Introduction:

Organizational functioning is an important factor for any organization to achieve the desired goals and objectives. This requires co-ordination at all levels to ensure smooth functioning. This report aims to understand the functioning of Insurance Company at different levels in each department.

Scope of study:
Organization study helped to know the real picture of the organization, its functions, policies, procedures, methods. This study aims to familiarize with business organization and to analyze the functioning of the organization.

Objectives of the study:

To understand the practical application of the theoretical aspects learnt in classroom. To study the organization as a whole and to study the different departments of

Oriental Insurance Company Ltd., in detail. To observe the various activities in the company. To analyze how the various functional departments work. To familiarize with the business organization.

To find out management problems if any and suggest suitable measures to overcome them. To enable ourselves to understand how the key business process are carried out in To understand how information is used in organization for decision making at various

organizations. levels. To understand the market trends and get hawk eyes view of the booming sector and

find the reason behind it.

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To understand how the service department works and the rules followed by the

employees in service department while they are working. The project walks the reader through the real scenario of functioning of an Insurance company. It begins with an introduction explaining the Industry profile. Next, there is a detailed description of the company, its mission, objectives and functioning of various departments.

INDUSTRY PROFILE
Introduction:
A good life is a beautiful dream. We love building our house brick by brick, acquire assets tastefully and aspire to make life comfortable every day. Business security and personal safety in the present times concern everyone. Measures are taken to prevent things going out of hand yet and an element of fear keeps dotting us. Hard earned assets acquired during life time may be under some threat due to unforeseen circumstances. An industry or establishment may encounter a situation that may get out of the hands of human beings. Someone on the road may be insensitive to the precautions being taken to cross the road. Anything may happen anytime. Can we offset the uncertainty? Probably not. But this can be transferred very simply through the means of taking insurance. Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated. Insurance service is the main activities for which the company is established for.

Insurance is like a net for the economy of the country which takes care of the organizations from failure, like a circus man use a net to protect him in case he falls down while showing his activities.

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Why Do We Need Insurance?

Many of us have never had to make a claim on our insurance. Therefore when we continue to write the check month after month, we feel as if we are pouring money right down the drain. Even though you've never had to make a claim on your insurance, there is a good reason that its there. Naturally insurance is there to protect yourself and your investment, but let's face it; many of us wouldn't bother with insurance if it wasn't required by law or the bank. Not only does insurance protect you and those around you, it is an unsung hero of America's economic success. Think about it for a second, who else has a stake in protecting your property; if you lease your car or mortgage your house, then the bank does. They want to make sure that their investment is protected. Banks wouldn't want to lend out money unless they knew that there was a really good chance that they'll get their money back. Consequently, insurance provides protection for the consumer lending process which is the backbone of the American economy. You might say that insurance greases the wheels enterprise.

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Product Profile
The oriental insurance company deals with the following policies:
Fire insurance which is given for building: Fire insurance is a form of property insurance which protects people from the costs incurred by fires. When a structure is covered by fire insurance, the insurance policy will pay out in the event that the structure is damaged or destroyed by fire.
a.

Motor insurance for all kinds of motor vehicles: Motor insurance is insurance purchased for cars, trucks, and other road vehicles. Its primary use is to provide protection against physical damage resulting from traffic collisions and against liability that could also arise there from.
b.

Marine insurance: Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.
c.

Engineering insurance: This kind of insurance is provided for factories and machineries.
d.

Rural insurance is a service given for cow, cattle, sheep, etc. Some of the rural insurance policies are:
e.

bhagyasree child welfare policy cattle insurance cycle rickshaw insurance policy
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dog insurance fish in ponds (embankments) insurance of fish in ponds gramin accident insurance janata personal accident policy khalihan insurance package policy kissan agricltural pumpset insurance kissan package insurance policy poultry insurance rabbit insurance plantation/horticulture insurance rajrajeshwari mahila kalyan bima yojna (new) sericulture (silkworm) insurance tea plantation insurance universal health insurance scheme

Health insurance: Insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policyholder.
f.

Popular Policies of the company:

PNB - Oriental Royal Mediclaim Policy Motor Policies - Terms & Conditions Comprehensive Health Insurance Scheme Electronic Equipment Insurance Policy Group Mediclaim Policy Householders Insurance Policy Individual Mediclaim Policy
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Kissan Package Insurance Motor Cycle Package Policy Nagrik Suraksha Policy Office Umbrella Policy Overseas Mediclaim Business and Holiday Overseas Mediclaim Employment and Study Pedal Cycle Insurance Policy Personal Accident - Individual Private Car Package Policy Shopkeeper's Insurance Policy Swasthya Bima Policy Sweet Home Insurance Policy Universal Health Insurance Scheme

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COMPANY PROFILE

The Company is a pioneer in laying down systems for smooth and orderly conduct of the business. The strength of the company lies in its highly trained and motivated work force that covers various disciplines and has vast expertise. Oriental specializes in devising special covers for large projects like power plants, petrochemical, steel and chemical plants. The company has developed various types of insurance covers to cater to the needs of both the urban and rural population of India. The Company has a highly technically qualified and competent team of professionals to render the best customer service. Oriental Insurance made a modest beginning with a first year premium of Rs.99, 946 in 1950. The goal of the Company was Service to clients and achievement thereof was helped by the strong traditions built up overtime. ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+ operating Offices in various cities of the country. The Company has overseas operations in Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+ employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores in 1973 and during 2008-09 the figure stood at a mammoth Rs. 4077.90 crores.

