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SUBMITTED BY:
AKSHAY KARNAPNOR
PROF.SARVANANT NADAR
__________________________________________________________
______________________________________________________under the
_________________ ___________________
___________________ ___________________
Place: _____________
Date: ___________
DECLARATION
I, __________________________________________________
___________________
AKSHAY KARNAPNOR
Roll No.: 26
Place: _____________
Date: _____________
ACKNOWLEDGEMENT
I would also like to thank our Principal DR.VIJAY DABOLKAR for her
constant support to the students.
Last but not the least; I would like to thank my parents for giving the best
education and for their support and contribution without which this project would
not have been possible.
______________________
AKSHAY KARNAPNOR
ROLL NO.26
INTRODUCTION
1 . H D F C E R G O w i t h TATA A I G .
2. HDFC ERGO with Star Health Insurance
3. HDFC ERGO with National Health Plan
4. HDFC ERGO With Reliance
The entry of foreign MNCs and the conductive business environment fostered by
the government, it is no wonder that the re-entry of private insurance has marked a
second coming for the sector. In just five years, the sector has undergone a
makeover, offering more choice, better services, quicker settlement, tighter
regulation and greater awareness s the environment become more and
more competitive and services and products become alike, creating
a differentiation is becoming extremely tough. Thus, the main objective of
my project was to find out the preference of people regarding insurance companies,
which would help curvy employees to market their product. The study then goes on
to evaluate and analyze the findings so as to present a clear picture of recent trends
in the Insurance sector.
CHAPTER 1
REVIEW OF LITRATURE
ABOUT INSURANCE
Marine insurance antedates every other form, its history dating back over
seven centuries. It appears to have been practiced in the Mediterranean, and at least
one old policy has come down from the thirteenth century, proving that marine
insurance was an established practice among the commercial countries of that
time. A broad gap exists between that period and the continuous history
running back now some four hundred years, but since that time insurance
has been an established business among those engaged in maritime adventures.
Fire insurance, the second oldest form to become permanently established, dates
from the great London fire of 1666.Life insurance followed a little later,
although not until 1760 was a company founded on a modern basis.
Casualty insurance owes its origin to the application of steam to railway travel; its
more common name of accident insurance was due to the fact that the first events
to be insured against were those of accidents to the person on a railway
journey. It originated in England in the first half of the nineteenth century.
The possibilities contained in the theory of probabilities were first brought to light
by the famous solution of a gaming problem. Two noblemen, engaged in a
game of cards called the Game of Points, were obliged to cease play before
the game could be finished. Being unwilling to separate with each retaining his
own stakes, they asked Pascal, the eminent Frenchman, to suggest how the
stakes should be divided. The stakes amounted to $64, each having contributed$32,
and it was necessary for one of the players to make three points before he would be
entitled to the stakes. At the time they appealed to Pascal, one player had two
points to his credit and the other player had one. Pascal submitted the following
solution: "Suppose," he said, "that you had played another hand. One of two things
would necessarily happen : either the player who has two points would gain one,
and, having three points to his credit, would claim the stakes; or the player with
one point to his credit would win another so that he would have two points to his
credit, the same as his opponent. If this latter should happen, each would have
retained his individual stake. The chances of winning I consider equal, and as
it is evident that the player with two points cannot, if he plays another hand,
lose his original stake of $32, the other 832 should be divided into two parts and
the player who has one point to his credit retain $16 and the player with two points
receive $16, or the whole stake be divided into proportions of 48 and 16.
Pascal submitted two other suggestive solutions to clinch his theory, but they
need not be discussed here. Gambling at that time was prevalent in the
courts, and nothing pleased the gamblers more than to be shown ways whereby
their games could be decided although not played to a conclusion. Great
intellectual interest was aroused in the theory of probabilities, and out of this
condition the business of insurance in its modern aspect originated. At this point it
should be said that insurance, although often compared with gambling
possibly because of these early associationsis entirely different from it in
principle. Gambling is an attempt to increase, ones means by a venture not
based on any known factors; that is, it is purely and simply a chance.
Insurance, on the other hand, takes into consideration all the factors that enter into
the problem and that may affect the hazard insured against, or the factors that may,
if guarded against, prevent the contingency from happening.
