CERTIFICATE

This is to certify that Arpan Singhal , a student of Bachelor of Business Administration (BBA), a class of 2012, Tecnia Institute of Advanced Studies, Affiliated to GGS.IP. University bearing Enrollment no. 07021301710, has undertaken the Summer Internship Training at Oriental Insurance Company Ltd. From 18th June,12 to 28th July,12 under my supervision & guidance. He has conducted a study & completed the STR Titled PRODUCT & SERVICES OF ORIENTAL INSURANCE COMPANY

Signature of the Guide Name of the Guide: Designation:

Seal of Organization Date:

Summer Training Appraisal Students Name: Programme: You are requested to provide your opinion on the following parameters. Outstanding Good Satisfactory Unsatisfactory A B C D 1. Technical knowledge gathered about the industry and the job he/she was involved. 2. Communication Skills: Oral / Written / Listening skills 3. Ability to work in a team 4. Ability to take initiative 5. Ability to develop a healthy long term relationship with client 6. Ability to relate theoretical learning to the practical training 7. Creativity and ability to innovate with respect to work methods & procedures 8. Ability to grasp new ideas and knowledge 9. Presentations skills 10. Documentation skills 11. Sense of Responsibility 12. Acceptability (patience, pleasing manners, the ability to instill trust, etc.) 13. His/her ability and willingness to put in hard work 14. In what ways do you consider the student to be valuable to the organization? Consider the students value in term of: (a) Qualification (b) Skills and abilities (c) Activities/ Roles performed 15. Punctuality Any other comments__________________________________________________.

Assessors Overall rating Assessors Name: Designation: Organization name and address: Email id: Contact No:

Acknowledgment

I have putted my best efforts to prepare this report. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Punam Agrawal for their guidance and constant supervision as well as for providing necessary information regarding the summer training report & also for their support in completing the report. I would like to express my gratitude towards my parents & member of Tecnia Institute of Advanced Studies for their kind co-operation and encouragement which help me in completion of this report. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

ARPAN SINGHAL BBA Vth Sem. (E) 07021301710

EXECUTIVE SUMMARY
Insurance sector in India is one of the booming sectors of the economy and is growing at the rate of 15-20 per cent annum. Together with banking s e r v i c e s , i t contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in India and Insurance industry in India is governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. T h e o r i g i n o f l i f e i n s u r a n c e i n I n d i a c a n b e t r a c e d b a c k t o 1 8 1 8 w i t h t h e establishment of the Oriental Life Insurance Company in Calcutta. It was conceived a s a m e a n s t o p r o v i d e f o r E n g l i s h W i d o w s . I n t h o s e d a ys a h i g h e r p r e m i u m w a s c h a r g e d f o r Indian lives than the non-Indian lives as Indian lives were considered riskier for coverage. The Bombay M utual Life Insurance Societ y that s t a r t e d i t s business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. Insurance sector in India grew at a faster pace after independence. In 1 9 5 6 , Government of India brought together 245 Indian and foreign insurers and provident s o c i e t i e s u n d e r o n e n a t i o n a l i z e d m o n o p o l y c o r p o r a t i o n a n d formed Life InsuranceC o r p o r a t i o n ( L I C ) b y a n A c t o f P a r l i a m e n t , v i z . L I C A c t , 1 9 5 6 , w i t h a c a p i t a l contribution of Rs.5 crore.The (non-life) insurance business/general insurance remained with the private sector till 1972. There were 107 private companies involved in the business of generaloperations and their operations were restricted to organized trade and industry in large cities. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from January 1, 1973. The 107 private insurance companies were amalgamated and grouped into four companies: National Insurance Company, New India Assurance Company, Oriental Insurance Companya n d U n i t e d I n d i a I n s u r a n c e C o m p a n y . T h e s e w e r e s u b s i d i a r i e s o f t h e G e n e r a l Insurance Company (GIC).In 1993, the first step towards insurance sector reforms was initiated with thef o r m a t i o n o f M a l h o t r a C o m m i t t e e , h e a d e d b y f o r m e r F i n a n c e S e c r e t a r y a n d R B I Governor R.N. Malhotra. The committee was formed to evaluate the Indian insuranceindustry and recommend its future direction with the objective of complementing thereforms initiated in the financial sector

CHAPTER-1 INTRODUCTION

1.1INTRODUCTION
The insurance sector in India has come a full circle from being an open competitive. Market to nationalization and back to a liberalized market again. Tracing the Developments in the Indian insurance sector reveals the 360 degree turn witnessed over period of almost two centuries. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding. In what follows, we describe how and why of regulation and deregulation. The entry of the State Bank of India with its proposal of banc assurance brings a new dynamics in the game. We study the collective experience of the other countries in Asia already deregulated their markets and have allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation is not going to disappear any time soon. The Indian insurance market, with a population of over one billion, offers tremendous opportunities and can easily sustain 100 insurers. The development of the insurance sector will result in higher domestic savings and investments, significant expansion of the capital market, enhanced infrastructure financing and increased foreign capital inflow and employment. The opening up of the Indian insurance sector has been hailed as a groundbreaking move towards further liberalization of the Indian economy. The size of the existing insurance market is growing at a rate of ten per cent per year. The estimated potential of the Indian insurance market in terms of premium was around Rs3, 44,000 crores (US$86 billion) in 1999. The Indian players have tapped only ten per cent of the market share and the remaining 90 per cent of the market remains untapped. The Indian Government has recently enacted the Insurance Regulatory Development Authority Act 1999, which amends existing insurance laws dating from 1938. The Act establishes an authority called the Insurance Regulatory Development Authority, designed to regulate the insurance sector.

