SUMMER PROJECT REPORT ON

CUSTOMER SATISFACTION
In Partial Fulfillment of Award of Post Graduate Diploma in Business Management
By (Mohseen)

Under the guidance of

(Prof. Girish Kathuria)

PGDM (BM) Entrepreneurship and Management Processes International New Delhi 74 August- 2013
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DECLARATION

This is to certify that I Mohseen Roll No. 19 have carried out my Summer internship in Future Generali India Insurance Company Limited in the area Marketing. It is also certified that the work done by me is original with due references of sources, and has not been submitted elsewhere for the award of any diploma or degree.

Name of the Student Signature

_____________________

Date :

Certificate

This is to certify that Mr. Mohseen has worked under my guidance on the topic title Customer Satisfaction in Future Genrali India Insurance Ltd. Bikaner. The summer training project was undertaken for a period of 52 days.

During the period I found his work satisfactory.

Dr. Girish Kathuria

Faculty Guide

ACKNOWLEDGEMENT

I sincerely acknowledge my thanks to Future Generali India Insurance Company Ltd. Bikaner for giving me the opportunity to carry out the Summer Internship Program in their well esteemed organization. The whole period of my internship with the organization has been of immense learning experience about the Indian Insurance Market.

The entire project ows its credit for the guidance and encouragement rendered by my faculty mentor Dr.Girish Kathuria. I record my sincere thanks to sir with deep gratitude.

I would also take the opportunity to acknowledge my deep and sincere thanks to my corporate mentor, Mr. Rajesh Goswami of Future Generali, whose perception and sagacity is always opened for us and helped me guided me throughout the research project.

CONTENTS:

Executive Summary Introduction to Industry About the Company Limitations of the Project Research Methodology Recommendations Bibliography Annexure

EXECUTIVE SUMMARY
The objective of the project was to understand the Distribution base, understanding the sales and distribution & to activate the agents & the distribution base. Also the objective was to find, what are the current trends in the market and what the competitors product offerings are. The main objective was to understand the functioning of general insurance company, focusing on agency vertical. To aid in a comparative product analysis of General insurance sector major players was done . Specifically the research objectives are to: To know about the Insurance Sector. To know about the distribution channel employed by the Future Generali. To do a complete analysis of the features of Motor, Accidental, Travel, Health insurance and to do a comparative study of these products with other players in the insurance market Gauge the consumer sentiment on the various services provided by the various Insurance players in the city. To know about the recruitment process of agents in context of Future Generali Insurance Company. To know about the sales policies of Future Generali.

During the two months of summer internship I gained extensive practical knowledge on the entire operating process of agency vertical starting from recruitment of agents, providing training, issuing policies, the underwriting process and finally claim coverage.

INTRODUCTION

INDUSTRY PROFILE
INSURANCE: Insurance can be defined as assurance for uncertainty. Its often about things going right.; One of the Wonders of human nature is that we never believe anything can actually go wrong Insurance is a tool by which fatalities of a small number are compensated out of funds (premium payment) collected from plenteous. Insurance is a safeguard against uncertain events that may occur in the future. It is an arrangement where the losses experienced by a few are extended over several who are exposed to similar risks. It is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose. Loss is paid out of the premium collected from people and the insurance companies act as trustees to the amount so collected. These companies have proposal forms which are filled to give details of insurance required. Depending upon the answers in the proposal form insurance companies assess the risk and decide on the premium. They underwrite the risk in return for an insurance premium. the function of insurance is to provide protection, prevent losses, capital formation etc. hence insurance can be defined as a tool in which a sum of money as a premium is paid by the insured in consideration of the insurers bearing the risk of paying a large sum .it may also be defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or his beneficiary, a certain sum upon a given contingency against which insurance is required.
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Insurance industry commands massive funds through sales of insurance products to large number of clients. Insurers also create liabilities and commit themselves to compensate for losses occurring to the policyholders on future date. It also plays an important role in process of capital formation. 2. NATURE OF INSURANCE a) Risk sharing and risk transfer: Insurance is used to share the financial losses that might occur to an individual or his family on the happening of specified events. The loss arising from such events are shared by all the insured in the form of premium. Example: suppose in a village, there are 250 houses, each valued at Rs.200000.Every year one house gets burnt, resulting into a total loss of Rs 200000.If all the 250 owners come together and contribute Rs.800 each, the common fund would be Rs200000.This is enough to pay to the owner whose house gets burnt. Thus the risk of one owner is spread over 250 house owners of the village. b) Risk assessment in advance: Insurance companies are risk bearers. They assess the risk before insuring to charge the amount of premium. c) Its not gambling or charity: The uncertainty is changed to certainty by insuring property and life because the insurer promises to pay a definite sum at damage or death. Insurance is antithesis of gambling. Failure of insurance amounts to gambling because the uncertainty of loss is always looming. Moreover insurance is not possible without premium. So it is different from charity because charity is given without consideration. d) Huge number of insured people: It is essential to insure larger number of people or property to make cost of insurance less consequently premium would also be less. e) Assists in capital formation: Insurance provides capital to society. Accumulative funds are invested in productive channels.

3. SEMANTICS 1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or disappearance of value arising from contingency. 2. Policy: It is the document which embodies the insurance contract 3. Whole life policy: It is the policy under which the amount of policy will be paid only on death of the insured. Premiums may be payable throughout the life or for a limited period. 4. Endowment policy: Endowment policies entitle the insured to receive the amount of the policy on his reaching a certain age and premiums also stops. If death occurs earlier, amount of the policy will be paid at that time and payment of premium will also stop at that time. 5. Claim: It is the amount which an insurer has to pay against a policy. 6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The object is to reduce the possible loss to be borne by the original insurer, who pays premiums at the ordinary rates to the reinsurer. Reinsure must pay commission to the original insurer. 7. Premium: A periodic payment made on an insurance policy. 8. Insurance penetration: It is defined as insurance premium as a share of gross domestic product. 9. Insurance density: Insurance density is defined as per capita expenditure on insurance premium i.e. premium per capita. 10. Actuary: The actuary is a specialist who combines an understanding of risks and mathematical technique to develop financial products to manage these risks, price these products. He helps in designing insurance plans and then evaluates the financial risk of the company which it takes while selling an insurance policy.

4. TYPES OF INSURANCE Insurance is broadly divided in two segments, based on the nature of insurance, those are: 1. Life Insurance & 2. Non-Life Insurance or General Insurance. It can be again subdivided into the following categories: a) Fire Insurance. b) Marine Insurance. c) Social Insurance & d) Miscellaneous Insurance. (Health insurance, Liability Insurance etc.) HISTORY OF INSURANCE For now we know the meaning of insurance, different types of insurance. Now let us know the history and reasons for and behind different types of insurance. The first ever type of insurance was Property Insurance. It became popular about 3000 BC in China. It all started when Chinese merchants, as well as their investors, wanted to ensure that they would see a profit from their goods that they shipped overseas. In the event that a ship was lost at sea, an insuring partner would reimburse the owners of the ship and goods. This was so because, a merchant could not afford to pay for the lost goods or even to buy a ship unless someone invested. Property insurance was also seen in Babylon as well. In Babylon, merchants and investors entered into a contract, in which the supplier of money for a trade agreed to cancel the loan if the trader was robbed of his goods. Later this contract was extended to include provisions for a family's home and even the death of the insured, where life insurance came into existence. Slowly this concept started to spread across other places like Greek, Roman.
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Later the origin of credit insurance, which was included in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. Credit insurance means, in ancient times the ship owners obtained loans from investors to finance their trading expeditions. In case, if a ship was lost, the owners were not responsible to pay back the loans to the investors. The risk to the lenders was covered by the interest paid by numerous ship owners, since many ships returned safely. By the middle of the 14th century, marine insurance was one of the most popular types of insurance among nations of Europe. Things changed dramatically in the 17th century in Europe. In 1666, the Great Fire of London bought the need for fire insurance .The Great Fire of London burned for four days and nights. It destroyed 436 acres, 13,200 houses, 89 churches (including Saint Paul's Cathedral), the Custom House, the Royal Exchange and dozens of other public buildings. Only six people were victims in the flames, but hundreds died from shock and exposure. By 1688, Edward Lloyd was running a coffeehouse in London. There financiers who offered insurance contracts to seafarers wrote their names under the specific amount of risk that they would accept in exchange for a certain payment, called premium. These insurers are known as underwriters. Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew as an insurance company. The concept of insurance developed at a fast pace with the growth of British commerce in the 17th and 18th century. The first stock companies to engage in insurance were chartered in England in the year 1720. In 1735, the first insurance company in the colonies of America was founded at Charleston. Later in the year 1787, fire insurance corporations were formed in New York. Then later in the year 1759, the life insurance corporation was started in Philadelphia, America. The New York fire which occurred in the year 1835 was the main reason to draw attention to create reserves to meet unexpected losses. In the year 1837, Massachusetts was the first state to require companies by law to maintain such reserves. After 1840, life insurance entered a boom period.

