EMERGING TRENDS IN GENERAL INSURANCE PRODUCTS OFFERED BY PRIVATE INSURERS IN INDIA

RESEARCH PROJECT REPORT

Submitted to VEER BAHADUR SINGH PURVANCHAL UNIVERSITY, JAUNPUR In Partial Fulfillment of the requirement of the degree of BACHELOR OF BUSINESS ADMINISTRATION

Submitted BySHWETA JAISWAL BBA VI Semester Roll No. -3055

Under the Supervision of MR. PUSHYAMITRA TIWARI (Assistant Professor)

2013

Technical Education & Research Institute,

Post-Graduate College, Ravindrapuri
Ghazipur (U.P.)

CERTIFICATE
This is to certify that Shweta Jaiswal, pursuing BBA 6thSemester from this Institute, has prepared the Research project report entitled. EMERGING TRENDS IN GENERAL INSURANCE PRODUCTS OFFERED BY PRIVATE INSURERS IN INDIA in partial fulfillment of the requirements of the degree of Bachelor of Business Administration from V.B.S. Purvanchal University, Jaunpur, for the session of 2013. This report is based on bonafied research undertaken by Shweta Jaiswal under my supervision during the course of sixth semester and fulfills the requirements of regulations relating to the nature and standard of BBA course of V.B.S. Purvanchal University. I recommend that this research project report may be sent for evaluation.

Rahul Anand Singh Associate Professor & Head, Dept. of Business Administration

Mr. Pushyamitra Tiwari Assistant Professor, Dept. of Business Administration

DECLARATION

I Shweta Jaiswal, hereby declare that this research project report entitled EMERGING TRENDS IN GENERAL INSURANCE

PRODUCTS OFFERED BY PRIVATE INSURERS IN INDIA has been prepared by me on the basis of survey done the course of my sixth semester of BBA program under the supervision of Mr. Pushyamitra Tiwari, T.E.R.I., P. G. College affiliated to Veer Bahadur Singh Purvanchal University. This research project report is my bonafide work and has not been submitted in any university or Institute for the award of any degree or diploma prior to the under mentioned date. I bear the entire responsibility of submission of this project report. 30th April, 2013 Shweta Jaiswal BBA. VI Semester Department of Business Administration Technical Education & Research Institute P.G. College Ghazipur

INDEX OF CONTENTS

Preface Acknowledgement

CHAPTER -1 Introduction to the topic Objective Importance Scope

CHAPTER-2 Research Methodology

CHAPTER-3 Data Analysis & Interpretation

CHAPTER-4 Finding & Recommendations CHAPTER-5 Conclusion & Limitation Bibliography

PREFACE

The first real insight of an organization for management student comes only during his preparation of project work because student first interacts with real practical work. This is first introduction to industry and its working. This project work synthesize the theoretical concept learn in the class room and its practical orientation in organization. In my project I have studied the EMERGING TRENDS IN GENERAL INSURANCE PRODUCTS OFFERED BY PRIVATE INSURANCE IN INDIA. The First chapter deals with the introduction of the topic, it also describes the profile and history of Insurance Industry. In first chapter I have mentioned institute. This chapter also describes the organizational structure of both the organization. The objective and need of research is also mentioned in section of project work. The Second chapter deals with research methodology. The process of carrying out the whole research problem is defined in it. It contains information about the objectives of the research, methods of data collection, sampling and sample design. Third chapter is data analysis and interpretation. This is the most important section of the project work. This section contains the analysis of all the data collected so

far and they are interpreted to produce the final conclusion. It contains all the tables and charts which depicts the result. Chapter four contains the finding and recommendation of the research. This is based on the data analyzed and interpreted in the previous chapter. This is the most important section of the research report for a report is evaluated on the validity ad correctness of findings. Chapter five depicted conclusion which concludes the whole report, that is, gives a brief description of the process employed so far. And later chapters contain bibliography. Which describes the list of sources from where the matter and information is collected? It contains the list of books, authors, web sites use etc.

ACKNOWLEDGEMENT
Many thanks to the God, who has sent me on this earth and by mercy of him, I would be able to accomplish this research.

My parents have also been a real source of inspiration and great support to me. Their support was urgently needed by me which they always provided to me. I would also also thank to my brother and sister upon whom I greatly resided for completion of this report.

I express my deep sense of gratitude and regards to Mr. Pushyamitra Tiwari (Lecturer, Dept. of management studies, T.E.R.I., P.G. College affiliated to Veer Bahadur Singh Purvanchal University) under whose guidance I completed this project, I am thankful to her valuable guidance, gentle encouragement and pains he took in guiding me throughout the study.

Some of my Friend, Shweta Shoundic, Akanksha, Anupama, and Sarah, Ritu, Nasreen, Pooja whose suggestion for what is Right or Wrong has shown my aim and objectives of life. Again, I heartily express my regard to all the above person mentioned and pray to the God May live them long. Shweta jaiswal BBA 6th Sem.