1.1.1 THE INSURANCE INDUSTRY - WITH A NEW LOOK

Competition has well and truly set in the fast-growing insurance sector, barely a year after the doors were opened for the re-entry of private players. The new face of the Indian insurance industry is craving for attention. Hoardings and billboards of the new joint venture private companies gaze at you from everywhere. Advertisements in newspapers and on television, insurance agents and direct mailers form part of the campaign vehicle. The dozen-odd life and non-life companies in the private sector are fighting a quiet but intense battle to make their presence felt to the Indian consumer. Not to be undone, the public sector companies are trying to match the moves of the private companies. They are shedding their old ways and donning a sprightlier and market-friendly exterior to make sure that they do not lose the advantage of a head start. Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current. With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 1520% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the

increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss. In insurance the insured makes payment called premiums to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums. Classification of insurance The insurance industry in India can broadly classified in two parts. They are. 1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance: Life insurance can be defined as life insurance provides a sum of money if the person who is insured dies while the policy is in effect. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for

detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business.

Benefits of life insurance Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term. Fundamental principles of life insurance contract; 1) Principle of almost good faith: A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not. 2) Principle of insurable interest: Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person.

2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907, there emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

1.1.2 SOME KEY PLAYERS OF INDIAN INSURANCE INDUSTRY

1. AVIVA LIFE INSURANCE Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK andDabur, one of India's leading producer of traditional healthcare products. Aviva holds a 26 percent stake in the joint venture and the Dabur group holds the balance 74 per cent share.Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leadingproviders of life and pensions products to Europe and has substantial businesses elsewherearound the world. 2. BIRLA SUN LIFE INSURANCE Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group andSun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate withpresence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia andChina. 3. LIFE INSURANCE CORPORATION OF INDIA (LIC) Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the lifeinsurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956.LIC is the biggest insurance player in the country.

1.2OBJECTIVE OF THE STUDY The aim of study is to know about various functional departments in the oriental insurance company. To make an awareness of the general insurance industry. To analyse the internal strength and weakness and external threats and opportunities of the organisation. To know the products and services of oriental insurance company and satisfaction of consumers.

1.3 LIMITATIONS OF THE STUDY The study was limited only to the city of Delhi The study was conducted only for a short period of one and a half month The study is based on the assumption that information provided by the respondents is true

1.4 COMPANY PROFILE

THE ORIENTAL INSURANCE COMPANY LIMITED The Oriental Insurance Company Ltd was incorporated at Bombay on 12th September 1947. TheCompany was a wholly owned subsidiary of the Oriental Government Security Life AssuranceCompany Ltd and was formed to carry out General Insurance business. The Company was asubsidiary of Life Insurance Corporation of India from 1956 to 1973 ( till the General InsuranceBusiness was nationalized in the country). In 2003 all shares of our company held by the GeneralInsurance Corporation of India has been transferred to Central Government.The Company is a pioneer in laying down systems for smooth and orderly conduct of thebusiness. The strength of the company lies in its highly trained and motivated work force thatcovers various disciplines and has vast expertise. Oriental specializes in devising special coversfor large projects like power plants, petrochemical, steel and chemical plants. The company hasdeveloped various types of insurance covers to cater to the needs of both the urban and ruralpopulation of India. The Company has a highly technically qualified and competent team of professionals to render the best customer service.Oriental Insurance made a modest beginning with a first year premium of Rs.99,946 in 1950. The goal of the Company was Service to clients and achievement thereof was helped by the strong traditions built up overtime.ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+operating Offices in various cities of the country. The Company has overseas operations inNepal, Kuwait and Dubai. The Company has a total strength of around 15,000+ employees.

CORPORATE VISION 1. To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus. 2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide quality service. 3. To manage Business profitably, manage funds judiciously and deploy investible funds for optimum yield. 4. To optimize the retention of Indian business and conduct reinsurance and international operations in the best interest of the country. 5. To work towards minimization of losses and develop Risk Management Technologies

CORPORATE MISSION Develop the Company's own brand identity to become internationally acclaimed courier company. Retain competitive edge in its services which span throughout the key regions of the world. Maintain financial strength and appropriate risk management. Build job security to the Companys employees, trade partners and consistently reasonable returns to the clients.