Logic of insurance
It is a system by which the losses suffered by a few are spread over many, exposed
to similar risks. Insurance is a protection against financial loss arising on the
happening of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the amount premiums collected
from the insuring public and the Insurance Companies act as trustees to the
collected.
Need of insurance
Insurance is desired to safeguard oneself and one's family against possible losses
on account of risks and perils. It provides financial compensation for the losses
suffered due to the happening of any unforeseen events. By taking life insurance a
person can have peace of mind and need not worry about the financial
consequences in case of any untimely death. Certain Insurance contracts are also
made compulsory by legislation. For example, Motor Vehicles Act 1988 stipulates
that a person driving a vehicle in a public place should hold a valid insurance
policy covering Act" risks. Another example of compulsory insurance pertains the
Environmental Protection Act, wherein a person using or to carrying hazardous
substances (as defined in the Act) must hold a valid public liability (Act) policy.
Insurance in India
Insurance is a federal subject in India and has a history dating back to 1818. Life
and general insurance in India is still a nascent sector with huge potential for
various global players with the life insurance premiums accounting to 2.5% of
the country's GDP while general insurance premiums to 0.65% of India's GDP. The
Insurance sector in India has gone through a number of phases and changes,
particularly in the recent years when the Govt. of India in 1999 opened up the
insurance sector by allowing private companies to solicit insurance and also
allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as
a booming market with every other global insurance company wanting to have
a lion's share. Currently, the largest life insurance company in India is still owned
by the government.
Life insurance
Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a designated beneficiary a sum of money
upon the occurrence of the insured individuals or individuals' death or other event,
such as terminal illness or critical illness. In return, the policy owner agrees to pay
a stipulated amount called a premium at regular intervals or in lump sums. There
may be designs in some countries where bills and death expenses plus catering for
after funeral expenses should be included in Policy Premium. In the United States,
the predominant form simply specifies a lump sum to be paid on the insured's
demise
Even though the first legislation was enacted in 1938, it was only in 19 January
1956,that life insurance in India was completely nationalized, through a
Government ordinance; the Life Insurance Corporation Act, 1956 effective
from 1.9.1956 was enacted in the same year to, inter-alia, form LIFE
INSURANCE CORPORATION after nationalization of the 245 companies into
one entity. There were 245 insurance companies of both Indian and foreign origin
in 1956. Nationalization was accomplished by the govt. acquisition of
the management of the companies. The Life Insurance Corporation of India was
created on 1 September, 1956, as a result and has grown to be the largest insurance
company in India as of 2006.
General Insurance
The Authority has been entrusted with the duty to regulate, promote and ensure the
orderly growth of the insurance and re-insurance business in India. In furtherance
of this responsibility, it has been conferred with numerous powers and functions
which include prescribing regulations on the investment of funds by insurance
companies ,regulating maintenance of the margin of solvency, adjudication of
disputes between insurers and intermediaries, supervising the functioning of the
tariff advisory committee, specifying the percentage of premium income of the
insurer to finance schemes for promoting and regulating professional organizations
and specifying the percentage of Life & General Insurance business to be
undertaken by the insurer in the rural or social sector
Reinsurance
Reinsurance is a means by which an insurance company can protect itself with
other insurance companies against the risk of losses. Individuals and corporations
obtain insurance policies to provide protection for various risks (hurricanes,
earthquakes, lawsuits, collisions, sickness and death, etc.). Reinsurers, in turn,
provide insurance to insurance companies. The company requesting the cover is
called the cadent and the reinsurer can be called the ceded, although the latter term
is not in common use. The main use of any insurer that might practice reinsurance
is to allow the company to assume greater individual risks than its size would
otherwise allow, and to protect a company against losses. Reinsurance allows an
insurance company to offer higher limits of protection to a policyholder than its
own assets would allow. For example, if the principal insurance company can write
only $10 million in limits on any given policy, it can reinsure (or cede) the amount
of the limits in excess of $10 million. Reinsurances highly refined uses in recent
years include applications where reinsurance was used as part of a carefully
planned hedge strategy
Insurance is an upcoming sector, in India the year 2000 was a landmark year for
life insurance industry, in this year the life insurance industry was liberalized after
more than fifty years. Insurance sector was once a monopoly, with LIC as the only
company, a public sector enterprise. But nowadays the market opened up and there
are many private players competing in the market. There are fifteen private life
insurance companies has entered the industry. After the entry of these private
players, the market share of LIC has been considerably reduced. In the last five
years the private players is able to expand the market (growing at 30% per annum)
and also has improved their market share to 18%. For the past five years private
players have launched many innovations in the industry in terms of products,
market channels and advertisement of products, agent training and customer
services etc.
