Chapter I

Introduction
Objective of the Study
Purpose of the Study
Limitations of the Study
Importance of the Study
Research Methodology
 1.1 Introduction
A motor insurance or an auto insurance or more popularly known as a car
insurance, is an insurance cover which is meant to protect your vehicle against the losses
incurred due to unforeseen instances. It covers you from the risk of loss from theft, loss
from accidents or any subsequent liabilities.
Motor insurance can be generally classified into 3 broad categories.

Car insurance:

It covers all kinds of losses or damage by accident, fire, any kind of natural
calamities, theft and the third party claims.

Two wheelers insurance:

This type of auto insurance is meant for the two wheelers. It provides protection to
the vehicle from the loss or damage from natural calamities like earthquakes, floods,
hurricanes and man-made calamities like fire, landslide etc.

Commercial vehicle insurance:

It covers all those vehicles which are not used for personal purpose. Vehicles like
trucks, passenger buses, heavy commercial vehicle, light commercial vehicles,
agricultural vehicles, multi-utility vehicles, ambulances etc are covered under this type of
insurance.

Motor insurance is also mandatory by the law. It is a legal requirement in India to

have insured a minimal level of insurance protection before driving any motor vehicle.

2
 1.2 Objectives of the Study
Primary Objective:
To create an awareness about the Motor Insurance Policy of the XXX XXX
Company

Secondary Objective:

To identify the potential policy holders among end users and to create a
relationship between the companies and potential customers.
To find out the customer satisfaction level with XXX XXX company.

1.3 Purpose of the Study

The purpose of this study is to analyze, find out and relate the various benefits & Features
of Motor Insurance Policy provided by XXX.
Creating Awareness on:
Services Provided
Draw Backs
Benefits
Conditions
Claims etc.,
1.4 Limitations of the Study

Even though every effort was made to complete all areas of the project, it still has
its own limitations.
Due to time constraints the sample was restricted to 50 respondents
The time factor was not in favor as the period of study was limited to one month
The respondents were willing to provide information. They were free to share their
information
The tools used for analysis has its own limitations

3
 1.5 Importance of the Study

The importance of this project is concerned with the study of the Awareness of
Motor Insurance Policy provided by the XXX XXX Company.
Make an Aware of Features, Benefits and the Claims of a Policy
Identifying the Customer needs and feedback on the existing policy
The result arrived out of this study would know about their need for better
performance in future
Study on the benefits earned by the customer through the policy of XXX
Gives suggestions to the customer to choose the services at the time of buying a
policy
1.6 METHODOLOGY OF RESEARCH

Methodology is usually a guideline system for solving a problem, with specific

components such as phases, tasks, methods, techniques and tools. It can be defined also
as follows:

1. "the analysis of the principles of methods, rules, and postulates employed by a

discipline"
2. "the systematic study of methods that are, can be, or have been applied within a
discipline"
3. "the study or description of methods".

1.6.1 RESEARCH DESIGN

Research design is the plan, structure to answer whom, when, where and how the
subject is under investigation. Here plan is an outline of the research scheme & which
the researcher has to work. The structure of the research is a more specific outline and
the strategy out, specifying the methods to be used in the connection & analysis of the
data.

4
 1.6.2 DATA COLLECTION

The main source of information for this study is based on the data collection. Data
collected are both primary and secondary in nature.

Primary Data

Primary data have been directly collected from the clients of XXX XXX Company
by survey method through undisguised structured questionnaire.
Questions like close ended, multiple choice, dichotomous and ranking type have
been used for the purpose of data collection.

Secondary Data

Secondary data have been collected from official website of XXX XXX Company
and also from other official websites related to Motor Insurance Policy.

1.6.3 TYPES OF QUESTIONS

Close ended question
Close ended question are the type of questions with a clear declined set of
alternatives that confine the respondents to choose one of them.
Multiple choice question
It consists of multiple choices in which the respondents can choose more
than one.
Likert scale
It uses 5 point or 7 point scale to elicit respondents favour or unfavour
towards an object.

Dichotomous question

It consists of two choices of answers in which the respondent has to choose

one of them.

5
 Ranking
In ranking, questions will have the ranking skill, which the respondents are
free to rank them according to their preference.

1.6.4 SAMPLING

Sampling is the process of selecting units (e.g., people, organizations) from a

population of interest so that by studying the sample we may fairly generalize our results
back to the population from which they were chosen.

When taking a sample from a larger population, it is important to consider how the
sample will be drawn. To get a representative sample, the sample must be drawn
randomly and encompass the entire population.

Sampling is defined as a process used in statistical analysis in which a

predetermined number of observations will be taken from a larger population. The
methodology used to sample from a larger population will depend on the type of analysis
being performed, but will include simple random sampling, systematic sampling and
observational sampling.

6
 Chapter - II

Literature Review

7
 2.1 LITERATURE REVIEW
With the initiation of the deregulation in the Indian insurance market, the
monopoly of big public sector companies in life insurance as well as general (non-life
insurance) market has been broken. New private players have entered the market and
with their innovative approaches and better use of distribution channels and technology,
they are eating in to the shares of established public sector companies in Indian
Insurance Market.
McKinseys director in India and banking industry expert Leo Puri says the openin
g of insurance has been a smooth deregulation process. The state mammoth, the LIC has
not been estabilished and the objective of deregulation has been met. Employment has
grown so as the insurance business.
Consumer attitudes and perception about insurance have changed; Insurance is
now considered a viable financial instrument to meet different needs. Bajaj Allianzs
Ghosh.
In 2009-10, the life insurance sector grew by 10%. Life Insurance penetration (i.e.
premium as a percentage of GDP) in India was 2.26% as against the global penetration
level of 5.23%.The marketplace is getting competitive, but the market share of private
insurance companies remains very low -- in the 10-15 percent range. The heavy hand of
government still dominates the market, with price controls, limits on ownership,
and other restraints.
Indian insurance industry is anticipated to witness a 500% growth and reach to
US$ 60 Billion in the coming four years, thanks to swelling demand in semi-urban and
rural areas, reported industry chamber Assoc ham. Assocham stated that semi-urban areas
would have a share of US$ 35 Billion and urban areas would account for US$ 25 Billion
in the US$ 60 Billion industry. Anil K Agarwal, President, Assocham (Associated
Chambers of Commerce and Industry of India), reported that a large segment of rural
India is still untouched because of long distances, poor distribution and high return costs.
A Research Analyst at RNCOS says that the progress in the semi-urban and rural areas

