PROJECT REPORT

ON

In
SHRIRAM GENERAL INSURANCE CO. LTD.
Submitted for
The Degree of Bachelor of Commerce (I/B)
(Year 2009-2010)

Submitted To
Submitted By
Dr. Ashok Kumar Mishra Manish Kumar
Narsinghani
(Head of the Department) B.Com (I/B)
IIIrd Yrs.
Hindi Medium
 ACKNOWLEDGEMENT

A mammoth project of this nature calls for intellectual

nourishment, professional help and encouragement from many
quarters. This project is the culmination of a study into the wide
gamut of activities carried on in the domain of Insurance
especially SHRIRAM GENERAL INSURANCE COMPANY LIMITED.

I extremely thankful to Mr.Ashutosh Singh (Branch Manager of Shriram

General Insurance Co. Varanasi.) for helping me to make this report more
meaningful.
In my whole endeavor to complete this project, I own immense
gratitude to my project Head of Department Dr. Ashok Kumar
Mishra and my teachers Mr. Amit Singh and Mr. Yagvendra
Pratap Singh for extending his guide cooperation through this
project.

Last but not the least, I express my sincere gratitude to All the
Respondents who helped me in the project.

Manish Kumar Narsinghani

 PREFACE

On the summer, Training is an integral part of the curriculum of”

Department of Commerce, Mahatma Gandhi Kashi Vidyapith,
Varanasi.” The main objective of summer training is as follow.
To given clear understanding of the general insurance and their
product (policies) and their market scenario. To implement
theoretical knowledge practically and I got opportunity to do its
training at “SHRIRAM GENERAL INSURANCE COMPANY
VARANASI.”

This project seeks to throw light on the functioning of the

insurance industry in India. Further, this project also aims to clear
most of the doubts that may be clouding the minds of an average
Indian. It is an eye opener for layman in our country.

It is individual effort after undergoing a month’s practical

experience with SHRIRAM GENERAL INSURANCE COMPANY.
Thus, it includes the detailed research and study done on market
screening adopted by insurance industry for recruitment with
illustrations of SHRIRAM GENERAL INSURANCE COMPANY and
how it is useful.
 CONTENTS

1. Introduction to Insurance
2. History of General Insurance in India
3. Insurance Industry Classification
4. Insurance Regulatory and Development Authority
5. Introduction of Shriram General Insurance Co.Ltd.
6. Board of Directors

7. Management Team

8. Products

9. Changing Scenario of General Insurance Market

10. Methodology

11. Conclusion

12. Bibliography
 INTRODUCTION TO INSURANCE

Successful financial planning is like a three-legged stool. One leg is

investment planning, one is estate planning – and the third is insurance
planning. Take one leg away, and your ability to achieve your financial goals
is likely to be severely threatened.
So, why is having the right level of insurance so important?
Like people, insurance comes in many shapes and sizes. The purpose of this
article is to help you understand why, when, what type and how much you
should have.
What is the role of insurance?
Insurance has just one purpose – to ensure your ability to achieve your goals in
life is not jeopardized should a specific event occur. Such events could include
death, loss of an asset such as your home, or ability to earn an income.
Contrary to popular opinion, insurance is not necessarily designed to put you
back in the same financial situation you were in before the event occurred.
That would be far too costly. However, it is there to protect you against the
worst effects of the event.
You should aim to have your insurance cover the most costly risks, and absorb
the costs of those you can afford yourself. In this respect, it is wise to use
‘excesses’ wherever possible, as these can substantially reduce the cost of
insurance.
Fire and general insurance
Sometimes called ‘property insurance’ or ‘house and contents insurance’, this
is the sort of insurance most people are familiar with. It covers property, such
as your house, car and contents. These days, the market is very competitive, so
it pays to ‘shop around’. The higher the excess you can tolerate, the lower the

premiums will be. Also, by keeping all your insurance with the same
company, you can often obtain
a discount, as well as ensuring there will be no dispute over past claims, if and
when you come to make a claim. The most popular version is ‘term’
insurance, which (similar to house and content insurance) has no cash value
until after death has occurred. Of course, the amount of life insurance needed
(the ‘sum insured’) – if any – will vary widely from person to person, their
assets and debts and the number of dependants they have. As a general rule
when taking out insurance, you should look to have enough ‘sum insured’ to
pay all your large debts (such as your mortgage), and to provide your family
and dependants with enough extra money to provide for a reasonable standard
of living.
Income protection insurance
Illness or injury can strike at any time. Your ability to earn an income is your
greatest asset, so it makes sense to ensure you are insured in exactly the same
way you would insure any other asset you own. What would happen to your
mortgage repayments and your family’s other day-to-day living costs if your
regular income stopped coming in. Income protection insurance is designed to
protect you in these situations. Income protection insurance pays you a
regular income in the event of sickness or accident, generally as a percentage
of salary.
Business Insurance
The success of many small to medium businesses is dependent on its key
people. Business insurance is designed to assist with the financial impact of
the loss of any of these key people, by providing a lump sum or regular
payment to assist with lost revenue or to fund temporary replacement
resources.
Medical insurance
The State has long provided subsidized doctors’ visits, as well as freely
available, high-quality hospital care. These days, the subsidies are smaller and
the waiting lines for treatment are longer.
Health insurance should be viewed as providing us with the financial means to
access the private treatment and services we need if we have a significant
health scare. In the past, many people have seen medical
insurance simply as a way of recovering their medical expenses and not as a
critical element in their finances. Consider taking out medical insurance only
to cover high-cost events such as major surgery. These policies, known as
‘major medical’ policies are usually far more cost-effective than the traditional
all-inclusive ones.
Getting professional advice
As in most things financial, seeking out good advice is important – and can
pay dividends in the form of better cover at cheaper rates. Fire and general
insurance has traditionally been handled separately from life or income
insurance, so you may need to talk to more than one specialist.
A comprehensive review of your insurances is one of the vital areas in
developing your financial plan.
The comments in this article are general in nature, and should be treated
merely as a guide. They should not be relied on when making financial
decisions. Independent advice should always be sought. Any information
about past performance is not necessarily an indicator of future performance.

