A

PROJECT REPORT
ON
“GENERAL INSURANCE BUSINESS IN INDIA”

A detailed study done in

“GENERAL INSURANCE BUSINESS IN INDIA”
Project Category: FUNCTIONAL PROJECT

Submitted in partial fulfillment of the requirement

for the award of degree of Master of Management
Studies (MMS) under the University of Mumbai

Submitted by
VRUSHALI RAJENDRA TAYDE
ROLL NO: 45
BATCH: 2017-2019

Under the guidance of

Prof. VEENA CHAVAN
Bharati Vidyapeeth’s
Institute of Management Studies & Research
Navi Mumbai

P
 ACKNOWLEDGEMENT

I am deeply indebted to my mentor, Prof. VEENA CHAVAN for her valuable and enlightened guidance
and for providing great support and help whenever was required.

I extend my gratitude to Bharati Vidyapeeth’s Institute of Management Studies & Research for
giving me this opportunity.

This project has been possible due to the support of several wonderful individuals. I would like to thank
many unknown individuals, with whom I interacted. All of them with their due cooperation and
motivation made the completion of this project successful. I would like to thank them all.

Last but not the least I am highly obliged to my friends for their help and support. The learning during
the project was immense and valuable.

Signature of the Student

VRUSHALI RAJENDRA TAYDE

ROLL NO.45

MMS-FINANCE
 CERTIFICATE

This is to certify that the Final Semester Project-in Functional Project titled “GENERAL INSURANCE
BUSINESS IN INDIA”is successfully done by Ms. Vrushali Tayde, a student of Bharati Vidyapeeth’s
Instituteof Management Studies and Research, submitted in partial fulfillment of Master of
Management Studies under the University of Mumbai during the academic year 2017-2019

Date:

____________________ _________________
Prof. Veena Chavan Dr. Anjali Kalse
Project Guide I/c Director
BVIMSR BVIMSR
 INDEX

Chapter No. CONTENTS PG. NO.

EXECUTIVE SUMMARY
1. Introduction 1
1.1 Objectives of Study 2
2. Company Profile 3
2.1 ICICI LOMBARD 3
3. Conceptual Framework 6
3.1 Introduction to Insurance 6
3.2 History of Insurance 7
3.3 Principles of Insurance 8
3.4 General Insurance 10
3.5 History of General Insurance 14
3.6 Types of General Insurance 16
3.7 Role of General Insurance in Economy 21
3.8 Legal Requirements of General Insurance 23
3.9 Claim Procedure 25
3.10 Changing Scenario of General Insurance Market 30
4. Resarch Methodology 33
5. Data Analysis an Interpretation 34
6 Conclusion 44
7. Suggestions and Recommendation 45

8. APPENDICES 46

9. BIBLOGRAPHY 49
 EXECUTIVE SUMMARY

Insurance contracts that do not come under the ambit of life insurance are called
general insurance. The different forms of general insurance are fire, marine, motor,
accident and other miscellaneous non-life insurance.

The general insurance business [nationalization] Act 1972 is design to bring about
improvement in the economy through development, regulation and control of general
insurance business in the best interest of community. It defines general insurance
business as fire insurance, marine insurance and miscellaneous insurance business. To
secure insurance business, to secure the interest of the investors, the government
decided to nationalize 112 general insurance companies operating in the country and
established a general insurance corporation [GIC] under the provisions of general
insurance act 1972.

After a process of mergers and consolidation, GIC was re-organized with four fully
owned subsidiary companies: National Insurance Company Limited, New India
Assurance Company Limited, Oriental Insurance Company Limited and United India
Insurance Company. GIC and its subsidiaries had a monopoly on the general
insurance business in India until the landmark InsuranceRegulatory and Development
Authority Act (IRDA Act) of 1999 came into effect on 19 April 2000. GIC was
notified as India's Re insurer, but its supervisory role over its subsidiaries was ended.
This was followed by the General Insurance Business (Nationalization) Amendment
Act of 2002. Coming into effect from 21 March 2003, this amendment ended GIC's
role as a holding company of its subsidiaries. The ownership of the subsidiaries was
transferred to the Government of India. As a result of these reforms, GIC became the
sole Re-Insurer in India, and is now called GIC Re. Indian insurance companies are
required by law to cede 5% of every policy value to GIC Re with the effect of 1 April
2013, subject to some limitations and exceptions.

This project studies the concept of general insurance in India and the marketing of
general insurance in India. The study of the project is to know about the trends of
general insurance in India and the developments done in general insurance. It also
includes that how much growth of general insurance has taken place in India.

The project consists of primary and secondary data.