Chapter:-1

Introduction

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INTRODUCTION
1.1BACKGROUND OF THE STUDY
People constantly face a number of risks but are unaware of the dangers they are in until something major
happens to them. These include risk to ones health - illness, accident or risk to ones property - fire,
burglary, earthquake etc. Insurance covers all such risks over which one has no control and that too at a
very low cost. As responsible members of a family, one should be adequately prepared to manage these
risks.
Similarly a shop owner will take great pride in his establishment as it has been built up to its present glory
due to a lot of hard work and sacrifice on his part and hence he may have worries about the dangers his
shop and its contents are exposed to. Theft, an employees infidelity, a fire accident such unfortunate
events can most certainly hamper the smooth running of the sales premises. That is why a protective
cover like a comprehensive policy cover to protect the shop building, its contents and the peace of mind
of its owners is required. Hence, shop insurance is required to cover the losses that arise due to a wide
variety of perils. Shop insurance is specially designed to meet the needs of small shopkeepers. It is a
comprehensive commercial insurance policy, catering to different insurance needs of shopkeepers.
MEANING OF SHOP INSURANCE
If you own a shop, you will obviously be concerned about its safety as well as the merchandise stored in
it. After all, it is your livelihood that is being talked here. You have the grocery store with a bakery
counter, the vegetable shop that has a non-veg counter, or the paan-shop that doubles up as a mobilerecharge center. Versatility being the name of the game, it is only natural that insurers have come up with
a range of covers for the discerning shop owner
A number of insurance companies in India have come up with attractive insurance policies for people
owning small or medium-sized shops known as shop insurance. It covers all the risks and contingencies
faced by small or medium- sized shop owners. In addition to this, the policy provides protection for the
property and the interests of the shop owners (including their partners) in the business venture, who has
applied for the insurance cover. Hence it is also known as shopkeepers insurance policy. It is a package
policy for commercial shops, aimed at both independent shopkeepers and franchised retailers including
single shops and portfolios.

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1.2 STATEMENT OF PROBLEM

Take necessary steps to minimize the loss/damage. In case of fire, inform fire brigade immediately. In
case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their
approximate value. Inform insurance company by phone or fax and in writing. Extend full co-operation to
the surveyor appointed by the insurance Co. and provide necessary documents to substantiate the loss. A
claim form issued by the company is also to be submitted. In case any rights of recovery exist against any
other party responsible for the loss, your rights of recovery have to be subrogated to the insurance
company on payment of claim.

1.3 CONCEPT
Burglary & Housebreaking
Covers contents of insured shop premises (excluding money and valuables) against loss or damage by
burglary and/or housebreaking.
Money Insurance
Covers loss of money in transit, loss of money/valuables whilst contained in a locked safe, loss of money
contained in cashiers till and/or counter by burglary/housebreaking.
Plate Glass
Covers loss of or damage to fixed plate glass in insured's shop by accidental means.
Baggage
Covers loss or damage to accompanied personal baggage of insured or baggage in connection with his
trade, whilst anywhere in India, by accident or misfortune
Personal Accident
Covers insured and spouse and/or his children, named in the schedule and aged between 5&70 years,
against bodily injury caused solely and directly by accident and resulting in death or permanent total or
partial disablement or temporary total disablement within 12 calendar months of such injury.

1.4 OBJECTIVE OF THE STUDY

The main aim of the project is to understand and study the concept of shop insurance in detail. The main
objectives of the projects study are:
To understand the concept of shop insurance and its relevance in the insurance sector,
To outline the benefits and limitations of taking out the policy to the customers of various
categories,
To establish the reasons for non-popularity of the policy among the public and

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 To ascertain the need and reasons of the customers for including those risks that are not included
in the current policy.

1.5 HYPOTHESIS
Research Hypothesis:
The new India assurance company limited shopkeepers policy in performing well in Mumbai.

Null hypothesis:
Shopkeepers insurance policy of the new India assurance company limited is not effective in Mumbai
region.