CONCEPT OF INSURANCE
Life has always been an uncertain thing. To be secure against unpleasant possibilities, always requires the utmost resourcefulness and foresight on the part of man. To pray or to pay for protection is the spirit of the humanity. Man has been accustomed to pray God for protection and security from time immemorial. In modern days Insurance Companies want him to pay for protection and security. The insurance man says "God helps those who help themselves"; probably he is correct. Too many people in this country are not in employment; and work for too many no longer guarantees income security. Several millions are part-time, self employed and low-earning workers living under pitiable circumstances where there is no security cover against risk. Further the inherent changing employment risks, the prospect of continual change in the work place with its attendant threats of unemployment and low pay especially after the adoption of New Economic Policy and the imminent life cycle risks a new source of insecurity which includes the changing demands of family life, separation, divorce and elderly dependents are tormenting the society. Risk has become central to one's life. It is within this background life insurance policy has been introduced by the insurance companies covering risks at various levels. Life insurance coverage is against disablement or in the event of death of the insured, economic support for the dependents. It is a measure of social security to livelihood for the insured or dependents. This is to make the right to life meaningful, worth living and right to livelihood a means for sustenance. Therefore, it goes without saying that an appropriate life insurance policy within the paying capacity and means of the insured to

pay premium is one of the social security measures envisaged under the Indian Constitution. Hence, right to social security, protection of the family, economic empowerment to the poor and disadvantaged are integral part of the right to life and dignity of the person guaranteed in the constitution. Man finds his security in income (money) which enables him to buy food, clothing, shelter and other necessities of life. A person has to earn income not only for himself but also for his dependents, viz., wife and children. He has to provide legally for his family needs, and so he has to keep aside something regularly for a rainy day and for his old age. This fundamental need for security for self and dependents proved to be the mother of invention of the institution of life insurance.

INSURANCE INDUSTRY: CLASSIFICATION

SOME PLAYERS IN THE INDUSTRY:

GENERAL INSURANCE
General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty insurance in the U.S. and Non-Life Insurance in Continental Europe. In the UK, General insurance is broadly divided into three areas: personal lines, commercial lines and London market. The London market insures large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the City of London. The Lloyd's of London is a big participant in this market.[1] The London Market also participates in personal lines and commercial lines, domestic and foreign, through reinsurance. Commercial lines products are usually designed for relatively small legal entities. These would include workers' comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organizations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels.

Personal lines products are designed to be sold in large quantities. This would include autos (private car), homeowners (household), pet insurance, creditor insurance and others.

GENERAL INSURANCE OF INDIA

National Insurance Company Limited was incorporated in 1906 with its registered office in Kolkata. Consequent to passing of the General Insurance Business Nationalization Act in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it and National became a subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the Government of India. After the notification of the General Insurance Business (Nationalization) Amendment Act, on 7th August 2002, National has been delinked from its holding company GIC and presently operating as a Government of India undertaking. National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's foreign operations are carried out from its branch offices in Nepal. Befittingly, the product ranges, of more than 200 policies offered by NIC cater to the diverse insurance requirements of its 14 million policyholders. Innovative and customized policies ensure that even specialized insurance requirements are fully taken care of.

The paid-up share capital of National is Rs.100 crores. Starting off with a premium base of 500 million rupees (50 crores rupees) in 1974, NIC's gross direct premium income has steadily grown to 4021.97 million rupees (4021.97 crores rupees) in the financial year 2007-2008. National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The Company offers protection against a wide range of risks to its customers. The Company is privileged to cater its services to almost every sector or industry in the Indian Economy viz. Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment. National Insurance is the second largest non life insurer in India having a large market presence in Northern and Eastern India. .

ORIGIN OF INSURANCE
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments. As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

The first step

Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact

business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.

Insurance and Myth

Back to the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.

Enter companies
The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups.

The growing years

The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. There were more offshoots of the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, this first made its appearance in the 1880s, gained importance and acceptance. In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labour organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and oldage pensions. Employees contribute a certain percentage of the premium for these policies.

Insurance in India
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig

Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children. Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result, the government decided nationalize the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of

1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001. The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.

THE BIRTH OF INDIAN INSURERS

With the advent of the 20th century, the glorious renaissance of swadeshi days dawned. At the same time, well- to do Indians realized the potentiality of Indian Insurance business. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Cooperative Insurance Company took its birth in one of the rooms of the Jorasanko House of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile (1907) was started in Bombay, General Assurance (1908) at Ajmer and the Swadeshi Life (Later Bombay Life) in Bombay in 1908. The end of the First World War (1914-18) witnessed an influx of insurance companies in India. Famous Indian business houses started new insurance companies. Industrial and Prudential Bombay, Western India, Satara, were floated before the war, but by 1919, companies like Jupiter General, New India, Vulcan Insurance Company etc. came into being.

Pandit K.Santhanam with blessing of Lala Lajpat Rai and Pandit Motilal Nehru started Laxmi Insurance Co. Similarly, Andhra Insurance was started in Masulipatnam, with the initiative of stalwarts like Dr. Pattabhi Sitaramaiah. From political platforms also, national leaders supported this cause. It is duty to every Indian to support only Indian Insurance. The keynote of our Swaraj is in placing all our insurance with our Indian companies", said Mahatma Gandhi in his message. "I hope Indians will realize the importance of patriotism only through Indian insurance institution", stated Pandit Jawaharlal Nehru. Thus, the cause of Indian insurance became a national issue. The pursuit to boost Indian insurance represented a crusade to extricate the Indian economy from foreign domination.

INSURANCE ACT, 1938

The Insurance Act, 1938, was the first comprehensive legislation governing not only life but also non- life branches of insurance to provide strict state control over insurance business. In sub- sections to dealt with provident companies, mutual offices and cooperative societies as well. The silent features of the Act were as follows: (A) Constitution of a Department of Insurance under a superintendent vested with wide powers of supervision and control over all kinds of insurance companies. (B) Regulation for the compulsory registration of insurance companies and for filing of returns of investment and financial conditions.