Mission:
To contribute to the socio economic objectives of the nation by being a vibrant and viable organization catering to the growing insurance needs of the community. Towards this end we will strive for effective management of business operations. To develop general insurance business in the best interest of the community. To provide financial security to individuals, trade and commerce by offering insurance products and service of high quality at affordable cost.

The main mission of the Oriental Insurance Company Ltd is to maintain the position of the most dynamic organization and serve the needs of people in all kinds of insurance requirements immediately and thereby make standing contributions to the socio-economic objectives of the nation and reach for efficient management of business operations. To contribute to the socio economic objectives of the nation by being a vibrant and viable organization catering to the growing insurance needs of the community. Towards this end we will strive for effective management of business operations.

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Values:
Highest priority to customer needs. High standards of public conduct. Transparency in operations.

Corporate Objectives:
1. To serve better the insurance needs of the entire community, keeping CUSTOMER as the focus. 2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide quality service. 3. To manage Business profitably, manage funds judiciously and deploy investible funds for optimum yield. 4. To optimise the retention of Indian business and conduct reinsurance and international operations in the best interest of the country. 5. To work towards minimisation of losses and develop Risk Management Technologies. 6. To function as a strong and dynamic non-life insurer.

History:
Oriental Insurance Company Ltd, a subsidiary company of the General Insurance Corporation (GIC) of India, started its operation in India on 12th September 1947 at Bombay (now Mumbai) as a public sector company. The company became a subsidiary of Life Insurance Corporation of India in 1956 and continued to serve as such till 1973. The company was promoted by Sir Purshotamdas Thakurdas, chairman of Oriental Government Security Life Assurance Company ltd. When the company commenced its operations, Sir Cowasjee Jahangir became its chairman and continued in that position till 1955. The goal of the company was Service to the clients, that is to get involved in the business of general insurance thus catering to the needs of all kinds of people. The company is famous for their coverage of products associated with steel and chemical plants, petrochemical and power plants. After the nationalisation of Life insurance business in 1956, the company became a subsidiary of Life Insurance Corporation of India. In 1959, four regional offices were set up at the 4 metro centres in India and then the existing branches were upgraded as Divisional offices. On the nationalization of general insurance business in 1973, Oriental became one of the 4 subsidiaries of GIC. 10 Indian companies and 12 foreign companies were merged with
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Oriental. In 1974, the registered office and head office of the company were shifted from Bombay to New Delhi. To reflect the gamut of the operations of the company, the name of the company was changed from The Oriental Fire and General Insurance Company Ltd to The Oriental Insurance Company Ltd. In 2002, after the Insurance Amendment bill was passed, the company was de- linked from GIC and all its shares has been transferred to the Central government. The company has evolved in great respects over the years and slated to become one of the leading insurance companies of the country.

Growth:
Oriental Insurance Company Ltd. has its head office at New Delhi and 26 regional offices all over the country. Apart from this the company also has over 900 operating offices and overseas operation, mainly in Kuwait, Dubai and Nepal. The company presently has around 15,000 technically qualified, effective, committed and highly trained workforce covering various segments. The Solvency Margin as of 31st March, 2009 is 1.66 in comparison to the desired Solvency Margin of 1.5 made compulsory by the Indian Regulatory Body, IRDA. A pre-tax loss of Rs 82.66 crores & post-tax loss of Rs. 52.66 crores for the year 2008-09 was recorded after considering the income from the dividend, interest and rent of Rs 608.23 crores and Profit on sale of Investments of Rs 387.39. The company recorded the gross premium income in India during the year 2008-09 at Rs. 3964.26 and abroad at Rs. 113.64 crores in comparison to Rs. 92.07 in the previous year registering a growth of 4.55%. On the other hand the net premium income both in domestic and foreign operations recorded a rise of 12.38% from Rs.2878.67 crores in 2007-.08 to Rs. 3235.10 crores in 2008-09. An overall surplus of Rs. 15.27 crores was registered in the company's foreign operations. The company has gone ahead to make itself more technologically updated and IT friendly and have their very own websites. The implementation of Integrated Non-Life Insurance Application Software (INLIAS) in their company has ascertained a better customer service. Furthermore, the company has been credited with the highest rating by leading Indian Credit Rating Agencies (CRISIL) and ICRA and AM Best, an international rating agency, rated the company as B++ (Very Good).