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Until the 1950s, most insurance companies in the United States were restricted to provide only one type of insurance, but then legislation was passed to permit fire and casualty companies to underwrite several classes of insurance. Many firms have since expanded and also were responsible for many mergers. From this brief accounting of history we can see how insurance came into existence. Fortunately for us we no longer have to sell ourselves into slavery if our car is stolen nor we have to be scared of losses due to absence of reserves. Without people wanting to secure their investments and great tragedies throughout history we may not have insurance as we know it today resulting in peace of mind. HISTORY OF INSURANCE INDUSTRY IN INDIA The insurance industry in India over the past century has gone through big changes. In India this industry reveals the 360 degree turn. 360 degree turn means that it started in India from being an open competitive market to nationalization and back to a liberalized market again. Insurance industry in India started as a fully private system with no restriction on foreign participation in the Nineteenth Century. Before independence, a few British insurance companies dominated the Market. Life insurance was first set up in India through a British company called the Oriental Life Insurance Company in 1818, followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829.All of these companies operated in India but did not insure the lives of Indians. They were there insuring the lives of Europeans living in India. Some of the companies later provide insurance for Indians. But, they were treated as "substandard" and therefore had to pay an extra premium of 20% or more. The first company that had policies that could be bought by Indians with "fair value" was the Bombay Mutual Life Assurance Society starting in 1871. The first general insurance company, Triton Insurance Company Ltd., was established in 1850. The first general insurance company was the Indian Mercantile Insurance Company Limited set up in Bombay in 1907.By 1938; the insurance market in India had nearly 176 companies (both life and non-life).
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After the independence, the industry went to the other extreme. It became a state-owned monopoly. The industry started to witness a problem like fraud. Hence many regulations were put in place to reduce and control the problems in the industry. After which Insurance was nationalized. In 1956, the then finance minister S. D. Deshmukh announced nationalization of the life insurance business 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.

PURPOSE & NEED OF INSURANCE 1. Assets are insured, because they are likely to be destroyed or made nonfunctional before the Expected life-time through accidental occurrences .Such possible occurrences are called Perils. Fire, floods, breakdowns, earthquakes, lightning, etc, are called perils. Perils are the events. Risk is the consequential losses or damages. The risk to a owner of a building, because of the perils of an earthquake, may be few lacs or few crores of rupees, depending on the cost of the building, the contents in it and the extent of the damage. 2. The risk only means that there is a possibility of risk or damage. Insurance is

relevant only if there is certain Uncertainties .If there is no uncertainty about the occurrence of the event. It cannot not be insured against. In case of human being, death is certain, but time of death is uncertain. The person is Insured, because the uncertainty about the time of his death. In the case of a person who is terminally ill, the time of death is not uncertain, tough not exactly known .It would be soon. He cannot be insured.

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3. CLASSIFICATION OF RISKS 1. Risks are classified in various ways .One classification is based on the extent of damage likely to be caused. It would happen if the loss is total, like tsunami wiping out everything. It can also happen if the deceased person was in heavy debt. Important risk may not be spell doom, but may upset family or business finance badly requiring a lot of time to recover. The adverse effect of an economic recession is one such unimportant risk like temporary illness or accidents. 2. Insurance is only concerned with financial risks. 3. The third classification is between Dynamic and Static risks. Dynamic risks are caused by perils which have national consequences, like inflation, calamities, technology, political upheavals, etc. Static risks are caused by perils which has no consequences on national economy. Dynamic risks are less likely to occur then static risks, but fundamental risks affect the life insurance companies experience as many persons will be affected at the same time, when there is an earthquake, flood or riot. 4. Fourth classification is between Pure risks and Speculative risks. The latter one in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, where pure risk is not so. It is more in the nature of act of god. Insurance deals with only with pure risks and not speculative risk 5. A human being is an income generating asset. Ones income generating ability depends on ones skills,(manual, professional, problem solving, entrepreneurial, etc).These are assets, the value of assets can be measured by considering the income that is generated by the person concerned. The concept of human life value provides the scientific ways to determine the asset value of human life and therefore, amount of life insurance required. The techniques like other techniques related to selling.

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HOW INSURANCE WORKS 1. The mechanism of insurance is very simple. People who are exposed to the same risk come together and agree that if any one of them suffers a loss, the other will share the loss and make good to the person who lost. All people who send goods by ships are exposed to the same risks, Which are related to water damage, sinking of vessel, piracy, etc.Those owning factories are not exposed to these risks, but they are exposed to different kind of risk like, fire, hailstorms, earthquakes, lightening burglary, etc.Like this, different kinds of risks can be identified, and separate groups made, including those exposed to such risks. By this method, the heavy loss that any one of them in the group may suffer (all of them may not suffer such losses at the same time) is divided into bearable small losses by all the others in the group. In other words the risk is spread among the community and the likely big impact on one is reduced smaller manageable impact on all.Insurence helps to spread the costs of risks. 2. There are certain principals which make it possible for insurance to remain a preferred and fair aarrangement.The first is that it is difficult for any individual to bear the protect people from the accidental risks they are exposed to. 3. The collection to be made from each person in advance, determined on the basis of assumptions. While it may not be possible to tell beforehand, which person will suffer, it may be possible to tell on the basis of past experiences, and how many persons on an average may suffer losses. The following example will explain the above concept of insurance. THE BUSINESS OF INSURANCE 1. The insurance companies are called insurers, the business of insurance ,is to(a) bring together persons with common interest(sharing the same risk),(b) collect the share or contribution(called premium)from all of them, and (c) pay out compensation(called claims)to those who suffer from the risk. The premium is
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determined on the same lines as indicated in the examples above, but with further refinement. 2. In India life insurance business is classified as life and non life insurance or general .Life insurance includes all risks related to lives of human being and general insurance covers the rest. General insurance has three classifications misfire(Dealing all fire related to risks),Marine(Dealing with all transport related to risks and ships )and Miscellaneous(Dealing with all others like all others likeliability,fidelity,motor,crop, engineering ,construction, aviation, personal accident,etc).Personal accident and sickness Insurance, which are related to human beings, is classified as non-life in India, but is classified as life, in many other countries. What is non-life in India is termed as property and causality in some other countries. GENERAL INSURANCE General insurance business in the country was nationalized with effect from 1st January, 1973 by the General Insurance Business (Nationalization) Act, 1972. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, and United India Insurance which were headquartered in each of the four metropolitan cities. Ltd. with head offices at Calcutta, Bombay, New Delhi and Madras,respectively. All the five entities are Government companies registered under the company act. The general insurance business has grown in spread and volume after nationalization. General insurance in India has been expecting growth except in some portfolios like motor insurance, fire and engineering. These portfolios are still under tariff- this means that premium depends on a fixed predetermined rate structure. In India, GDS as a proportion of GDP at current prices increased from 26.1% in 2002-03 to 28.1% in 2003-04.house hold sector continued to be the major contributor to GDS at 24.3% in 2003-04.this can be attributed to soft interest rates prevailing in housing sector. General Insurance has low market penetration. It is 1.95% and ranks 51 st. However in collection of premium it is ranked 23 rd. The ratio of the premium collected to that of GDP is 0.58. The main reason for the general insurance industry to perform very
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poorly was because of the slow settlement of claims. Moreover the rates of claim in India were highest in the world. It was 70 percent compared to 40 percent internationally. This meant that out of 100 people who had insured their commodities 70 claimed for a loss or damage. The main reason for the lack of demand for general insurance is that people consider it as an unnecessary expenditure. However it must be noted that the general insurance has been earning consistent profits and has an efficient dividend paying record accompanied by a steady growth in its financial resources. Some of the private players in this sector are- ICICI Lombard, Reliance, Royal-Sundaram, Chholamandalam, Future Generali etc.

CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY Some surveys have predicted that India and China will play a very vital role in the years to come. Indian economy can be termed as an emerging economy as it is doubling its GDP in 3 to 5 years and moreover it is not dependent on any particular sector for its GDP. If we look at the GDP of the Indian economy very closely over the years, we can easily come to know the changing structure of the economy. We can also come to know the changing contribution of the various sectors like agriculture, manufacturing and the service sector. In the financial year 1993-94, agricultural sector contributed to 31%, manufacturing accounted to 26.3% and the service sector contributed to 42.7% of the total GDP of the country. Thus over the years as India became an emerging economy in 2003-04 manufacturing sector contributed for 21.7 %, manufacturing contributed for 26.8 whereas service sector contributed for 51.4% of the total GDP. There has been 7.5% growth in the total GDP of the country and is estimated to grow at 8.0% in 2006-07. The Indian economy has shown signs of strong performance despite a rise in oil prices, high inflation rate and abnormal rains in many parts of the country. The overall growth of the Indian economy has been equally supported by all the three sectors of the economy, i.e. the agriculture, manufacturing and the service sector. Insurance, together with the banking sector, contributes to
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about 7.3 % of the total GDP of India, and the gross premium collected contributes to about 2% of the total GDP of the country The insurance sector in India has completed 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 a period of almost 200 years.

COMPETITORS IN THE MARKET

The different private players and public

players in the insurance sector and their equity share capital are being given

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Insurer Non life insurers Bajaj Allianz Cholamandalam Future Generali HDFC Ergo ICICI Lombard IFFCO-TOKIO Reliance Royal Sundaram Tata AIA Universal Sompo Sub-Total (Private Sector) National New India The Oriental United India

2012-13

2010-11

110.23 141.96 150.00 150.00 377.36 220.00 107.15 170.00 225.00 150.00 1801.70 100.00 200.00 100.00 150.00 550.00

110.13 141.96

125.00 335.71 220.00 103.07 140.00 225.00

1400.87 100.00 200.00 100.00 150.00 550.00

Sub-Total (Public Sector) 2351.70 Total (Non-Life) 1950.87

Stand-alone Health insurance companies Apollo DKV * Star Health & Allied Re-insurer GIC 430.00 430.00 19 100.55 108.60 105.00

Market scenario and ranking of the 19 non life players based on annual premium.

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NON-LIFE INSURANCE INDUSTRY PREMIUM DATA INDIA Overview

Rs in crores Insurer for Aug 08 New India National4 United India Oriental ICICI Lombard Bajaj Allianz General Reliance General IFFCO Tokyo Tata AIG General 364.58 301.56 339.51 314.56 292.22 231.08 140.24 89.98 69.65 64.08 Premium 2012-13 Monthly Ranking 1 4 2 3 5 6 7 9 10 11 upto Aug 08 2342.82 1818.42 1776.6 1751.21 1653.66 1203.38 840.22 618.19 438.11 321.95 Annual Ranking 1 2 3 4 5 6 7 8 9 10 Y-o-Y growth (%) upto Aug 08 6.67 9.37 12.37 2.61 12.97 27.14 3.99 34.83 21.98 20.05 Market Share(%) upto Aug 08 16.75 13 12.7 12.52 11.83 8.61 6.01 4.42 3.13 23 Premium 2010-11 For Aug 08 344.89 295.38 292.55 282.9 301.75 186.76 154.73 61.51 61.01 48.16 upto Aug 07 2196.39 1666.71 1581.04 1706.67 1463.75 946.5 807.95 458.51 359.16 268.19

Royal Sundaram

Cholamandalam ECGC

49.51 59.01 6.65 99.76 32.9 14.44 1.62 1.29 0.05 2,472.70

13 12 16 8 14 15 17 18 19

305.11 283.26 231.25 213.92 115.28 57.7 9.98 1.53 1.06 13,983.66

11 12 13 14 15 16 17 18 19

34.75 9.73 435.16 1.21 18.01 N.A. N.A. N.A. N.A. 13.77

2.18 2.03 1.65 1.53 0.82 0.41 0.07 0.01 0.01 100

40.74 54.52 2.91 69.72 26.78 0 0 0 0 2224.31

226.43 258.15 43.21 211.36 97.69 0 0 0 0 12291.7

Star Health & Allied Insurance Agricultural Insurance Co. of India HDFC ERGO General Future Generali Apollo DKV 1 Shriram General3 Universal Sompoo2 Total

1. Commenced operations in November 2007 2. Commenced operations in February 2008 3. Commenced operations in July 2008 4. Clarification awaited on segment wise breakup for April-July 2008. 5. Compiled on basis of data submitted by insurance companies. 6. Courtesy: - Ambit Insurance Broking & Advisory pvt. Ltd. Based on the data one can find that the Non Life Insurance Industry is dominated by PSUs namely New India, United India, National & Oriental Insurance companies ranked on the basis of premium collected till AUG-08. as 1st, 2nd ,3rd, and 4th
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respectively. In private companies ICICI Lombard, Bajaj Allianz, Reliance General, & IFFCO TOKYO are ranked 5th,6th,7th& 8th.Future Generali a new entry in the market ranked 16th grabbing a market share of 0.41% in the very first year. Some surveys have predicted that India and China will play a very vital role in the years to come. Indian economy can be termed as an emerging economy as it is doubling its GDP in 3 to 5 years and moreover it is not dependent on any particular sector for its GDP. If we look at the GDP of the Indian economy very closely over the years, we can easily come to know the changing structure of the economy. We can also come to know the changing contribution of the various sectors like agriculture, manufacturing and the service sector. In the financial year 1993-94, agricultural sector contributed to 31%, manufacturing accounted to 26.3% and the service sector contributed to 42.7% of the total GDP of the country. Thus over the years as India became an emerging economy in 2003-04 manufacturing sector contributed for 21.7 %, manufacturing contributed for 26.8 whereas service sector contributed for 51.4% of the total GDP.The Indian economy has shown signs of strong performance despite a rise in oil prices, high inflation rate and abnormal rains in many parts of the country. The overall growth of the Indian economy has been equally supported by all the three sectors of the economy, i.e. the agriculture, manufacturing and the service sector. Insurance, together with the banking sector, contributes to about 7.3 % of the total GDP of India, and the gross premium collected contributes to about 2% of the total GDP of the country The insurance sector in India has completed 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 a period of almost 200 years.