1.6 MAJOR ASSUMPTION BEHIND THE STUDY

This policy can be taken by small shopkeepers whose shop building value and contents value does
not exceed Rs. 10 lacs.

In case it exceeds Rs.10 lacs, this policy cannot be given. This policy is meant for shops only.

Mere registration under Shops and Establishment Act does not entitle the premises to be insured
under this policy.

Hence Restaurants and Tea /Coffee shops cannot be insured under this policy. However, shops
selling goods where minor repair work is carried on incidental to the main business of selling, can
take this policy.

1.7 RESEARCH QUESTION

There are some people to be taken shopkeeper insurance policy in Dombivli areas.

1.8 METHODOLOGY
For making this successful and worth, a questionnaire was structure .through the help of the questionnaire
primary data has been collected. Questionnaire has been filled from 50 responses.

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The research also includes secondary data which has been collected from various website, journal,
newspaper etc.

1.9 SCOPE OF THE STUDY

The researcher is conducted in the area of thane .the survey method has been followed for the study wellstructure questionnaire is designed to necessary data and details from c 1.10 customers .the data was
collected selectively.

1.10 LIMITATION
Due to time constraint, only one company and twenty samples were considered for study and
analysis by the researcher. Also due to confidentiality, employee of the company did not give an
acknowledgement letter to researcher.
The respondent company did not disclose certain facts and figures related to premium, claims and
customers again due to confidentiality.
The researcher wanted to study ahead about the topic in detail but due to limitations which were
put by the University, the researcher restricted to project affairs only.
In spite of such limitations, research could get enough information required to conduct an analysis
of the topic.

1.11 SUMMARY
The insurance industry is a key component of the financial infrastructure of an economy, and its viability
and strengths have far reaching consequences for not only its money and capital markets, but also for its
real sector. The Indian insurance industry has traveled a long way ever since businesses were regulated
tightly & concentrated by few insurers of the public sector.
The activities of insurance companies have become more diversified in response to high expectations
from their customers. With liberalization & globalization of economy, they are required to offer more
different products & services at competitive prices.
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Chapter:-2
Review of Literature

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REVIEW OF LITERATURE
Review: 1
Project on the New India Assurance Company.

Author
Sandeep vaishnav

Introduction
Assurance industry has always been a growth-oriented industry globally. On the Indian scene too, the
assurance industry has always recorded noticeable growth vis--vis other Indian industries. The new India
assurance Co. Ltd. was the first general assurance company to be established in India in 1850, which was
a wholly British-owned company. The new India assurance company to be set up by an Indian was Indian
Mercantile assurance Co. Ltd., which was established in 1907. There emerged many a assurance player
on the Indian scene thereafter. The general assurance business was nationalized after the promulgation
of General Insurance Business (Nationalization) Act, 1972. The post-nationalization general assurance
business was undertaken by the assurance Corporation of India (GIC) and its 3 subsidiaries:

Objectives:
Ascertain the profile and characteristics of potential buyers.
To have an insight into the attitudes and behaviours of customers.
To find out the differences among perceived service and expected service.
To produce an executive service report to upgrade service characteristics of life insurance
companies.
To access the degree of satisfaction of the consumers with their current brand of Insurance
products

Finding:
Professional Management:

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You avail of the services of experienced and skilled professionals who are backed by a dedicated
investment researchs team which analyses the performance and prospects of companies and selects
suitable investments to achieve the objectives of the scheme.
Diversification:
Funds invest in a number of companies across a broad cross-section of industries and sectors. This
diversification reduces the risk because seldom doll stocks decline at the same time and in the same
proportion. You achieve this diversification through a Mutual Fund with far less money than you can do
on your own

Review: 2
Shopkeeper insurance in India with reference to the new India assurance co. ltd

Author
Mahesh jaiswar

Introduction
People constantly face a number of risks but are unaware of the dangers they are in until
something major happens to them. These include risk to ones health - illness, accident or risk to ones
property - fire, burglary, earthquake etc. Insurance covers all such risks over which one has no control and
that too at a very low cost. As responsible members of a family, one should be adequately prepared to
manage these risks.
Similarly a shop owner will take great pride in his establishment as it has been built up to its present glory
due to a lot of hard work and sacrifice on his part and hence he may have worries about the dangers his
shop and its contents are exposed to. Theft, an employees infidelity, a fire accident such unfortunate
events can most certainly hamper the smooth running of the sales premises. That is why a protective
cover like a comprehensive policy cover to protect the shop building, its contents and the peace of mind
of its owners is required. Hence, shop insurance is required to cover the losses that arise due to a wide
variety of perils.