8
would largely fuel the growth in insurance sector. The other factors that would boost the
growth in this sector are improving economic scenario, increasing disposable incomes,
and rising product demands.
As part of the Federal Balanced Budget Act of 1997, Congress in United States
created the Children's Health Insurance Program (CHIP) as a way to encourage states to
provide health insurance to uninsured children. Jacob Alex Klerman (1997) in his report
Health Insurance among children of unemployed parents addresses the problem of lack of
health insurance for children in the United States. Using the data from the 1990, 1991,
and 1992 panels of the Survey of Income and Program Participation, this report presents
the interrelation between parental unemployment and childrens health insurance
coverage. As per the report nearly half of the children lose their health insurance because
their parents lose or change a job. Rosemarie, Paul J Boben, Jennifer B. Bonney (2007)
evaluates the State Childrens Health Insurance Program (SCHIP) and how it has given
state the freedom in providing more children with coverage. They found out that because
of providing Health Insurance to Children it provides not only cover against medical bill
but also participate in the customer health planning. Senate Bill Report (United States)
(2005) on Regulating Life Insurance by Labor, Commerce and Financial Institutions
evaluates 100 Life Insurance Companies to survey their practices with regard to the
marketing and underwriting of juvenile insurance policies. In many cases, the average
death benefit claimed, upon the death of an insured child, far exceeded the economic
losses, such as funeral expenses. Concern exists that, while many well-meaning adults
may innocently purchase inappropriate or unnecessary amounts of life insurance on
children, some may actually be purchasing the policies with criminal intent. Some news
stories indicate that some children are murdered in order to obtain insurance payments.
The report suggest that Life insurers must develop and implement underwriting standards
and procedures designed to detect and prevent the purchase of juvenile life insurance for
speculative or fraudulent purposes, and maintain records of rejected applications for 10
years. Deborah Senn (2007) Insurance commissioner United States says that State needs
stronger guidelines for Childrens Life Insurance. The survey conducted indicates

9
that many companies offering juvenile life insurance do not appear to have strong
standards in place to help prevent this kind of tragedy. ShaileshBhandari and Elizabeth
Gifford (2005) in their paper on Children with Health Insurance investigate patterns of
childrens health insurance coverage and explore the characteristics of uninsured
children. Using the data from the Current Population Survey (CPS), it provides national
estimates of the number and percentage of uninsured children by age, race, family type
and family income. According to Tom Menezes, in his work on Life insurance for
child, June, 2007, Child Insurance is one of the fastest selling insurance products of the
new era. Every insurance company should focus on innovative products and train the
advisors to approach prospective customers. SmithaTripathi (2008) looks into how
Higher education which used to be remarkably cheap in India is changing with
remarkable swiftness. The paper discusses that parents should start saving for the child
education even before he or she starts going to nursery school. If you are the type who
likes starting early, it might be a good idea to start looking at insurance policies that
matures when your child comes of age. Now that education is getting costlier, insurance
companies are also realizing that its important to offer new schemes. So, there are much
more policies than ever before. These policies mature when your child comes of age and
the money can be used for higher education or marriage expenses. The paper provides the
information about the different type of child policies and which one suits you according
to your need. Mr. Ian J Watts, Managing Director, Tata AIG Life Insurance (2006) says
that Children Life insurance products not only meet the educational needs of children but
also offer insurance cover. Considering the costs involved for pursuing higher education
and also the competitive environment that a child is exposed to, the need for planning the
education of a child is an important aspect for any parent.
Alison Cuellar, Kelly J Kelleher, Jennifer A Rolls and Kathleen Pajer (2008)
discuss that without the Health Insurance benefits many youths will not receive timely
health care. The delinquent youths who have violated the law have typical poor physical
and mental stress which leads to higher medical costs. David Gambrill (2008) points out
the importance of Child Insurance. Its a changing world. Almost nothing remains the

10
same like that your child dreams keep on changing. Its up to you to make sure that when
time comes, she has the means to make her dreams come true. Sue Laing (2009) brings
forward an often-overlooked issue, the financial impact that a childs illness or injury
can have on family finances in her research paper Childrens trauma: an undersold safety
net. The author shares her personal experience that clients accept the vulnerability of
their children far more readily than their ownthis is just a matter of informing them of
their options. Of those with whom childrens trauma is discussed and perhaps debated,
some will accept the advice to go for child insurance. The overall amount the parents
will be committing to their insurance package is relatively inexpensive as compared to
the childs trauma. Though the returns are not very high, most financial planners
recommend that you buy a children's policy. Sanjiv Bajaj, director, Bajaj Capital, says
that "Children insurance policies ensure a disciplined saving mode for the child's future.
Moreover, since the returns are tax-free, you need not worry about what the tax structure
will be like 20 years down the line."
The US$ 41-billion Indian life insurance industry is considered the fifth largest
life insurance market, and growing at a rapid pace of 32-34 per cent annually, according
to the Life Insurance Council. Since the opening up of the insurance sector in India, the
industry has received FDI to the tune of US$ 525.6 million. The government is likely to
reintroduce the Insurance Bill which proposes to increase the FDI cap in private sector
insurance companies from 26 per cent to 49 per cent.

11
Chapter III

Industry Profile
Company Profile

12
 3.1 INDUSTRY PROFILE
3.1.1 Introduction

The outlook for the general insurance industry in India is stable as per the financial
forecast that has been made. Over the medium and long term, Indias insurance market
will continue to experience major changes as its operating environment increasingly
deregulates. On the one hand, a mix of new products, new delivery system and a greater
awareness of risk will generate growth. On the other hand, the competition is expected to
remain intense as private sector insurers and those about to enter India seek to win market
share from the more established public sector entities.
In 2006-07, Indias general insurance market witnessed a variety of changes as
deregulation continued at a hectic pace. With the removal of pricing controls on fire and
engineering lies in 2007, insurers have since discounted their rates by 50% or more in
their quest to retain or win market share. Furthermore, the number of private insurers is
expected to grow as various foreign companies have announced intentions to establish
joint ventures.
3.1.2 History of Insurance industry
In some sense we can say that insurance appeared simultaneously with appearance
of human society. In earlier economies, we can see insurance in the form of people
helping each other. For example, if a house is burnt, the members of the community help
build a new one. Should the same thing happen to ones neighbour, the other neighbors
must come to help? Otherwise, neighbors will not receive help in the future.
Insurance in the modern sense, started as a methods of transferring or distributing
risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and
2ndmillenniaBC, respectively. Chinese merchants traveling treacherous river rapids
would redistribute their cargo across many vessels to limit the loss due to any single
vessels capsizing. The Babylonians developed a system which was recorded in the
famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing

13
merchants. If a merchant received a loan to fund his shipment, he would pay the lender an
additional sum in exchange for the lenders guarantee to cancel the loan should the
shipment be stolen.
Greek monarchs were the first to insure their people and made it official by
registering the insuring process in governmental notary offices. They invented the
concept of the general average. Merchants whose goods were being shipped together
would pay a proportionally divided premium which would be used to reimburse any
merchant whose goods were jettisoned during storm or sinking of the vessel in the sea.
The Greeks and Romans introduced the origins of health and life insurance c. 600
AD when they organized guilds called benevolent societies which cared for the
families and paid funeral expenses of members upon death. Guilds in the middle Ages
served a similar purpose. Before insurance was established in the late 17th century,
friendly societies existed in England, in which people donated amounts of money to a
general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Greeks rulers in the 14th century, as were
insurance pools backed by pledges of landed estates. These new insurance contracts
allowed insurance to be separated from investment, a separation of roles that first proved
useful in marine insurance. Insurance became far more sophisticated in post-
RenaissanceEurope, and specialized varieties developed. Insurance as we know it today
can be traced to the Great Fire of London, which in 1666 A.D devoured 13,200 houses. In
the aftermath of this disaster, XXXholasBarbon opened an office to insure buildings. In
1680, he established Englands first fire insurance company, The Fire Office, to insure
brick and frame homes.
The first insurance company in the United States underwrote fire insurance and
was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.

