical Installations.

7. Signal and transmitting units.

8. Office calculators, duplicating machines and Reproduction machines.

9. Control and supervisory units.

Who can take this policy:

This policy can be taken by the owner, lessor or hirer of electronic equipment.

The most common causes of damage

Electronic equipment insurance mainly covers material damage caused by following

reasons:
 damage caused by operation
 damage caused by electric energy (short circuit, excess voltage or induction)

 damage caused by human element (faulty operation, lack of skill, negligence)

 damage caused by manufacturer (faulty design, defects in material, faults at

workshop, faults in erection)

3. Machinery Breakdown policy:

This is a policy which covers financial loss incurred by the insured due to loss
or damage to machinery as a result of accidental electrical and mechanical
breakdown. It reimburses the insured for the cost of repairs or replacement of
machinery of like nature.

• Who can take this Insurance:

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 This insurance can be taken by the individual owner of the machine or a person or
company having financial interest in the machine.

• What kind of machines can be covered:

All types of industrial machinery like compressors, pumps, turbine etc. as also
electrical machines like transformer, electrical motor, generator etc. can be covered
under this policy.

• What is the sum insured or value for which policy is to be taken:

It is a requirement of this policy that the sum insured or value for which the particular
machine is insured should represent the present day purchase value of a similar new
machine including all incidental expenses like custom duties, taxes, excise, freight,
insurance charges, handling charges etc. In case the sum insured under the policy is
less than as per the above requirement the claim will be paid only in such proportion
as the sum insured bears to the current replacement cost of similar new machinery.

4. Contractor Plant and Machinery Policy:

This policy covers all different types of machinery used for handing material or construction.

The policy can be extended to cover

a) Third party liability - personal injury and property damage.

b) Damage to owner's surrounding property.

Who can take the policy :

The policy can be taken by any one of the following parties, either individually or jointly :-

a) The owner of the machine

b) The contractor / user of the construction machinery

c) The financial institutes who have an interest in the construction machinery.

6. Marine Insurance
Marine insurance covers the loss or damage of ships, cargo, terminals, and any
transport or cargo by which property is transferred, acquired, or held between the points of
origin and final destination. Cargo insurance is a sub-branch of marine insurance, though
Marine also includes Onshore and Offshore exposed property, (container terminals, ports, oil
platforms, pipelines), Hull, Marine Casualty, and Marine Liability. When goods are
transported by mail or courier, shipping insurance is used instead.
Marine insurance is very important because through marine insurance, ship owners
and transporters can be sure of claiming damages especially considering the mode of
transportation used. Of the four modes of transport – road, rail, air and water – it is the latter
most which causes a lot of worry to the transporters not only because there are natural
58
occurrences which have the potential to harm the cargo and the vessel but also other incidents
and attributes which could cause a huge loss in the financial casket of the transporter and the
shipping corporation.

Policies under Marine Insurance :

1. Marine Hull Insurance

Hull insurance is one of the main types of marine insurance policies available
in the marketplace. It covers a broad range of damages on a vessel’s hull, machinery,
and equipment, which in turn gives the vessel owner a level of confidence and
security in operating their yacht/ship on international waters. The type of marine
insurance policy sought will depend heavily on your intended use for your vessel, for
example, if you intend to carry cargo or passengers, you must obtain the correct
insurance policy. All vessel operators however, should obtain hull insurance as an
added safety measure.

Hull and Machinery Insurance explained :

Hull and machinery insurance is one of the most widely required forms of marine
insurance for all operational vessels. This is primarily due to the fact that is a vessels hull
or onboard machinery and equipment are damaged, the vessel cannot operate and generate
any form of income.

By obtaining the applicable hull and machinery insurance, the level of risk-
associated damage to the vessel is significantly lowered as repair, maintenance and
compensation is covered by the insurance policy.

The main risks covered under hull and machinery insurance includes, but is not limited to;

 Total loss in terms of actual or constructive loss of the vessel

 Damages to hull, machinery and equipment onboard the vessel
 Salvage and applicable charges
 Legal costs and labor costs
 Costs for collision defense and attacks
 Dry docking expenses
 Costs for marine surveys to assess damage of potential damage

Essentially, all physical damage to a vessel can be covered by hull and machinery
insurance, which extends to recoveries and losses at sea. Vessel owners have the choice to
employ a certain level of hull insurance, whether it is to cover all risks, limited conditions
only, or total loss at sea, giving them complete control over their liability and financial
commitment to their yacht.

Vessel owners must acknowledge that there is are many dangers and risks involved when
operating within the marine industry, and as such it is imperative to seek the necessary hull
and machinery insurance to ensure the vessel is protected and operational at all times. The
marine insurance market is a particularly competitive one, and so it is advisable to enlist the
assistance of a consultancy firm to act as an introducer between you and a reputable marine
insurance broker.