Objective:
To outline the benefits and limitations of taking out the policy to the customers of various
categories,
To ascertain the need and reasons of the customers for including those risks that are not included in
the current policy.

Finding:

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One such innovative service introduced by the companies is shop insurance policy. This policy is
especially for the small shop-keepers. It is necessary to create awareness among the people about this
policy and also make them understand the benefits of taking out such a policy. This project gives a birds
eye view on shop insurance policy in India.

Review 3
General insurance market in India

Author
Jan 12, 2010 by CHAITRA NAIK

Introduction
This project is about the study conducted on the general insurance industry. In particular with the auto
insurance this is a part of general insurance. This is the detailed study on how auto insurance industry
sector functions, what are the challenges faced by auto insurance industry currently, Who are the market
players in this auto insurance sector? What is the current market situation about of the auto insurance
sector What are the various market strategies followed by these industries What are the challenges faced
by auto insurance sector How the companies are taking steps in order can overcome the challenges. What
are the future prospects of auto insurance industry.

Objective
To study the Indian general insurance industry particularly with
the autoinsurance segment of general insurance, identify areas of excellence andareas
needing improvement; and provide suggestions for such improvement.
The aim of this Thesis is to successfully study general insurance sector one common
platform, analyze their working and performance; marketingstrategies highlight their
performance, evaluating the various challenges faced by them while providing suggestions
and recommendations for improvement.

Finding
Big changes have occurred over the last few years, during which the sector was opened to private
participation, along with foreign direct investment.
It also has one of the lowest penetration rates for property and casualty insurance in Asia in terms
of premium as a percentage of GDP.
Indias general insurance market witnessed a variety of changes as deregulation continued at a
hectic pace.

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 Rate reductions in the recently de-tariff corporate portfolio (fire &engineering) has impacted the
premium growth, but this is also leading to the greater sales of existing and new products

CHAPTER:-3
Research Methodology

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RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY
The research decides to do survey in DOMBIVLI AREA. The researcher use survey method for presents

3.2 SOURCES OF DATA

Primary data and secondary data were collected for present study:
a) Primary Data:-The researcher collected the primary data personally through face to face interaction
with the shop owner.
b) Secondary Data:-The secondary data was collected through various ways which is by Internet,
Journals and Textbooks.

3.3RESEARCH AREA
The researcher has made research in Mumbai region. To study the shopkeepers insurance policy in
Mumbai, with respect to the new India assurance company limited.

3.4 METHOD USE FOR DECIDING THE SAMPLING PLAN

The researcher used selective sampling method to collect data.

3.5 SAMPLING PLAN

The sample size constituted of 30 respondents.

3.6 VALIDATION OF TOOLS

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The question in questionnaire was discussed with bank officials and senior professors in the college to
ascertain their accuracy. The questionnaire was then finalized after discussion with experts.

3.7 DATA COLLECTION INSTRUMENT

The type of instrument used for data collection for surveying was Questionnaire

3.8 RATING SCALE

Lakers scale was used in the questionnaire.

3.9 DATA PROCESSING AND ANALYSIS PLAN

The data was processed and analyzed with the help of percentages using excel sheet.

3.10 FIELD WORK

The approach was made to the respondent for three times. The sample constituted bank manager and staff
selected through random method.
At first visit the shop owner of respondent, to study the performance of shopkeepers insurance policy .
Approach the fill form to the customer who is taking home loan. Statistical tools were used to analysis the
data collected.
The data collected was tabulated and graphical.