What is General Insurance?

Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against fire,
burglary etc, personal insurance such as Accident and Health Insurance, and
liability insurance which covers legal liabilities. There are also other covers
such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire
and allied perils, flood storm and inundation, earthquake and so on. There are
products that cover property against burglary, theft etc. The non-life
companies also offer policies covering machinery against breakdown, there
are policies that cover the hull of ships and so on. A Marine Cargo policy
covers goods in transit including by sea, air and road.
Further, insurance of motor vehicles against damages and theft forms a major
chunk of non-life insurance business.
In respect of insurance of property, it is important that the cover is taken for
the actual value of the property to avoid being imposed a penalty should there
be a claim. Where a property is undervalued for the purposes of insurance, the
insured will have to bear a ratable proportion of the loss. For instance if the
value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss
to the extent of say Rs.50/-, the maximum claim amount payable would be
Rs.25/- (50% of the loss being borne by the insured for underinsuring the
property by 50%). This concept is quite often not understood by most
insured’s.

Personal insurance covers include policies for Accident, Health etc. Products
offering Personal Accident cover are benefit policies. Health insurance covers
offered by non-life insurers are mainly hospitalization covers either on
reimbursement or cashless basis. The cashless service is offered through Third
Party Administrators who have arrangements with various service providers,
i.e., hospitals. The Third Party Administrators also provide service for
reimbursement claims. Sometimes the insurers themselves process
reimbursement claims.

Accident and health insurance policies are available for individuals as well as
groups. A group could be a group of employees of an organization or holders
of credit cards or deposit holders in a bank etc. Normally when a group is
covered, insurers offer group discounts.

Liability insurance covers such as Motor Third Party Liability Insurance,

Workmen’s Compensation Policy etc offer cover against legal liabilities that
may arise under the respective statutes— Motor Vehicles Act, The Workmen’s
Compensation Act etc. Some of the covers such as the foregoing (Motor Third
Party and Workmen’s Compensation policy) are compulsory by statute.
Liability Insurance not compulsory by statute is also gaining popularity these
days. Many industries insure against Public liability. There are liability covers
available for Products as well.
There are general insurance products that are in the nature of package policies
offering a combination of the covers mentioned above. For instance, there are
package policies available for householders, shop keepers and also for
professionals such as doctors, chartered accountants etc. Apart from offering
standard covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is

important to protect one’s property, which one might have acquired from
one’s hard earned income. A loss or damage to one’s property can leave one
shattered. Losses created by catastrophes such as the tsunami, earthquakes,
cyclones etc have left many homeless and penniless. Such losses can be
devastating but insurance could help mitigate them. Property can be covered,
so also the people against Personal Accident. A Health Insurance policy can
provide financial relief to a person undergoing medical treatment whether due
to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to

protect their building, machinery, stocks etc. They need to cover their
liabilities as well. Financiers insist on insurance. So, most industries or
businesses that are financed by banks and other institutions do obtain covers.
But are they obtaining the right covers? And are they insuring adequately are
questions that need to be given some thought. Also organizations or industries
that are self-financed should ensure that they are protected by insurance.

Most general insurance covers are annual contracts. However, there are few
products that are long-term.

It is important for proposers to read and understand the terms and conditions
of a policy before they enter into an insurance contract. The proposal form
needs to be filled in completely and correctly by a proposer to ensure that the
cover is adequate and the right one.
 HISTORY OF GENERAL INSURANCE IN INDIA

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

of Manu (Manusmrithi), 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.

1818 saw the advent of life insurance business in India with the
establishment of the Oriental Life Insurance Company in Calcutta. This
Company however failed in 1834. In 1829, the Madras Equitable had begun
transacting life insurance business in the Madras Presidency. 1870 saw the
enactment of the British Insurance Act and in the last three decades of the
nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of
India (1897) were started in the Bombay Residency. This era, however, was
dominated by foreign insurance offices which did good business in India,
namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe
Insurance and the Indian offices were up for hard competition from the foreign
companies.

In 1914, the Government of India started publishing returns of Insurance

Companies in India. The Indian Life Assurance Companies Act, 1912 was the
first statutory measure to regulate life business. In 1928, the Indian Insurance
Companies Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a
view to protecting the interest of the Insurance public, the earlier legislation
was consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the activities of insurers.
 The Insurance Amendment Act of 1950 abolished Principal Agencies.
However, there were a large number of insurance companies and the level of
competition was high. There were also allegations of unfair trade practices.
The Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life

Insurance sector and Life Insurance Corporation came into existence in the
same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75
provident societies—245 Indian and foreign insurers in all. The LIC had
monopoly till the late 90s when the Insurance sector was reopened to the
private sector.

The history of general insurance dates back to the Industrial Revolution

in the west and the consequent growth of sea-faring trade and commerce in the
17th century. It came to India as a legacy of British occupation. General
Insurance in India has its roots in the establishment of Triton Insurance
Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd was set up. This was the first company to transact all
classes of general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the
Insurance Association of India. The General Insurance Council framed a code
of conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. The Tariff Advisory Committee was also set up
then.