(C) Provisions for deposit, to prevent insurers of inadequate financial resources of speculative concerns for commencing business. (D) Provisions that 55% of the net life fund of an Indian or non- Indian insurer should invested in Indian Government and approved securities with at least 25% in Indian Government Rupee securities.. All other companies, i.e., foreign companies must invest 100% of their Indian liabilities in Indian Government and approved securities, with at least 33.3% Indian Government securities. (E) Prohibition of rebating, restriction of commission, licensing of agents etc. Maximum rates of commission were fixed at 40% of the first premiums and 5% of the renewal premium in respect of life assurance business. The agent must be licensed, to improve the status of the profession. (F) Periodical valuation of Indian Insurance business of foreign companies and the business of Indian companies. (G) Provision for policyholders' directors, making it possible for the representatives of policy holders to be on the Board of directors. (H) Standardization of policy conditions required all companies to file standard forms and tables of premium approved by an Actuary. Under this requirement, the initial deposit for life insurance business was raised from Rs. 25000 in Government securities to Rs. 50000 in cash approved securities, which was subsequently to be raised by installments to Rs. 2 lakh within a specified time limit.

INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian Insurance industry and recommended its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms...". In 1994, the committee submitted the report and some of the key recommendations included: (1) STRUCTURE Government stake in the Insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. (2) COMPETETION Private Companies with minimum paid up capital of Rs.1 bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entry.

 Foreign Companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. (3) REGULATORY BODY The Insurance Act should be changed An Insurance Regulatory Body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent (4) INVESMENTS Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time). (5) CUSTOMER SERVICE GIC should pay interest on delays on payments beyond 30 days. Insurance Companies must be encouraged to set up unit linked pension plans.

 Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer service and increase the coverage of insurance industry should opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.

Liberalization:
OPENING UP OF INSURANCE SECTOR 1999 THE INSURANCE

REGULATORY AND DEVELOPMENT AUTHORITY Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA's online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally

compatible regulations. In the private sector 14 life insurance companies have been registered.

ENTRY OF PRIVATE COMPANIES

Under the IRDA Act, private companies can now operate in India's insurance industry. However, they must obtain a license from the IRDA before being permitted to write business. To have its license application considered, a domestic private company must be registered in accordance with the Companies Act of 1956 and have approximately US$ 20 million of investment capital. The specific licensing requirements that Private Indian Companies must fulfill are set forth in the Registration on Indian Insurance Companies Regulations, published by the IRDA 2000.

OVERVIEW MARKET

OF

THE

CURRENT

GENERAL

INSURANCE

In the years since the IRDA Act initiated market reforms, the insurance sector has experienced some remarkable changes. The entry of a large number of Indian and Foreign private companies in life insurance business has to lead greater choice in terms of products and services. Increased consumer awareness of the benefits and importance of insurance and reinsurance has generated many more buyers; and new distribution channels among them

brokers, bank assurance, the Internet, and corporate agents have provided additional ways of getting products and services to customers.

PURPOSE & NEED OF INSURANCE

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The earthquake may occur, but the building may not have been affected at all. The word 'possibility' implies uncertainty. Insurance is relevant only if there are uncertainties. In case of a human being, death is certain, but it's time is uncertain. The person is insured, because of the uncertainty about the time of his death. In the case of a person who is ill,the time of death is not uncertain, though not exactly known. It would be 'soon'. He can't be insured.

MARKET SHARE
As by this time we are well versed with all the General Insurance companies both Public and private we know how each company contributes serving the customers and also generating revenue through it. We also know that General Insurance contributes towards the Gross Domestic Profit, but now let us see how these companies individually contribute towards the Gross Domestic Profit through the way of Market Share of each company both Private & Public.

As we can see in the Pie Charts a comparison of 3 consecutive years have been taken which are 2003-04, 2004-05 & 2005-06. Public Companies have been dominating the General Insurance Market since a long time, the market share of Private companies have been improving in the last few years by approximately 6 % each year, but then too Public sector companies capturing the major market. But also in Public sector companies New India Assurance is been leading the way which is been closely followed by the remaining. Among the private players we can note that By considering 2005-06 as the base year, we can note that the market share of Public companies have been deteriorating having 73.43% of the market share from 85.54% in ICICI Lombard is leading the way having 73.43% of the market .

TRENDS IN GENERAL INSURANCE

Trends in any sector basically refers to the up gradations or acquiring new technologies which has replaced the conventional methods in any organizations In Todays automated and modernized era any organization cannot take a chance by not maintaining pace with the competition.

With the passage of time and taking into consideration todays needs and chan ging scenario insurance companies should also adopt new technology i.e. it should be trendy enough to meet customer needs and expectations. Trends or use of technology should be such that it is eco friendly enough to be used by customers. Today, right from a grocery shop to I.T sector technologies is explored to the fullest E-Business or E-commerce has sown its seeds in every sector of business which is one of the strongest sign of improvement and technology. As we are dealing here with insurance industry let us see the technology involved in the Insurance sector.

Technological:
Computerization: Initially, in the late 1950s the insurance companies used Unit Record Machines (Electro Magnetic Machines) to process data punched into cards. Computers were introduces in the mid 1960s and by the 1980s the Unit Phased Machines were phased out and the entire process was computerized. This brought about greater efficiency and quick service delivery. Internet: Internet usage has drastically improved in the last decade. There was a tremendous increase in the use of technology by GIC during the late 1990s. The companies Launched its website in the

mid 1990s to offer basic services such as modifying policies (change of address, change of nominee, etc) and querying the status of the policy. But today, the internet has completely changed the service delivery process. Internet is today used to even sell insurance policies. Internet is, in fact, proving to be one of the widely used distribution networks for selling insurance policies. Also internet is used for sending premium notices to policy holders through e-mails.