14
3.1.3 Evolution of insurance industry in IndiaImportant milestones

In India, insurance has a deep-rooted history. It finds mention in the writings of

Manu (Manusmrith), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The
writings talk in terms of pooling of resources that could be re-distributed in times of
calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to
modern day insurance. Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers contracts. Insurance in India has
evolved over time heavily drawing from other countries, England in particular.
Year Event
1818 The advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta.
1834 Oriental Life Insurance Failure
1850 The advent of General Insurance in India with the establishment of
Triton Insurance Company Ltd in Calcutta
1870 The enactment of the British Insurance Act
1907 The Indian Mercantile Insurance Ltd was set up

1912 The Indian Life Assurance Companies Act, 1912 was the first statutory
measure to regulate life business.
1928 The Indian Insurance Companies Act was enacted.
1956 Nationalization of Life Insurance Sector and Life Insurance Corporation
.The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75
provident societies.
1971 The General Insurance Corporation of India was incorporated as a
company
1973 General insurance business was nationalized with effect from 1st
January 1973.
107 insurers were amalgamated and grouped into four companies

15
 namely:
1) XXX XXX Company Ltd.,
2) The New India Assurance Company Ltd.,
3) The Oriental Insurance Company Ltd
4) The United India Insurance Company Ltd.
1993 The Government set up a committee under the chairmanship of RN
Malhotra former Governor of RBI to propose recommendations for
reforms in the insurance sector
2000 The IRDA was incorporated as a statutory body in April 2000.
Foreign companies were allowed ownership of up to 26%.
2000-01 Insurance Industry had 16 new entrants, 10 in Life and 6 in General
Insurance
2001-03 Insurance Industry had 5 new entrants, 2 in Life and 3 in General
2003-04 Insurance Industry had 1new entrant, Sahara India Insurance Company
Ltd. In Life Insurance category
2004-05 Insurance Industry had 1new entrant, Shri Ram Insurance company Ltd.
In Life Insurance category
2005-06 BhartiAxa Life insurance company was granted Certification of
Registration in July
2006 BhartiAxa Life insurance company commenced its operations the
newest player in the insurance sector.

3.1.4 Evolution of Non-Life insurance in India:

The boycott of British goods and British institutions, which occurred because of
the nationalist movement, encouraged formation of Indian-owned commercial and
business houses. By 1907, the Indian mercantile the first of the long lasting general
insurance companies to be established with Indian capital, had started functioning five

16
offices, the New India, Vulcan, Jupiter, British India General and the Universal, were
established in 1919 almost simultaneously for transacting general insurance business.
In 1928, prominent insurance men of Bombay met and formed the Indian
insurance companies association to protect the interest of Indian insurers. Leaders of the
insurance industry began to organize conferences, educate public on the benefit of
insurance, focus attention on the annual remove of national wealth through invisible
exports, and arise public interest in favour of Indian insurance.
In 1950, the planning commission was set up to formulate plans for successive
five years. This five year plan brought about large scale economic development and
increased insurance consciousness among the people. As insurance business increased the
number of claims for compensation against losses also naturally increased. Settlement of
too many large claims meant a severe demand on the funds of insurance companies. So to
prevent this situation the practice of Reinsurance was adopted according to which
insurers themselves reinsured portions of the insurances they had undertaken. So Indian
insurance companies with their expanding business wanted to reinsure for which they had
to seek foreign reinsurance markets.
Since the need for conserving foreign exchange was felt in India all the insurers in
India as well as foreigners operating in India formed the India Reinsurance Corporation
in 1956. This corporation provided reinsurance facilities. It was compulsory for insurers
in India to reinsure a fixed percentage of their insurances with the corporation.
The Insurance Amendment Act 1950 imposed certain limitations on expenses of
management. The general insurance council constituted what was called the tariff
committee to control and regulate terms and conditions of business.
In 1972, the General Insurance Business (Nationalization) Act 1972 was passed under
the provisions of this act. The general insurance corporation of India was established for
the purpose of directing; controlling and caring on the general insurance business and all
the 106 insurers were merged and grouped into four subsidiaries of the general insurance
corporation of India namely:

17
 XXX XXX Company Ltd., with its head office at Calcutta.
The New India Assurance Company Ltd., with its head office at Bombay.
The Oriental Insurance company Ltd., with its head office at Delhi.
The United India Insurance Company Ltd., with its head office at Madras.

3.1.5 Three Phases of De-Tariffing

Indias general insurance industry has undergone de-tariffing in three phases:
1994 -- marine cargo, personal accident, health, banker liability and aviation
2005-06 -- marine hull segment
2007 -- Fire, engineering and motor own damage (OD). However, the de-tariffing did
not immediately allow for free pricing. Instead, insurers were required to follow the
file and use method, whereby they were expected to file a charter of proposed
rates, which was then approved by IRDA.
The only segment that remains under a tariff regime is the third party motor business,
although there has been a large upward revision in this areas premium rates by regulators
in recent times. Moreover, commercial third party motor business, which has traditionally
contributed to adverse claims ratios, has been moved to a common pool, resulting in loss
sharing.

18
 3.2 COMPANY PROFILE

XXX XXX Company Limited was incorporated in 1906 with its registered office
in Kolkata. Consequent to passing of the General Insurance Business Nationalisation 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 (Nationalisation) Amendment Act, on 7th August 2002, National has
been de-linked from its holding company GIC and presently operating as a Government
of India undertaking.
XXX XXX Company Ltd (XXX) is one of the leading public sector insurance
companies of India, carrying out non life insurance business. Headquartered in
Kolkata, XXX'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. XXX's foreign operations are carried out from
its branch offices in Nepal.
Befittingly, the product ranges, of more than 200 policies offered by XXX 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, XXX'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.