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LAW AND REGULATIONS IN INSURANCE The insurance act 1938 which come into effect from July 1939, and was amended in 1950 and later in 1999,is the principal enacted relating to the business of insurance in India. The act contains provisions regarding licensing of agents and their remuneration, prohibition of rebates and protection of policy holders interests. It also has provisions placing limits on the expenses of insurers, use of funds and patterns of investment, maintaining solvency levels, and constitution of insurance councils and tariff advisory committee for general insurance. IRDA (INSURANCE REGULATORY AND DEVOLOPMENT AUTHORITY) 1. This act passed in December 1999, provided for the establishment of the IRDA to protect the interest of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. It also sought to amend the Insurance act, 1938, the life insurance corporation Act, 1956 and the general insurance business (Nationalization) Act, 1972.

2. The IRDA is a corporate body .It is advised by an insurance advisory committee consisting of not more than 25 members to represent the interests of committee Register insurance companies and also cancel their registrations. Make regulations relating to the conduct of business of insurance. Inspect documents of insurance. Appoint additional directors Issue directions

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Take over the management of an insurer and appoint administrators Adjudicate on disputes between insurers and intermediaries. Decide on disputes relating to the settlement of claims of amount not exceeding Rs. 2000

The IRDA was set up to protect the interests of holders of insurance policies ,to regulate ,promote and insure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. With the establishment of this act, government amended Insurance act 1938, Life Insurance Act 1956 and General Insurance Act 1972.IRDA was formed on the recommendations of Malhotra Committee. In 1999 government of India has set up Malhotra Committee to examine the structure of insurance industry and recommend changes, under R.N Malhotra former governor of RBI.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. (1) Subject to the provisions of this Act and any other law for the time being in

force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section

(1), the powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
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(d) Specifying the code of conduct for surveyors and loss assessors; (e) Promoting efficiency in the conduct of insurance business; (f) Promoting and regulating professional organizations connected with the insurance and re-insurance business; (g) Levying fees and other charges for carrying out the purposes of this Act; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) Regulating investment of funds by insurance companies; (l) Regulating maintenance of margin of solvency; (m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) Supervising the functioning of the Tariff Advisory Committee; (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f); (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and (q) Exercising such other powers as may be prescribed.
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ABOUT THE COMPANY

Future Group India Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The groups speciality retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, eZone, home improvement
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chain, Home Town and rural retail chain, Aadhaar, among others. It also operates popular shopping portal, futurebazaar.com.

The latest business activity of Future Group is an investment of Rs. 140 crores in the next three years in cricket-related marketing. The CEO of Future Group Mr. Kishore Biyani has planned out association with cricket and to encash the popularity of cricket in India and globally. Future Group has also organized one-day international cricket series between India and Australia called "The Future Cup".

DIFFERENT VERTICLES OF FUTURE GROUP:

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FUTURE RETAIL:

The retails businesses of Future Group in India are divided into three main categories: Pantaloon Retail India Limited The leading retail formats under this include:

Pantaloons Stores Big Bazaar Food Bazaar Home Town E Zone Depot Health & Beauty Malls Online retail through futurebazaar.com

SECURITY MANAGEMENT Future Group is considered as a reliable tailor-made business and security services provider. They develop their own software and machines for security services. These include:

Access Control Systems Time Attendance Systems CCTV Alarm Management Systems

CONSTRUCTION Future Group brings to you their past experience in quality construction for building
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and renovating buildings for leasing to business. Future Group is also involved in the designing, financing and legal considerations of the project undertaken. The construction activities of Future Group in India include:

Leasing Landscaping

FUTURE GENERALI

(74%)

(26%)

Indias leading business group with diversified interest in Retail, Media, Leisure & Financial services.

* 176 Years of experience * Presence in 40 countries. *5th largest insurer in world * Ranked 30 in Global Fortune 500 list (2007)

Shopping malls like BIG BAZAAR, PENTALOON, CENTAL.

29

Future Generali insurance promoters have decided to invest Rs 335 crore by March 20013 in life and non-life insurance sector. Future Generali insurance is a joint venture between Future Group and Italian insurance major Generali and has started commercial operations from March 2008. The company officials stated in a press conference, that in the life insurance business, the company will infuse Rs 265 crore, while Rs 70 crore in the non-life insurance. The company has set the business target of Rs 300 crore for life business and Rs 200 crore for non life, for the current year. In addition, the company aims to achieve combined premium income of around Rs 1,000 crore by 2013.Recently the company has introduced a new concept of Insurance in the market with the name of ''mall assurance'', which will sell life as well as nonlife insurance products in malls and stores of its own group. The company is eyeing at 8-10 per cent of total premium income from mall assurance this year, which it aims to increase to 25-30 per cent in future.

30

Different Products offered by Future Generali

(a) Motor A Comprehensive Motor Insurance Cover in addition to the mandatory third-party cover also protects the car owner from financial losses, caused by loss or damage or theft of the vehicle. Third party legal liability: protects you against any legal liability arising out of the use of your vehicle, towards third parties resulting in Any bodily injury/ death of a person Any damage caused to the property Loss or damage to your vehicle: The policy covers you against any loss or damage caused to the vehicle or its accessories due to the following natural and man made calamities. Natural Calamities Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Natural Calamities Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made Calamities Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air. Sum insured The vehicles are insured at a fixed value called the Insureds Declared Value (IDV). IDV is calculated on the basis of the manufacturers listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the following rates.

Age of the vehicle

31

% of Depreciation

Not exceeding 6 months

5%

Exceeding 6 months but not exceeding 1 year 15% Exceeding 1 year but not exceeding 2 years 20%

Exceeding 2 years but not exceeding 3 years 30% Exceeding 3 years but not exceeding 4 years 40% Exceeding 4 years but not exceeding 5 years 50%

If the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturers listed selling price, then the actual value (after depreciation) of this item can be added to the sum insured over and above the IDV.

(b) Fire
Standard Fire and Special Perils Policy Scope of Cover The Insurance Policy broadly covers losses due to fire, lightning, explosion and implosion, aircraft damage, riot, strike, malicious damage and terrorism, storm, tempest, flood and inundation, impact damage, subsidence and landslide/rockslide, bursting and/or overflowing of water tanks, apparatus and pipes, missile testing, leakage from automatic sprinkler installations and bush fire. Main Exclusions The Insurance Policy does not cover the first Rs.10, 000 (or as applicable) of each and every claim. Losses arising out of war and allied perils, theft, willful act or gross
32

negligence, loss of earnings, loss to bullion, documents, currency etc. for an amount exceeding Rs. 10,000, unless expressly stated. Sum Insured Property can be insured on depreciated cost (market value) or replacement cost basis. In order to get full protection, insurance on reinstatement (replacement) basis is recommended. Premium Premium rate depends on various factors such as construction of building, occupancy, protection, claim ratio, etc Excess 5 % of every claim (subject to minimum of Rs.10, 000) resulting from Lightning, Storm, Tempest, Flood and Inundation, Subsidence and Landslide. For other perils Rs.10, 000/Main Extensions

Earthquake (Fire & Shock) Spontaneous Combustion Deterioration of stocks in cold storage Impact Damage due to own vehicles Omission to insure additions Architect, Surveyors & Consulting engineers fees in excess of 3 % of claim amount Debris removal in excess of 1 % of claim amount.

33

(c) Accident & Health

Group Health Policy Accident Suraksha Health Suraksha Group Personal Accident Policy Health Suraksha Family Accident Suraksha

Accidents can happen to anyone anywhere. They come unasked for and leave an "imprint" on lives for years to come. The Value of Human Life and Sufferings cannot be measured with money, but with a view to provide some relief to the injured person or members of his family in the event of an unfortunate accident, we have designed an insurance cover, known as "Personal Accident Insurance". Scope of Cover The plan covers the risks of

Accidental Death Permanent Total Disablement Permanent Partial Disability Temporary Total Disablement Premium Based on age, occupation (class), sum insured & benefits opted. Premium (Rs) inclusive of 12.36% service tax.