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 2. Marine Cargo Insurance

Marine cargo insurance is sub-branch of marine insurance and a class of property

insurance that covers the loss of or damage to goods or cargo while in sea transit.
Marine cargo insurance offers varying coverage, depending on the type cargo or
goods, which could range from frozen meat and food and dry goods like cotton,
coffee, refined sugar and tea, to oil, jute, and coal. As for the extent of coverage, it
could provide protection from several perils, including but not limited to fire, capture,
war, pirates, jettison, and thieves.

3. Multi Modal Transport (MTO) Insurance

The International Freight Forwarding market has changed considerably over

the past few years with the introduction of Multi-modal Transpoters ( MTO).
And there is now an increased number of transport providers such as freight
forwarders, shipping agents, packing and consolidating agents clearing and
forwarding agents, offering a variety of services to trading companies, many of whom
are operating on a world-wide basis.
Many of these enterprises have also converted themselves into MTO and have
taken the license within the purview of the MTO Act. It is mandatory for the MTO
operator to have its services insured in order to get the license from The Director
General of Shipping.
The Transport and Related Liability Cover (commonly known as MTO policy)
takes care of all marine liabilities of the logistics industry.
Coverage under the policy
Physical loss or damage to cargo while in the care, custody and control of the insured, or a
party who has contracted or sub-contracted to provide transport services
 Physical Loss or damage to vessel or equipment owned or operated by a
subcontractor or customer
Consequential loss and/or business interruption resulting from 1 above
Unrecoverable cargo's contribution to general average
 Fines and Duty
The Errors and Omissions extension would cover legal liability arising out of the operations
of the insured following a negligent act, error or omission by the insured, his agent or sub
contractor
The Third Party Liability extension would cover physical loss or damage to property, bodily
death or injury or illness and legally recoverable consequential loss arising out of the
operations of the insured.

7. Fire Insurance
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 Fire insurance is a comprehensive policy, which goes beyond only fire accidents. The
policy, besides covering loss on account of fire, also covers loss on account of the following

 Earthquake
 Riots
 Malicious Intent
 Floods
Fire insurance only can be taken by the owner of the premises to be insured. A tenant
cannot insure rented premises since he does not have insurable interest. But the tenant has the
option of insuring the contents of the premises. The premium is based on “Good faith” and
depends on the value of property being insured.
It should be noted that thought fire insurance is not compulsory, in case of corporate
availing of loans, the lending institution may insist on equipment or relevant property to be
insured against fire. This trend is now also being followed by housing finance companies,
some of which are insisting that the premises be insured against fire.

8. Miscellaneous or Liability Insurance

'Miscellaneous Insurance' refers to contracts of insurance other than these of Life, Fire
and Marine insurance. This branch of insurance is of recent origin and it covers a variety of
risks.
The accident or miscellaneous department covers those types of risk which are not
covered either under Fire or Marine Departments. Its scope is therefore, very vide and
extensive and includes such a wide range of contingencies as may not be included in the strict
interpretation of the term ‘Accident’. The Accident or the miscellaneous insurance includes
many sub-sections under which different classes of business are transacted. A special feature
of this department is that it covers many branches which are grouped together in it which are
apparently unrelated to each other. However in practise, unrelated risks are grouped together
for the convenience of the insured.

1. Marine cum Erection / Storage cum Erection Policy:

This is a comprehensive policy covering all physical risks which a project is exposed
to right from the warehouse of the supplier of equipments - whether imported or
indigenous - to its erection, testing and commissioning at the site.
In case the supplier has arranged transit insurance upto the site, a Storage cum
erection policy can be issued limiting coverage to risks that the project is exposed to at
the site only.
The policy covers all risk of physical loss or damage of insured property other than those
specifically excluded , including :-
o marine voyage for import

o offloading / storage at port

o inland transit to site

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 o storage, handling, erection at site

o testing and commissioning at site

The main exclusions are :-

o Loss or damage due to faulty design, defective material or casting, bad
workmanship other than faults in erection. This exclusion is limited to the items
immediately affected and does not apply to any consequential loss to correctly
executed items.
o Cost necessary for rectification or correction of any error during erection unless
resulting in physical loss or damage.
o Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.

o Loss discovered only at the time of taking inventory.

o Loss arising out of penalty for delay, non-fulfilment of terms of contract

2. Workmen's Compensation Insurance

The Workmen’s Compensation Insurance Business in India is controlled by the
Workmen’s Compensation Insurance Tariff (W.C.Tariff).

This policy provides indemnity to the Insured if any employee in the Insured’s
immediate service shall sustain bodily injury by accident or contracts disease arising out of
and in the course of his employment by the Insured in the Business and if the Insured shall be
liable to pay compensation for such injury either under.

The policy covers legal liability of an employer under:

Table 'A' - Indemnity against legal liability to all employees (whether or not coming
within the definition of the term Workmen) under the W.C.Act 1923 and subsequent
amendment to the said Act prior to the date of issue of the policy, the Fatal Accidents
Act, 1855 and at Common Law

Table 'B' - Indemnity against legal liability under the Fatal Accidents Act, 1855 and
Common Law. (Table 'B' policies may not be issued to cover employees who fall
within the definition of "Workmen" under the Workmen's Compensation Act, 1923 as
amended)

3. Personal Accident Policy:

The insurance provides compensation in the event of death or disability directly due
to accident. This policy is basically designed to offer some sort of compensation to the
insured person who suffers bodily injury solely as a result of an accident which is external,
violent and visible. Hence death or injury due to any illness or disease is not covered by the
policy

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 This policy offers compensation in case of death or bodily injury to the insured
person, directly and solely as a result of an accident, by external, visible and violent means.