19
 Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil &
Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education,
Environment, Space Research etc.
XXX XXX is the second largest non life insurer in India having a large market
presence in Northern and Eastern India.
The steady growth in premium income has been commensurately matched by
profits over the years. As of March 2008, XXX's general reserve stood at 1457.25 million
rupees (1457.25 crores rupees) with an asset value of 8867.99 million rupees (8867.99
crores rupees) signaling strong financial fundamentals. No wonder than that XXX has
been accorded AAA/STABLE financial strength rating by CRISIL rating agency,
which reflects the highest financial strength to meet policyholders obligations.

3.2.1 Achievements

XXX XXX Company is the fastest growing Non-life Insurance Company in India
The second largest Non-life Insurance Company in India
Internationally recognized as one of the top 5 General Insurance Companies in the
Asia Pacific.
Establishing Connectivity among 1000 offices within the country
Facility to get Policy through NET soon
Tie-ups with leading Banks, Corporate Sectors, State Governments
May I help you counters set up at Head Office and all Regional Offices.
More than 200 products available to cater to the needs of various sectors of the
economy.
Continuous product development to meet emerging needs of society and industry.
As a major strategic initiative, XXX XXX Company has tied up with commercial
banks, Non Banking Financial Institutions, Automobile Manufacturers, NGOs and
State Governments for marketing of its Insurance services.

20
 XXX XXX Company Limited ranks among the top GLOBAL BUSINESS
INSURERS.
XXX has been awarded the AAA/STABLE financial strength rating by CRISIL.
It reflects the highest financial strength to meet policyholders obligations.

3.2.2 Products and services

XXXL has a range of coverage policies targeting different sectors:

Personal Insurance policies include medical insurance, accident, property and auto
insurance coverage
Rural Insurance policies provide protection against natural and climatic disasters for
agriculture and rural businesses
Industrial Insurance policies provide coverage for project, construction, contracts,
fire, equipment loss, theft, etc.
Commercial Insurance policies provide protection against loss and damage of
property during transportation, transactions, etc.

Below are the some of the products of XXX:

Personal Line Insurance

Motor Policy - Two Wheelers
Householders Policy
Personal Accident Policy
Critical Illness Policy
NRI Accident Policy
AmartyaSikshaYojana Policy
RajrajeshwariMahilaKalyanYojana Policy
Bhagyashree Child Welfare Policy
Traffic Accident Policy
NiwasYojana Policy

21
 Baggage Policy
Mediclaim Policy
Motor Policy - Private Car
Professional Indemnity for Doctors
Star National SwasthyaBima Policy
VIDYARTHI-Mediclaim for Students
UCO Medi + Care Bima Policy
VARISTHA Mediclaim for Senior Citizens
BOI National SwasthyaBima
Overseas Mediclaim
Baroda Health Policy
Rural Line Insurance
Cattle / Livestock Insurance
Sheep and Goat Insurance
Elephant Insurance
Dog Insurance
Silkworm ( Sericulture) Insurance
Janata Personal Accident Insurance
Horticulture/Plantation Insurance
Kisan Agriculture Pumpset Insurance
Industrial Line Insurance
Erection All Risks Insurance ( EAR )
Contractors All Risks Insurance (CAR)
Machinery Insurance ( MI )
ElectroXXX Equipment Insurance ( EEI)
Consequential Loss (Fire) Policy
Standard Fire and Special Perils Policy
Product Liability Insurance

22
 Public Liability Insurance
Commercial Line Insurance
Burglary (Business Premises) Policy
Shopkeepers Policy
Bankers Indemnity Policy
Office Package Policy
Glass Insurance
Money Insurance
Jewelers Block Policy
Extended Warranty Policy
Directors and Officers Liability Policy
Fidelity Guarantee Policy
Marine Cargo Insurance

Personal Line Insurance:

Personal Line Insurance is meant to cover risks of person and property of

individuals or group of individuals or liability developing upon them. Insurance of
persons would include Personal Accident, Mediclaim, Critical
Illness, AmartyaSikshaYojana, among others. Insurance of property would include
Householders', NiwasYojana, Motor etc. Insurance of liability would include liability
devolving on a person arising out of his personal actions / inactions or out of the practice
of his/her profession, such as, Personal Liability, Professional Indemnity for a Doctor /
Lawyer etc

Rural Line Insurance:

23
 Since nationalization our Company is moving ahead with the task of taking
General Insurance business to the rural segments, keeping in view the social objective of
serving the needs of the economy in the best interest of the weaker sections of the
community.
To provide financial protection against loss of their small income generating assets
due to the occurrence of fortuitous events, our company has devised a number of
insurance policies specially designed for the rural people and weaker section of urban
society.

Industrial Line Insurance:

Industrial Insurance is another branch of non-life insurance which covers various
risks faced by the industry and serves to sustain the growth of the industrial activity.
These insurances can be sub-divided into broadly two heads as Project Insurance and
Operational Insurance. The two basic forms of Project Insurance are Erection All Risk
Insurance and Contractor's All Risk Insurance. Commonly chosen Operational Insurance
policies are Fire policy, Machinery Insurance policy, ElectroXXX Equipment Insurance
policy and Consequential Loss (Fire) policy.

Commercial Line Insurance:

The mainstay of our economy is commercial activity of various kinds, covering
trades, transport, banking etc. These organizations are exposed to risks, which can be
categorized as loss of or damage to property / assets and liability arising out of an action
/inaction in the course of the commercial activity.
XXX XXX offers different options, which enable a commercial organization to
protect itself against losses arising from various perils. These options can be classified as
package policies, specific policies to protect against property loss and specific policies to
cover liability arising due to errors and omissions in the course of transaction of
commercial activity.

24
 Chapter IV

Methods/Tools of Analysis
Data Analysis & Interpretation

4.1 METHODS / TOOLS OF ANALYSIS

25
 Tools used for analysis are:

Chi-square test
Karl Pearsons coefficient of correlation
Graph
Percentage

1. CHI-SQUARE TEST

There may be situation in which it is not possible to make any rigid assumption
about distribution of the population from which samples being drawn. This limitation has
led to the development of a group of alternative techniques known as non-parametric
tests. Chi-square describes the magnitude of the discrepancy between theory and
observation.
Formulae:
= [(Oi Ei) 2] with n-1 degrees of freedom
i =1 Ei

2. KARL PEARSONS COEFFICIENT OF CORRELATION

Correlation analysis helps us in determining the degree of relationship between 2

or more variables. The value of the coefficient of correlation as obtained by the below
formula shall always lie between +1 and -1. When r = +1, it means there is perfect
positive correlation between the variables. When r = -1, there is perfect negative
correlation between the variables and when r = 0, there is no relationship between the two
variables.
xy
r = --------------------
x2 - y2
__ __
x = (X - X) ; y = (Y - Y)

3. PERCENTAGE ANALYSIS

26
 Percentage analysis shows the entire population in terms of percentages.

No. of respondents
Percentage = ----------------------------- *100
Total respondents

4. GRAPHS

Graphical method was used in order to represent the factor in various graphical
methods like pie-chart, bar diagram and cylinder.