In 1972 with the passing of the General Insurance Business

(Nationalization) Act, general insurance business was nationalized with effect
from 1st January, 1973. 107 insurers were amalgamated and grouped into four
companies, namely National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd and the United
India Insurance Company Ltd.
The General Insurance Corporation of India was incorporated as a company in
1971 and it commence business on January 1sst 1973. This millennium has
seen insurance come a full circle in a journey extending to nearly 200 years.
The process of re-opening of the sector had begun in the early 1990s and the
last decade and more has seen it been opened up substantially. In 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. The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein, among
other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies are allowed to enter by
floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in

1999, the Insurance Regulatory and Development Authority (IRDA) was
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April, 2000. The
key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums,
while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up
to 26%. The Authority has the power to frame regulations under Section 114A
of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance
business to protection of policyholders’ interests.

In December, 2000, the subsidiaries of the General Insurance Corporation

of India were restructured as independent companies and at the same time GIC
was converted into a national re-insurer. Parliament passed a bill de-linking
the four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 14 life insurance companies
operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of

15-20%. Together with banking services, insurance services add about 7% to
the country’s GDP. A well-developed and evolved insurance sector is a boon
for economic development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking ability of the
country.
 INSURANCE INDUSTRY CLASSIFICATION

GENERAL INSURANCE COMPANIES:

➢ New India Assurance Co. Ltd.

➢ National Insurance Company Ltd.
➢ Oriental Insurance Co. Ltd.
➢ United India Insurance Co. Ltd.
➢ Bajaj Allianz General Insurance Co.Ltd.
➢ Reliance General Insurance Co.Ltd.
➢ IFFCO Tokyo General Insurance Co.Ltd.
➢ Tata AIG General Insurance Co.Ltd.
➢ ICICI Lombard General Insurance Co.Ltd.
➢ Shriram General Insurance Co.Ltd.
➢ Royal Sundram Alliance Insurance Co.Ltd.
➢ Cholamandalam General Insurance Co.Ltd.
➢ HDFC-Chubb General Insurance Co.Ltd.
 INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY

Insurance Regulatory and Development Authority Act, 1999, came into being
from 19/04/2000.

Objects are stated in Act are as follows:

"An Act to provide for establishment of Authority to protect

interests of holders of insurance policies to regulate, promote and ensure
orderly growth of insurance industry and for matters connected there with and
further to amend Insurance Act, 1938, Life Insurance Corporation Act, 1956
and General Insurance Business (Nationalization) Act, 1972".

Composition:
 IRDA will consist of a chairperson and not more than Five whole
time members and not more than four part time members.
Whole time members shall hold office for 5 years or until age of 62 (65 in case
of chair person) whichever is earlier. Part time members shall hold office for
not more than 5 years.

Powers and Function of Authority:

1. To regulate, promote and ensure orderly growth of insurance and re-

insurance business.

2. To issue a certificate of registration, renew, modify, withdraw, suspend

or cancel such registration of applicant, i.e. insurance company.

3. To prepare a code of conduct for agents, surveyors and loss accesses and
other intermediaries who take part in insurance business.

4. To exercise all powers and perform all functions of controller of

Insurance under Insurance Act, 1938.

5. To protect interest of policy holders in matters concerning assignment of

policy, settlement of claims, terms and conditions of contract etc.

6. To promote efficiency in conduct of insurance business.

7. To promote and regulate professional organizations connected with

insurance business.

8. To regulate investment of funds of insurance companies.

9. To regulate maintenance of margin of solvency.

 10. To adjudicate disputes between insurers and intermediaries.

11. To call for information from" undertake inspection and conduct

enquiries and investigations including audit of insurers, intermediaries
etc.
12. To control and regulate rates', advantages, terms and conditions offered
by Insurers in respect of general insurance business riot so controlled
by Tariff Advisory committee.

13. To prescribe manner and forms in which books of accounts is to be

maintained.

14. To exercise other powers as such may be prescribed by central

government.

Insurance Advisory Committee:

Authority has power to appoint a committee to provide guidance to

Authority and committee is called Insurance Advisory Committee.
This committee contains not more than 25 members excluding ex-officio
member representing interest of commerce, trade industry, agriculture,
surveyors, agents, intermediaries etc.

Chairperson and members ~f Authority is ex-officio members of

Insurance Advisory Committee.

Code of conduct for insurance agent:

Every insurer agent shall,
• Identify himself and insurance company of whom he is an agent
• Disclose his license to prospect on demand
• Give requisite information in respect of insurance product offered
for sale by his insurer and into account needs of prospect while
recommending a specific 'plan.
• Disclose scales of commission payable to him if asked by
prospect.
 • Indicate premium to be charged by insurer on insurance product
• Explain to prospect nature of information required in proposal
from and also importance of disclosure of material information
• Bring to notice of insurer any adverse habits or income
inconsistency of Prospect.
• Inform promptly about acceptance of rejection of proposal by
insurer.
• Render necessary assistance to policyholder or claimant in
complying with, requirements of settlement of claims.

SHRIRAM GENERAL INSURANCE

Shriram General Insurance Company Limited is a Joint Venture
between Shriram Capital Limited (Part of Shriram Group) and
Sanlam Limited. In this Joint Venture, Shriram Capital Limited
holds 74% of Equity and Sanlam Limited holds the balance
26% of the equity.

Sanlam is the largest General Insurance Company in South

Africa. Sanlam Limited was established in 1918, demutualised
in 1998 and is a leading financial services group in South
Africa engaged in the business of general insurance, life
insurance, investment and independent financial services. The
market capitalization of Sanlam is approximately USD 6 billion
and has over USD 60 billion of assets under management.