Metropolitan Area Network (MAN) and Wide Area Network (WAN): GIC has commissioned a MAN connecting more than 75 branches in Mumbai. This enabled the policy holders to pay their premiums and get their status report, surrender value quotations and loan quotation, from any branch in the city. Following the MAN in Mumbai, seven MAN centres (Chennai, Bangalore, Delhi, Calcutta, Pune, Hyderabad, and Ahmadabad) became operational. Electronic Clearance Service (ECS): Almost all the big organizations today provide the ECS facility to its customers. A policy holder having an account in any bank which is a member of the local clearing house can opt for ECS debit to pay premiums. The advantage here is that once the option is exercised, the policy holder need not visit a branch for paying the premium or collecting the receipt. Bank ATMs:

Many insurance companies have a tie-up with commercial banks so as to enable policyholders to use the facility of paying premiums through the bank ATMs. ICICI Lombard has a tie up with ICICI bank; Bajaj Allianz has a tie-up with Corporation bank and UTI Bank. Call Centres and SMS services: Almost all the insurance companies have their own call centres which cater to the phone based queries of the policyholders. This service is 24x7 and they have the Interactive Voice Response (IVR) systems at all the branches. Also, LIC and other companies now provide SMS services going with the new trends like SMS banking in the banking sector.

BAJAJ ALLIANZ GENERAL INSURANCECOMPANY LIMITED

Bajaj Allianz General Insurance Company Limited

Bajaj Auto India's leading two wheeler manufacturer and Allianz AG worlds largest General Insurance company have come together to form Bajaj Allianz General Insurance Company Limited. The Bajaj Group brings with it a very strong corporate philosophy and work e t h I c s. An h o u s e h o l d name t o d a y B a j a j h a s a n e x t e n s i v e understanding of the local market; with an expansive distribution network catering to a huge retail pool in the two wheeler & consumer goods section. Allianz brings the insurance skills as the largest General Insurance company in the world and an understanding of the insurance needs of over 60 million customers across the world. With over 110 years of experience Allianz AG services majority of the Fortune 500 companies.

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the

industry by achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 180 crores and has become the only private insurer to cross the Rs.100 crore marks in profit before tax in the last four years. The profit after tax was Rs. 121 crores, 27% higher than the previous year

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

5. Riot, Strike & Malicious Damage 6. Impact Damage 7. Subsidence and Landslide including Rock slide 8. Missile testing operations 9. Leakage from Automatic Sprinkler Installations 10. Bush Fire 11. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation 12. Bursting and/or overflowing of Water Tanks, Apparatus and Pipes 13. Upto 3% of the claim amount to cover the Architects, Surveyors and Consulting Engineers Fees 14. Up to 1% of the claim amount to cover the Debris Removal by the Insured following a loss

The Add on covers offered are as follows: 1- Terrorism cover extension: To protect you & your property against loss or damage from terrorist attack 2- Fees for Architects, Surveyors and Consulting Engineers exceeding 3% of the claim amount. Expenses for removal of Debris. Deterioration of Stocks in Cold Storage premises. a) Following the failure of the Public Utilities. b) Due to damages to machinery (ies) by the operation of insured perils. Forest Fire Damage to property due to impact by Insureds own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped there from. Spontaneous Combustion. Omission to Insure additions, alterations or extensions: Automatic insurance coverage for new contents added by the insured during the course of policy upto 5% of the Sum Insured.. Earthquake: Damage caused by Fire and Shock occuring due to the earthquake.

SPOILAGE MATERIAL DAMAGE COVERS: Damage due to Spoilage resulting from the retardation or interruption or cessation of any process or operation caused by any of the perils covered under this policy.

LEAKAGE AND CONTAMINATION COVER: Risks of (a) accidental leakage and contamination or (b) accidental leakage. This is applicable to oils and chemicals only. TEMPORARY REMOVAL OF STOCKS CLAUSE: The stock is covered while temporarily removed to any other premises for purpose of fabrication or processing or finishing or other similar purposes. LOSS OF RENT CLAUSE: It covers loss of rent due to operation of insured perils causing damages to property, rendering it unfit for occupation. INSURANCE OF ADDITIONAL EXPENSES OF RENT FOR AN ALTERNATIVE ACCOMMODATION. EARLY START UP EXPENSES: Any expenses made for early restoration of the property can be covered.

Marine Insurance
Business today knows no boundaries. We have an access to products and services across borders as countries continue to globalize. However the farther our goods travel the more risk they are exposed to. That's why Bajaj Allianz brings to you the marine.

Bajaj Medi-claim Policy

Bajaj Allianz General Insurance is a one of best medi-claim providers in the market. It offers array range of medi-claim policies to the customers. Health Guard, Hospital Cash, Critical Illness, Personal Guard, Silver Health, E-Opinion, Star Package, Health Ensure, Insta Insure, Sankat Mochan, Family Floater HG, Tax Gain and Extra Gain are the policies offered by the

Bajaj Allianz. Each policy is a best in its class. These policies are available for individual and for family. There are various sum insured ranges available depending on the policy chosen by the customer. Silver Health policy is a specially designed for the senior citizens and can be taken between the age of 46 years and 70 years. There is a critical illness insurance policy which provides cover against life threatening illnesses. These policies take care of the insured against medical expenses resulting from any sickness or accidental injuries. The medical expenses such as hospitalization, pre hospitalization, post hospitalization, domiciliary hospitalization, day care procedures, organ donors expenses, ambulance charges, etc. There is no sub limits on room rent and other medical expenses. Health checkups can be covered, subject to a condition. Bajaj Allianz medi-claim policies are available on cashless basis at over more than 2400 network hospitals across the country. If the treatment is taken in non network hospitals, 10% co-payment is applicable. Waiver of co-payment is available on payment of additional premium. Some policies dont required pre-medical examination up to the age of 45 years. Tax benefit is available on premium paid under section 80D of the Income Tax Act,1961.

Bajaj Allianzs Motor Vehicle policy

Technology has made our daily life simpler in various ways. Motor vehicle is an invention which has made daily commuting easy. It is convenient and fast and saves our time. Though it is easy to own a vehicle it is expensive maintaining a motor vehicle especially in case o f damage c a

used to your vehicle due to some unavoidable circumstances or accidents. Bajaj Allianzs Motor Vehicle policy helps you in maintaining your vehicle in such situations.