Reinsurers
Indian life-insurance market is the target market of all the companies who
either want to extend or diversify their business. To tap the Indian market there has
been tie-ups between the major Indian companies with other International
insurance companies to start up their business. The government of India has set up
rules that no foreign insurance company can setup their business individually here
and they have to tie up with an Indian company and this foreign insurance
company can have an investment of only 24% of the total start-up investment.
Indian insurance industry can be featured by:
Low market penetration.
Ever growing middle class component in population.
Growth of customers interest with an increasing demand for better insurance
products.
Application of information technology for business.
Rebate from government in the form of tax incentives to be insured. Today, the
Indian life insurance industry has a dozen private players, each of which are
making strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country.
Several of private insurers have introduced attractive products to meet the needs of
their target customers and in line with their business objectives
Market Performance & Forecast: In 2000, Indian insurance market size was
$21.71 billion. Between 2000 and 2007, it had an increase of 120% and reached
$47.89 billion. Between 2000 and 2007, total premiums maintained an average
growth rate of 11.96%and the CAGR growth during this time frame has been
11.96%. It was one of the most consistent growth patterns we have noticed in any
other emerging economies in Asians well as Global markets.
Emerging Areas
Under Insurance
Under insurance, typically occurs when the existing financial liabilities and
insurance needs are fully taken care of. In the event of the untimely death of the
only (or the main earning) member of the family, his financial liabilities would
obviously fall on his dependents, leaving them in a state of financial distress that
could threaten their need of sustenance.
Over Insurance
Conversely, there are also instances where individuals indulge in life insurance
covers that far exceed in value than what is actually required. This is a classic case
of over insurance, which leads to an unnecessarily higher premium
payment, leaving you much poorer. It results in unnecessary expenditure that could
otherwise be wisely invested elsewhere. The need for an adequate insurance cover
is never static and keeps on varying with changes in the life stages and important
events of an individual. The table below provides an insight into the various life
stages and events when life insurance cover usually requires a revision.
CHAPTER 2
About Organization
HDFC ERGO focuses on providing the Right Insurance Solution for all.
We offer our customers complete range of general insurance products ranging from
Motor, Health, Travel, Home and Personal Accident in the retail space and
customized products like Property, Marine and Liability Insurance in the corporate
space.
HISTORY
ERGO Group AG came into being at the end of 1997 by the fusion of Victoria
Holding AG and Hamburg-Mannheimer AG; the latter evolved from Hamburg-
Mannheimer Versicherungs-AG, the life insurance company of Hamburg-
Mannheimer-Gruppe.
On April 1, 2001 the majority shareholder Mnchener Rck (today Munich Re)
announced an exchange offer to the shareholders of ERGO, in the framework of
which two shares of ERGO could be exchanged for one share of Mnchener Rck
plus cash payment of 18 Euros. After the offer had expired in July 2001, the shares
of ERGO left the MDAX due to the reduced free float.
Values
One single thing that takes us closer to our vision is our set of values -
(SEED) Sensitivity, Excellence, Ethics and Dynamism.
Sensitivity
We will build our business on empathy and an inherent understanding of both our
internal and external customers needs.
Excellence
we will always strive to offer innovative products and services and Endeavour to
set new benchmarks to do things better each time.
Ethics
We will honor our commitments and be transparent in our dealings with all our
stakeholders.
Dynamism
We will be pro-active with a "can do" approach.
To make our vision a reality, we are committed to sow the SEED of our values and
nurture it daily. Our ethical approach and high levels of integrity enable us to
'continue the tradition of trust' we have inherited from our parent company HDFC
Ltd.