Year 1950 1973 2004-05 2005-06 2006-07 2007-08 2008-09

Gross Direct Premium(in lacs) 1 58 309055 360977 402078 390020 407790

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Management:

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Chairman-Cum-Managing Director Directors

Dr. R.K.Kaul Dr. R.K.Kaul K.R.Kamath Lalit Kumar S. K. Chanana D. Singh

General Managers

S. K. Chanana D. Singh S. Surenther Niraj Kumar A. K. Saxena N. K. Singh K. K. Rao

Financial Adviser Chief Vigilance Officer Divisional Manager ( Mysore Division 2)

S. Surenther Nawang Tobdan, GM Krishnanand

MCKINSEYS 7S MODEL
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The 7-S-Model is better known as Mc Kinseys 7S. This is because the two person who developed this model. TOM peter & Robert waterman have been consultants at Mc Kinseys & Co at that time. They published their Books The Art of Japanese management and In search of the difficulties of organization changes. The model shows that the organizational immune systems and many interconnected variables involved makes change Complex and therefore an effective change effort must address many of these issues simultaneously.

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STRUCTURE:
In general structure is referred as the framework in which the activities of the organizations members are coordinated. The offices of oriental insurance company are categorized under the following parts.

Head office (New Delhi)

Regional Offices (26)

Operating Offices (900+) Divisional office 2

Divisional office 1

Branch I

Branch II

Branch III

SKILLS:
Skills refer to the fact that employees have the skills needed to carry out the companys strategy. Skills can be acquired by Experience, Training and Development it ensures people known how to work and stay update with the latest techniques. The different methods used at Oriental Insurance company are:

Attending conferences or sessions. On the Job training. Managerial training. Agency training system.

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STYLE:
The company practices Top down approach in decision making.
If the problem is minor then decision is taken at lower level and the problem is solved

at low-level management. They have the authority to make decisions which are not critical. If the problem is major than it will be informed to top level management and necessary actions will be taken.

STRATEGY:
Strategy is a set of integrated actions to attain the corporate objective sustainably through competitive advantages. Strategy is the pattern or plan that integrates organizations major goals, policies, and action sequences into a cohesive whole. Product Strategy: Oriental Insurance is a known for its quality service. It has been offering wide range of products to cater to any insurance need. Besides standard products, tailor made insurance packages are also offered to meet the requirements of the market
Distribution strategy:

Oriental Insurance is a major Public Sector insurer in India, and has its presence across the country through more than 1000 offices. The Company has a strong marketing infrastructure in place and is reaching out to its clients through its offices and agents to provide personalized services.

SYSTEMS:
Every organisation has some systems or internal processes to support and implement the strategy and run day-to-day affairs. For example, a company may follow a particular process for recruitment. These processes are normally strictly followed and are designed to achieve maximum effectiveness. Oriental insurance company follows a bureaucratic-style process model where most decisions are taken at the higher management level. Special emphasis is on the customers with the intention to make the processes that provide high level of satisfaction to customers.
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STAFF:
Staff means a group or team formed to carry out a particular function or a task. The strength of the company lies in its highly trained and motivated work force that covers various disciplines and has vast expertise. The Company has a highly technically qualified and competent team of professionals to render the best customer service. The employees of the company are divided into four classes for the purpose of administration and occupation. They are:

Class 1
This class has different kinds of scales based on the occupation and profession of personnel. This includes Managing Director/chairperson General Manager/GM Deputy GM Regional Manager/RM Senior Division Manager/Manager Deputy Manager/DM Assistant Manager/AM Administrative Manager Delhi [head office] categorized under scale 7 categorized under scale 6 categorized under scale 5 categorized under scale 4 categorized under scale 3 categorized under scale 2 categorized under scale 1

Class 2
This class of personnel includes those individuals who are concerned with the development and expansion of the company, that is development officers responsible for the growth and development related issues.

Class 3
Includes those who are mostly supportive and for the day to day activities of the organization such as senior assistants, record clubs, stenographers, underwriters etc.

Class 4
These categories of employee are called Sub staffs and they give assistant for all the classes mentioned above. They give services like tea, cleaning, etc.