The policy offers the following scope of Cover: Section 1 : Undertakes to reimburse the expenses incurred for: Repair / replacement of the parts of the vehicle To Pay the market value of the vehicle in case of a total loss Provided that the originating cause of such damage is an accident, including theft Section 2 : Is compulsory. It covers the legal liability to third partypersonal injury and property damage arising out of an accident involving the insured vehicle.

Other Salient Features For claims free experience, discount available on subsequent renewal. Discount available if voluntary excess opted for

TATA AIG GENERAL INSURANCE COMPANY LIMITED

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 InsuranceThe 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 VentureTata AIG General Insurance Co. Ltd. has a start-up capital of Rs. 125 crores of which 74 percent has been brought in by Tata Sons and American partner brings in the balance 26 percent. 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 officers liability, accident and health, homeowners and automobile insurance. India Fire - Fire & Special Perils This plan would cover any loss caused to the home due to fire and other perils that cause greater damage. The plan is reasonable and also offers coverage against terrorist attacks, earthquakes additionally. The key facts or facets would include protection against the following: Fire Lightning Explosion/Implosion

Aircraft Damage Riot, Strike and Malicious damage

Impact damage by any Rail/Road, vehicle or animal by direct contact(excluding damage by own vehicle) Subsidence and landslide including rockslide Bursting and/or overflowing of Water Tanks, Apparatus and Pipes Missile Testing operations Leakage from Automatic Sprinkler Installations Bush Fire Flood, Storm, Inundation etc. Earthquake

Tata AIG Life Insurance Company LTD believes in providing innovative and pertinent insurance policies and solutions in retail as well as commercial spheres. Each product is supported by expertise and other in-depth analysis. The same is applied for the home insurance schemes. These schemes are made keeping in mind the needs and requirements of the customers. Hence, if you are seeking for a home insurance then seeking solutions from Tata AIG General Insurance Company Limited would be a good choice.

IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.

IFFCO Tokio General Insurance Company ltd.

Indian farmers fertilizers cooperative limited was created on Nov 3, 1967 as a multi unit Cooperative society engaged in production and distribution of fertilizers the byelaws of the society provide a broad framework for the activities of IIFCO as a cooperative society the main emphasis is on production and distribution of fertilizers The Tokio marine and fire insurance The Tokio marine and fire insurance (Tokio marine) company holds a leading position in Japans property and casualty insurance industry. It is the second largest in P & C insurance market in the world.

With superior capitalization, stable profitability and conservative management tem the company provides a large rage of property and casualty insurance products n services including, automobile fire and personal accident to retail corporate clients The Joint Venture IFFCO TOKIO General Insurance Company is a joint venture promoted by India Farmers Fertilizers Co-Operative, Tokio Marine and fire Insurance Company, Japan, the fifth largest insurance company in the world, Krishak bharathi Cooperative ltd. (KRIBHCO), and Indian potash. Their contribution to the Rs.100 crore equity capitals is 49 percent, 20 percent and 5 percent respectively. The head Office is in Delhi and operating Office are in about 20 cities.

IFFCO Tokio Insurance Products Home & Family Protector Standard Fire & Special Perils Burglary and House Breaking Personal accident Trade Protector Travel Protector

OBJECTIVES

1. To understand about general insurance industry in India. 2. To find out the growth rate of the general insurance industry. 3. To know the different type of products offered by general insurance private companies. 4. To know the trends in general insurance in terms of market share of private players. 5. To know the performance of general insurance private companies in relation to government insurance companies.

IMPORTANCE

1. Study helps in understanding the general insurance industry. 2. To help in knowing the latest trends in general insurance industry. 3. To know about regarding the growth potential of general insurance industry. 4. To help in knowing different products offered by general insurance companies. 5. Study helps in knowing the performance of private general insurance companies in Comparison to public players existing in market.

SCOPE

The present study is based on secondary data mainly collected from annual report of insurance companies, IRDA annual reports, and journals, and website. The scope of the study has been restricted to top three private general insurance companies. This research report gives brief description of private general insurance companies & it also effect the liberalization on insurance companies. There is vast scope in the growth of insurance Sector because the businessmen or other people want their stocks, inventory, house etc. safe and private general insurance companies provide better schemes as compared to public insurance companies

RESEARCH METHODOLOGY

A systematic search for an answer to a question or solution to a problem is known as REAEARCH. According to KERLINGER defines RESEARCH, '' A Systematic, Controlled, Empirical and Critical Investigation of Hypothetical Preposition about Presumes Relation among Natural Phenomenon. Research is the fountain of knowledge of for the sake of knowledge and an important source of providing guidelines for solving different business, governmental and social problems.

CHARACTERSTICS OF RESEARCH1. Research is more systematic activity directed towards discovery and the development and organized body of knowledge. 2. Research is based upon observable experience and empirical evidences. 3. Research demands accurate observation and description. 4. Research requires expertise. 5. Research involves gathering new data from primary sources, existing data for a new purposes.

IMPORTANCE OF RESEARCH 1. Research includes scientific and inductive thinking and it promotes the development of logical habits of thinking and organizing. 2. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. 3. Research provides the basis for nearly all government policies in our economics system. 4. Research has its special significance solving various operational and planning problems. 5. Research is equally important for social scientists in studying social relationship and in seeking answers to various social problems. 6. Research can also be understood keeping in view the following points A. To professional in research methodology, research may mean a source of livelihood. B. To philosophers and thinkers, research may mean the outlet for new ideas and insight. C. To literary men and women, research may mean the development of new styles and creative work. D. To analyst and intellectual, research may mean the generalization of new theories.

