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.

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

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.

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.

 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.

Chapter - II

Literature Review

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

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

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

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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 postRenaissanceEurope, 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.

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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
1818

Event
The advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta.

1834 1850

Oriental Life Insurance Failure The advent of General Insurance in India with the establishment of Triton Insurance Company Ltd in Calcutta

1870 1907 1912

The enactment of the British Insurance Act The Indian Mercantile Insurance Ltd was set up The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business.

1928 1956

The Indian Insurance Companies Act was enacted. 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 General insurance business was nationalized with effect from 1st January 1973. 107 insurers were amalgamated and grouped into four companies

1973

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 2003-04 Insurance Industry had 5 new entrants, 2 in Life and 3 in General 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:

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 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.

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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.

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 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:

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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.

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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 1 2 3 4

Occupation Service/Govt. Employee Business Professional Others Total

No. Of Respondents 14 7 2 27 50

Percentage (%) 28% 14% 4% 54% 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 30 20 10 0 Service/Govt. Employee Business Professional Occupation Others

28%

14% 2%

4.2.2 TABLE SHOWING ANNUAL INCOME OF RESPONDENTS

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

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1 2 3 4 5

Less than Rs.1.5 lakhs Rs.1.5 to 3 lakhs Rs.3 to 5 lakhs Rs.5 to 10 lakhs Above Rs.10 lakhs Total

13 17 15 5 50

26% 34% 30% 10% 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% No. of Respondents 25% 20% 15% 10% 5% 0% < Rs. 1.5 Lakhs Rs. 1.5-3 Lakhs Rs. 3-5 Lakhs Annual Income Rs. 5-10 Lakhs > Rs. 10 Lakhs 0 10% 26% 30%

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4.2.3 TABLE SHOWING THE SOURCES MOST PREFERRED BY RESPONDENTS TO KNOW ABOUT XXX XXX COMPANY AND ITS PRODUCTS
Sl.No 1 2 3 4 Preferred source of information Ads (print, radio & TV) Insurance agents Friends & Relatives Others Total No. Of Respondents 16 22 9 3 50 Percentage (%) 32% 44% 18% 6% 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% 35% 30% 25% 20% 15% 10% 5% 0% 32%

No. of Respondents

18% 6%

Ads

Agents Sources

Friends & Relatives

Others

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

Sl.No 1 2 3 No. of policies 1 2-4 5+ Total No. Of Respondents 32 13 5 50 Percentage (%) 64% 26% 10% 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

35% 30% No. of Respondents 25% 20% 15% 10% 5% 0%

32%

13%

5%

2 to 4 No. of Policies

5+

31

4.2.5 TABLE SHOWING THE RESPONDENTS SELECT THE SERVICES AT THE TIME OF CHOOSING A POLICY
Sl.No 1 2 3 Services Third Party Insurance No. Of Respondents 19 20 11 50 Percentage (%) 38% 40% 22% 100%

Third Party, Fire & Theft Insurance Comprehensive Insurance

Total

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% No. of Respondents 16% 14% 12% 10% 8% 6% 4% 2% 0% Third Party Insurance

11%

Third Party, Fire & Theft Insurance Services

Comprehensive Insurance

32

4.2.6 TABLE SHOWING RESPONDENTS OPINION TOWATDS THE INFORMATION PROVIDED BY THE XXX ABOUT THE MOTOR INSURANCE POLICY
Sl.No 1 2 3 4 5 Opinion Strongly agree Agree Undecided Disagree Strongly disagree Total No. Of Respondents 12 17 13 6 2 50 Percentage (%) 24% 34% 26% 12% 4% 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 Dis-Agree Opinion Undecided Agree Strongly Agree 0%

4% 12% 26% 34% 24% 10% 20% No. of Respondents 30% 40%

33

4.2.7 TABLE SHOWING THE RESPONDENTS COMMENT ON THE SERVICE OF XXX

Sl.No 1 2 3 4 5 Comment Excellent Very good Moderate Poor Very poor Total No. Of Respondents 14 24 8 4 50 Percentage (%) 28% 48% 16% 8% 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% Moderate 16% Excellent 28%

Very Good 48%

34

4.2.8 TABLE SHOWING RESPONDENTS OPINION TOWARDS XXX OFFERING OF CUSTOMER CENTRIC PRODUCTS
Sl.No 1 2 3 4 5 Opinion Highly agree Agree Neither agree nor disagree Disagree Highly disagree Total No. Of Respondents 7 35 5 3 50 Percentage (%) 14% 70% 10% 6% 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

Highly Dis-Agree

0%

Dis-Agree Opinion

6%

Neutral

10%

Agree 14% 0% 10% 20% 30% 40% 50% 60% 70%

70%

Highly Agree

80%

No. of Respondents

35

4.2.9 TABLE SHOWING RESPONDENTS COMMENT ON THE YEARLY PREMIUM PAID

Sl.No 1 2 3 4 5 Comment Very High High Reasonable Low Very Low Total No. Of Respondents 6 16 21 5 2 50 Percentage (%) 12% 32% 42% 10% 4% 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% No. of Respondents 40% 32% 30% 20% 10% 0% Very High High Reasonable 12% 10% 4% Low Very Low Comment 42%

36

4.2.10 TABLE SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID

Sl.No 1 2 3 4 Yearly premium paid Less than Rs.1000 Rs.1000-2500 Rs.2500-5000 Greater than Rs.5000 Total No. Of Respondents 24 14 8 4 50 Percentage (%) 48% 28% 16% 8% 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 Premium Paid Yearly