4.2 Data Analysis & Interpretation

4.2.1 TABLE SHOWING OCCUPATION OF RESPONDENTS

27
 Sl.No Occupation No. Of Respondents Percentage (%)
1 Service/Govt. Employee 14 28%
2 Business 7 14%
3 Professional 2 4%
4 Others 27 54%
Total 50 100%

Findings: The above table shows that 28% of respondents belong to the category of services &
Govt. Employee, 14% belong to the category of business, 4% are professional and the rest 54%
belong to other category, which comprises of private sector employee

Inference: It is inferred thatthere is a higher percentage (i.e.54%) of respondents in the category

comprising private sector employees.

4.2.1 CHART SHOWING OCCUPATION OF RESPONDENTS

60
54%
50
No. of Respondents

40

28%
30

20 14%

10 2%

0
Service/Govt. Business Professional Others
Employee
Occupation

4.2.2 TABLE SHOWING ANNUAL INCOME OF RESPONDENTS

Sl.No Annual income No. Of Respondents Percentage (%)

28
 1 Less than Rs.1.5 lakhs 13 26%
2 Rs.1.5 to 3 lakhs 17 34%
3 Rs.3 to 5 lakhs 15 30%
4 Rs.5 to 10 lakhs 5 10%
5 Above Rs.10 lakhs - -
Total 50 100%

Findings: The above table shows that 26% of respondents fall under the income category of less
than Rs.1.5 lakhs, 34% fall under the category of Rs. 1.5 to 3 lakhs, 30% fall under the income
category of Rs. 3 to 5 lakhs and rest of 10% in the Income category of Rs. 5 to 10 lakhs.

Inference: It is inferred that there is a higher percentage (34%) of respondents in the income
category of 1.5 to 3 lakhs and comparatively a very lower percentage (10%) of respondents in
the income category of 5 to 10 lakhs.

4.2.2 CHART SHOWING ANNUAL INCOME OF RESPONDENTS

34%
35%
30%
30% 26%

25%
No. of Respondents

20%

15%
10%
10%

5%
0
0%
< Rs. 1.5 Lakhs Rs. 1.5-3 Lakhs Rs. 3-5 Lakhs Rs. 5-10 Lakhs > Rs. 10 Lakhs
Annual Income

29
 4.2.3 TABLE SHOWING THE SOURCES MOST PREFERRED BY RESPONDENTS TO
KNOW ABOUT XXX XXX COMPANY AND ITS PRODUCTS

Sl.No Preferred source of information No. Of Respondents Percentage (%)

1 Ads (print, radio & TV) 16 32%
2 Insurance agents 22 44%
3 Friends & Relatives 9 18%
4 Others 3 6%
Total 50 100%

Findings: The above table shows that 32% of respondents would prefer Ads, 44% of them prefer
insurance agents, 18% of them prefer Friends & relatives, and the rest 6% of them would prefer
other sources like company websites, SMS, etc, in order to know about an insurance company
and its products.

Inference: It is inferred that a higher percentage of respondents (44%) have stated insurance
agents as the most preferred source.

4.2.3 CHART SHOWING THE SOURCES MOST PREFERRED BY RESPONDENTS TO KNOW ABOUT XXX XXX
COMPANY AND ITS PRODUCTS

44%
45%
40%
32%
No. of Respondents

35%
30%
25% 18%
20%
15%
6%
10%
5%
0%
Ads Agents Friends & Others
Relatives
Sources

30
 4.2.4 TABLE SHOWING NO. OF INSURANCE POLICIES HELD BY RESPONDENTS IN
XXX

Sl.No No. of policies No. Of Respondents Percentage (%)

1 1 32 64%
2 2-4 13 26%
3 5+ 5 10%
Total 50 100%

Findings: The above table shows that 64% of respondents hold 1 policy, 26% holds 2 to 4
policies and the rest 10% holds more than 4 general insurance policies in XXX XXX Company.

Inference: It is inferred that a higher percentage (64%) of respondents holds 1 general insurance
policy.

4.2.4 CHARTSHOWING NO. OF GENERAL INSURANCE POLICIES HELD BY RESPONDENTS IN XXX

32%
35%

30%
No. of Respondents

25%

20%
13%
15%

10% 5%
5%

0%
1 2 to 4 5+
No. of Policies

31
 4.2.5 TABLE SHOWING THE RESPONDENTS SELECT THE SERVICES AT THE TIME
OF CHOOSING A POLICY

Sl.No Services No. Of Respondents Percentage (%)

1 Third Party Insurance 19 38%
2 Third Party, Fire & Theft Insurance 20 40%

3 Comprehensive Insurance 11 22%

Total 50 100%

Findings: The above table shows that 38% of respondents would prefer Third Party Insurance,
40% of them prefer Third Party, Fire & Theft Insurance and rest of the 22% of them prefer
Comprehensive Insurance, in order to select the services at the time of choosing a policy.

Inference: It is inferred that a higher percentage of respondents (40%) have stated Third Party,
Fire & Theft Insurance as the most preferred services.

4.2.5 CHART SHOWING THE RESPONDENTS SELECT THE SERVICES AT THE TIME OF CHOOSING A POLICY

20%
19%
20%
18%
16%
No. of Respondents

14% 11%
12%
10%
8%
6%
4%
2%
0%
Third Party Insurance Third Party, Fire & Comprehensive
Theft Insurance Insurance
Services

32
 4.2.6 TABLE SHOWING RESPONDENTS OPINION TOWATDS THE INFORMATION
PROVIDED BY THE XXX ABOUT THE MOTOR INSURANCE POLICY

Sl.No Opinion No. Of Respondents Percentage (%)

1 Strongly agree 12 24%
2 Agree 17 34%
3 Undecided 13 26%
4 Disagree 6 12%
5 Strongly disagree 2 4%
Total 50 100%

Findings: The above table shows that 24% of respondents, who are policy holders with XXX
XXX Company Strongly agree, 34% of them just agree, 26% of them undecided, 12% of them
disagree and the rest 4% of them strongly disagree that XXX XXX Company is providing the
Authentic Information about the Motor Insurance Policy.
Inference: It is inferred that a higher percentage (34%) of respondents, who are policy holders
with XXX XXX Company have agreed that providing the Authentic Information about the
Motor Insurance Policy.

4.2.6 CHART SHOWING RESPONDENTS OPINION TOWATDS THE INFORMATION PROVIDED BY THE XXX
XXX COMPANY ABOUT THE MOTOR INSURANCE POLICY

Strongly Dis-Agree 4%

Dis-Agree 12%
Opinion

Undecided 26%

Agree 34%

Strongly Agree 24%

0% 10% 20% 30% 40%

No. of Respondents

33
4.2.7 TABLE SHOWING THE RESPONDENTS COMMENT ON THE SERVICE OF XXX

Sl.No Comment No. Of Respondents Percentage (%)

1 Excellent 14 28%
2 Very good 24 48%
3 Moderate 8 16%
4 Poor 4 8%
5 Very poor - -
Total 50 100%

Findings: The above table shows that 28% of respondents have indicated the service of XXX
XXX Company as excellent, and 48% of them have stated it as very good and 16% of them have
indicated it as moderate and rest of them indicated the service of XXX is Poor.