Research is the fountain of knowledge and an important source of providing guidelines for solving different business, governmental, and social problem.

RESEARCH DESIGN A research design is defined, as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a research plan requires decisions all the data sources, research approaches, Research instruments, sampling plan and contact methods. My research design is based on -: Exploratory research Descriptive research

1. EXPLORATORY RESEARCHIt is known as formulative research design. The major purposes of exploratory studies are the identification of problems, the more precise Formulation of problems and the formulations of new alternative courses of action. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity. It is based on secondary sources and it is the nature of preliminary research. a. Literature research b. Experienced research c. Case study

2. DESCRIPTIVE STUDY: Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions. The investigator already knows a substantial amount about the research problem. Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is also characterized by a Preplanned and structured design.

SOURCES OF DATA DATA are fact, figures and other relevant material, past and present, serving as basis for study and analysis. Primary Data: The information obtained through survey serves as the primary data for the study. Secondary Data: National and International books in the area of study, journals, magazines and websites serve as the source of secondary data. The report is based on secondary data so no primary data has been used in this report.

SECONDARY DATA These are sources containing data which are collected previously and compiled for some purpose. Secondary data are already available. These sources give not only published record but also unpublished records and periodicals. There are various sources of secondary data. They are as follows-

1. Publication Relating To Trade: Publication of the trade associations, stock exchange, trade union etc. 2. Journal/Newspaper etc.- Some newspapers / Journals collect and publish their own data, e.g. Indian Journals of economics, economist, Economic Times. 3. Internet: It is also a good source of data collection. I had collected my data from many website google.com ask.com answer.com

1. To understand about General Insurance Industry. Figure - 1.1

Table - 1.2

100 90 80 70 60 50 40 30 20 10 0

DATA ANALYSISFrom the above table researcher has found that total market share 20.07% in 2004-05, 26.34% in 2005-06, 34.72% in 2006-07, 39.51% in 2007-08, 40.59% in 2008-09.

INTERPRETATIONAfter the study researcher has found that in the year 2008-09the market share of General Insurance Company is more than others.

2. Growth of the general insurance industry.

Table 2. Companies Tata AIG Bajaj Allianz
IFFCO Tokio

2004 22.019 17.502 19.567

2005 22.853 16.398 17.126

2006 22.801 19.383 17.889

2007 25.108 21.812 17.844

2008 27.329 22.862 17.439

30

25

20 Tata AIG Bajaj Allianz 10 IFFCO Tokio

15

0 1 2 3 4 5

DATA ANALYSISIn the year 2004growth of general insurance industry in Tata AIG is 22.019% , Bajaj Allianz is 17.502%, IFFCO Tokio is 19.567%. In the year 2005growth of general insurance industry in Tata AIG is 22.853% , Bajaj Allianz is 16.398%, IFFCO Tokio is 17.126%. In the year 2006 growth of general insurance industry in Tata AIG is 22.801% , Bajaj Allianz is 19.383%, IFFCO Tokio is 17.889%. In the year 2007growth of general insurance industry in Tata AIG is 25.108%, Bajaj Allianz is 21.812%, IFFCO Tokio is 17.844%. In the year 2008growth of general insurance industry in Tata AIG is 27.329%, Bajaj Allianz is 22.862%, IFFCO Tokio is 16.439%.

INTERPRETATIONAfter the study researcher has found that Growth rate of General Insurance Industry is more in Tata AIG in comparison to others.

3. Products offered by general insurance private companies.

Table 3.
companies Tata AIG
Bajaj Allianz IFFCO Tokio

Motor 42.9 33
45.6

Health 10.9 13.3

17.6

fire 18.5 16.6

12.4

marine 6.3 6.5

6.5

Other 21.4 20.5

17.9

DATA ANALYSIS

In the year 2005-06 general insurance offers 42.9% in motors, 10.9% in health, 18.5% in fire insurance, 6.3% marine insurance and 21.4% in other.

In the year 2006-07 general insurance offers 43% in motor, 13.3 in health, 16.3% in fire, 6.5% in marine and 20.6% in others.

In the year 2007-08 general insurance offers 45.6% in motor, 17.6 in health, 12.4% in fire, 6.5% in marine and 17.9% in other.

1n year 2008-09 general insurance 44.0% in motors, 19.9% in health, 11.2% fire, 6.5% in marine and 18.4 in other.

INTERPRETATIONAfter the study researcher has found that the maximum no. of product offered by IFFCO Tokio in all sectors.

4. General insurance in terms of market share of private players.

Table 4.

Source: Compiled from IRDA Journals. Note: The figures given in parentheses indicate the growth of Gross Direct Premium in percentage terms.

Data Analysis:
From the above table the researcher has found that new Indian Insurance Company in year 2002 03 Market share of company in the General Insurance Industry is 32.37%, in year 2003 04 the Gross Direct Premium is 29.75%. in year the Gross Direct Premium is 27.65%, in year 2004 05 the Gross Direct Premium is 26.60%, in year 2005 -06 the Gross Direct Premium is 22.90%. Tata AIG in year 2002 03 the Gross Direct Premium is 1.42%, in year 2003 04 the Gross Direct Premium is 2.94%, 2004 05 the Gross Direct Premium is 4.73%, in year 2005 06 the Gross Direct Premium is 7.42%, in year 2006 07 the Gross Direct Premium is 11.53. Bajaj Allianz in year 2002 03 the Gross Direct Premium is 1.99%, in year 2003 04 the Gross Direct Premium is 7.88%, in year 2004 05 the Gross Direct Premium is 4.61%, in year 2005 06 the Gross Direct Premium is 4.18%, in year 2006 07 the Gross Direct Premium is 6.89%. IFFCO Tokio in year 2002 03 the Gross Direct Premium is 1.43%, in year 2003 04 the Gross Direct Premium is 1.95%, in year 2004 05 the Gross Direct Premium is 2.69%, in year 2005 06 the Gross Direct Premium is 4.18%, in year 2006 07 the Gross Direct Premium is 6.89%. Total eight Private Co. in year 2002 03 the Gross Direct Premium is 13.65%, in year 2003 04 the Gross Direct Premium is 13.65%, in year 2004 05 the Gross Direct Premium is 19.00%, in year 2005 06 the Gross Direct Premium is 25.13%, in year 2006 07 the Gross Direct Premium is 33.35%. Grand Total in all year the Gross Direct Premium is 100%.