We ensure that it reflects in every task we perform, every decision we take. It helps
us to work as a team towards creating and sustaining value for all our stakeholders,
namely Customers, Business Partners, Re-insurers, Share-holders and most
importantly, Employees.
DISTRIBUTION NETWORK
ERGO in brief
Business strategy aligned to clients' needs and trends in Indian and global
economy industry
Internationally experienced core team, majority with local background Fast,
decentralised decision making
Long-term commitment to market and clients
Trust
At HDFC ERGO we realise that you seek an insurer whom you can trust. HDFC
Limited is trusted name for over 32 years in the Indian market and ERGO AG has
over 110 years of global experience in financial services. Together we
are committed to provide you with time tested and trusted financial solutions that
provide you all the security you need for your investments.
Claims Philosophy
The HDFC ERGO team follows a service that aims at taking the anxiety out of
claims processing. We pride ourselves on a friendly and open approach. We
are focused towards providing you a hassle free and speedy claims processing. Our
claims philosophy is to:
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regularly against the global ERGO OPEX
(Operational Excellence) methodology sold over 1 million since inception.
Customer Orientation
At HDFC ERGO our guiding principles are customer service and client
satisfaction. All our efforts are directed towards understanding the culture, social
environment and individual insurance requirements - so that we can cater to all
your varied needs.
We are driven by a team of experienced people who understand Indian risks and
are supported by the necessary international expertise required to analyse and
assess them
Superior Technology
Our service methodology is tried, tested and Proven the world over and involves:
Risk identification: Inspections
Risk analysis: Portfolio review and gap analysis
Risk retention
Risk Transfer: To an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactively
HDFC ERGO General Insurance hopes to cover high-value customers with the
new product.
The company plans to offer these benefits as riders attached to a health
insurance product. The company has filed rider details with the
Insurance Regulatory and Develop-mint Authority (IrDA).
The company is working on the premium structure for the cover. Compared with
standard health insurance products, we propose to offer broader and more
responsive coverage designed specifically for high-value customers. The market
would soon get to see our composite health product with no limits. In addition
to the standard health cover, we would provide a host of riders such as hospital
cash, expenses for dental and glasses/hearing aids, said Ritesh Kumar, managing
director, HDFC ERGO General Insurance.
The company has filed for regulatory approval for add-on benefits. Since January
1, 2009, IrDA has allowed general insurance companies to offer tailor-made (add-
on) products to its customers and charge them for the extra benefits offered.
Introduction of the riders would be a follow up of the relaxation given by the
insurance regulator.
The slowdown has definitely impacted the insurance industry. Given the low
insurance penetration in the country, there are still opportunities for growth. The
company plans to target untapped markets by increasing reach and adding product
lines in all segments. We have filed additional products that would be the first-of-
its-kind in the Indian Insurance market, said Kumar.
18.03.2009
Insurers will cover you with whistle-blower policies
18 Mar 2009, 0318 hrs IST, Debjoy Sengupta, ET Bureau
He knew that could lead to a protracted legal tussle and he didnt have the
resources to sustain a legal battle with his erstwhile employer.
Whistle-blower insurance has been making waves in the highest echelons of India
Inc in the aftermath of the Satyam scam. Also known as retaliation cover in
hardcore insurance circles, it is offered by some general insurers such as
HDFC Ergo and Tata AIG.
The retaliation cover will help a senior executive (independent directors included)
to blow the whistle against wrongdoings by any member of the apex management
team and ward off a legal backlash.
People seldom come to the rescue of an employee who blows the whistle. If
anything, he attracts retaliatory action from the management by way of lawsuits.
Whistle-blower insurance is an add-on cover that comes with the directors &
officials policy (D&O policy) of a company. It shields a director/company official
from legal hassles he/she may face for blowing the whistle.
Once that happens, the whistle-blower cover gets activated and pays for legal
expenses of both directors. If Director B is declared guilty in court, he will have to
refund his portion of the expenses paid by the insurer.
Deloitte &Touch Consulting India managing director Roopen Roy does not mince
words in his blog that more attention to issues like tolerance of dissent and
protection of whistle-blowing may actually reduce the incidence of fraud.
Tick-boxes and checklists often dont show up the malaise because meek
and spineless subordinates and external accomplices are deployed to cover the
tracks, he says.