34

Age Group- for Self & Spouse -21 yr. to 70 yr. Children 1yr to 21 yr.

Health Suraksha Individual Plan

Presenting 'Health Suraksha', a comprehensive Health Insurance Plan that goes the extra mile to make your life convenient. Designed to meet the needs for today's health problems, it allows you to live worry free. And enjoy the reliability of 'Health Suraksha' as you live your life to the fullest. Scope of Cover The plan covers following benefits:

Pre and Post hospitalization expenses incurred 60 days prior to and 90 days after hospitalization Ambulance charges Day care procedures Hospital cash Pre-existing disease covered after the 4th year Free medical check-up after 4th year Patient Care Expenses Accompanying Person Expenses Additional Accidental Hospitalization Limit

Advantages

Cashless Hospitalization facility Large Hospital Network of more than 4000 Hospitals across India Innovative covers offered Fast & Efficient Settlement of claims Renewal Discounts
35

Plan Details Plans BASIC SILVER Zone wise Classification Zone C (other cities) excluding Zone A & Zone B Zone B (Chennai, Kolkata, Ahmedabad, Hyderabad & Bangalore) GOLD Zone A (Mumbai & Delhi)

PLATINUM Across India (Zone A + Zone B + Zone C)

Basic Plan is for insured who has paid the premium for Zone C region which comprises rest of India excluding Zone A and Zone B. In case treatment is taken in Zone A or Zone B the payment will be as per our claim payment Annexure. Silver Plan is for insured who has paid the premium for Zone B region which comprises Chennai, Kolkata, Bangalore & Hyderabad. In case treatment is taken in Zone A or Zone C the payment will be as per our claim payment Annexure. Gold Plan is for insured who has paid the premium for Zone A region which comprises Mumbai including Thane, Panvel, Delhi including NCR (National Capital Region). Platinum Plan covers Basic covers with no restrictions and also additional benefit. This cover is available for sum insured of 6 lacs and above. Claim Payment Annexure Benefit Plan Platinum Plan Zone A 100%* Zone B 100%* Zone C 100%*

36

Gold Plan Silver Plan Basic Plan

100%* 80%* 70%*

100%* 100%* 80%*

100%* 100%* 100%*

* The percentage of claim amount shown in the above table is with respect to the eligible claim amount. Sum Insured1- 5 Lacs for Basic, Silver & Gold Plan. SI 6 10 lacs for Platinum plan. Premium Based on age, sum insured & Plan opted. Age Eligibility5 years to 70 years Children entry only after 90 days and would be eligible if the parents are concurrently insured with Future Generali.

(d) Travel Travel Suraksha

Overseas Travel Travel Asia Presenting 'Travel Suraksha' from Future Generali. It protects you, when unseen events occur during your overseas travel. Whether it is medical emergencies, or loss of passport or baggage, Travel Suraksha shields you so that you enjoy your overseas travels with complete peace of mind.

37

Various Distribution channels

I.

INSURANCE AGENT

Every insurance agent shall,--Identify himself and the insurance company of whom he is an insurance agent; disclose his license to the prospect on demand; disseminate the requisite information in respect of insurance products offered for sale by his insurer and take into account the needs of the prospect while recommending a specific insurance plan; disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect; indicate the premium to be charged by the insurer for the insurance product offered for sale; explain to the prospect the nature of information required in the proposal form by the insurer, and also the importance of disclosure of material information in the purchase of an insurance contract; bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report (called Insurance Agents Confidential Report) along with every proposal submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect; inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;

38

obtain the requisite documents at the time of filing the proposal form with the insurer; and other documents subsequently asked for by the insurer for completion of the proposal; render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer; advise every individual policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be, and offer necessary assistance in this behalf, wherever necessary. II. CORPORATE AGENT Every Licensed Corporate Agent shall abide by the code of conduct specified below: Every corporate agent shall: a) be responsible for all acts of omission and commission of its corporate insurance executive and every specified person; b) ensure that the corporate insurance executive and all specified persons are properly trained, skilled and knowledgeable in the insurance products they market; c) ensure that the corporate insurance executive and the specified person do not make to the prospect any misrepresentation on policy benefits and returns available under the policy; d) ensure that no prospect is forced to buy an insurance product; e) give adequate pre-sales and post-sales advice to the insured in respect of the insurance product; f) extend all possible help and cooperation to an insured in completion of all formalities and documentation in the event of a claim; g) give due publicity to the fact that the corporate agent does not underwrite the risk or act as an insurer; h) Enter into service level agreements with the insurer in which the duties and responsibilities of both are defined. III. INSURANCE BROKER
39

Every Insurance Broker shall follow recognized standards of professional conduct and discharge his functions in the interest of the policyholders. Conduct in matters relating to clients relationship Every insurance broker shall: conduct its dealings with clients with utmost good faith and integrity at all times; act with care and diligence; ensure that the client understands his relationship with the broker and on whose behalf the broker is acting; treat all information supplied by the prospective clients as completely confidential to themselves and to the insurer(s) to which the business is being offered; take appropriate steps to maintain the security of confidential documents in their possession; hold specific authority of client to develop terms; understand the type of client it is dealing with and the extent of the clients awareness of risk and insurance; obtain written mandate from client to represent the client to the insurer and communicate the grant of a cover to the client after effecting insurance; obtain written mandate from client to represent the client to the insurer/ reinsurer; and confirm cover to the insurer after effecting re-insurance, and submit relevant reinsurance acceptance and placement slips; avoid conflict of interest. Conduct in matters relating to Sales practices every insurance Broker shall:

40

(a) confirm that it is a member of the Insurance Brokers Association of India or such a body of brokers as approved by the Authority which has a memorandum of understanding with the Authority; (b) confirm that he does not employ agents or canvassers to bring in business; (c) identify itself and explain as soon as possible the degree of choice in the products that are on offer; (d) ensure that the client understands the type of service it can offer; (e) ensure that the policy proposed is suitable to the needs of the prospective client; (f) give advice only on those matters in which it is knowledgeable and seek or recommend other specialist for advice when necessary; (g) not make inaccurate or unfair criticisms of any insurer or any member of the Insurance Brokers Association of India or member of such body of brokers as approved by the Authority; (h) Explain why a policy or policies are proposed and provide comparisons in terms of price cover or service where there is a choice of products; (i) State the period of cover for which the quotation remains valid if the proposed cover is not affected immediately; (j) explain when and how the premium is payable and how such premium is to be collected, where another party is financing all or part of the premium, full details shall be given to the client including any obligations that the client may owe to that party; and (k) Explain the procedures to follow in the event of a loss.