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FINANCIALS:
Gross Direct Premium: In India

Fire 2008-09 2007-08

Marine 2008-09 200708

Miscellaneous 2008-09 200708

Total 2008-09 200708

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Gross Direct Premi um: In India Outside India Gross Direct Premi um Total Net Premi um Ratio of Net to Gross Profit on Sale of Investments (Policy Holders) Int./Div./ Rent (Polic y Holde rs) Commission and other income (Net Income(+)/ Net Outgo (-)) NPA (Provision (+)/ Write back(-)) Diminution in value of shares (-)/ written back (+) Increase (-)/ Decrease (+) in unexpired risks reserve

44066

33259

319101

396426

2296 46362

47820 1786 49606

1588 34847

33906 1261 35167

7480 326581

299087 6160 305247

11364 407790

380813 9207 390020

31947

29712

17715 50.84 % 1292 (7.29%)

18629 52.97 % 1851 (9.9 %) 1851 (9.9%)

273848 83.85 % 23765 (8.68%) 37313 (13.63% ) -18689 (-6.83%)

239526 78.47 % 34715 (14.5% ) 34730 (14.5% ) -12737 (-5.3%)

323510 79.33 % 27786

287867 73.81 % 40035

68.90 % 59.90 % 2729 (8.54 %) 4284 (13.41%) 3470 (11.7%) 3469 (11.7%)

(8.59%) (13.9%) 43626 40051

2029 (11.45% ) -1251 (-7.06%)

(13.48% (13.9%) ) -20319 (-6.28%) -13100 (-4.6%)

-379 (-1.19%)

679 (2.3%)

-1042 (-5.6%)

132 (0.41%) -16 (-0.05%) -454 (-1.42%)

71 (0.2%) -1 (-0.0%) 2730 (9.2%)

63 (0.36%) -7 (-0.04%) 785 (4.43%)

38 (0.2%) 0 (0.0%) -1689 (-9.1%)

1152 (0.42%) -143 (-0.05%) -17161 (-6.27%)

705 (0.3%) -9 (0.0%) -1284 (-0.5%)

1347 (0.42%) -166 (-0.05%) -16830 (-5.20%)

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814 (0.3%) -10 (0.0%) -24 (-0.1%)

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Net Incurred claims

-36245 -31037 ((113.45% 104.5% ) ) -10583 -10688 (33.13%) -77 (-0.24%) -65 (-0.20%) -8727 (36.0%) -74 (-0.2%) -8 (0.0%) -1677

-17226 (97.24%) -5613 (31.68%) -37 (-0.21%) -31 (-0.17%) -2281

-11008 (59.1%) -5560 (29.8%) -39 (-0.2%) -4 (0.0%) 3027 (16.2% )

-252248 (92.11%) -75248 (27.48%) -671 (-0.25%) -561 (-0.20%) -28643 (10.46%)

218177 (91.1%) -66112 (27.6%) -738 (-0.3%) -76 (0.0%) 10543 (4.4%)

-305719 (94.50%) -91444 (28.27%) -785 (-0.25%) -657 (-0.20%) -39651 (12.26%) 17197 10953 2659 -8842 -94 -1167 4837 -5266 -5266 00 00

260222 (90.4%) -82360 (28.6%) -851 (-0.3%) -88 (0.0%) 11893 (4.1%) 17118 17110 -1886 44235 000 -4429 -38876 930 53 750 127

Expenses of Management Amortizatio n expenses Investment Written off Net Operating Profit

(- (-5.6%) (27.32%) 12.87%) Interest, Dividends & Rent (Shareholders) Profit on sale of Investments (Shareholders) Other Income/ Outgo Profit (+) / Loss (-) before Tax Prior period income & expenses IT deducted at source and Provision for Tax Provision for Tax for earlier years Net Profit/ Loss after Tax Transfer to General Reserve Provision for Dividend Corporate Dividend Tax

Five Year Digest (Amount in lacs) 2004-05 2005-06 2006-07 Gross Direct Premium Net Premium Net Claims Operating Expenses 309055 221802 360977 250046 402078 287974 2007-08 390020 287867 2008-09 407790 323510

305719 190838 206475 235885 260222 (86.0%) (82.6%) (81.9%) (90.40%) (94.50 %) 72988 85076 75423 (32.9%) (34.0%) (26.2%) 82360 91444

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(28.6%) Underwriting Profit / Loss (-) ** Interest, Dividend and Rent ** Profit Before Tax Profit After Tax Paid-up Capital General Reserve Reserve for Unexpired Risk Capital Reserve & Other Reserve 21338 (9.6%) 14918 47170 33052 10000 131836 111937 2565 14438 29833 (5.8%) (10.3%) 12169 33419 28392 10000 154526 126399 2565 15732 62964 49727 10000 192553 145295 2565 11893 (4.1%) 17118 44235 930 10000 192606 145539 2565

(28.27%) -39651 (12.26 %) 17197 -8842 -5266 10000 187339 162369 2565

MYSORE DIVISION 2

Functional departments of Oriental Insurance Company:

There are five independent functional departments in the company which are integrated. These departments are: 1. 2.
3. 4. 5.