For instance, if the chairman of a company indulges in illegal activity about which
the MD gets a whiff, the board of directors may not get to know as the matter may
not be discussed at the board level. In that event, the whistle-blower policy can
only work if the MD actually blows the whistle, he points out.
A whistle-blower insurance cover may also be ineffective if a director gets a hint
of transgressions by fellow director in the same company and the matter is debated
at the board level. It is then for the board to decide to intervene or not, he adds.
CHAPTER 3
Health Insurance & BAGIC
The worst nightmare that anyone can have is the one when a family member is
hospitalized. Today, when everything is uncertain nobody can be sure what will
happen. A seemingly small ailment can turn into major one. And what happens
when the earning member of your family is hospitalized. But with a policy from
HDFC ERGO you and your family can rest assured!
1: HEALTH GUARD
Health care costs are high and getting higher. Who will pay your bills if you have a
serious accident or major illness? Most of the times we are unprepared for these
difficult times, emotionally, as well as financially. HDFC ERGOs Health Guard
Policy, protect you and your family in case you need expensive medical care. It
also offers you cashless benefit &medical reimbursement for hospitalization
expenses
Coverage
1. Cashless Facility at empanelled hosp.
2.10% reduction in claim amt if any other hospital.
3. Pre-hosp=60 days
4. Post-hosp=90 days
5. Ambulance charges=Rs 1000
6. Daycare facility
7. E-opinion rider for SI Rs 5lacs, Rs 7.5lacs, Rs 10lacs
Age
1.5-55 yrs2.0-5yrs(if any parent)
Sum Insured
1.7.5lacs & 10lacs=5-40yrs2.50k to 5lacs=40-50yrs3.50k to 3lacs=50-55yrs
Benefits
1.5%-25% NCB
2. Family Disc.=10%
3. Tax saving4.2 yrs waiting period for some disease
Exclusions
1. Pre-existing disease
2. Non-Allopathic treatment
3.30 days waiting period
2: HOSPITAL CASH
It provides cash benefits for each and every completed day of hospitalization. Day
for this purpose shall be every completed (24 hours) of hospitalization. However,
period less than 24hours shall be considered as a day if it is a period of 12 hours
but includes 0300 hours. Can be taken with Health Guard or Critical Illness
Coverage
1. Rs 500 to Rs 2500 per day
2. Paid for 30/60 days (irrespective of no. of confinements to hosp.)
3. Family stands insured
4. Benefit is doubled in case of ICU admission
5. Day care facility
Age
1.25-60 yrs
2.3mnths-24yrs(with any parent)
Sum insured
1.Rs 500, Rs 1000
2.Rs 2000, Rs 2500
Premium
1. Rs 250-Rs 1600,Rs 300-RS 3k
2. Rs 600-Rs 4800,Rs 800-RS 5.8k
Benefits
1. Family discount 10%
2. Tax saving
Exclusions
1. Pre-existing disease
2. Natural perils
3.30 days waiting period
4. Maternity expenses.
3: CRITICAL ILLNESS
A Critical Illness plan means you can insure yourself against the risk of serious
illness in much the same way as you insure your car and your house. It will give
you the same security of knowing that a guaranteed cash sum will be paid if the
unexpected happens and you are diagnosed with a critical illness. The purpose of a
critical illness plan is to let you put aside a small regular amount now, as an
insurance against all this happening. The statistics speak for themselves and if you
become a part of them at least you will be sure that lack of money won't add to
your problems. HDFC ERGO, in its efforts to provide a customer centric solution
is offering an insurance policy to cover to some of these critical illnesses like
Age
1.6-59 yrs
2.1lacs, 3lacs
3.5lacs, 10lacs
Premium
1.2k-3k, .6k-9k
2.1k-15k, 2k-30k
Benefits
1. Lump sum amt to plan the treatment accordingly
2. Donor Expenses
Exclusions
1. Death within 30 days (after diagnosis of critical illness)
2. Maternity expenses
3.90 days waiting period
4. War or like expenses
5. HIV/AIDS infection.
4: SILVER HEALTH
Silver Health Plan offers you cashless benefit or medical reimbursement for
hospitalization expenses due to illness or accident and is specifically for people
aged between 46-75yrs which protects you and your spouse in case you need
expensive medical care.
