Chapter – I Introduction Objective of the Study Purpose of the Study Limitations of the Study Importance of the Study Research Methodology
1.1 Introduction A motor insurance or an auto insurance or more popularly known as a car insurance, is an insurance cover which is meant to protect your vehicle against the losses incurred due to unforeseen instances. It covers you from the risk of loss from theft, loss from accidents or any subsequent liabilities. Motor insurance can be generally classified into 3 broad categories.
Car insurance: It covers all kinds of losses or damage by accident, fire, any kind of natural calamities, theft and the third party claims.
Two wheelers insurance: This type of auto insurance is meant for the two wheelers. It provides protection to the vehicle from the loss or damage from natural calamities like earthquakes, floods, hurricanes and man-made calamities like fire, landslide etc.
Commercial vehicle insurance: It covers all those vehicles which are not used for personal purpose. Vehicles like trucks, passenger buses, heavy commercial vehicle, light commercial vehicles, agricultural vehicles, multi-utility vehicles, ambulances etc are covered under this type of insurance. Motor insurance is also mandatory by the law. It is a legal requirement in India to have insured a minimal level of insurance protection before driving any motor vehicle.
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1.2 Objectives of the Study Primary Objective: To create an awareness about the Motor Insurance Policy of the XXX XXX Company
Secondary Objective: To identify the potential policy holders among end users and to create a relationship between the companies and potential customers. To find out the customer satisfaction level with XXX XXX company.
1.3 Purpose of the Study The purpose of this study is to analyze, find out and relate the various benefits & Features of Motor Insurance Policy provided by XXX. Creating Awareness on: Services Provided Draw Backs Benefits Conditions Claims etc.,
1.4 Limitations of the Study Even though every effort was made to complete all areas of the project, it still has its own limitations. Due to time constraints the sample was restricted to 50 respondents The time factor was not in favor as the period of study was limited to one month The respondents were willing to provide information. They were free to share their information The tools used for analysis has its own limitations
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1.5 Importance of the Study The importance of this project is concerned with the study of the Awareness of Motor Insurance Policy provided by the XXX XXX Company. Make an Aware of Features, Benefits and the Claims of a Policy Identifying the Customer needs and feedback on the existing policy The result arrived out of this study would know about their need for better performance in future Study on the benefits earned by the customer through the policy of XXX Gives suggestions to the customer to choose the services at the time of buying a policy
1.6 METHODOLOGY OF RESEARCH Methodology is usually a guideline system for solving a problem, with specific components such as phases, tasks, methods, techniques and tools. It can be defined also as follows: 1. "the analysis of the principles of methods, rules, and postulates employed by a discipline" 2. "the systematic study of methods that are, can be, or have been applied within a discipline" 3. "the study or description of methods".
1.6.1 RESEARCH DESIGN Research design is the plan, structure to answer whom, when, where and how the subject is under investigation. Here plan is an outline of the research scheme & which the researcher has to work. The structure of the research is a more specific outline and the strategy out, specifying the methods to be used in the connection & analysis of the data.
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1.6.2 DATA COLLECTION The main source of information for this study is based on the data collection. Data collected are both primary and secondary in nature.
Primary Data Primary data have been directly collected from the clients of XXX XXX Company by survey method through undisguised structured questionnaire. Questions like close ended, multiple choice, dichotomous and ranking type have been used for the purpose of data collection.
Secondary Data Secondary data have been collected from official website of XXX XXX Company and also from other official websites related to Motor Insurance Policy.
1.6.3 TYPES OF QUESTIONS Close ended question Close ended question are the type of questions with a clear declined set of alternatives that confine the respondents to choose one of them.
Multiple choice question It consists of multiple choices in which the respondents can choose more than one.
Likert scale It uses 5 point or 7 point scale to elicit respondent‟s favour or unfavour towards an object.
Dichotomous question It consists of two choices of answers in which the respondent has to choose one of them.
5
Ranking In ranking, questions will have the ranking skill, which the respondents are free to rank them according to their preference.
1.6.4 SAMPLING Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results back to the population from which they were chosen. When taking a sample from a larger population, it is important to consider how the sample will be drawn. To get a representative sample, the sample must be drawn randomly and encompass the entire population. Sampling is defined as a process used in statistical analysis in which a predetermined number of observations will be taken from a larger population. The methodology used to sample from a larger population will depend on the type of analysis being performed, but will include simple random sampling, systematic sampling and observational sampling.