Accounting department Personnel department Legal department Agency department Claims department

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ACCOUNTS DEPARTMENT
At its most fundamental, accounting is the development and communication of the financial and operational information necessary for management decisions in both the private and public sectors. Accounting seeks to measure the results of an organization's economic activities and convey this information to management, investors, creditors, regulatory agencies, consumers, and employees. Under this broad definition, the field includes such distinct areas as auditing, management accounting, financial accounting, international accounting, tax accounting, and public-sector accounting The work of the accounts office falls mainly under the following divisions:1) Administration, 2) Booking and Compilation, 3) Budget, 4) Cash and Pay, 5) Compensation Claims, 6) Establishment Accounts, 7) Finance and Planning, 8) Inspection (Executive and Accounts Offices), 9) Other expenditure accounts including departmental catering accounts, 10) PF and pension. There are three basic functions of Accounts Department viz. Accounting, Finance and Payment

Accounting: - a) Keeping the books of accounts in accordance with the rules, b) Internal check of transactions affecting the receipts and expenditure, c) prompt settlement of proper claims

Finance: - a) Tendering advice to the administration in all matters involving finance, b) Compilation and control of budget in consultation with the other departments, c) ensuring no financial irregularity in the transactions

Receipt and Disbursement: - a) Making payment to the bonafide payees, b) Preparing payment schedule and arranging payment to the labour accordingly, c) Collection and deposit of cash received.

Structure of the Accounts department:

Divisional Manager

Accounts In-Charge

Assistants (2)

Accounts In-Charge of other branches

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Main accounting functions:

Maintain proper books of accounts on a day to day basis. Analyze, reconcile and summarize transactions periodically. Compile and prepare accounts periodically and audit thereof. Exercise financial, internal and budgetary control. Present accounts for review of the superior office. Deduction of tax and remittance of the same to tax authorities. Issuance of certificate of tds and returns to be filed. Service tax interpret financial statements rating/pricing decisions Posting cheques for settlement of claims Monitoring bank reconciliation, deposits and misappropriations. Keeping track of unsettled claims Analyzing all transactions and preparing reports.

Modes of premium acceptance:

Cash Cheque/ dd/ pay order Bank guarantee Cash deposit Coinsurance

Disbursements/payments
Claims
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Management expenses Acquisition cost Capital expenditure Premium refund Other payments e.g. advances, deposits

Reports to be prepared

Final report on 31st March every year Quarterly Reports:

Trial Balance Group Underwriting Cell (GUC) returns Income tax returns Monthly Report Tax Remittances

Returns to Regional office about Service tax on premium Service tax on input services Service tax on Auxiliary services [Note: Auxiliary services are Insurance commission for agents, brokers] Note: All reports/accounts should match with Regional office accounts.

Income and expenses:

PREMIUM - the revenue earned through selling of policies is the premium income. CLAIMS claims is the outgo for settlement of clients losses. It includes legal expenses, survey fee and court fee. ACQUISITION COST expenses for procurement of business and is the outgo department wise. POLICY STAMPS- policy stamps are charged directly to the dep't.
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MANAGEMENT EXPENSES all expenses incurred for running of business. RESERVES FOR UNEXPIRED RISK- 100% of the net premium in marine hull dep't. and 50% for other dept is to be provided. DEPRECIATION depreciation on capital items is provided as per income tax act.

AUDIT:
INTERNAL AUDIT STATUTORY AUDIT GOVT.AUDIT TAX AUDIT

INTERNAL AUDIT:
The accounts of all the offices of the Company shall be regularly audited by the auditors who shall be full time Employees of the Corporation. A Summary of the Internal Audit Reports shall be placed before the Executive Committee.

STATUTORY AUDIT:

The accounts shall be audited by auditors duly qualified to act as auditors of the Company and the auditors shall be appointed by the Company with the prior approval of CAG. The Auditor shall submit report to the Company and a copy to CAG.

GOVERNMENT AUDIT:

Conducted by and on behalf of CAG. As and when Government Auditor wish to take up the Audit of Office intimation for the same is given in advance by them to HO. HO in turn intimates their program to RO/DO. Recovery pointed out by Government Auditors must be made at the earliest.

TAX AUDIT:
Under Section 44-B of Income Tax Act, 1961.
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Auditor appointed by the Company Law Board. Operating Offices must furnish information in Form 3-CD and ensure tally with the T.B.

PERSONNEL DEPARTMENT
The department or support systems responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations. A personnel department is a critical component of employee well-being in any business, no matter how small. Its responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.
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The term personnel department refers to the function of the organisation that is responsible for the management and motivation of people in the workplace.

Structure of the personnel dept:

Divisional Manager Assistant Manager Assistant

The personnel department of this company looks over the benefits of their employees. The Benefits Office designs and administers a variety of programs that comprise a large portion of an employee's total rewards package 1. Festival Advance 2. Leave Travel Subsidy 3. Encashment 4. Lump Sum Medical 5. Transfer Grant 6. Disturbance Allowance 7. Housing Loan 8. Special Sick Leave 9. CMDs Relief fund 10. Maternity Leave 11. Adoption Leave 12. Kits Allowance 13. Halting Allowance 14. Insurance Examination I.I. 1. Festival Advance: Class I officers 13,000/Class II, III, IV 11,000/Part time employees 5,500/-

2. Leave Travel Subsidy(LTS): Class I: Basic below 8055/- II class sleeper Basic above 8055/- II AC
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Class II: Basic below 5375/- II class sleeper Basic above 5375/- II AC Class III: Same as Class I Class IV: II class fare or 268/II class sleeper or 452/-

3. Encashment: For all classes, 15 days encashment of earned leave is payable and 15 days leave should be taken once in two years.