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CHAPTER:-4
Data Analysis
And
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Observation

Q.1 Since, how many years you have been taking this shopkeepers insurance policy?
Particular
0 To 1 Years
2 To 3 Years
3 To 5 Year
More Than Years

Responded
6
9
8
7

In Percentage
20
30
27
23

Observation:
20% respondents have been taking shopkeeper insurance policy for 0 to 1 years.
30% respondents have been taking shopkeeper insurance policy for 2 to 3 years.
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27% respondents have been taking shopkeeper insurance policy for 3 to 5 years.
23%respondents have been taking shopkeeper insurance policy for more than 5 years.

Q:2How did you come to know about this insurance company?

Particular
Insurance Company
Relative & Friends
Advertisement
Internet
Agent

Responded
3
7
5
6
9

In Percentage
10
23
17
20
30

Observation:
10% respondents that know about this insurance company through insurance company.
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23%respondents have known about this insurance company through relative & friends.
17%respondents that know about this insurance company through advertisement.
20% respondents that know about this insurance company through internet.
30% respondents that know about this insurance company through agent.

Q.3 what documents were submitted by you for shopkeepers insurance?

Particular
Pan Card
Aadharcard

Responded
17
13

In Percentage
57
43

Observation:
57% respondents have pan card submitted for shopkeeper insurance policy.
43% respondents have aadharcard submitted for shopkeeper insurance policy.

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Q.4 Does your insurance company helps you regarding positive and negative side of the policy?
Particular
Yes
No

Responded
9
21

In Percentage
43
57

Observation:
30% are respondents that insurance company helps you regarding positive and negative side of the policy.
70% are not respondents that insurance company helps you regarding positive and negative side of the
policy.
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Q.5Did you receive the policy on time?

Particular
Yes
No

Responded
19
11

In Percentage
63
37

Observation:
36% respondents have receive the policy on time.
37% respondent has not receive the policy on time.

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Q.6 Does your queries solved by insurance company personnel?

Particular
Yes
No

Responded
25
5

In Percentage

Observation:
83% respondents have been queries solved by insurance company personnel.
17% respondents have not queries solved by insurance company personnel.

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Q.7 Are you satisfied with facilities provide by insurance company?

Particular
Yes
No

Responded
27
3

In Percentage
90
10

Observation:
90% respondents has been satisfied with facilities provide by insurance company.
10% respondent that is not satisfied with facilities provide by insurance company.

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Q.8 How do you pay the insurance premium?

Particular
Online
Cash
Postdated Cheque

Responded
0
26
4

In Percentage
0
87
13

Observation:
0% respondents are pays the online insurance premium.
87% respondents are paying the cash insurance premium.
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13% respondent is paying the postdated cheque.

Q.9Could you afford yearly payment of premium?

Particular
Yes
No

Responded
23
7

In Percentage
77
23

Observation:
77 respondents are afford yearly payment of premium.
23% respondents are not afford yearly payment of premium.

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Q.10 Do you have any suggestion for improvement regarding the shopkeepers insurance policy with
formalities?
Particular
Responded
Time Taken To Received The 16
Claim
Calculation
Of
Claim 7
Amount
Premium Option
6

In Percentage
55
24
21

Observation:

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55% respondents have improvement regarding the shopkeepers insurance policy with formalities for
Time taken to receive the claim.
14% respondents have improvement regarding the shopkeepers insurance policy with formalities for
Calculation of claim amount.
21% respondents have improvement regarding the shopkeepers insurance policy with formalities for
Premium option.

Q.11 Do you have any complaints against shopkeepers insurance term and condition?
Particular
Yes
No

Responded
8
24

In Percentage
25
75

Observation:
25% respondents have complaints against shopkeepers insurance term and condition.
75% respondents are not complaints against shopkeepers insurance term and condition.