Coverage
1.3%pre & post hosp. expenses
2. Ambulance charges Rs 1000
3.3times limit of indemnity if renewed continuously.
4. Medical exp. if proposal is accepted.
Age
1.46yr to 75 yrs
2. Age at entry=70yrs
Sum Insured
1.50000 To 3lacs
Premium
1. Rs 1995 to Rs 21006
Benefits
1. Pre-existing disease covered after 2nd year with 50% coverage of SI
2. Cashless facility
3. NCB of 5% every claim free year
4. Family discount of 5%
5. Tax saving
6. Health check-up after 4 yrs
Exclusions
1. Non-Allopathic Medicine
2. Maternity expenses
3.90 days waiting period
4. All pre-existing diseases
5. HIV/AIDS infection
5: E-OPINION
HDFC ERGO launches e-opinion rider, which will cover the expenses of 2nd
opinion e-consultation services for serious illness in India. The policy offers
unprecedented access to over 7000 physicians employed by the renowned hospitals
of the World Care Consortium. This innovative e-opinion rider gives you an
opportunity to obtain best of international expertise at a fraction of the cost. This is
a RIDER
Coverage
1. Cancer
2. Heart Attack
3. Coronary Artery Disease
4. Stroke
5. Renal Failure
6. Sudden Blindness
7. Multiple Sclerosis
8. Coma
9. Paralysis
10. Major Burns
11. Major organ transplant
12. Neuro-degenerative disease
13. Pathology
14. Disease wanting 2nd opinion
15. Life threatening condition
16. Estimated cost>1lacs
Premium
1. Rs 476 & above (as per head)
Benefits
1. Consultation with worlds best doctors
2. Opinion in just 7 days.
Exclusions
1. Pre-existing disease
2.90 days waiting period
3. Any sexually transmitted disease
4. Maternity expenses
5. Occupational disease
6. Accidental bodily injury
6: PERSONAL GUARD
Life is full of uncertainties and unexpected events. Accidents can happen at home,
at work, even at play. The death or injury of a breadwinner can create serious
financial problems for any family. It is in situation like these, that you need to be
prepared. To help you soften the blow Bajaj Allianz offers the Personal Guard
cover. Our Personal Guard Policy offers these additional benefits.
Coverage
1. Medical expenses
2. Hospital confinement allowance
3. Childrens Education Bonus
4. Death Benefit
5. PTD
6. PPD7.TTD
Age
1.3months to 65 yrs
Premium
1.0.45%o to 2%o
Benefits
1. Medicalexp reimbursed up to 40% of claim amt
2. Rs1k/day for 30 days
3. CEBRs 5k (1 child) to Rs 10k (2children)
Exclusions
1. Suicide
2. Pre-existing disease
3. War, civil war
4. Motor rallies
7: STAR PACKAGE
Coverage (8 sections)
1. Health Guard
2. Hospital Cash
3. Critical Illness
4. Education Grant
5. Householders Content
6. Personal Guard
7. Travelling Baggage
8. Public Liability
Benefits
1. All sections have separate discount slabs
2.4-5 sections-10%disc
3.6-8 sections-15%disc
4.2yrs policy-10%
5.3yrs policy-15%
These HDFC Ergo car insurance plans enable you to safeguard yourself against
loss or damage to your car in situations like uncertain risk of accident, theft, fire,
earthquake, etc. and provide coverage for the liability that arises out of third party
property damage.
This HDFC Ergo plan offers insurance to a wide range of commercial vehicles,
protecting businesses from financial loss due to accidents or damage to the
vehicles, and legal liability towards third parties for personal injury, death and
property damage in case of an accident involving the insured vehicle.
The third party liability insurance from HDFC Ergo covers legal liabilities arising
from injuries to or damages sustained by third parties from the insured vehicle. The
policy is available for both private and commercial vehicles
With so much happening around us on the roads, two-wheeler insurance should not
be seen as an additional expenditure, but as a necessity. Buying two-wheeler
insurance certainly helps you reduce your stress, if you find yourself in an
unwanted situation.
