Amity Business School

Strategic
Management
Assignment 1

Strategies Being Followed at L&T

Insurance
(As per information given by Mr.Deepankar Bharij, Manager-
Operations)
Submitted By:
Submitted To:
V Guru Charan Teja L C-39 Dr.
Himani Sharma
A0101910088
All the Data has been quoted as per the information given by Mr. Deepankar Bharij, Manager-
Operations, L&T Insurance, D-16, First floor, South extension – II, New Delhi 110 049.

LTGICL - L&T General Insurance Company Ltd

Strategies being followed for Sales Function at LTGICL

Sales function is the life blood of any business. At LTGICL sales function is bifurcated in to the
following categories

1. Retail Sales
2. Commercial Sales

Retail Sales

Retail Sales at LTGICL encompasses the following portfolios.

1. Motor Insurance
2. Personal Accident Insurance
3. Home Insurance
4. Shop Insurance
5. Health Insurance

At present only the Motor Insurance products of LTGICL have been approved by the IRDA.

LTGICL has filed other products at IRDA and is awaiting approval from the same.

Mr.Deepankar Bharij informed us that LTGICL is expecting approval for its Health Insurance
product by the end of March 2011.

In line with the business trends of Indian General Insurance Industry, Motor Insurance is the major
revenue source for LTGICL. Currently all their energies are focused towards sales of motor products
only.

Distribution Channels under Retail Sales

The various channels through which Retail Sales is generated are as given below

1. Agency
2. Retail Brokers
3. L&T Finance
Commercial Sales

Commercial Sales at LTGICL encompasses the following products (existing and awaiting approval from
IRDA)

1. Marine Cargo Insurance

2. Burglary and Housebreaking Insurance
3. Standard Fire and Special Perils Insurance
4. My:Jeevika Standard Fire and Special Perils Micro Insurance
5. Contractors Plant and Machinery Insurance
6. Contractor’s All Risk Insurance
7. Erection All Risk Insurance
8. Public Liability (Act) Insurance
9. Workmen Compensation Insurance
10. Electronic Equipment Insurance
11. Machinery Breakdown Insurance
12. Money Insurance
13. Fidelity Guarantee Insurance
14. All Risk Insurance
15. Plate Glass Insurance
16. Baggage Insurance
17. Neon Sign Insurance
18. Industrial All Risk Insurance
19. Consequential Loss (Fire) Insurance

Mr.Deepankar Bharij informed us that Engineering Policies are the major revenue earners under
Commercial Lines.

Distribution Channels under Commercial Sales

The various channels through which Retail Sales is generated are as given below

1. Direct Sales
2. Brokers
3. Corporate Agents
New Business Strategies – Motor Policy Issuance at LTGICL

The Policy Issuance at LTGICL is carried out online on the IDIT system. The IDIT system is jointly
developed by IBM and L&T InfoTech for the purpose of carrying operations work for LTGICL. IDIT is
the Policy Administration System (PAS) at LTGICL.

Currently access to the IDIT system lies with the following:

• Branch Offices

• L&T Finance

• Sales Manager

Going forward, LTGICL is planning to provide the access of the IDIT System to their Agents so as to
maintain their TAT at Zero.

Policy Issuance on IDIT system is done for the following business scenarios/location:

• Branch Locations (Walk in Customer)

• Branch Operations (Sourced by Agents/Sales Managers)

• Branch Operations (Sourced by Corporate Agents)

• Non-Branch Locations (Sales Managers)

• L&T Finance

Underwriting Approach Strategy:

The traditional approach towards motor insurance has been one of abundance and plenty. As an
organization, LTGICL has a prudent approach where in based on the financial authority matrix and the
analysis of various risk categories. LTGICL has come out with general motor underwriting guidelines
which comprises of the Private car segment, two wheelers, the Commercial and the miscellaneous
category.