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Q.12 Are you satisfied with terms and conditions about shopkeepers insurance?
Particular
Yes
No

Responded
16
14

In Percentage
58
47

Observation:
58 % respondents have been satisfied with terms and conditions about shopkeepers insurance.
47% are respondents are not satisfied with terms and conditions about shopkeepers insurance.

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Q.13 Can you make delayed payment of premium?

Particular
Yes
No

Responded
0
30

In Percentage
0
100

Observation:
0% respondents are make delayed payment of premium.
100% respondents are make delayed payment of premium.

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Q.14 How do you rate the service provided to you by the insurance company?
Particular
Excellent
Very Good
Good
Poor

Responded
2
6
16
6

In Percentage
7
20
53
20

Observation:
7% respondents service provided to you by the insurance company for the excellent.
20% respondents service provided to you by the insurance company for the very good.
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53% respondents service provided to you by the insurance company for the good.
20% respondents service provided to you by the insurance company for the poor.

Chapter:-5
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Finding & Interpretation

Chapter:-5 Finding
Table No 1
It is found that majority of the respondents have been taking this shopkeepers insurance policyand some
people are 0 to 1 years,3 to 5 years and more than 5 years.
Table No 2
Most of the people are respondents that the know about this insurance company for the agent some people
are relative & friens, advertisement, Insurance company and internet.
Table No 3
It is found the majority of the respondents are submitted by you for shopkeepers insurance for the pan
card and some people are aadharcard.
Table No 4
It is show that majority of the respondents insurance company helps you regarding positive and negative
side of the policy and some people are not insurance company helps you regarding positive and negative
side of the policy.
Table No 5
It is found that majority of the respondent receive the policy on time than some people are not receive the
policy on time.
Table No 6

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Most of the people are respondent queries solved by insurance company personnel than people are not
queries solved by insurance company personnel.
Table No 7
It is found that majority of the respondents satisfied with facilities provide by insurance company and
some people are not satisfied with facilities provide by insurance company.
Table No 8
It is show that majority of the respondents pay the insurance premium for the cash and some people are
pay the insurance premium for the postdated cheque.
Table No 9
It is found that majority of the respondent afford yearly payment of premium and then some people are
not afford yearly payment of premium.

Table No 10
It is found that majority of the respondents improvement regarding the shopkeepers insurance policy
with formalities for the Time taken to receive the claim. And some people are improvement regarding the
shopkeepers insurance policy with formalities for the Premium option.

Table No 11
Most of the people are respondents that are complaints against shopkeepers insurance term and condition
Table No 12
It is show that majority of the respondent are satisfied with terms and conditions about shopkeepers
insurance and some people are not satisfied with terms and conditions about shopkeepers insurance.
Table No 13
It is found that majority of the respondents are not make delayed payment of premium.
Table No 14
It is found that majority of the respondent that is service provided by the insurance company for the good.
Some people are service provided by the insurance company for the poor, very good and excellent.

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Chapter:-6
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Conclusion and recommendation

Chapter:-6Conclusion and recommendation

Conclusion
Insurance may be described as a social device to reduce or eliminate risk of loss to life and
property. The risks, which can be insured against, include fire, the perils of sea, death and accidents and
burglary. Any risk contingent upon these may be insured against, at a premium proportionate to the risk
involved. Thus collective bearing of risk is insurance.
The Indian insurance industry has traveled a long way ever since businesses were regulated tightly &
concentrated by a few insurers of the public sector. The launch of new developments in the insurance
industry saw many new international insurers entering the market. It also gave way to propagation of
innovative goods & channels for distribution & hence the supervisory norms rising. Shopkeepers
insurance policy is one such innovative product offered to customers.
Shops today have become the most common means of livelihood for an individual. These are easy to set
up and easy to run. However, these are not bereft of risks. Setting up a shop involves a large sum of
money and any damages to it could incur a huge loss on the owner. The owner hardly has the time to
think about this due to the work he has to put in therefore this policy takes that trouble from him. Hence,
there is a need for shopkeepers insurance policy. But, the shop-owners have failed to understand its
importance which may be due to many reasons.