The home insurance policy covers the superstructure as well as the belongings
inside the house for up to 5 years. It also covers against man-made or natural
disasters such as fire, lightning, explosion or implosion, floods, water inundation,
storms, riots, strikes, earthquakes as well as burglary, theft, larceny and terrorism.
HDFC ERGO General Insurance Company's plans help you to explore and enjoy
new destinations without any worries.
Commercial Insurance:
Knowledge Series:
Specialty Insurance
Property & Misc Insurance
Casualty Insurance
Group Insurance
Rural Insurance:
HDFC ERGO General Insurance Company Limited also offers insurance solutions
for the rural customers including farmers, dairy owners and tradesmen.
Agriculture Insurance
Cattle Insurance
CHAPTER 4
Comparative Analysis Health Insurance Products of HDFC
ERGO With Other Insurance Companies.
Shopkeepers Insurance
Unique Features
Comprehensive package by a single policy.
Uniform rate for money insurance
Single proposal form
Coverage for business interruption
Covers for damage to data media, software and cost of recovery of lost data
Advantages
Single Proposal form
Complete coverage at lower premium
Simple documentation
Covers for unanticipated loss
All needs of the client get addressed in a single policy
Benefits
All the insurance requirements are addressed by a single policy
Saving on costs
Less time spent in fulfilling procedural requirement
Smooth functioning of the business
CHAPTER 6
Questionnaire
The finding which came out from the survey was that 55.83% of the respondents
who have insurance cover bought life insurance from National Insurance Company
Ltd. National Insurance Companyis the most preferred brand in the insurance
industry because it is the only government company which offers insurance. People
prefer to buy insurance from National Insurance Company because of the security
being one of the prime factors. In the figure we can also see that nowadays people
mindset have changed towards insurance and are opting for private company for
insurance cover or policy.
It was asked to gain an insight from the respondents that on whose suggestion they
opted for a life insurance cover or policy.
After the survey it was found that most of the respondents took policy or shop
insurance cover from the suggestions of their friends or family. And only 23
respondents took policy on the recommendation of the agents. Other sources like
banks, corporate tie-ups and etc. play a minute role in reaching out people for
insurance policies.
6. What is the insurance coverage?
Results
After the survey it was found that still major portion of customers go for public
insurance companies, but with the entry of more and more private companies the
scenario is changing rapidly, people with a need of more and better returns are
opting for private companies, and this can be justified by the increasing market
share of private companies in the Indian insurance sector.
There are various ways in which private companies are found much more lucrative
than public companies and the facts which support this statement are as follows:-
1. Versatility of products.
2. Efficient fund managers.
3. Better customer services.
4. More returns.
5. Regular follow up.
6. Quicker settlement.
People are not aware of the Fire insurance. Most of them know only one
company which provides fire insurance i.eOriential. . So awareness campaign
should be run so that people are aware of different life insurance companies in
India.
People should be educated about the different types of products or plans offered
by the General insurance companies. Most of them dont know much of the
different types of plan or products.
It was felt that most of the people took life for tax savings or just to cover up
their life, not as an investment avenue. General Insurance companies need to
advertise in such a manner that people start investing in General insurance like the
way they invest in the stock market
Now at the time of global turmoil insurance company had to hold on to the
Policyholders trust which might lead the company to the path of success
Limitations
I. REGULATORY REQUIREMENT
In terms of the provisions of Section 135 (1) of the Companies Act, 2013 (the Act),
every company having net worth of rupees five hundred crore or more, or turnover
of rupees one thousand crore or more or a net profit of rupees five crore or more
during any of the three preceding financial years shall constitute a Corporate Social
Responsibility Committee of the Board (CSR Committee) consisting of three or
more directors, out of which at least one director shall be an independent director.
The CSR Committee shall inter-alia formulate and recommend to the Board, a
Corporate Social Responsibility (CSR) Policy which shall indicate the activities to
be undertaken by the Company as specified in Schedule VII to the Act.