Shriram Group, established in 1974, having a turnover of USD 8 billion is

among the leading corporate houses in India and is a major player in the
Indian financial services sector. Shriram Group’s focus is on financial services
that reach out to a large number of common people – providing them
opportunities to improve their prosperity. Shriram Group has 5 million
customers, 80,000 Agents / Associates, 30,000 Employees,
and 1300 branches spread all over the Country.

Financial Services constitute the core business of the Group, with Shriram
being a clear leader in the truck financing and chit business. Shriram Transport
Finance Company is the largest Commercial Vehicle Financing NBFC in the
country and Chit Fund Business of the Group is Numero Uno in the industry
across India. In Consumer Finance, Shriram has presence all over India.
Shriram Group has been pursuing diversification in areas other than financial
services. Currently the group has presence in project engineering, property
development, auto ancillaries and software services and is also looking to
enter other
industries.

Shriram Capital Limited (Formerly Shriram Financial Services Holdings Pvt.

Ltd.) is the holding arm of the financial services activities of Shriram Group,
Chennai. It has promoted a number of companies engaged in diverse financial
services activities such as truck finance, consumer finance, chit business, Life
Insurance business, etc

BOARD OF DIRECTORS:-

Shri P.S. Gopalakrishnan, Chairman:

Sri P.S. Gopalakrishnan, B.Com., LLB, Associate member of Institute of
Banks, London and Fellow of Economic Development Institute of IBRD,
Washington D.C. (U.S.A.).
Gopalakrishnan had also been associated with various organizations in
different capacities:
Unit Trust of India - Executive Trustee Chairman
Oriental Bank of Commerce - Chairman & Managing Director
Indian Overseas Bank - Chairman & Managing Director
Indian Banks Association - Chairman & Managing Director
Industrial Finance Corporation of India - Chairman
Tourism Finance Corporation of India - Chairman
Management Development Institute - Chairman
Labour Development Institute - Chairman
Shriram Group Companies - Executive Chairman

Shri R. Thyagarajan, Director

Sri R. Thyagarajan, M.A., M. Stat., ACII, is the Chief Mentor and Promoter of
Shriram Group. He started his career with New India Assurance Company
Limited and in 1974, promoted the Shriram Group. Over the years, he has
gained vast experience in the Insurance and Financial Services Industry and
has developed the profound understanding of the business. Today he is
regarded as one of the foremost corporate leaders of contemporary India.

Shri Jasmit Singh Gujral, Managing Director:

Sri Jasmit Singh Gujral, Managing Director & CEO is B-Com honors from
Aligarh Muslim University and a rank holder in P.G.D. from FCI, AMU. He
has also participated in management Programmers’ Conducted by I.I.M.,
Ahmadabad, Advanced Management Programme, ISB, Hyderabad and Global
Advance Management Programme from Kellog School of Business
Management, Chicago. He has more than 23 years of experience in Financial
Services, Marketing and General Business Management. He has been with
Shriram for over 2 decades. Prior to becoming the MD & CEO of Shriram
General Insurance, he was the CEO of Shriram Overseas Finance Ltd.

Shri G. Anantharaman, Director:

Sri G. Anantharaman, Director joined the Board of Shriram General Insurance
Company Limited in the year 2008 and is also the Chairman
of Audit Committee of the Board. He belongs to Indian Revenue Services
(Income Tax) and before retiring as a Chief Commissioner Income Tax. He
was also an Ex SEBI whole time Member.

MANAGEMENT TEAM:-
Jasmit Singh Gujral - Chief Executive Officer (CEO)
Neeraj Prakash - Chief Marketing Officer (CMO)
Anil Kumar Aggarwal - Chief Financial Officer (CFO
Sudhakar Raja - Chief Information Officer (CIO)
Farhat Hussain - Assistant General Manager

FIND A BRANCH
SL.
NO BRANCH ADDRESS OFFICE TEL NO.
.
Shriram General
Insurance Co. Ltd, No
1 JAIPUR 23, JDA Market, Link 0141 – 2760353
Road, Manasarovar,
Jaipur
Shriram General
Insurance Co. Ltd 1001,
KAROL BAGH
2 GF, Arya Samaj Road, 011 - 32437840
(DELHI)
Naiwala, Karol Bagh,
New Delhi .
Shriram General
Insurance Co. Ltd, 901,
Popular House, Near
3 AHMEDABAD 079-32517048
Income Tax Circle,
Ashram Road,
Ahmedabad-380009.
Shriram General
Insurance Co. Ltd,
4 AJMER House No.308/10, Old 0145 - 3208365
698, Gulab Bagh, 3rd
Floor, Ajmer, Rajasthan.
Shriram General
Insurance Co. Ltd, S-5,
2nd Floor, Monarch
5 BANGALORE 080 - 32537328
Chambers, Infantry
Road, Bangalore – 560
001
Shriram General
Insurance Co. Ltd, Ist
6 BHOPAL Floor, Plot No.48, M P 0755 - 3206526
Nagar, Zone-II, Bhopal
462011.(MP)
Shriram General
Insurance Co. Ltd, SCO-
7 CHANDIGARH 178, Ist Floor, Sector- 0172 - 3241941
38C, Chandigarh, PIN
160038.
 PRODUCTS
Motor Insurance:
Shriram Motor Package Policy provides:
• Protection from a financial loss arising out of loss or damage to your
vehicle.
• Protection from liability towards third parties for personal injury.
• Compensation for death and property damage on account of any
accident involving your vehicle.

What does the Policy Cover?