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Recommendation
Based on the study the researcher carried out, there are some main causes for the unpopularity of
shop insurance package in India. They are:
a) Lack of awareness
b) Ignorance
c) Time consuming procedure
d) Paper-work
e) Premium
To overcome these problems, the researcher has made the following recommendations which the
Insurance companies need to apply:
A) To increase public awareness through extensive marketing efforts in the form of advertisements
distribution of pamphlets, etc;
B) To increase the human resources involved in marketing and selling of policies and train them properly;
C) To incorporate new technologies to make the various procedures simpler and faster.
D) Proper mechanisms for handling suspicious claim reports;
E) To reduce the premium rates in accordance with the risks taken;
F) To include more risks in the policy and also to cover some of those risks that are currently in the
exclusions.
These are just some suggestions which may or may not be implemented by the insurers. By implementing
at least some of the recommendations above, there can be a vast growth and profitability rate. This growth
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rate will improve the economy and thus boost Indias growth which will allow creating space for the
nation internationally in this category.

Bibliography
PRIMARY DATA
Personal interview with an employee of New India Assurance Company Ltd., data from the personal
website of the company which are for the employees only as well as survey of the shop-keepers regarding
the shop insurance policy.

SECONDARY DATA
1. Books
a) Insurance- Fundamentals, environment and procedures by B.S. Bodla, M.C. Garg and K.P. Singh
b) Practical approach to General Insurance Underwriting by K.C. Mishra and R.C. Guria
c) Indian Insurance- A Profile by H. Narayanan
d) General Insurance (Commercial) of ICFAI University (Publication-18th August, 2006)
2. Websites
http://www.iloveindia.com/real-estate/commercial-insurance. insurance.html
http://www.iribl.com/policy_ind.htm
http://www.ayushveda.com/realestate/shopkeepers-insurance-policy.htm
http://www.economywatch.com/insurance/building/shop.html
http://www.idealinsurance.in/genins1.php?pid2=70

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Appendix
MATRUSHRI KASHIBEN MOTILAL PATEL SENIOR COLLEGE OF SCIRNCE
&COMMERCE
MUKESH N GAUTAM
CLASS-TYBBI
Roll No-02
To study the shopkeepers insurance policy performance in Mumbai, with respect to the new India
assurance company limited.
Questionnaire
Name of the owner: _____________________________________________________________
Location of the shop: ____________________________________________________________
Telephone No: ________________________________________________________________
Q.1 Since, how many years you have been taking this shopkeepers insurance policy?
0 to 1 years

2 to 3 years

3 to 5 year

more than years

Q.2How did you come to know about this insurance company?

Insurance company

Relative & friend

Advertisement

Internet

Agent

Q.3 what documents were submitted by you for shopkeepers insurance?

Pan card

adhaarcard

Q.4 Dose your insurance company helps you regarding positive and negative side of the policy?
Yes

No

Q.5Did you receive the policy on time?

Yes

No
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Q.6 does your queries solved by insurance company personnel?

Yes

No

Q.7 Are you satisfied with facilities provide by insurance company?

Yes

No

Q.8 how do you pay the insurance premium?

Online

Cash

postdated cheque

Q.9 Could you afford yearly payment of premium?

Yes

No

Q.10 Do you have any suggestion for improvement regarding the shopkeepers insurance policy
with formalities?
Time taken to received the claim

Calculation of claim amount

Premium option

Q.11 Do you have any complaints against shopkeepers insurance term and condition?
Yes

No

Q.12 Are you satisfied with terms and conditions about shopkeepers insurance?
Yes

No

Q.13 Can you make delayed payment of premium?

Yes

No

Q.14 How do you rate the service provided to you by the insurance company?
Excellent
Good

very good
poor

Q.15 Does shopkeeper insurance provide any offers?

_____________________________________________________________________________________
_______________________________________________________________________

Q.16 Are all scheme suitable to you provide by insurance company?

_____________________________________________________________________________________
________________________________________________________________________________
Q.17Any suggestion?
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_____________________________________________________________________________________

Glossary

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