Inference: It is inferred that a higher percentage (48%) of respondents have indicated that the
service rendered by XXX XXX Company is very good.

4.2.7 CHART SHOWING THE RESPONDENTS COMMENT ON THE SERVICE OF XXX

Service Rendered by NIC

Poor
8%
Excellent
Moderate 28%
16%

Very Good
48%

34
 4.2.8 TABLE SHOWING RESPONDENTS OPINION TOWARDS XXX OFFERING OF
CUSTOMER CENTRIC PRODUCTS

Sl.No Opinion No. Of Respondents Percentage (%)

1 Highly agree 7 14%
2 Agree 35 70%
3 Neither agree nor disagree 5 10%
4 Disagree 3 6%
5 Highly disagree - -
Total 50 100%

Findings: The above table shows that 14% of respondents, who are policy holders with XXX
highly agree, 70% of them just agree, 10% of them neither agree nor disagree and the rest 6% of
them disagree that XXX is offering customer-centric products.

Inference: It is inferred that a higher percentage (70%) of respondents, who are policy holders
with XXX have agreed that XXX is offering customer centric products.

4.2.8 CHART SHOWING RESPONDENTS OPINION TOWARDS XXX XXX COMPANY OFFERING OF
CUSTOMER CENTRIC PRODUCTS

0%
Highly Dis-Agree

Dis-Agree 6%
Opinion

Neutral 10%

Agree 70%

Highly Agree 14%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No. of Respondents

35
 4.2.9 TABLE SHOWING RESPONDENTS COMMENT ON THE YEARLY PREMIUM PAID

Sl.No Comment No. Of Respondents Percentage (%)

1 Very High 6 12%
2 High 16 32%
3 Reasonable 21 42%
4 Low 5 10%
5 Very Low 2 4%
Total 50 100%

Findings: The above table shows that 12% of respondents, who are policy holders with XXX,
have stated that the yearly premium paid is Very high, 32% of them have stated the premium is
high, 42% of them have stated it is reasonable, 10% of them have stated it is Low and the rest of
the 4% of respondents stated it is Very Low.

Inference: It is inferred that a higher percentage (42%) of policy holders of XXX feel that the
premium paid is Reasonable.

4.2.9 CHART SHOWING RESPONDENTS COMMENT ON THE YEARLY PREMIUM PAID

50%
42%
No. of Respondents

40%
32%
30%

20% 12%
10%
10%
0%
4%
Very High
High
Reasonable
Low
Very Low

Comment

36
 4.2.10 TABLE SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID

Sl.No Yearly premium paid No. Of Respondents Percentage (%)

1 Less than Rs.1000 24 48%
2 Rs.1000-2500 14 28%
3 Rs.2500-5000 8 16%
4 Greater than Rs.5000 4 8%
Total 50 100%

Findings: The above table showsthat 48% of respondents have been paying insurance premium
less than Rs.1,000 yearly, 28% of them have been paying premium between Rs.1,000-2,500
yearly, 16% of them have been paying between Rs.2,500-5,000 as yearly premium and 8% of
them have been paying more than Rs.5,000 as yearly premium.

Inference: It is inferred that a higher percentage of respondents (48%) have been paying yearly
insurance premium less than Rs.1,000.

4.2.10 CHART SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID

> Rs. 5000 8%

Premium Paid Yearly

Rs. 2500 - 5000 16%

Rs. 1000 - 2500 28%

< Rs. 1000 48%

0% 10% 20% 30% 40% 50%

No. of Respondents

37
 4.2.11 TABLE SHOWING THE PERIOD OF PAYING PREMIUM PREFERED BY THE
RESPONDENTS

Sl.No Periods No. Of Respondents Percentage (%)

1 Annually 15 30%
2 Half Yearly 8 16%
3 Quarterly 2 4%
4 Monthly 7 14%
5 One Time 18 36%
Total 50 100%

Findings: The above table shows that 30% of respondents would prefer Annually, 16% of them
prefer Half Yearly, 4% of them prefer Quarterly, 14% of them prefer Monthly and rest of the
36% of them prefer One Time, in order to Pay their premium.

Inference: It is inferred that a higher percentage of respondents (36%) have stated to pay their
premium by One Time.

4.2.11 CHARTSHOWING THE PERIOD OF PAYING PREMIUM PREFERED BY THE RESPONDENTS

Period of Premium Payment

Annually
One Time
30%
36%

Half Yearly
Monthly 16%
14%

Quarterly
4%

38
 4.2.12 TABLE SHOWING THE MODE OF PAYING PREMIUM PREFERED BY THE
RESPONDENTS

Sl.No Periods No. Of Respondents Percentage (%)

1 Salary Deduction 8 16%
2 Through Agent 11 22%
3 By Cash 10 20%
4 By Cheque 9 18%
5 Online Payment 12 24%
Total 50 100%

Findings: The above table shows that 16% of respondents would prefer Salary Deduction, 22%
of them prefer Through Agent, 20% of them prefer By Cash, 18% of them prefer By Cheque and
rest of the 24% of them prefer Online Payment, in order to Pay their premium.

Inference: It is inferred that a higher percentage of respondents (24%) have stated to pay their
premium through the Online.

4.2.12 CHARTSHOWING THE MODE OF PAYING PREMIUM PREFERED BY THE RESPONDENTS

Mode of Paying Premium

Salary Deduction
16%
Online Payment
24%

Through Agent
22%
By Cheque
18%
By Cash
20%

39
 4.2.13 TABLE SHOWING RESPONDENTS OPINION TOWARDS RETURN ON THEIR
INVESTMENT
Sl.No Opinion No. Of Respondents Percentage (%)
1 Highly Satisfied 9 18%
2 Satisfied 24 48%
3 Neutral 11 22%
4 Dis-Satisfied 6 12%
5 Highly Dis-Satisfied - -
Total 50 100%

Findings: The above table shows that 18% of respondents, who are policy holders
with XXX Highly Satisfied, 48% of them just Satisfied, 22% of them Neither
Satisfied nor Dis-Satisfied and the rest 12% of them Dis-Satisfied that the return on
their Investment from XXX.
Inference: It is inferred that a higher percentage (48%) of respondents, who are
policy holders with XXX have agreed that the Return on Investment from XXX is
Satisfied.
4.2.13 CHARTSHOWING RESPONDENTS OPINION TOWARDS RETURN ON THEIR INVESTMENT