Interpretation:
After the study researcher has found that the market share of new India insurance company is more as compare to other general insurance companies

5. The performance of general insurance private companies in relation to government insurance companies.
Table 4.1 Expenses of Management ratio

Source: Compiled from Annual Report of General Insurance Company.

Analysis: From the above table the researcher has explains that as far as the Expenses of
Management Ratio are concerned, the Private Sector General Insurance Companies' performance is better than that of Public Sector General Insurance companies. The competitive environment has compelled the Public Sector General Insurance Companies to reduce their expenses of management and inculcate more operational efficiencies. New India Insurance Company reduced expenses of management from 27.23 percent in 2003-04 , in 2006~07 and Oriental Insurance Company reduced its management expenses from 26.70 to 18.76 per cent during that corresponding period. Among the Private Sector general insurance companies, Tata AIG seems to be the most cost effective having least expenses of management ratio. Overall, the private sector insurance companies' results present lower expenses of management ratio than public sector companies, though the figures also point out that public sector companies are also working on inculcating efficiencies to become competitive.

Interpretation: After the study researcher has found that the public Insurance Company has
greater expenses as compared to private Insurance companies.

Table 4.2

Claim Incurred Ratio

Source: Compiled from Annual Report of General Insurance Company.

Analysis: From the above table the researcher has found that the claim incurred ratio of Public
Sector General Insurance Companies is much higher than that of the Private Sector General Insurance Companies. Oriental Insurance Company has the highest claim incurred ratio throughout the period under study, whereas in the private sector players, Bajaj Allianz has the least claim incurred ratio during most of the period understudy. A closer investigation of the product portfolio, through their annual reports, reveals that it is mainly ascribed to the fact that the Private companies are concentrating more on the cream business. In respect of loss making port folio, such as motor business, they have avoided to enter these businesses to reduce their claim incurred ratio. Further investigation reveals that public sector insurance companies do not get much of their business reinsured in contrast to the private sector players, who get most of the business reinsured to reduce their claim incurred ratio.

Interpretation: After the study researcher has found that the claim incurred ratio in past few
years the public insurance companys claim is higher than private insurance companies.

Table 4.3 Net Earnings Ratio

Source: Compiled from annual report of general insurance companies.

Analysis: From the above table the researcher has found that Return on Net Worth of all the
General Insurance Companies is increasing from year to year, though the growth is more profound in the case of New India Insurance Co., Oriental Insurance Co., and Bajaj Allianz. In 2006-07, Bajaj Allianz has witnessed the highest return on net worth ratio, i.e., 28 per cent closely followed by Oriental Insurance Co. and New India Insurance Co. with the percentage values of 24.55 and 24.44 respectively. As mentioned earlier, this is mainly ascribed to better underwriting results in the case of Bajaj Allianz and high investment income in the case of Oriental Insurance Company and New India Insurance Company.

Interpretation: After the study researcher has found that the net earnings ratio among all
private general insurance companies the oriental insurance companys net earnings ratio is maximum.

FINDINGS

From the above table researcher has found that total market share 20.07% in 2004-05, 26.34% in 2005-06, 34.72% in 2006-07, 39.51% in 2007-08, 40.59% in 2008-09.

In the year 2004 growth of general insurance industry in Tata AIG is 22.019% , Bajaj Allianz is 17.502%, IFFCO Tokio is 19.567%. In the year 2005 growth of general insurance industry in Tata AIG is 22.853% , Bajaj Allianz is 16.398%, IFFCO Tokio is 17.126%.In the year 2006 growth of general insurance industry in Tata AIG is 22.801% , Bajaj Allianz is 19.383%, IFFCO Tokio is 17.889%.In the year 2007 growth of general insurance industry in Tata AIG is 25.108%, Bajaj Allianz is 21.812%, IFFCO Tokyo is 17.844%.In the year 2008 growth of general insurance industry in Tata AIG is 27.329%, Bajaj Allianz is 22.862%, IFFCO Tokio is 16.439%.

In the year 2005-06 general insurance offers 42.9% in motors, 10.9% in health, 18.5% in fire insurance, 6.3% marine insurance and 21.4% in other. In the year 2006-07 general insurance offers 43% in motor, 13.3 in health, 16.3% in fire, 6.5% in marine and 20.6% in others. In the year 2007-08 general insurance offers 45.6% in motor, 17.6 in health, 12.4% in fire, 6.5% in marine and 17.9% in other. In year 2008-09 general insurance 44.0% in motors, 19.9% in health, 11.2% fire, 6.5% in marine and 18.4 in other.

In the year 2005-06 general insurance offers 42.9% in motors, 10.9% in health, 18.5% in fire insurance, 6.3% marine insurance and 21.4% in other.

In the year 2006-07 general insurance offers 43% in motor, 13.3 in health, 16.3% in fire, 6.5% in marine and 20.6% in others.

In the year 2007-08 general insurance offers 45.6% in motor, 17.6 in health, 12.4% in fire, 6.5% in marine and 17.9% in other.

1n year 2008-09 general insurance 44.0% in motors, 19.9% in health, 11.2% fire, 6.5% in marine and 18.4 in other.