• Loss or damage to your vehicle: The policy covers you against any
loss or damage caused to the vehicle due to the following natural and
man made calamities.
 • Natural Calamities: Fire, explosion, self-ignition or lightning,
earthquake, flood, typhoon, hurricane, storm, tempest, inundation,
cyclone, hailstorm, frost, landslide, rockslide.

• Man made Calamities: Burglary, theft, riot, strike, malicious act, and
accident by external means, terrorist activity, and any damage in transit
by road, rail, inland waterway, lift, elevator or air.

• Personal Liability: Unlimited coverage i.e. whatever the court awards

as your liability to the “Third Party” due to accidental death or injuries
caused by your vehicle will be met by Shriram General Insurance
Company Ltd.

• Property Liability: In case of your vehicle causing “Third Party”

property damage, Shriram General Insurance Company will offer to
compensation up to Rs. 100,000/- in case of 2Wheelers and Rs.
750,000/- in case of Private Cars/Commercial Vehicle.

What does the Shriram Policy not Cover?

• Accidental loss or damage suffered whilst the insured or any person
driving with the knowledge and consent of the insured is under the
influence of intoxicating liquor or drugs
• Accidental loss or damage caused due to Willful Negligence
• Loss or Liability while the vehicle is used outside the scope of
limitations of use and / or being driven by a person not duly licensed.
• Consequential loss, depreciation, wear & tear, mechanical and electrical
breakdown/failure or breakages
• Loss connected to nuclear or radioactivity or nuclear weapons
• Loss connected with war and related activities
• Policy deductibles: The first amount of each and every claim which you
should bear. You can choose this amount as per the limits. The higher
limit you choose, the greater the discount on the premium.
 Additional Features: To further protect you and your near and dear ones
commuting in the vehicle with you, we offer a range of value added
extensions to your Motor Insurance Policy at a nominal additional
premium.
• Electrical & Electronic Accessories: Your electrical & electronic
accessories can also be covered. Your electrical & electronic
accessories can also be covered.

• Bi-Fuel System (CNG/LPG Kit): Your CNG/LPG Kit can also be

covered.

• Personal Accident: You can avail of this cover for yourself (as the
insured), for the driver of your vehicle (in case you have a paid driver)
and unnamed passengers as per the seating capacity of the vehicle.
Unnamed passengers can include your spouse, children, parents, etc.

• The Personal Accident cover is available from Rs. 10,000/- to a

maximum of Rs. 200,000/- (in multiples of Rs. 10,000/-).
• Legal liability towards your employees: Through this extension, you
will be compensated for any legal liability towards your employees that
may arise due to an accident involving the vehicle.
• Towing Charges: Reimbursement of towing charges as per policy
wording.

Claim Service:
• We will take 24X7 claim notification service
• Timely customer contact and assistance
• Survey and assistance within a day
• We shall ensure that quality of claim settlement and customer
satisfaction are taken care of in each and every step of claim settlement.
• Simple Claims Procedure – Hallmark of our corporate philosophy and
approach.
• Claimant can know his claim status at any time from us.
Fire Insurance:
 Introduction:
Every individual want to fulfill his dreams, see his
family happily grow with the prosperity but life is full of unforeseen events,
which can change the life of any person forever. No one can predict the
future but everyone can buy protection against such uncertainties. Standard
Fire and Special Perils Insurance Policy of Shriram General Insurance
offers you the protection for your assets. So, if you are insured with
Shriram General Insurance, you will get the best services and fast claim
settlement.

Policy Coverage:
This policy covers loss or damage due to the following:
• Fire, Lightning, Explosion / Implosion.
• Aircraft Damage,Riot, Strike & Malicious Damage.Storm, Cyclone,
Tempest, Hurricane, Tornado, Flood and Inundation.
• Impact Damage, Subsidence and Landslide including Rockslide.Bursting
and/or overflowing of Water Tanks,
• Apparatus and Pipes.
• Missile testing operations.
• Leakage from Automatic Sprinkler Installations and Bush Fire.
• Upto 3% of the claim amount to cover the Architects, Surveyors and
Consulting Engineer’s Fees.
• Upto 1% of the claim amount to cover the Debris Removal.

Add-onCoverage:

The Add-on covers offered are as follows:

• Terrorism.
• Fees for Architects, Surveyors and Consulting Engineers are beyond 3%
of the claim amount.
• Expenses for removal of Debris beyond 1% of claim amount.
• Deterioration of Stocks in Cold Storage premises due to power failure
following damage due to an insured peril.
• Forest Fire.
 • Impact Damage to the property due to Insured’s own Vehicles.
• Spontaneous Combustion.
• Omission to insure additions, alterations or extensions.
• Earthquake damage caused by Fire and Shock.
• Temporary removal of stocks is covered to any other premises for the
purpose of production or processing or finishing or similar purposes.
• Loss of Rent and / or additional expenses of rent for alternative
accommodation.

Excess/Deductible: 5% of each claim subject to minimum Rs. 10000/-

arising out of “Act of God perils” and Rs. 10000/- for other claims arising out
of other perils under this Policy.

EXCLUSIONS:
The General Exclusions for Loss, Damager and destruction caused by / to be
listed below:

• War, Civil War, Nuclear Risk, Pollution and contamination.

• The stocks in Cold Storage premises caused by change of temperature.
• Any electrical and / or electronic machine, apparatus, fixture, or fitting
arising from over-running, excessive pressure short circuiting, arcing,
self heating or leakage of electricity from whatever cause (lightning
included).
• Money and valuables unless specifically mentioned.
In Case of Claim:

Inform the 24x7 Call Centre about your Policy details.

Get a Claim Registration No. while confirming the Policy details.
Appointment of Surveyor at the time of Claim Registration.
Fast settlement of claims after submission of all the relevant documents.