4. Lump Sum Medical: Scale I to above officers, every year lump sum medical of 6000/- is payable. For Class II, III - 2000/- is payable.

5. Transfer Grant: 1 month Basic salary is payable for Class I officers. Class II - 750/- for basic up to 15230/1000/- for basic above 15230/Class III, IV- One month basic salary on promotion or 500-1000/- is payable.

6. Disturbance Allowance: Disturbance Allowance of 400/- per month is payable for class III & IV only on transfer under Transfer and Mobility Policy (TMP). Its not applicable for officers.

7. Housing Loans: Sub staff 400000/RC 500000/B N BAHADUR INSTITUTE OF MANAGEMENT SCIENCE. Page 26

Senior Assistant to Assistant 600000/Development officer Grade I 650000/Scale I & II officers 700000/Scale III 800000/Scale IV & V 8500000/Scale VI 900000/Scale VII 1000000/Housing Loan is availed only Twice in the service.

8. Special Sick Leave: Special Sick Leave can be granted on half pay basis for not exceeding 6 months for 8 major diseases. They are:

9.

Cancer Leprosy TB Paralysis Brain Tumour Cardiac Ailment Kidney Diseases AIDS or Mental Diseases. CMDs (Chief Managing Directors) Relief Fund: For major illness 2 times in service up to a maximum 5lakhs per illness

10. Maternity Leave: For female employee including PTS not exceeding 180 days in respect of each confinement not exceeding 12 months in service including miscarriage, medical termination of pregnancy. 11. Adoption Leave: Adoption Leave can be given for a childless female employee, not exceeding 2 months in respect of only one child.

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12. Kits Allowance: Kit Allowance is provided one time on transfer to hill station. Class I 2000/Class III & IV 500/-

Uniforms: Sub-staffs: 5 sets & 1 set shoe for every 2 years and 1 pair chappal for male employees and female employees every year.

13. Halting Allowance: In addition to all the above facilities, halting allowance and hotel charges are also paid. It depends on the scales and the class of cities (A, B, C).

14. Insurance Examination I.I.I

Licentiate Examination 115/Associate ship Examination 325/Fellowship Examination 540/-.

LEGAL DEPARTMENT
Legal department is responsible for providing legal services and advice to the company, its divisions and employees. The department office faces a great number of different legal matters. These matters include: business development, contract management, real estate transactions, customer claims against the company for product damages and defects, litigation, employment law, sales and leases matters, debt collection, bankruptcy, case prosecution, and much more. All these activities create the workflow of Legal department. If
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to look at the workflow in whole, the following main functions of the legal department can seen:

1. Providing legal advice and guidance:

This is a core function of Legal department. During the company's everyday life, there are a lot of legal issues which require qualified advice from Lawyers and Legal Advisors. This is about giving advice for resolving such issues as sales, purchasing, customer support, partnership, licensing, and other. The implementation of the function is based on the following activities the department concerns: Giving advice to the company, its divisions and employees on matters of law and legal protection Keeping company activities in strict compliance with new legislation Representing company in all meetings, conferences and public events

2. Prosecution of cases in courts and litigation management:

Legal department represents and defends the company interests and its employees in courts and government bodies. The department initiates litigation in case of court examinations, and the legal staff members are responsible for creating and enforcing ordinances and gathering existing claims in favour of the company. This function is fulfilled by the following activities: Preparation of protocols, claims and counter-claims to courts Representation of company in courts Protection of company's rights and interests in judicial sittings

3. Documentation, preparation and drafting:

This function concerns legal part of document management. Law department is responsible for drafting documents in forms which do not contradict or infringe existing legislation, both local and international (if company conducts oversees activities). The fulfilment of this function is based upon the following activities:

Creation of legal documentation requirements Drafting and approving document layouts

Complying documentation with existing local/international agreements and legislation.

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Hierarchical structure of legal department:

Divisional Manager Officers (five)

Assistant

Senior Assistant

Record Clerk

Sub Staff

FUNCTIONS & DUTIES OF LEGAL DEPARTMENT:

Rendering effective legal assistance in the preparation of legal opinions, studies, reports and correspondence, as required from time to time by various Heads of Departments. Ensuring the providing of appropriate legal advice on a diverse range of substantive and procedural questions of law arising in administrative functioning of DDA including advice in arbitration matters, to firmly secure the interest of DDA, as required by the operational departments. Supervising and overseeing the review, negotiation and drafting of major contracts, tender documents and other legal documents, as required by the operational departments.