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Chapter - II
Literature Review
7
2.1 LITERATURE REVIEW With the initiation of the deregulation in the Indian insurance market, the monopoly of big public sector companies in life insurance as well as general (non-life insurance) market has been broken. New private players have entered the market and with their innovative approaches and better use of distribution channels and technology, they are eating in to the shares of established public sector companies in Indian Insurance Market. McKinsey‟s director in India and banking industry expert Leo Puri says the openin g of insurance has been a smooth deregulation process. “The state mammoth, the LIC has not been estabilished and the objective of deregulation has been met. Employment has grown so as the insurance business.” “Consumer attitudes and perception about insurance have changed; Insurance is now considered a viable financial instrument to meet different needs.” Bajaj Allianz‟s Ghosh. In 2009-10, the life insurance sector grew by 10%. Life Insurance penetration (i.e. premium as a percentage of GDP) in India was 2.26% as against the global penetration level of 5.23%.The marketplace is getting competitive, but the market share of private insurance companies remains very low -- in the 10-15 percent range. The heavy hand of government still dominates the market, with price controls, limits on ownership, and other restraints. Indian insurance industry is anticipated to witness a 500% growth and reach to US$ 60 Billion in the coming four years, thanks to swelling demand in semi-urban and rural areas, reported industry chamber Assoc ham. Assocham stated that semi-urban areas would have a share of US$ 35 Billion and urban areas would account for US$ 25 Billion in the US$ 60 Billion industry. Anil K Agarwal, President, Assocham (Associated Chambers of Commerce and Industry of India), reported that a large segment of rural India is still untouched because of long distances, poor distribution and high return costs. A Research Analyst at RNCOS says that the progress in the semi-urban and rural areas
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would largely fuel the growth in insurance sector. The other factors that would boost the growth in this sector are improving economic scenario, increasing disposable incomes, and rising product demands. As part of the Federal Balanced Budget Act of 1997, Congress in United States created the Children's Health Insurance Program (CHIP) as a way to encourage states to provide health insurance to uninsured children. Jacob Alex Klerman (1997) in his report Health Insurance among children of unemployed parents addresses the problem of lack of health insurance for children in the United States. Using the data from the 1990, 1991, and 1992 panels of the Survey of Income and Program Participation, this report presents the interrelation between parental unemployment and children‟s health insurance coverage. As per the report nearly half of the children lose their health insurance because their parents lose or change a job. Rosemarie, Paul J Boben, Jennifer B. Bonney (2007) evaluates the State Children‟s Health Insurance Program (SCHIP) and how it has given state the freedom in providing more children with coverage. They found out that because of providing Health Insurance to Children it provides not only cover against medical bill but also participate in the customer health planning. Senate Bill Report (United States) (2005) on Regulating Life Insurance by Labor, Commerce and Financial Institutions evaluates 100 Life Insurance Companies to survey their practices with regard to the marketing and underwriting of juvenile insurance policies. In many cases, the average death benefit claimed, upon the death of an insured child, far exceeded the economic losses, such as funeral expenses. Concern exists that, while many well-meaning adults may innocently purchase inappropriate or unnecessary amounts of life insurance on children, some may actually be purchasing the policies with criminal intent. Some news stories indicate that some children are murdered in order to obtain insurance payments. The report suggest that Life insurers must develop and implement underwriting standards and procedures designed to detect and prevent the purchase of juvenile life insurance for speculative or fraudulent purposes, and maintain records of rejected applications for 10 years. Deborah Senn (2007) Insurance commissioner United States says that State needs stronger guidelines
for Children‟s
Life Insurance.