CLAIMS INCIDENCE AND SETTLEMENT PROCESS An insured event can arise at any time within the risk period under the contract of insurance.
41

The following sequence of actions is involved in the processing of the resulting claim to settlement: (i) Insured event occurs; (ii) The insured or the third party claimant decides whether to make a claim under the insurance contract; (iii) A claim is notified to the insurer; such notification may be immediate or may be delayed; the notification may come from the insured or in case of a third party liability claim, it may come from the third party claimant or his lawyer or through process of court where the claimant files his claim; (iv) The insurer verifies the insurance particulars, registers the claim and makes an initial provision for it based on information available and past experience; (v) The insurer arranges for survey and assessment of the loss or investigation related to the claim; (vi) Based on the survey findings, the insurer reviews the provision for the claim and processes the claim for settlement. This may take the form of cash payment or authorization for repairs or replacement or authorization for medical treatment etc.; (vii) Where the liability for the loss is questioned, the insurer may decline the claim or offer a compromise settlement; (viii) The insured may accept the offer or negotiate further or take the matter to court; (ix) Provision for all outstanding claims are expected to be reviewed periodically by the insurers staff; (x) Eventually, the liability and the amount payable are crystallized and the settlement takes place; (xi) In case of property claims, the insurer may take over the damaged property as salvage or may make an agreed deduction for the salvage value and leave the damaged property with the insured; (xii) In case of some claims there may be the possibility of making a recovery for the loss from other parties responsible for the loss; in such cases, the insurer may pursue such recovery under right of subrogation; (xiii) As soon as the survey report or investigation report is received, the insurer pays the related fees. Where the claim is pursued in court by the claimant, the insurer bears
42

the legal fees of defending the action; likewise, where the insurer pursues recovery of claim through court or through recovery agents, it incurs costs on such action that are also paid as claims cost.

Customer Attitudes

In my research I have tried to find out what the customer attitude towards the product of Future Generali. The study has been carried out in Bikaner. It has been carried out with the purpose to study the customer attitude towards Future Generali .In my study I have used parameter like tax benefit, return, saving, future uncertainty, and other benefit provided by the company. An attitude is a hypothetical construct that represents an individual's degree of like or dislike for an item. Attitudes are generally positive or negative views of a person, place, thing, or eventthis is often referred to as the attitude object. Customer attitude plays an important role while purchasing the product. It helps to purchasing the product. When customer have positive attitude he purchase the product and if he has negative attitude he not purchase the product.

HEALTH INSURANCEThe health insurance sector offers more or less similar options to the customers. The offerings mainly covers hospitalization, day care hospitalization, pre & post hospitalization, pre existing illness, expenses on accompanying person at hospital, local road ambulance services health checkups costs, tax benefits etc. The market leader in private sector Bajaj Allianz grabs the major chunk on behalf of its broad access over 2400 hospital network all over India for cashless facility. It is the first company to provide the higher coverage of SI 10 lacs. The offerings at National insurance are not as exciting as its private counterparts, but match them in the basic Hospitalization cover i.e. pre & post hospitalization, outpatient expenses etc. The national insurance company targets the different segments of people with different set of policies e.g. it have BOI National Swasthya (mediclaim policy) for Bank Of India
43

account holders covering ac. Holders, spouse & 2 children. National insurance company offers Varishtha mediclaim for senior citizens, UCO Medicare Bima policy, Mediclaim policy,BOI National swasthya policy, Mediclaim insurance, Baroda health policy, Critical illness insurance, Vidyarthi mediclaim for students, Parivar mediclaim for family, Star national Swasthya Bima policy under Health insurance. The novice Future Generali has a extensive range of offerings with a Innovative Covers .It must focus on them to find possibilities .It has a clear edge over ICICI Lombard in terms of offerings.

COVERAGE Sum Insured Pre Hospitalization Post Hospitalization Pre existing Expenses on accompanying person at hospital Local road ambulance services Cost of health checkups Family floater Insurance tax benefit Nursing allowance Age slabs

Bajaj Allianz Limited to max. 10 lacs Up to max of 60 days 90 days Covered after continuous 4 year renewal NO

ICICI Lombard Limited to max.3 lacs Up to max of 30 days 60 days

Future Generali

Si up to 5 lacs up to 45 years & 3lacs for 46-55 years Up to max of 60 Up to max of days 30 days 90 days 60 days Covered after 5 year NO NO Yes Yes Yes NO 3 months to 65 years

National Insurance company 5 to 25 Lakh

Covered after Covered after 4 5 year year NO YES YES Free Yes Yes YES 5 to 70 yrs

Limit of 1000/- NO Limited to max No of 1000/No Yes Yes NO Restricted to 55 yrs. Yes NO Restricted to max of 60 yrs.& on renewable up to 70 yrs
44

Yes Cashless facility Renewal discount 5% for each cashless year , 10% for family floater

Yes

Yes 5% for each claimless year up to 50%

yes yes

Are you availing any of the below mentioned products? _HEALTH INSURANCE YES From which company you have taken up the insurance/s of the above mention product/s ? _FUTURE GENERALI Total YES NO 72 29 101 22 NO 27 Total 49

94

56

150

45

Bar Chart
Are you availing any of the below mentioned products? _HEALTH INSURANCE YES NO

80

60

t n u o C

40

20

0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ? _FUTURE GENERALI

Are you availing any of the below mentioned products? _HEALTH INSURANCE YES From which company you have taken up the insurance/s of the above mention product/s ? _ICICI Total YES NO 17 12 29 77 NO 44 Total 121

94

56

150

46

Bar Chart
Are you availing any of the below mentioned products? _HEALTH INSURANCE YES NO

80

60

t n u o C

40

20

0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ? _ICICI

Are you availing any of the below mentioned products? _HEALTH INSURANCE YES From which company you have taken up the insurance/s of the above mention product/s ? _BAJAJ ALLIANZ Total YES NO 14 27 41 80 NO 29 Total 109

94

56

150

47

Bar Chart
Are you availing any of the below mentioned products? _HEALTH INSURANCE YES NO

80

60

t n u o C

40

20

0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ? _BAJAJ ALLIANZ

From the above cross tabulation graphs, the analysis that can be drawn is that how many people is availing health insurance from the sample size. Also it defines the share of three major insurance companies in health insurance. From this we can interpret the market penetration rate of these companies and customer awareness.

MOTOR INSURANCEIn motor insurance earlier Government companies were good at two and four wheeler insurance as they accept all including third party, where private sector were very choosy. But now the private sector is also including the third party liability. Till September 2006 public sector covers 68% while private sector have 32% share.
48

Bajaj Allianz is the best company in terms of services. National insurance is doing the business on basis of services & reliability. Policy covers at ICICI are very good .Future Generali offers policy only for 4-wheelers ,where it is pushed back as compared to its compititors.Otherwise the offerings in motor insurance by all companies are very similar. Future Generali can also stretch the motor policy cover to personal accident also. Bajaj Allianz Offerings Two wheelers and four wheelers policies Vehicle damage and Third party liability (mandatory) ICICI Lombard Future Generali Two wheelers Four wheelers and four policy only wheelers policies Vehicle Vehicle damage & third damage and party liability Third party (mandatory), liability plus (mandatory) compulsory personal accident cover of 2 lakh for individual owner/driver At over 2700 Only on access preferred to Future workshops Generali workshops, insured has to bear only the depreciation Annual Policy Annual Policy National Insurance Co. Two wheelers and four wheelers policies Vehicle damage and Third party liability (mandatory), up to 6000/=. Full coverage of TPL on payment of additional premium No mention of cashless availability

Policy Covers

Cashless Claims

At over 1500 preferred workshops

Period of the policy

Annual Policy

Additional Benefits

Towing facility, 24/7 online assistance

Towing facility up to Rs 1500, online renew of policy possible

Towing assistance, Toll free customer care no., automated renewal

Annual Policy as well as long term policy for two wheelers as long as vehicle is fit as per RTA NA

49

Discounts

No claim discounts, transfer of NCB from any existing insurance provider up to 20 50 %, discounts on installation of anti-theft devices & memberships with approved automobile association

reminder service NCB, 2.5% NCB up to discount on 50% in case of any anti-theft 6 claim free device, 5% continuous discount on years, 2.5% membership of discount on automobile any anti-theft association of device, India, discount on additional membership of cover option automobile for electrical/ association of non-electrical India, items installed, voluntary voluntary excess excess discount discount
Are you availing any of the below mentioned products? _MOTOR INSURANCE YES NO 37 12 Total 49