Strengths of Shriram General Insurance Co. Ltd.:

Shriram General Insurance Company Limited is a part of Shriram Group - A
multi- dimensional, multi-locational organization with interests in the fields of
Truck Financing, Life Insurance, Share Trading, Bulk Drugs, Software
Consultancy, and Project Engineering & Real Estate. The Group companies
have equity participation from Citicorp (subsidiary of Citi Bank), UTI Bank,
Chrys Capital – USA, New Bridge Capital–USA.

Shriram General Insurance Company Limited has set up a joint venture with
SANLAM, South Africa. SANLAM Limited is a major financial services
company in South Africa, listed in the Johannesburg Securities Exchange and
Namibian Stock Exchange. SANTAM is a part of SANLAM Limited, which
is engaged in General Insurance business and ranked as the best Insurance
Company in South Africa as per the recent
study conducted by Pricewaterhouse Coopers.

ENGINEERING INSURANCE:

• Boiler and Pressure Plant Insurance

• Machinery Breakdown Insurance
• Contractor’s Plant and Machinery Insurance
• Electronic Equipment Insurance
• Erection All Risk Insurance
• Contractor’s All Risk Insurance
• CONTRACTOR’S ALL RISK INSURANCE

Scope of Cover:

The Policy covers civil construction projects, such as residential / commercial

buildings, theatres, factory sheds, warehouses, roads, bridges, dams,
reservoirs, tunnels, oil / gas pipelines, water / sewage disposal works, airports,
flyovers, etc.
Following perils covered under this Policy:

Fire and allied perils.

Flood, storm, tempest, cyclone.
Earthquake, fire & shock.

Collapse.
Water damage for wet risks.
Theft, burglary and house breaking.
Bad workmanship, lack of skill, human error, negligence, fault in erection.

Significant Extensions:
Breakage of Glass.
Terrorism.
Clearance and removal of debris.
Third party liability, surrounding property.
Escalation.
Express freight, holiday & overtime rate for wages.
Air Freight, Additional custom duty.
Construction, Plant and Machinery.
Extended maintenance cover.

Exclusions:
War and nuclear risks.
Willful act / negligence.
Partial / total cessation of work.
Normal wear & tear.
Gradual deterioration due to atmospheric conditions.
Loss or damage due to faulty design.
Contractual liabilities.
Consequential losses.
Cost of replacement / repair or rectification of defective material and / or
workmanship.

Sum Insured:
The sum insured shall include landed cost at site of imported / indigenous
materials, construction cost (including visits of specialists / experts,
supervision charges). It is the completely erected value of property inclusive
of freights, custom duty, erection cost adjusted to fluctuations in wages /
prices.

Premium Rate:
The Policy is subject to Contractor’s All Risk Insurance Tariff and the
Premium Rate is based on the type of project, nature of the construction period
of project, EQ Zone and voluntary excess.

In Case of Claim:

Inform the 24x7 Call Centre about your Policy details.

Get a Claim Registration No. while confirming the Policy details.
Appointment of Surveyor at the time of Claim Registration.
Fast settlement of claims after submission of all the relevant documents.

Miscellaneous Insurance:
Liability Policy for Medical Establishments Insurance
Professional Indemnity Insurance
Workmen’s Compensation Liability Insurance
Claim procedure:
• Policy Number.
• Estimated Loss/ Description.
• Date & Time of Accident.
• Place where Vehicle can be surveyed/ loss location
• Your Contact Details.

• Call on Claims help Desk (CHD) - Toll Free No. for registration of
claim.1800-180-7474, 1800-300-30000
• Note down the Claim Number and Surveyor Details provided
by our Claims help Desk (CHD) for future reference
• Surveyor will ask you for all required documents (mentioned in
documents section) therefore keep Documents ready for
submission.
• Contact us /Surveyor when the vehicle is ready for re-inspection
after repair of the vehicle or Property.

SERVICES

Shriram Vyapar:
A portal where dealers, agents and customers can buy and sell vehicles. Users
can also find out the Blue Book Value of their vehicle i.e. recommended price
at which one can buy/sell cars.

Fraud and Claims:

Shriram General Insurance takes fraud very seriously. SGI will publish on its
website fraudulent parties to ensure that such acts are not repeated. Click here
to read more about Fraud and Claims.

Training:

Shriram General Insurance takes pride in its world class training facility. SGI
believes that a knowledgeable agent will be able to make the right choice of
product and ensure customer satisfaction and there by reduce hassles should a
claim arise. Click here to learn about our training facility.

Loans and Finance:

• Commercial Vehicle Finance: Shriram Transport Finance Company
Limited (STFC), India's largest player in commercial vehicle finance,
was established in the year 1979. The company has a network of 450
branches and service centers. Click here to visit www.stfc.in
• Consumer Finance: Shriram City Union Finance Ltd.,set up in 1986 is
a leading provider of retail loans. The company has a footprint of 633
Business Outlets across India. It is active in the areas of Consumer
Durable Finance, Auto Finance, Personal Finance, Small Business Loans
and Retail Gold Loans. Click here to visit www.shriramcity.com

AGENTS:

Becoming an Agent of Shriram General Insurance:

Shriram considers Agents to be the assets of its organization. We try to create
and protect these assets (agents) by providing proper training and ensure that
they succeed in the market place. Shriram Groups 3, 00,000 strong agent bases
is testimony to our success in working with agents.