48%
50%
45%
40%
No. of Respondents

35%
30%
22%
25%
18%
20%
12%
15%
10%
0%
5%
0%
Highly Satisfied Neutral Dis-Satisfied Highly Dis-
Satisfied Satisfied
Opinion

40
 4.2.14 TABLE SHOWING RESPONDENTS SATISFACTORY LEVEL TOWARDS
VARIOUS FEATURES OF XXX

Sl.No Attributes of XXX Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total

1 Low premium 16 10 12 8 4 50
2 Claim settlement 9 15 11 10 5 50
3 Larger risk coverage 12 11 5 8 14 50
4 Money back guarantee 7 9 8 16 10 50
5 Easy access to agents 6 5 14 8 17 50
Total 50 50 50 50 50 250

From the above table we assumed:

Rank 1 Highly Satisfied

Rank 2 Satisfied
Rank 3 Neutral
Rank 4 Dis-Satisfied
Rank 5 Highly Dis-Satisfied

Finding: The above table shows, majority of the respondents (i.e., 16) rated the 1st rank for Low
Premium had make them to Buy the Policy in XXX, then 9 respondents for Claim Settlement, 12
respondents for Larger Risk Coverage, 7 respondents for Money back guarantee and rest of the 6
respondents rated Easy access to agents as a 1st rank.

Inference: It is inferred that a large no. of respondents (i.e., 16), who are policy holders with
XXX have rated the first rank for Low Premium among the other Attributes.

41
4.2.14 CHART SHOWING RESPONDENTS SATISFACTORY LEVEL TOWARDS VARIOUS FEATURES OF XXX
XXX COMPANY

18 17
16 16
16 15
14 14
14
12 12
No. of Respondents

12 11 11
10 10 10
9 9 Highly Satisfied
10
8 8 8 8
7 Satisfied
8
6
5 5 5 Neutral
6
4
Dis-Satisfied
4
Highly Dis-Satisfied
2

0
Low Claim Larger risk Money back Easy access
Premium Settlement coverage guarantee to agents
Feature

42
4.2.15 TABLE SHOWING THE CLAIMS MADE BY RESPONDENTS ON THEIR MOTOR
INSURANCE POLICY

Sl.No Claims in XXX No. Of Respondents Percentage (%)

1 Yes 36 72%
2 No 14 28%
Total 50 100%

Findings: The above table shows, 72% of the policy holders had made Claim and the rest of the
28% of the policy holders does not make any claim against the Motor Insurance Policy.

Inference: It is inferred that a higher percentage (72%) of respondents, who are policy holders
with XXX have made a claim against their Motor Insurance Policy.

4.2.15 CHART SHOWING THE CLAIMS MADE BY RESPONDENTS ON THEIR MOTOR INSURANCE POLICY

Claim on Motor Insurance Policy

No
28%

Yes
72%

43
4.3 Statistical Analysis

44
 4.3.1 APPLYING CHI-SQAURE TEST BY COMPARING THE PERIOD OF GENERAL
INSURANCE COVER AND THE PREMIUM RANGE
Period of Premium range
insurance cover
Very high High Reasonable Low Very low Total

Annually 1 4 6 3 1 15

Half Yearly 1 5 2 0 0 8

Quarterly 0 1 1 0 0 2

Monthly 1 1 5 0 0 7

One Time 3 5 7 2 1 18

Total 6 16 21 5 2 50

Ho: There is no significant difference between premium and period of insurance policy

H1: There is a significant difference between premium and period of insurance policy

Table of expected frequency:

Expected Value = row total * column total

Grand total

1.8 4.8 6.3 1.5 0.6

0.96 2.56 3.36 0.8 0.32

0.24 0.64 0.84 0.2 0.08

0.84 2.24 2.94 0.7 0.28

2.16 5.76 7.56 1.8 0.72

Formulae:

= [(Oi Ei) 2] with n-1 degrees of freedom

i=1 Ei

45
 O Oi E Ei (Oi-Ei) 2 (Oi-Ei) 2 /Ei
1 1.80
5 6.60 2.56 0.3879
4 4.80
6 6 6.30 6.30 0.09 0.0143
3 1.50
1 5 0.60 3.06 3.76 1.2299
1 0.96
5 5 2.56 2.56 5.95 2.3256
2 3.36
0 0.80
0 0.32
0 0.24
1 5 0.64 7.32 5.38 0.7353
1 0.84
0 0.20
0 0.08
1 0.84
1 2.24
6 5.18 0.67 0.1298
5 2.94
0 0.70
0 0.28
8 8.90 0.81 0.0910
3 2.16
5 5.76
7 7.56
2 10 1.80 10.08 0.01 0.0006
1 0.72
Total 4.9145

cal = 4.9145
0.05 with (n-1) (n-1) = (5-1) (5-1) = 16
0.05with 16 D.F = 26.3
cal < 0.05
Hence, we accept Ho

Conclusion:
We conclude that there is no significant difference between premium and period of general
insurance policy.

46
 4.3.2 APPLYING KARL PEARSONS CORRELATION COEFFICIENT BY
COMPARING ANNUAL INCOME AND THE YEARLY PREMIUM AMOUNT PAID

Premium amount Less than Rs.1000 - 2500 Rs.2500 - 5000 More than
Rs.1000 Rs.5000
No. of respondents 24 14 8 4

Annual income Less than Rs.1.5-3 Rs.3-5 lakhs Rs.5-10 lakhs Above Rs.10
Rs.1.5 lakhs lakhs lakhs
No. of respondents 13 17 15 5 0

Premium amount (X) Annual income

(Y)

24 13

14 17

8 15

4 5

xy
r = --------------------
_________
x2 - y2

__ __
x = (X - X) ; y = (Y - Y)

47
 Premium Annual
income (Y)
(X) x x2 y y2 Xy

24 11.5 132.25 13 3 9 34.5

14 1.5 2.25 17 7 49 10.5

8 -4.5 20.25 15 5 25 -22.5

4 -8.5 72.25 5 -5 25 42.5

- - - 0 -10 100 0

X = 50 x2= 227 Y= 50 y2= 208 xy = 65

_
X = 50 = 12.5
4
_
Y = 50 = 10
5

x2= 227; y2= 208; xy = 65

65
r = ------------ = 0.299
227 * 208

Conclusion:

The variables annual income and premium amount paid are positively correlated. Hence, the annual
income has an impact on the premium amount paid.