NA

From which company you have taken up the insurance/s of the above mention product/s ? _FUTURE GENERALI Total

YES NO

78

23

101

115

35

150

50

Bar Chart
Are you availing any of the below mentioned products? _MOTOR INSURANCE YES NO

80

60

t n u o C

40

20

0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ? _FUTURE GENERALI

Count Are you availing any of the below mentioned products? _MOTOR INSURANCE YES From which company you have taken up the insurance/s of the above mention product/s ? _ICICI Total YES NO 25 4 29 90 NO 31 Total 121

115

35

150

51

Bar Chart
Are you availing any of the below mentioned products? _MOTOR INSURANCE YES NO 60

100

80

t n u o C
40 20 0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ?_ICICI
Count Are you availing any of the below mentioned products? _MOTOR INSURANCE YES From which company you have taken up the insurance/s of the above mention product/s ? _BAJAJ ALLIANZ Total YES NO 33 8 41 82 NO 27 Total 109

115

35

150

52

Bar Chart
Are you availing any of the below mentioned products? _MOTOR INSURANCE YES NO 60

100

80

t n u o C
40 20 0 YES NO

From which company you have taken up the insurance/s of the above mention product/s ?_BAJAJ ALLIANZ

Similar interpretation can be drawn from the above cross tabulation data, that how many people are availing motor insurance from the sample size and the share of each company. Travel insuranceIn travel insurance Bajaj Allianz is offering many diversified policies tapping different types of clients. It is offering Travel companion, Student companion, Pravasi Bhartiya Bima yojna, Travel Asia, Travel Elite, wades Yatra.ICICI LOMBARD is offering 4 products Platinum plan, Gold plan, Annual multi trip plan,& senior citizen plan. Future generali have 4 types of plans standard, silver, gold & platinum under single trip and annual multi trip plan. Basic covers are almost similar covers, medical expenses, delay or loss in baggage etc. National insurance company is not offering travel insurance as a whole but have baggage policy & overseas travel policy .
53

National insurance company have different plans under overseas mediclaim namelyPlan A-1,A-2,Plan B-1,B-2,plan C , plan D,Plan E-1,E-2. Besides the additional, addon benefits are available under Business & Holiday trips. Bajaj Allianz comes out with innovative offers for different segments of people and is the only one with Senior citizen plan. The plan is for senior citizens between 71 to 85 years. One can avail Senior Citizen Plan instantly with no medical check up with a claim benefit of $15,000 per illness or injury. Future generali matches very well with the offerings but like Bajaj Allianz it can also plan some innovative offers for senior citizen, students, and businessmen doing multitrips.
COVERAGE
Medical Cover

BAJAJ ALLIANZ US $1500025000 YES na US $ 100 US $ 200 US $ 100 Us $ 5000010000 US $ 100000 US $ 200 Na Na Na Na 54

ICICI LOMBARD
US$ 50,000 to 250,000

FUTURE GENRALI US$ 50,000 TO 100000 YES US $ 25( max for 5 days) US $ 200-250 US $ 250 1000 US $ 50- 200 US $ 5000-20000 US $ 100000-200000 US$ 50-150 US$200-500 US$ 500 US $500 US $500

Cashless hospitalization Daily allowance for hospital Passport loss Checked baggage loss Checked baggage delay Personal accident Personal liability Hijack allowances Financial emergency assistance Trip Cancellation & Interruption Missed connection Trip delay

YES US $ 25( for 5 days) US $ 200 US $ 500 US $ 100 US $ 15000 US $ 100000 US $125 US $300 US $500 US $500 US $500

Product Awareness-

The survey suggested that customers are most aware of motor & health insurance policies. The motor insurance policy is most known among customers as because of government regulations .Health is another most known as lifestyle nowadays is very hectic & people are more engaged with health issues. Marine, travel & fire are least known among the customers.

Which general insurance companies are you aware of ?

Future Generali TATA- AIG All of the above

Bajaj Allianz ICICI LOMBARD None of the above

55

Bharati AXA others (specify)

Consumer Awareness

When asked about the company awareness among the customers it appears that ICICI & Bajaj Allianz are most known among the customers ,followed by Tata Aig.The common fact which comes out when the most known companies are seen that they are already big names in other sectors, e.g., Bajaj , ICICI and Tata group of industries. The Future Group although a big name in retail sector, but a very novice in insurance industry .So consumer awareness of Future Generali is very low.

Are you availing any of the below mentioned products? Health Insurance Motor Insurance All of the above Fire Insurance Marine Insurance None of the above
56

Travel Insurance Home insurance

Products Availed by Consumer

Due to Govt. regulations and mandate for motor insurance, it is the most availed insurance product among the consumers. It is then followed by health insurance. But other insurance products like fire, marine and travel insurance are not very popular among the people. The reason behind is that they target a very small segment of customers, e.g., shipping firms, SMEs, etc.

From which company you have taken up the insurance/s of the above mention product/s? Future Generali Tata AIG Bajaj Allianz Reliance Bharati AXA others (specify)

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COMPETITORS IN THE MARKET

When people were asked for the insurance service providers for the insurance policies availed by them, it was found that Bajaj Allianz is the market leaders in this industry, followed by Reliance. The reason being is more customer awareness about these co.s . Future Generali is a new entry and grabs a motivating two percent market share in the very first two years.

58

SUM INSURED PREFERRED BY CUSTOMERS

70

60

50

40

30

20

10

0 0-2 LAKH 2-4 LAKH AMOUNT 4-6 LAKH 6 & ABOVE S1 CUSTOMERS

4-6 lakhs sum insured amount is the most preferred by the customers at that time of purchase. The medium ranged sum insured amount are the most preferred ones because the sample selected for survey includes middle salaried people and executives and people generally dont go for big investments in general insurance.

59

What made you to choose this particular insurance company? Short procedure Timely coverage of claims After Sales Goodwill and reputation of company Others (specify )

Why Customers prefer LIC more than private insurance companies? It's a Government Better Return 55% 45%

If Future Generali Gives Better assurance will you switch over?

Yes Will Think No

32% 45% 23% 60

61

ATTRIBUTES PREFFERED BY CUSTOMERS

Claim coverage and premium rates are the most motivating factors while selecting the insurance policies .People seems to be least interested in after sales as it was found out in this study. The customers are more awarded of cost & claim coverages of policies.

62

Limitations of the project

There was difficulties/obstacle faced during the initial part of the project, which were however overcome successfully. To list: Due to lack of time and resources the scope of the project is limited only to Bikaner.At the time of telecalling and survey, it was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation. The competitor analysis in the manual could only be compiled for a rough idea to the nature of the product. The product features and premium slabs, discounts keep on changing on a daily basis.

Compilation of data on competitor analysis was difficult due to nonavailability of correct information.

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RESEARCH METHODOLOGY

1.

Objective Of The Study:

Proper understanding and analysis of general insurance industry. To know about the sales and distribution channel. To activate and motivate the advisors for business and add to the revenues of Future Generali. According the market survey came to know about the customer awareness and preferences in the insurance policy purchased. And based on analysis of the result thus obtained make a report on that research. Training aims at facilitating the management in Churning up the distribution base and activating as much advisors as possible. Along with it I will be gaining the thorough knowledge of general insurance sector. This will give me in more confidence in marketing products given to me. As Future group is itself a big name in retail sector, so it was a great chance for me to get a closer look on how different new products were launched and advertised in the market.

The main purpose of the present study is to accomplish the following objectives.