8%

Rs. 2500 - 5000

16%

Rs. 1000 - 2500

28%

< Rs. 1000 0% 10% 20% 30% 40%

48%

50%

No. of Respondents

37

4.2.11 TABLE SHOWING THE PERIOD OF PAYING PREMIUM PREFERED BY THE RESPONDENTS
Sl.No 1 2 3 4 5 Periods Annually Half Yearly Quarterly Monthly One Time Total No. Of Respondents 15 8 2 7 18 50 Percentage (%) 30% 16% 4% 14% 36% 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

One Time 36% Annually 30%

Monthly 14%

Half Yearly 16%

Quarterly 4%

38

4.2.12 TABLE SHOWING THE MODE OF PAYING PREMIUM PREFERED BY THE RESPONDENTS
Sl.No 1 2 3 4 5 Periods Salary Deduction Through Agent By Cash By Cheque Online Payment Total No. Of Respondents 8 11 10 9 12 50 Percentage (%) 16% 22% 20% 18% 24% 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 Cash 20%

By Cheque 18%

39

4.2.13 TABLE SHOWING RESPONDENTS OPINION TOWARDS RETURN ON THEIR INVESTMENT

Sl.No 1 2 3 4 5 Opinion Highly Satisfied Satisfied Neutral Dis-Satisfied Highly Dis-Satisfied Total No. Of Respondents 9 24 11 6 50 Percentage (%) 18% 48% 22% 12% 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

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

48%

No. of Respondents

22% 18% 12% 0%

Highly Satisfied

Satisfied

Neutral Opinion

Dis-Satisfied

Highly DisSatisfied

40

4.2.14 TABLE SHOWING RESPONDENTS SATISFACTORY LEVEL TOWARDS VARIOUS FEATURES OF XXX
Sl.No 1 2 3 4 5 Attributes of XXX Low premium Claim settlement Larger risk coverage Money back guarantee Easy access to agents Total Rank 1 16 9 12 7 6 50 Rank 2 10 15 11 9 5 50 Rank 3 12 11 5 8 14 50 Rank 4 8 10 8 16 8 50 Rank 5 4 5 14 10 17 50 Total 50 50 50 50 50 250

From the above table we assumed:

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Highly Satisfied Satisfied Neutral Dis-Satisfied 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 16 14 No. of Respondents 12 10 8 6 4 2 0

17 16 15 14 12 10 9 8 5 5 8 7 6 4 5 11 10 12 11 9 8 8 10 Highly Satisfied Satisfied Neutral Dis-Satisfied Highly Dis-Satisfied 14 16

Low Premium

Claim Settlement

Larger risk coverage Feature

Money back guarantee

Easy access to agents

42

4.2.15 TABLE SHOWING THE CLAIMS MADE BY RESPONDENTS ON THEIR MOTOR INSURANCE POLICY
Sl.No 1 2 Claims in XXX Yes No Total No. Of Respondents 36 14 50 Percentage (%) 72% 28% 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 insurance cover Very high 1 1 0 1 3 6 High 4 5 1 1 5 16 Premium range Reasonable 6 2 1 5 7 21 Low 3 0 0 0 2 5 Very low 1 0 0 0 1 2 Total 15 8 2 7 18 50

Annually Half Yearly Quarterly Monthly One Time Total

Ho: H1:

There is no significant difference between premium and period of insurance policy 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 0.96 0.24 0.84 2.16 4.8 2.56 0.64 2.24 5.76 6.3 3.36 0.84 2.94 7.56 1.5 0.8 0.2 0.7 1.8 0.6 0.32 0.08 0.28 0.72

Formulae:

=
i=1

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

45

O
1 4 6 3 1 1 5 2 0 0 0 1 1 0 0 1 1 5 0 0 3 5 7 2 1

Oi
5 6 5 5

E
1.80 4.80 6.30 1.50 0.60 0.96 2.56 3.36 0.80 0.32 0.24 0.64 0.84 0.20 0.08 0.84 2.24 2.94 0.70 0.28 2.16 5.76 7.56 1.80 0.72

Ei
6.60 6.30 3.06 2.56

(Oi-Ei) 2 (Oi-Ei) 2 /Ei

2.56 0.3879

0.09
3.76

0.0143
1.2299

5.95

2.3256

7.32

5.38

0.7353

5.18

0.67

0.1298

8.90

0.81

0.0910

10

10.08

0.01

0.0006

Total
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

4.9145

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

Annual income

Less than Rs.1.5 lakhs

Rs.1.5-3 lakhs 17

Rs.3-5 lakhs

Rs.5-10 lakhs

Above Rs.10 lakhs

No. of respondents

13

15

Premium amount (X)

Annual income (Y)

24 14 8 4

13 17 15 5

xy r = -------------------_________ x2 - y2 __ __ x = (X - X) ; y = (Y - Y)

47

Premium (X) 24 14 8 4 X = 50 x 11.5 1.5 -4.5 -8.5 x2 132.25 2.25 20.25 72.25 x2= 227

Annual income (Y) y 3 7 5 -5 -10 y2 9 49 25 25 100 y2= 208 Xy 34.5 10.5 -22.5 42.5 0 xy = 65

13 17 15 5 0 Y= 50

_ 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 Age

: :

F 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 2. What is your Annual Income? < 1.5 Lakhs 1.5 3 Lakhs 3-5 Lakhs 5-10 Lakhs >10 Lakhs Business Professional Others

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 Dis-Agree Agree Undecided 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 Disagree Agree Neutral 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 Dis-Satisfied Satisfied Neutral 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