The policy operates worldwide and is a 24 hours cover.

Different coverages are available ranging from a restricted cover of Death only, to a
comprehensive cover covering death, permanent disablements and temporary total
disablements.

Group personal accident policies are also available for specified groups with a
discount in premium depending upon the size of the group.

4. Money Insurance: (Cash in Transit/Cash in Safe)

Money Insurance policy provides cover for loss of money in transit between the
insured's premises and bank or post office, or other specified places occasioned by robbery,
theft or any other fortuitous cause. The policy also cover loss by burglary or housebreaking
whilst money is retained at Insured's premises in safe(s) or strong room.

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 Claims
The Settlement of claims constitutes one of the important functions in an insurance
organisation. The proper settlement of claims requires a sound knowledge of thee law,
principles and practices governing insurance contracts and in particular a thorough
knowledge of the terms and conditions of the standard policies and various extensions and
modifications there under. The procedure in respect of claim a under various classes of
insurance follows a common pattern and may be considered under 3 broad headings

1. Preliminary procedure
It is essential that early notification of the loss is received by insurance undue delay in
notification would adversely affect the position of the insurer. However if there is any delay
in notification or not or weather is material will be ultimately decided by the courts based on
the facts of the individual cases

The notice of loss condition in liability policies provides for two aspects

a) Notification of the happening of the accident immediately followed by

b) Notification of the receipt of claim or suit filed against the insured.

Under certain types of policies (e.g. Burglary) notice is also to be given to police authorities.

2. Loss Minimization

At common law, there is a duty on the part of the insured to observe good faith .This duty of
good faith means that at all times the insured has to act as if he is uninsured.

For E.g., the private car package policy provides , among other things , that the insured shall
take all reasonable steps to safeguard the motor car from loss or damage and to maintain it in
efficient condition. In the event of any accident or breakdown the motor car shall not be left
unattended without proper precautions being taken to prevent further damage or loss.

3. Procedural

On receipt of intimation of loss or damage insurers check that:

a) the policy is in force on the date of occurrence of the loss or damage

b) The loss or damage is by a peril insured by the policy.
c) Notice of loss received without undue delay.

After this check up the loss is allotted a number and entered in the claims register.

4. Claim Forms
The contents of the claim form vary with each class of insurance .In general the claim
in general the claim form is designed to elicit full information regarding the circumstances of
64
the loss such as date of loss, time, cause of loss, extent of loss etc claim forms are invariably
sued in fire and miscellaneous insurance.

5. Investigation and Assessment

On receipt of the claim form duly completed from the insured the insurers decide
about the investigation and assessment of loss if the loss is small the investigation to
determine the cause and extent of loss is done by an officer of the insurers. Some times even
this may be waived and the loss settled he basis of the claim form only.
The investigation of larger or complicated claims is entrusted to independent
professional surveyors who are specialist in their line the appointment of a surveyor is
intimated to the claimant the surveyor is furnished with all relevant claim papers such as
claim form policy copy etc…However, many a times surveyor is appointed and survey is
carried immediately on receipt on notice of loss, that is even before claim form could be
issued.

6. Claims documents
In addition to the claim form independent survey report certain documents are
required to be submitted by the insurers to substantiate the claim for example for fire claims
for fire claims a report for the fire brigade for motor claims driving license registration copy
police report etc

7. Arbitration
It is distinct from litigation and is a method of settling disputes under contract in
accordance and conciliation act 1996.

8. Settlement

The claim is processed on the basis of Claim form Independent report from
Surveyors, legal opinion, medical opinion etc as the case may be. Various documents
furnished by the insured. Any other evidence secured by the insurers. If the claim is in order
settlement is effected by cheque the payment is entered in claims register as well as in the
relevant process record. Appropriate recoveries are made from the insurers if any.

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 Questionnaire

Q1.) What according to you, Is the General Insurance market growing to its maximum level
or some more products/dimensions are yet to be discovered?

Q2.) According to what are the trends in General Insurance?

Q3.) On an average how much time does it take to settle a claim (period)?

Q4.) How important is re-insurance according to you?

Q5.) In General Insurance Corporation, public Sector companies are dominating past many
years? Why?

Q6.) What are Challenges faced by General Insurance companies?

Q7.) What are the future prospects of General Insurance?

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 BIBLIOGRAPHY

https://www.edelweissfin.com/Home.aspx

https://en.wikipedia.org/wiki/Main_Page

https://www.irdai.gov.in/Defaulthome.aspx?page=H1

https://www.insuranceinstituteofindia.com

Books Reference

General Insurance Guide

(Handbook of General Insurance Policies and Claims) - Dr.L.P.GUPTA
General Insurance Business Operations and Decision Making

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