From the above table the researcher has found that new Indian Insurance Company in year 2002 03 Market share of company in the General Insurance Industry is 32.37%, in year 2003 04 the Gross Direct Premium is 29.75%. in year the Gross Direct Premium is 27.65%, in year 2004 05 the Gross Direct Premium is 26.60%, in year 2005 -06 the Gross Direct Premium is 22.90%. Tata AIG in year 2002 03 the Gross Direct Premium is 1.42%, in year 2003 04 the Gross Direct Premium is 2.94%, 2004 05 the Gross Direct Premium is 4.73%, in year 2005 06 the Gross Direct Premium is 7.42%, in year 2006 07 the Gross Direct Premium is 11.53. Bajaj Allianz in year 2002 03 the Gross Direct Premium is 1.99%, in year 2003 04 the Gross Direct Premium is 7.88%, in year 2004 05 the Gross Direct Premium is 4.61%, in year 2005 06 the Gross Direct Premium is 4.18%, in year 2006 07 the Gross Direct Premium is 6.89%. IFFCO Tokio in year 2002 03 the Gross Direct Premium is 1.43%, in year 2003 04 the Gross Direct Premium is 1.95%, in year 2004 05 the Gross Direct Premium is 2.69%, in year 2005 06 the Gross Direct Premium is 4.18%, in year 2006

07 the Gross Direct Premium is 6.89%. Total eight Private Co. in year 2002 03 the Gross Direct Premium is 13.65%, in year 2003 04 the Gross Direct Premium is 13.65%, in year 2004 05 the Gross Direct Premium is 19.00%, in year 2005 06 the Gross Direct Premium is 25.13%, in year 2006 07 the Gross Direct Premium is 33.35%. Grand Total in all year the Gross Direct Premium is 100%.

From the above table the researcher has explains that as far as the Expenses of
Management Ratio are concerned, the Private Sector General Insurance Companies' performance is better than that of Public Sector General Insurance companies. The competitive environment has compelled the Public Sector General Insurance Companies to reduce their expenses of management and inculcate more operational efficiencies. New India Insurance Company reduced expenses of management from 27.23 per cent in 2003-04 in 2006~07 and

Oriental Insurance Company reduced its management expenses from 26.70 to 18.76 per cent during that corresponding period. Among the Private Sector general insurance companies, Tata AIG seems to be the most cost effective having least expenses of management ratio. Overall, the private sector insurance companies' results present lower expenses of management ratio than public sector companies, though the figures also point out that public sector companies are also working on inculcating efficiencies to become competitive. From the above table the researcher has found that the claim incurred ratio of Public Sector General Insurance Companies is much higher than that of the Private Sector General Insurance Companies. Oriental Insurance Company has

the highest claim incurred ratio throughout the period under study, whereas in the private sector players, Bajaj Allianz has the least claim incurred ratio during most of the period under study. A closer investigation of the product portfolio, through their annual reports, reveals that it is mainly ascribed to the fact that the Private companies are concentrating more on the cream business. In respect of loss making portfolio, such as motor business, they have avoided to enter these businesses to reduce their claim incurred ratio. Further investigation reveals that public sector insurance companies do not get much of their business reinsured in contrast to the private sector players, who get most of the business reinsured to reduce their claim incurred ratio. From the above table the researcher has found that Return on Net Worth of all the General Insurance Companies is increasing from year to year, though the growth is more profound in the case of New India Insurance Co., Oriental Insurance Co., and Bajaj Allianz. In 2006-07, Bajaj Allianz has witnessed the highest return on net worth ratio, i.e., 28 per cent closely followed by Oriental Insurance Co. and New India Insurance Co. with the percentage values of 24.55 and 24.44 respectively. As mentioned earlier, this is mainly ascribed to better underwriting results in the case of Bajaj Allianz and high investment income in the case of Oriental Insurance Company and New India Insurance Company.

RECOMMENDATIONS

This study can be made more attractive by implementing various scheme regarding fire, marine, medi-claim and motor vehicle.

This study should be more easier if the terms and condition i.e. procedure of claims should be much easier.

Companies providing general insurance can be expanded in terms of business & betterment of services more in future.

The trends in general insurance can be improved more in future. The general insurance industry can be grow more in different areas in future. There should be much flexibility regarding documentation of general insurance product. The performance can be improved in future by which insured can get more benefits.

CONCLUSION

After study this research project report the researcher is able to understand the general insurance industry. The researcher found that the maximum growth rate is in TATA-AIG general insurance company as compared to other companies. The researcher found that the maximum number of products offered by general insurance private companies is IFFCO Tokio. The researcher found that the Tata AIG has maximum %age of market share as compared to other private general insurance companies. The researcher has found that expenses in management ratio of oriental insurance company are high in past few years as compared to other general insurance companies. The researcher found that claim incurred ratio of oriental insurance company is maximum as compared to other insurance companies. The researcher found that net earnings ratio of oriental insurance company is maximum as compared to other insurance companies.

LIMITATION

General insurance is a vast subject. It is not possible to provide information regarding all different types of policies which provides different benefits. The project would have been much better if the comprehensive study of all the different types of policies provided different companies is undertaken.

1. The study is based on secondary data; published data represent specific area of our country. 2. Respondent was hesitant to give information due to misapprehension best known to them. 3. Time and cost constraints were also there.
4. Sufficient applied data of General Insurance is not available.

BIBLIOGRAPHY
BOOKs The Economic Times, 15 February 2005 The Financial Times, 06 December 2004 Business Today, July 20 2004 issue Banking and insurance WEB SITES www.google.com www.bajajallianz.com www.tata-aig.com www.IFFCO-Tokio.com www.scribd.com

NEWSPAPER Times of India Hindustan Times