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 Supervising legal research and analysis, indentifying important issues and apprising the operational departments of emerging legal trends from court decision and tendering advice to avoid unnecessary litigation, etc. Serving on various Standing Boards, Committees, ad-hoc working groups and task force, as required, to take care of legal niceties in framing of policies. Monitoring the performance of the panel lawyers and rendering advice on formation of new panels. Assigning court cases to different panel lawyers keeping in view the nature and importance of the cases. Supervising and monitoring the contesting of the cases in various courts of law and to have interaction with Panel Lawyers, Courts, ASG and other Law Officers of Govt. for their assistance in DDA matters in Revisions, Reviews, SLPs. Etc. Advising in the matter of preferring of appeals in superior courts and in the matter of taking recourse to other legal remedies. Advising in vigilance matters as referred to Legal Branch.

Processing of various Fee Bills of advocates and settlements of fee etc., with other advocates. Assisting the operational departments in preparing of reply to legal notices received. Any other duty/task assigned by Vice Chairman, DDA.

Terms and Conditions:

Policy is issued only for one year i.e. its an annual policy. Policy is issued only after inspection of the vehicle. No refund is made in case of any damage. Claim can be made only on accident to any third person or third persons property.

[Note: cases will be taken on behalf of any branch of Oriental Insurance Company]

Procedure:

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Once an accident occurs and an FIR is filed in the police station, the petitioner (third party) files a suit against the Insurance Company and the owner (policy holder). Step 1: Process begins once summons copy is received from the local court. This also includes crime number, place of crime, etc. Step 2: Registered post is sent to the insured address asking for details regarding DL, RC book, policy copy and other essentials. Step 3: Appointment of an investigator (private). The investigator will submit report consisting details regarding the DL, RC book, FIR, charge sheet, policy copy, IMV (medical) report, investigation report, evidence. Step 4: Submission of medical report to the insurance company by the petitioner.

Step 5: Appointment of an advocate [panel advocate]. [The investigator and the advocate are paid certain fee for the service rendered] Step 6: The advocate will appear in the court on behalf of the insurance company with the petition copy and get a hearing date and prepare for the case. Step 7: The advocate will submit the written statement or objection statement. Step 8: After all legal proceedings, judgement is made. Step 9: Based on the judgement, settlement of claims is done. (Compensation is fixed by the court and the interest on the amount is calculated from the date of petition) Step 10: If not satisfied with the judgement, the petitioner can make an appeal at a higher court. (This will be handled by regional office)

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CLAIMS DEPARTMENT

Claims department claims insurance for the following accidents

Personal accident Road accident Fire accident(floods) Marine(local, air) Miscellaneous

Documents required for claims made on motor vehicle insurance:

1. 2. 3. RC book Driving license Police complaint( these are the documents required for vehicle)

And some of the other documents required for claims are police report, fire brigade report, weather report etc, depending on the type of accident.

Documents are verified on the basis of:

Insurance date/period Sec 64(insurance/premium paid within the premium period)

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Claim form and relevant documents

Surveyor is appointed based on the estimate of loss occurred and insurance amount will be estimated by the surveyor. For major claims investigator is appointed and depending on the claim survey is conducted.

Settlement of claims:
The insurance amounts are cleared by the staff members of the department: Category A: Above Rs 2 lakhs Category B: less than or equal to Rs 2 lakhs Divsional manager : Rs 1.5lakhs Category C: Rs 1 lakh

Scale 2: Assistant manager: Rs 25000 Scale 1: Administrative officer: Rs 7500

Discounts on the premium of insurance: If there is no claim on motor vehicle insurance there will be discounts on premium

1st year 20% 2nd year 25% 3rd year 35% 4th year 45% 5th complete year 50% and this is the maximum.

IMPORTANT POINTS:
Motor vehicle insurance must be compulsorily
Insurance amount will be decided by court depending on party earnings. Insurance has to be transferred when there is a sale of vehicle from one person to

another. Premium of vehicle depends on cubic capacity(CC)

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 In case of theft full claim is settled.

Based on the age of the vehicle the value is depreciated at the level 50%max for metal

and 50% straight away for plastic and nil depreciation for glass parts. FIR must be reported immediately.
The claims are settled within 1week if all documents are given.

AGENCY DEPARTMENT
With the growth in the economic activity, the expanding Indian Market has opened new horizons which offer tremendous career opportunities to aspiring individuals and insurance is one such field. General Insurance in particular is one of the fastest growing sectors in the country and covers a wide range of risks relating to property, individuals and liability. General Insurance being a vibrant industry is a much sought after career option by the professionals. Oriental Insurance is a major Public Sector insurer in India, and has its presence across the country through more than 1000 offices. The Company has a strong marketing infrastructure in place and is reaching out to its clients through its offices and agents to provide personalized services. Any person with the required qualifications and marketing acumen can make a career with us as an Agent.