TRAINING:
TRAINING SPECIALITIE

Flexibility: Best ideas have always come from independent thinkers. We

believe, that maxim holds true for training and education as well. The most
thought-provoking, startling and original continuous professional development
in insurance today can be found in our training programmes designed after
thorough market research. Our company, have the freedom and flexibility to
respond to the needs of our executives at work place through the structured
training programs.

Environmental Quality: Knowledge Center provides quality acoustics so as

to enhance learning and productivity. Changes in the business environment,
challenges faced, shifts in mindset and strategy of the company and industry as
a whole have subtly been instrumental in shaping the courses of the center.

Space: Depending upon seating configuration, the rooms are accommodated

in a way to encourage interaction among small number of people within close
proximity.

Nature and Methodology of Training: SGI has different perspective of

training. We differentiate the training with development. In our organization
training is meant for operatives and development is meant for managers.SGI
has different perspective of training. We differentiate the training with
development. In our organization training is meant for operatives and
development is meant for managers.

TRAINING COURSES:
SGI provides three tier training to its trainees.
On The Job Training: Meant For- Fresh recruits in operations, executives or
respective departments Duration- Two weeks Syllabus- Learning procedure,
documentations, company profile, practice on premia software. Product
awareness.
Induction Course: Meant For- Sr. Executives and Assistant Managers in
operation and sales. Duration-One week Syllabus: Company profile, Principles
& Practice of insurance, Product knowledge.
Refresher Course: Meant For- Sales and marketing, System team.
Duration:-1-7 Days Syllabus- Product Knowledge, Sales Techniques,
Communication Skills, Software operations.
Intensive Course: Meant For- Branch Heads, senior officers and
Departmental Heads. Duration: 3-7 Days Syllabus: Specialized subjects of
management. Implementation parameters, Knowledge sharing, Enforcement
guidelines

TRAINING RESOURCES:
SGI’S knowledge Center provides a good collection of sources and resources
providing information and ideas in terms of insurance and other related areas
to acknowledge the employees.
Class Room: Knowledge center is a well furnished class room with ample
space and is designed for lecture style instruction provided to trainees. Here
we develop our learners who demonstrate leadership at any level.
Library: Keeping in view our international presence, we have the library and
reading room facilities at par with any international center of excellence with
added advantage of 24x7 Internet facilities.

Technology: Technology has become an indispensable tool for business,

industry and education. The training schedule is so designed in SGI to enhance
trainee’s competency with new hardware /software. SGI is providing an
improved access to IT infrastructure so as to accommodate for software
technologies in relation to training programs. The Center also involves media
based audio / visual facilities.

GYM: Knowledge Center has an attached gym equipped with Billiard table,
Tennis Table indoor games and a luxurious environment for music and plays.
Integrated Programs: Collaborative programmers are intended to be held
with institutions of repute, with the purpose of enhancing the quality and
content in advanced technical and general management areas.
Bottom of Form
 CHANGING SCENARIO OF GENERAL
INSURANCE MARKET

'Looks to the future with confidence and optimism’

Brief the history of general Insurance.

In India General Insurance business started, Marine Insurance started on later

part of the 17th century. Before nationalization in 1947 we have 147 insurance
companies, foreign and Indian both. But during there nationalization, in 1973
we have 107 companies that merge into four companies, i.e. taken over by
Government.

General Insurance Corporation of India (GIC) was set up in 1973 as a holding

company, with four subsidiary operating companies - National Insurance co
Ltd., New India Assurance Co. Ltd., Oriental Insurance co Ltd., and United
India Insurance Co Ltd., with a clear cut mission as set out in the Act.

The overall scenario in the insurance market in India after nationalization. GIC
and its subsidiaries function through a vast country - wide network of around
4100 offices spread across the length and breadth of the country, GIC has
taken the benefit of insurance to almost every district, across hilly terrain and
often inaccessible areas of the country. The customer interface is made easy
through a network of agents, development officers and employees at Branch,
Divisional and Regional offices as well as at the corporate level.

The GIC and its subsidiaries have a workforce of approximately 86,000

In 1973 tainted at various levels through in house training institutions. Now
the total number of employees went up.
The industry has also promoted the National Insurance Academy (NIA), which
is the premier training institute in insurance, catering not only to Indian
Nationals but also to select foreign nationals. The industry issues around 23
million documents and settles 2 million claims every year.

Country wide computerization in the recently past has made the task of policy-
holder's servicing easier and rapid. At the same time, profitable lines and
premium components increases and we became a investment company.

Where does Indian Insurance sector stand compared to International

Insurance Sector?

Technologically, Indian insurance sector is quiet comparable with the

international sector. Our vast resources of skilled and technical manpower,
huge market potentiality and technical know-how - all are comparable with the
international market. But lacking in the process of computerization and in
pricing (premium rate) is also seen. In product, we have demand in less
because lack of awareness for adequate insurance cover in India with insuring
public. Our marketing strategy is not very modern. But we are trying to rectify
both these (Technology and Marketing) areas.

The problems faced by Indian Insurance Sector Today:

The main problems are:
• Lack of awareness for insurance needs.
• Lack of penetration due to inadequate marketing/delivery system.
• Total computerization still in the process of implementation.
• Sophisticated covers do not have adequate demands because of General
attitude to insurance in India.
The Schemes

Recognizing its organizational strengths, the Govt. of India has also entrusted
the corporation with the administration of various schemes for social
melioration and public welfare. Social security schemes benefiting millions of
Citizens below the poverty line. Personal Accident Insurance and Hut
Insurance are operated all over the country for which the premiums are paid by
the Government. The GIC administers on behalf of Government, the crop
Insurance scheme for areas and crops notified under the crop Insurance
Scheme.

Various low cost mass insurance policies have been evolved over a period of
time, e.g. 'Jan Arogya Bima Policy'.