Methodology of study:
Company basically means business and in business, collection of raw data allows the managers to see the real picture and then take a decision as per the data obtained. The Churning exercise is very important as advisors base are very important part of the distribution channel as people prefer to buy policies from a person whom they know & the one who can advice them in financial investments. The lack of activity of these

64

advisors cost in loss of large revenues. In the Churn management exercise there are several implications in this statement: The Company gets a clear picture of the active advisors out of the total data base. They can diagnose the problem for non working advisors e.g. Foot loss, low level of confidence, lack of knowledge etc. They can examine the available information in the form of data to make a decision. This will help the organization in making necessary decision.

The information can only be gathered by data collection and then analyzing the available data

Procedure:
1) Procedure followed for the Customer awareness surveyIt plays an important part as it gives a clear perception of people about the product, their expectations & preferences while buying a policy. Step: 1 Research objective of the study- Customer awareness about general Insurance sector with special reference to Future Generali. Step: 2 Research design Step: 3 Data source Step: 4 Data collection method Step: 5 Data collection tools Step: 6 sampling universe Step: 7 Sample size - Descriptive research -Primary and Secondary data -Interview and survey -Questionnaires -New Delhi (south region) -100

65

SAMPLE DESIGNThe target population of the study consists of various respondents of various places. This survey was done by collecting the data from the respondents.

SAMPLE SIZEAfter due consultation with the Industrial guide & also keeping in mind the requirements of the survey for the research, the sample size that was found to be appropriate for the study was 150. SAMPLING TECHNIQUEThe sampling technique that adapted to conduct the survey was Convenient Random Sampling and the area of the research was concentrated in the city of Erode only. The survey was conducted by visiting different places like markets, restaurants, financial institutional areas, respondents home etc...

DATA SOURCEThe task of data collection begins after a research problem has been defined. In this study data was collected through both primary and secondary data source. A. PRIMARY DATA A primary data is a data, which is collected for gathering information first time and to analyze the problem. In this study the primary data was collected among the consumers using questionnaire. B. SECONDARY DATA Secondary data consist of information that already exits somewhere, having been collected for some other purpose. In this study secondary data was collected from company websites, magazines and brochures.

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A thorough study had to be done on the competitors moves , the customers preference in the insurance sector and what is lacking. Company owned products have very less market share as compared to the other players in the market and the shortcomings had to be found out. For attainment of my objective the following activities were performed: 1. During the initial days of my training, took a brief from the industry guide 2. Attended three days training session with the national training head, which helped in gauging the problems faced by the agents 3. Went to the operations dept. to understand the underwriting process and the legal procedure of issuing policies 4. Called upon the agents, tried to motivate the existing agents and to convince the agents working for other companies to work for Future Generali 5. Further to aid them a product comparison of major general insurance players including three private and one public company was done. A primary research was conducted (with the help of questionnaire survey) about consumer awareness of general insurance in the various places within Delhi which includes urban areas like South Ext., GK 2, Cannaught Place, Nehru Place and sub urban areas like Dwarka, Janakpuri, etc. The target consumers were of various Agegroup, sex, monthly income, investment time frame and occupation. The total field work was done for 10 days in which a total sample size of 150 consumers was covered. The questions covered a wide range of issues including: 1. Know about the company awareness amongst the different sections society. 2. Identify the types of Insurance cover taken by a consumers and whether he or she is happy with the services. 3. Identify the main purpose and the main concerns while investment by a customer. 4. Determine the customer investment trend and their preference amongst various options available to them including Motor, Health, Accidental, House, Travel, etc. of the

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5. Factors affecting the decision making while taking the insurance policy for example low premium, large risk cover, pre and post paid services, after sales services, discounts offered etc. 6. Identifying the company from which a consumer takes Insurance policy and whether he or she is happy with the services. 7. Determine the characteristics of the various Insurance features that are important. 8. Seek demographic information of the respondents. 9. Analyze the demographic information of the respondents with respect to the Insurance prospects. For the purpose of this research, it was absolutely imperative to find out what the consumers want from their Policy provider.

It was also necessary to find out the consumers profile, i.e. his age, monthly income, occupation, investment time frame and sex and also the current policy taken. This required us to get a detailed questionnaire filled by the concerned person. For competitor analysis further help was taken from bank websites and journals. A detailed area wise analysis was also carried out to find out which Insurance Company is most prevalent in a particular area.

The analysis of consumer survey lead to the findings that although most people from our sample population were aware about General Insurance sector and had invested in it yet a significant number almost 75% were still unaware, hence a lot of brand awareness needs to be created among the working class. In the list of private players, ICICI Lombard ranked first in gathering the maximum number of customers. Among the non private i.e. the government players, New India Insurance company ranked 1.
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Regarding the buying behavior of customers, it was seen that much importance was given to claim coverage, after sales services & brand name as one of the major reasons for purchase.

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Recommendations
The private players like Future Generali should try to establish Brand awareness and credibility among the customers so as to divert their interest from the clean sweep made by its competitors like ICICI, BAJAZ ALLIANZ as well as the public players like New India Insurance, National Insurance etc. The insurance companies must ensure regular presence and frequent meetings with its advisors; otherwise it may lead to non activity of them & leads to loss of sales revenues. Adequate advertisement via appropriate media should be done by the various companies as is done by Bajaj Allianz in case of both life & Non life. Another way of advertisement for Future Generali could be through its other verticals e.g. Pantaloon, BIG BAZAAR .They could easily promotes the insurance products offered by Future Generali to its own customers who have their accounts etc with them. Certain discount charges should be made available because of the severe competition within the private players as well as the biggest threat posed by the public sector companies. Most of the customers as per our sample are inclined towards Bajaj Allianz & ICICI Lombard because of the fast claim settlements, low premium and easy accessibility. So other competitors really need to make a new brand awareness policy.

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Bibliography
BOOKS: 1. IC-34 LIFE INSURANCE BY INSURANCE INSTITUTE OF INDIA 2. Kotler Philip (2004), Marketing Management

Websites: 1. www.futuregenerali.com 2. www.google.com 3. www.icicilombard.com 4. www.bajajallianz.com 5. www.nationalinsurance.com

NEWS PAPERS: The Times of India Hindustan Times

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ANNEXURE

SAMPLE OF QUESTIONNAIRE FOR MARKETING SURVEY

NAME: AGE : OCCUPATION: Family Detail (Who are there in your family) ------------------------------------------------Address------------------Contact No------------------------------

Q1 What do you understand by GENERAL INSURANCE? .. Q2 Which general insurance companies are you aware of ?

Future Generali TATA- AIG All of the above

Bajaj Allianz ICICI LOMBARD None of the above

Bharati AXA Others (specify) _________________

Q3 Mark the particulars products you are aware of: Health Insurance Fire Insurance
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Travel Insurance

Motor Insurance All of the above

Marine Insurance None of the above

Home Insurance

Q4 Are you availing any of the below mentioned products?

Health Insurance Motor Insurance All of the above

Fire Insurance Marine Insurance None of the above

Travel Insurance Home insurance

Q5 From which company you have taken up the insurance/s of the above mention product/s? Future Generali Tata AIG Bajaj Allianz Reliance Bharati AXA Others (specify)

Q6 What made you to choose this particular insurance company? Short procedure After Sales Timely coverage of claims Goodwill and reputation of company

Others (specify) ______________________________________

Q7 Rank the attributes you look upon while choosing insurer: (rank between 1 5) Claim coverage Discounts and benefits After sales Premium Rates Company Name

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Q 8 Health is very uncertain, dont you feel your health should be insured. Y\N

Q 9 What are the diseases you feel should be covered. . . Q 10Coverage of what amount you feel you require for you and your family .

Q11 Every one insures is vehicles but there are very few who care for his other assets like house/shop/office Are you among those Y/N.?

Q 12 If yes which asset you like to insure first -----------------------------

Detail of asset.--------------------------------------------------------------------------------------------------------------SIGNATURE:

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