48
Chapter V

Findings
Suggestions
Conclusions

49
 5.1 Findings
Majority of the respondents (i.e.54%), who has taken Motor Insurance Policy are
private sector employees.
It is inferred that there is a higher percentage (34%) of respondents in the income
category of 1.5 to 3 lakhs and comparatively a very lower percentage (10%) of
respondents in the income category of 5 to 10 lakhs.
Majority of respondents (44%) have stated insurance agents as the most preferred
source to know about XXX XXX Company and its products.
It is evident from the study conducted that majority (64%) of the respondents
holds at least 1 Insurance Policy.
It is contingent that a higher percentage of respondents (40%) have stated Third
Party, Fire & Theft Insurance as the most preferred services.
It is inferred that a higher percentage (34%) of respondents, who are policy
holders with XXX XXX Company have agreed that providing the Authentic
Information about the Motor Insurance Policy.
It is inferred that a higher percentage (50%) of respondents have indicated that the
service rendered by XXX XXX Company(XXX) as very good, while 28% of
respondents have indicated the service of XXX as excellent, 16% of the
respondents have indicated the service of XXX as Moderate and the rest 8% of
them have indicated it as Poor.
Majority of respondents (i.e., 70%), have agreed that XXX is well known for
offering Customer Centric Products.
Among the policy holders of XXX, 42% of the respondents feel that the premium
paid on their policy is Reasonable.
Among the respondents, who are holding Motor Insurance Policy it is found that a
higher percentage of respondents (48%) have been paying yearly insurance
premium is less than Rs. 1000.

50
 With the application of Karl Pearsons Correlation Coefficient it is found that the
variables annual income and premium amount paid are positively correlated.
Most of the respondents (i.e., 36%), wants to pay their premium for their
Insurance Policy by one time in life.
According to the Chi Square test conducted, it is found that there is no
significant difference between premium and period of Paying an Insurance Policy.
24% of the respondents, who are policy holder of the XXX, are willing to pay
their premium amount through the Online.
It is inferred that a higher percentage (i.e., 48%) of respondents, who are policy
holders with XXX have agreed that the Return on Investment from XXX is
Satisfied.
It is inferred that a higher percentage (72%) of respondents, who are policy
holders with XXX have made a claim against their Motor Insurance Policy.

51
 5.2 SUGGESTIONS
The present scenario demands almost all the customers to have a Motor Insurance
Policy in order to protect from future uncertainty. The company always has an
opportunity to grow and expand its operations in the non-life insurance segment.
Hence, the company can seize this opportunity and pay attention to introduce more
Insurance Policies to cater to the needs of various classes of people.
Majority of the respondents, who are policy holders with XXX have felt that the
premium being paid is comparatively reasonable and the 32% of them says its
high with the premium rates of other insurance companies. Hence, amendments
can be made in this regard by offering insurance cover at low premium rates to
increase the customers and their satisfaction level.
The promptness of claim settlement procedure can be maintained as it is one of the
important aspects which would enhance the reputation of the company, as well as
build trust in the minds of the customers. Also, it helps to retain existing customers
and attract new customers.
The company has to focus more on the Auto/Car/Motor Insurance segment.
Majority of the respondents have preference towards Auto/Car/Motor Insurance as
it is a must to have insurance for their vehicles by law. Therefore, the company
has got enough opportunities to earn huge profits from this segment.
The company can create more awareness about its products among potential
customers by means of advertisements and efficient insurance agents, which in
turn will help in increasing its customer base.

52
 5.3 CONCLUSIONS

The study was conducted to find the Awareness of Motor Insurance policy and the
performance with the reference of XXX XXX Company. The study has been able to
accomplish its objectives, by thoroughly analyzing and identifying the competitive
position of XXX among the clients of various insurance companies, customers
awareness and perception about the company and its products. The company may highly
be benefited by the outcome of this study.

The outcome of the study has proved that the performance and the customers are
highly aware about the company is outstanding in the non-life insurance segment and that
the company has a higher reputation among customers.

It is concluded that the company could initiate various steps based on the
recommendations given in this report. The company by adopting some of the
recommendations, if not all, can further improve its performance and occupy a leading
position among other competitors in the non-life insurance market in future years to
come.

53
Appendix

54
Bibliography

55
 References & Recommendation Readings

Donald H. McBurney & Theresa L. White, Thomson Wadsworth, Research

Methods
K. Subramani & A. Santha, Scitech, Statistics for Management
C. R. Kothari, New Age International Publishers, Research Methodology
Kotler & Keller, Pearson, Marketing Management

Recommended Websites

http://www.nationalinsuranceindia.com
http://www.scribd.com
http://www.citehr.com
http://www.managementparadise.com
http://www.slideshare.net
British Library. Risk Assessment 2007: British Library Digital Preservation
Team. http://www.bl.uk/aboutus/stratpolprog/ccare/introduction/digital/riskassess
ment.pdf
Advice Guide, Citizens Advice Bureau, http://www.adviceguide.org.uk

56
Annexure

57
 Questionnaire
Dear Sir/Madam

Gender : M F

Age : Phone No:

No of dependants : E-Mail ID:

I am the student of Apollo Engineering College, Department of Management studies,

Poonamallee and presently doing a project on A Study of Product Awareness of Motor Insurance
Policy with Reference of XXX XXX Company. I request you to kindly fill the questionnaire below
and assure you that the data generated shall be kept confidential.

1. What is your Occupation?

Services/Govt. Employee Business Professional Others

2. What is your Annual Income?

< 1.5 Lakhs 1.5 3 Lakhs 3-5 Lakhs 5-10 Lakhs >10 Lakhs

3. What makes you to know about the XXX XXX Companies and theirProducts?

Ads Insurance agents Friends & Relatives Others

4. How many Insurance policies you have currently taken in XXX XXX Company?

1 2-4 4+

58
5. Which of the below services would you like to select at the time of Choosing an
Insurance?

Third Party Insurance

Third Party, Fire & Theft Insurance
Comprehensive Insurance

6. Do you think XXX XXX Company gives you authentic information about the Motor
Insurance Policy?

Strongly Agree Agree Undecided

Dis-Agree Strongly Dis-Agree

7. How will you rate the services provided by XXX XXX Company?

Excellent Very Good Moderate Poor Very Poor

8. Did XXX XXX Company is providing Customer Centric Products?

Highly Agree Agree Neutral

Disagree Highly Disagree

9. What do you think about the Premium paid by you?

Very High High Reasonable Low Very Low

10. How much did you pay in Total Policy Costs last year?

<1,000 1,000-2,500 2,500-5,000 >5,000

11. From the below periods, How do you want to pay your premium?

Annually Half Yearly Quarterly Monthly One Time

12. How do you prefer to pay your premium amount?

Salary Deduction Through Agent By Cash

59
 By Cheque Online Payment

13. What do you think about the return on your investment from the XXX XXX Company?

Highly Satisfied Satisfied Neutral

Dis-Satisfied Highly Dis-Satisfied

14. Rate the below features of XXX XXX Company, which make you satisfied with their
services?

Features Rank
Low Premium
Claim Settlement
Larger risk coverage
Money back guarantee
Easy access to agents

15. Have you ever made a claim on your Motor Insurance Policy?

Yes No

*~*Thank You for Spending your Valuable Time*~*

60