In terms of the provisions of Section 135(1) of the Act, the Board of Directors of
the Company has constituted a Corporate Social Responsibility (CSR) Committee
of Directors, comprising of six directors including two independent directors. The
CSR Committee has formulated this CSR Policy and the same was approved by the
Board. Subject to availability of CSR amount, the Company proposes to carry out
all or any of the following activities as specified in Schedule VII of the Act, as
amended from time to time:
(I) Eradicating hunger, poverty and malnutrition, promoting preventive health care
and sanitation including contribution to the Swatch Bharat Kosh set by the Central
Government for promotion of sanitation and making available safe drinking water.
(iii) Promoting gender equality, empowering women, setting up homes and hostels
for women and orphans, setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by
socially and economically backward groups.
(vi) Measures for the benefit of armed forces veterans, war widows and their
dependents.
(viii) Contribution to the Prime Ministers National Relief Fund or any other fund
set up by the central government for socio-economic development and relief and
welfare of the scheduled castes, the scheduled tribes, other backward classes,
minorities and women.
(xii) Such other activities as may be notified by appropriate authorities, from time
to time.
The Company shall undertake such of the CSR activities during each financial year
as recommended by the CSR Committee and approved by the Board. The details of
such activities shall be as specified in Annexure-1 to this Policy. The CSR
Subcommittee may suggest to the CSR Committee, the CSR activities that could
be undertaken by the Company and the projects / programs in respect thereof.
Annexure - 1
Broad areas of CSR activities proposed to be carried out by the Company during
financial year 2016-17
The Company may carry out CSR activities either on its own or through a
registered trust or society or company established by the Company or its
holding company under Section 8 of the Act or otherwise, as may be
approved by the CSR Committee.
Further, the Company may collaborate or pool its CSR resources with other
Companies to undertake CSR activities, as may be approved by the CSR
Committee from time to time; provided that the respective companies are in
a position to report separately on such projects or programs in accordance
with the CSR Norms.
The Company recognizes that CSR projects or activities that benefit only the
employees of the Company and / or their families shall not be considered
as CSR activity in terms of the CSR Norms.
The Company shall report the details of its CSR initiatives in the Directors
Report and in the website, www.hdfcergo.com, in the prescribed format.
The Company recognizes that surplus arising out of the CSR activity will
not be part of business profits of the Company.
CSR expenditure shall include all expenditure including contribution to corpus, for
projects or programs relating to CSR activities approved by the Board on the
recommendation of the CSR Committee, but does not include any expenditure on
an item not in conformity or not in line with activities which fall within the
purview of Schedule VII of the Act.
CHAPTER 8
4th largest General Insurance Company in private sector and 3rd largest in
Non-Motor.
Gross Written Premium growth for the last 5 years is ~ 20% (CAGR).
Overall market share grew from 1.1% in 2008-09 to 3.7% in current year.
Largest player in personal accident lines in the industry.
IAAA rated by ICRA (an associate of Moody's Investors Service) indicating
highest claims paying ability.
ISO 9001:2008 certification for its Claim Services, Policy Issuance and
Customer Services.
Spread across 108 branches in 91 cities and a close knit family of 2000+
professionals.
Company continues to be compliant on Solvency Ratio.
Servicing more than 5 million policies.
CHAPTER 9
Conclusion
Insurance is one sector that witnessed continuous growth owing to the reforms in
2000.Theinsurance sector is likely to attain a size of Rs. 2, 00,000 cores
($51.2billion) in 2009-10. In life insurance, the business grew by 23.3% to Rs.
93,000 crore in 2008-09A well-functioning insurance market plays an important
role in economic development and financial stability of developing economies
such as Indias. First, it inculcates and encourages the habit of saving. Second, it
provides a safety net to rural and urban enterprise and productive individuals.
The General insurance market in India is on a growth path. In spite of this, the
country lags far behind the others in awareness about General insurance. The
challenge is to spread awareness about General insurance and it true benefits. The
industry has to convince people to park their hard earned money in long-term
insurance and not just look at it as a tax saving instrument.
Bibliography
The monthly fact sheet available from the company for studying the features of
products.
CUSTOMER BEHAVIOUR
WWW.BIMAONLINE.COM
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
WWW.TATAAIG.COM
WWW.ICICILOMBARD.COM
WWW.ROYALSUNDARAM.COM
WWW.CHOLAMANDALAM.COM
WWW.STARHEALTH.COM
WWW.IRDAINDIA.ORG