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The Company offers a wide range of products to cater to any insurance need. Besides standard products, Tailor made insurance packages is also offered to meet the requirements of the market. The demand is ever increasing, and so is the need to have a promising agency force to cater to the potential of the market, which may include industries, service organizations, business houses, hospitals, shops, property and individuals. The need for General Insurance products is there everywhere, whether it is a metro city or a town or a village.

Requirements/ Conditions to be an agent:

Should meet the requirements for becoming an Insurance Agent as prescribed by IRDA an inclination for becoming an active intermediary between the Customer and the Insurer the zeal for marketing

Procedure:
Successful completion of the prescribed training. After passing the examination, the person is qualified to become an agent of the company. Then on, the companys Agency Coach and Managers take over and train new agents on marketing different products.(policies) The Agent is entitled to commission, which is a prescribed percentage of the premium for each policy sold by the Agent. In addition Incentive Schemes are also launched from time to time for Agency force.

SWOT ANALYSIS

Strengths:

The divisional office is located in a prime area with good transport facility. The percentage of profits increasing has helped the company to maintain stability in

the financial operations. Quality service to customers

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Less labor turnover High degree of participation by employees and management Organization has strong and charismatic leadership The company is financially sound. On time delivery of products to the customer Good human resource policies and well maintained compensation management of the

company makes the laborers contented. Easy process of obtaining policies. Timely settlement of claims.

Weakness:
Poor infrastructure facilities. Less use of latest technology for operation Traditional way of record keeping. Promotions are based on seniority and also through written exams.

Opportunities:
Insurable population According to ING only 10% of the population is insured, which

represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured. People are being aware about investment, so the investment point of view there is Diversification of the products may be undertaken Capacity of meeting higher demand and attain optimum utilization of existing huge opportunity for ulip products

resources.
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More opportunities for client acquisitions through good Business development team

Threats:
Many big companies especially private organisation are trying to capture market Government policies and economic policies may affect growth potential. New entrants in the market may dilute the market share of the company. Competition is very severe in terms of price.

Findings:

Period of Policy: General Insurance policies are normally issued for a period of one year. These policies should normally be renewed before the date of expiry for maintaining continuity of insurance cover. For renewal of the policy, the underwriting office or the Agent concerned should be contacted before expiry of the policy. Some of the selected products may also be renewed online through the companys Portal.

Correctness: Insurance contract are contract of utmost good faith hence all material facts should be disclosed. Non-disclosure of material facts or incorrect statements / replies/ confirmation will render the insurance contract void ab initio (not legally binding) and the Company may repudiate any liability under the policy on account of non-disclosure of material facts / wrong declarations in the Proposal.

Premium: As per section of 64VB of Insurance Act no risk can be insured unless full premium has been paid in advance.

Distribution Channel: The insurance policies are issued by the Offices of the Company; however the licensed intermediaries viz. Agents and Brokers can help in arranging the insurance cover. Policies pertaining to some of the selected products are being issued online.

Any change in the Policy: In case there is any material change in the risk insured or if any change in the policy is required, the insured must inform the policy issuing
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office immediately. The changes will be duly examined and incorporated in the policy by way of Endorsement on payment of additional premium if applicable.

Claim- In the event of a claim arising under the policy, immediate notice of the same must be given to the policy issuing office. Subsequently the required documents including Claim Form duly filled in are required to be submitted forthwith for speedy settlement of the Claim. Service centres: They have setup Service Centres in all major cities for centralized settlement of Motor Claims. Grievance Mechanism: In case there are any grievance relating to the services of the Company the customers may get in touch with Customer Service Department for quick resolution of the grievance. The grievance can also be lodged and tracked through the Portal.

Suggestions:

The company should upgrade itself with the latest technologies available for increased efficiency and effectiveness. More opportunities for growth of the employees in the organization should be made available, not based only on seniority but also focused on capabilities of employees. Participative style of leadership should be encouraged. It should provide better facilities to all departments. In order to cope up with the intense competition in the market the company has to focus more on its promotional activities and increase its volume of business. Should conduct more training programs on personality development.

Conclusion:
After completing our study in the oriental insurance, we understood why insurance is so essential or a must do thing for every individual at the micro and organisations at the macro. We acquired lot of practical knowledge, we were able to understand the practical applications of the insurance theories, understand the know- how and technicalities of an insurance company, the way how the personnel reach their targets and the basis of classification of insurance policies, how they market their insurance policies, the various areas of risk that are covered under their policies, how the bonafide parties claim their money, what are the skills sets and abilities that a insurance company looks in an individual while hiring, the different classes of human resource department, and the overall functionality of the insurance company.

Bibliography:
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Company annual reports Company profile and brochures Website address:

www.orientalinsurance.org www.google.com

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