Role General Insurance Industry is playing in the growth of economy of the

country:
The General Insurance Industry has an enviable track record
among public sector units. It has a consistent profit and dividend paying record
accompanied by a steady growth in its financial resources.
Through investments in the- Government sector and: socially - oriented
Sectors the Industry has contributed immensely to the nation's development.
The industry is recognized as one of the largest financial' Institutions in the
Country. The ventures initiated by the industry in the areas of Mutual Fund,
Housing Finance have done exceedingly well in recent years.
To protect the country's foreign exchange reserves, the reinsurance
arrangement are so organized that maximum retention is made possible within
the country while at the same time protecting interests of the policy holders.
The GIC'S inwards reinsurance wing, called the SWIFT, maximizes the
foreign exchange balance by acting as an international
Insurer-accepting risk from all over the globe.
GIC'S International operation:

GIC'S international operations span over 31 countries around the globe. The
reinsurance expertise built over a long period has made the Indian Insurance
Industry a globally acknowledged reinsurer of repute GIC'S risk management
skill has been backed by specialists with a vast insurance experience.

Thus, the technical and underwriting skills have been acknowledged in the
international market. The corporation operates in 17 countries through
branches and agencies, whereas in another 14 countries, it has subsidiaries and
associate companies. The GIC has a subsidiary company known as 'India
International Pvt, Ltd.,' operating in Singapore and a joint-venture company,
Kenindia Insurance co. Ltd.

The impact of liberalization of economy in the activities of GlC.

With the liberalization of economy, General Insurance in India is poised for a
quantum jump, both in quality and quantity.

Vision for the future:

It is estimated that the industry will outstrip the present rate of growth and
reach a premium value of over Rs. l,20,000 millions by taking advantage of
the extra-large megarisk and social awareness of insurance in general, even
as . a developing country turns into a developed country.

The task before the industry to service the growing number of policy-holders
would equally see a quantum jump in issuance of documents and settlement of
claims. Matching reserves and consequent investment will be a natural
corollary.
It is expected that the investment portfolio will touch around Rs. 2,50,000
millions by the end of the next decade, with the strength built up over the
years since nationalization, GIC new looks to the future with
confidence and optimism, takes on global chal1enge with its high standard of
service, innovative initiative and a compelling social perspective.

GIC's plan - in new business areas:

The two new areas that GIC is getting into are the areas of health care and
crop insurance. For the health care business, the corporation has received
permission to set up a separate management services company. GIC has plans
to increase the scope of coverin health care, personal accident and crop
insurance and will require expertise in pricing the products.

The Research & Development activities:

They have just entered these areas and for the coming five years we are
investing approximately 500 crores. GIC'S R & D cell is created backed up
market research data.
The subsidiaries of GIC are becoming an autonomous body.

Privatization in the insurance sector of India - Is it in the right direction

It's purely a government decision and the nationalized sector is ready to face
the challenge. And have taken the challenge to stand in the stiff competition.

And now, many private companies have entered the market. These companies
are a result of merger of Indian companies with foreign companies.

METHODOLOGY
RESEARCH DESIGN:-

Since the problem relates to behavioral aspect of consumers, the researcher

choose the conclusive research design to be specific, the researcher though it
proper to have descriptive cross sectional analysis design.

RESEARCH APPROACH: Primary data can be collected in four board

ways:

• Observation
• Focus groups
• Survey
• Experiments

Under the OBSERVATION METHOD, the information is sought be way of

investigator’s own direct observation without asking from the respondent. The
main advantage of this method is that subjective basis eliminated, if
observation is done accurately.

A FOCUS GROUP is a gathering of six to ten persons who spend a few hours
with a skilled interviewer to discuss the project, service, organization and
other marketing entity.

SERVEY RESEARCH stands midway between observational and focus

group research on the one hand and experimental research on the other hand.
Observation and focus group are best suited for descriptive research and
experiments are best suited for casual research.

SURVEY RESEARCH method is more accurate feasible because it has

grater scope and researcher can easily know and describe the attitudinal aspect
of buying behavior of respondent, which was not possible by using other
method with constraints.

RESEARCH INSTRUMENTS:-

There are four main research instruments available for data collection.

• Interviews
• Observation
• Questionnaires
• Schedules

The interview method of data collection in values presentation of oral verbal

response. The questionnaire is the most common instrument in collecting
primary data.

DURATION OF STUDY:-

Four Weeks Worked Planned In The Following Manner:

• Parameters, in depth interviews, FGD - 1 week

• Questionnaire week - 1week
• Data collection - 1week
• Data analysis and final report preparation - 1week

CONCLUTION
The research project filled as “STUDY OF GENERAL INSURANCE
COMPANY” enabled to understand the competition among the various
general insurance companies which have entered Indian market of general
insurance after 2000 when private general insurance companies were allowed
to enter the general insurance sector in India.

General insurance companies in the private sector which are doing

exceptionally good in this sector due to their policies to which people fine very
weracting according to their needs. When people were interviewed about the
first preference among the private general insurance companies.

The market share of Shriram general insurance also around 25% among
private general insurance companies. Which is quite high among private
general insurance companies.

But if there are people accepting Shriram general insurance, there are people
who are still hesitant to take up private insurance company’s policy. It can be
seen from the study that people have starter recognizing Shriram general
insurance as a general insurance and hence it will grow at a much faster pace
in the feature.

BIBLIOGRAPHY

➢ The study was carried out in Varanasi.

➢ Various Websites were referred-

www.google.com

www.sramg.com

www.scribd.com

➢ Primary data was collected through interviews.

➢ Various books and magazines have been referred.