9
The survey
conducted indicates
that many companies offering juvenile life insurance do not appear to have strong standards in place to help prevent this kind of tragedy. ShaileshBhandari and Elizabeth Gifford (2005) in their paper on Children with Health Insurance investigate patterns of children‟s health insurance coverage and explore the characteristics of uninsured children. Using the data from the Current Population Survey (CPS), it provides national estimates of the number and percentage of uninsured children by age, race, family type and family income. According to Tom Menezes, in his work on “Life insurance for child”, June, 2007, Child Insurance is one of the fastest selling insurance products of the new era. Every insurance company should focus on innovative products and train the advisors to approach prospective customers. SmithaTripathi (2008) looks into how Higher education which used to be remarkably cheap in India is changing with remarkable swiftness. The paper discusses that parents should start saving for the child education even before he or she starts going to nursery school. If you are the type who likes starting early, it might be a good idea to start looking at insurance policies that matures when your child comes of age. Now that education is getting costlier, insurance companies are also realizing that it‟s important to offer new schemes. So, there are much more policies than ever before. These policies mature when your child comes of age and the money can be used for higher education or marriage expenses. The paper provides the information about the different type of child policies and which one suits you according to your need. Mr. Ian J Watts, Managing Director, Tata AIG Life Insurance (2006) says that Children Life insurance products not only meet the educational needs of children but also offer insurance cover. Considering the costs involved for pursuing higher education and also the competitive environment that a child is exposed to, the need for planning the education of a child is an important aspect for any parent. Alison Cuellar, Kelly J Kelleher, Jennifer A Rolls and Kathleen Pajer (2008) discuss that without the Health Insurance benefits many youths will not receive timely health care. The delinquent youths who have violated the law have typical poor physical and mental stress which leads to higher medical costs. David Gambrill (2008) points out the importance of Child Insurance. It‟s a changing world. Almost nothing remains the
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same like that your child dreams keep on changing. It‟s up to you to make sure that when time comes, she has the means to make her dreams come true. Sue Laing (2009) brings forward an often-overlooked issue, the financial impact that a child‟s illness or injury can have on family finances in her research paper Children‟s trauma: an undersold safety net. The
author shares her personal experience that clients accept the vulnerability of
their children far more readily than their own…this is just a matter of informing them of their options. Of those with whom children‟s trauma is discussed and perhaps debated, some will accept the advice to go for child insurance. The overall amount the parent‟s will be committing to their insurance package is relatively inexpensive as compared to the child‟s trauma. Though the returns are not very high, most financial planners recommend that you buy a children's policy. Sanjiv Bajaj, director, Bajaj Capital, says that "Children insurance policies ensure a disciplined saving mode for the child's future”. Moreover, since the returns are tax-free, you need not worry about what the tax structure will be like 20 years down the line." The US$ 41-billion Indian life insurance industry is considered the fifth largest life insurance market, and growing at a rapid pace of 32-34 per cent annually, according to the Life Insurance Council. Since the opening up of the insurance sector in India, the industry has received FDI to the tune of US$ 525.6 million. The government is likely to reintroduce the Insurance Bill which proposes to increase the FDI cap in private sector insurance companies from 26 per cent to 49 per cent.
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Chapter – III Industry Profile Company Profile
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3.1 INDUSTRY PROFILE 3.1.1 Introduction The outlook for the general insurance industry in India is stable as per the financial forecast that has been made. Over the medium and long term, India‟s insurance market will continue to experience major changes as its operating environment increasingly deregulates. On the one hand, a mix of new products, new delivery system and a greater awareness of risk will generate growth. On the other hand, the competition is expected to remain intense as private sector insurers and those about to enter India seek to win market share from the more established public sector entities. In 2006-07, India‟s general insurance market witnessed a variety of changes as deregulation continued at a hectic pace. With the removal of pricing controls on fire and engineering lies in 2007, insurers have since discounted their rates by 50% or more in their quest to retain or win market share. Furthermore, the number of private insurers is expected to grow as various foreign companies have announced intentions to establish joint ventures.
3.1.2 History of Insurance industry In some sense we can say that insurance appeared simultaneously with appearance of human society. In earlier economies, we can see insurance in the form of people helping each other. For example, if a house is burnt, the members of the community help build a new one. Should the same thing happen to one‟s neighbour, the other neighbors must come to help? Otherwise, neighbors will not receive help in the future. Insurance in the modern sense, started as a methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2ndmillenniaBC, respectively. Chinese merchants traveling treacherous river rapids would redistribute their cargo across many vessels to limit the loss due to any single vessel‟s capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing
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merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender‟s guarantee to cancel the loan should the shipment be stolen. Greek monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. They invented the concept of the „general average‟. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinking of the vessel in the sea. The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called “benevolent societies” which cared for the families and paid funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose. Before insurance was established in the late 17th century, “friendly societies” existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Greeks rulers in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in postRenaissanceEurope, and specialized varieties developed. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of this disaster, XXXholasBarbon opened an office to insure buildings. In 1680, he established England‟s first fire insurance company, “The Fire Office,” to insure brick and frame homes. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.
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3.1.3 Evolution of insurance industry in India–Important milestones In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrith), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers‟ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular.
Year 1818
Event The advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta.
1834
Oriental Life Insurance Failure
1850
The advent of General Insurance in India with the establishment of Triton Insurance Company Ltd in Calcutta
1870
The enactment of the British Insurance Act
1907
The Indian Mercantile Insurance Ltd was set up
1912
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business.
1928
The Indian Insurance Companies Act was enacted.
1956
Nationalization of Life Insurance Sector and Life Insurance Corporation .The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies.
1971
The General Insurance Corporation of India was incorporated as a company
1973
General insurance business was nationalized with effect from 1st January 1973. 107 insurers were amalgamated and grouped into four companies
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namely: 1) XXX XXX Company Ltd., 2) The New India Assurance Company Ltd., 3) The Oriental Insurance Company Ltd 4) The United India Insurance Company Ltd. 1993
The Government set up a committee under the chairmanship of RN Malhotra former Governor of RBI to propose recommendations for reforms in the insurance sector The IRDA was incorporated as a statutory body in April 2000.
2000
Foreign companies were allowed ownership of up to 26%. 2000-01
Insurance Industry had 16 new entrants, 10 in Life and 6 in General Insurance
2001-03
Insurance Industry had 5 new entrants, 2 in Life and 3 in General
2003-04
Insurance Industry had 1new entrant, Sahara India Insurance Company Ltd. In Life Insurance category
2004-05
Insurance Industry had 1new entrant, Shri Ram Insurance company Ltd. In Life Insurance category
2005-06
BhartiAxa Life insurance company was granted Certification of Registration in July
2006
BhartiAxa Life insurance company commenced its operations the newest player in the insurance sector.
3.1.4 Evolution of Non-Life insurance in India: The boycott of British goods and British institutions, which occurred because of the nationalist movement, encouraged formation of Indian-owned commercial and business houses. By 1907, the Indian mercantile the first of the long lasting general insurance companies to be established with Indian capital, had started functioning five
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offices, the New India, Vulcan, Jupiter, British India General and the Universal, were established in 1919 almost simultaneously for transacting general insurance business. In 1928, prominent insurance men of Bombay met and formed the Indian insurance companies association to protect the interest of Indian insurers. Leaders of the insurance industry began to organize conferences, educate public on the benefit of insurance, focus attention on the annual remove of national wealth through invisible export‟s, and arise public interest in favour of Indian insurance. In 1950, the planning commission was set up to formulate plans for successive five years. This five year plan brought about large scale economic development and increased insurance consciousness among the people. As insurance business increased the number of claims for compensation against losses also naturally increased. Settlement of too many large claims meant a severe demand on the funds of insurance companies. So to prevent this situation the practice of „Reinsurance‟ was adopted according to which insurers themselves reinsured portions of the insurances they had undertaken. So Indian insurance companies with their expanding business wanted to reinsure for which they had to seek foreign reinsurance markets. Since the need for conserving foreign exchange was felt in India all the insurers in India as well as foreigners operating in India formed the India Reinsurance Corporation in 1956. This corporation provided reinsurance facilities. It was compulsory for insurers in India to reinsure a fixed percentage of their insurances with the corporation. The Insurance Amendment Act 1950 imposed certain limitations on expenses of management. The general insurance council constituted what was called the tariff committee to control and regulate terms and conditions of business. In 1972, the General Insurance Business (Nationalization) Act 1972 was passed under the provisions of this act. The general insurance corporation of India was established for the purpose of directing; controlling and caring on the general insurance business and all the 106 insurers were merged and grouped into four subsidiaries of the general insurance corporation of India namely:
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XXX XXX Company Ltd., with its head office at Calcutta. The New India Assurance Company Ltd., with its head office at Bombay. The Oriental Insurance company Ltd., with its head office at Delhi. The United India Insurance Company Ltd., with its head office at Madras.
3.1.5 Three Phases of De-Tariffing India‟s general insurance industry has undergone de-tariffing in three phases: 1994 -- marine cargo, personal accident, health, banker liability and aviation 2005-06 -- marine hull segment 2007 -- Fire, engineering and motor own damage (OD). However, the de-tariffing did not immediately allow for free pricing. Instead, insurers were required to follow the “file and use” method, whereby they were expected to file a charter of proposed rates, which was then approved by IRDA. The only segment that remains under a tariff regime is the third party motor business, although there has been a large upward revision in this area‟s premium rates by regulators in recent times. Moreover, commercial third party motor business, which has traditionally contributed to adverse claims ratios, has been moved to a common pool, resulting in loss sharing.
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3.2 COMPANY PROFILE XXX XXX Company Limited was incorporated in 1906 with its registered office in Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it and National became a subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the Government of India. After the notification of the General Insurance Business (Nationalisation) Amendment Act, on 7th August 2002, National has been de-linked from its holding company GIC and presently operating as a Government of India undertaking. XXX XXX Company Ltd (XXX) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, XXX's network of about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and breadth of the country covering remote rural areas, townships and metropolitan cities. XXX's foreign operations are carried out from its branch offices in Nepal. Befittingly, the product ranges, of more than 200 policies offered by XXX cater to the diverse insurance requirements of its 14 million policyholders. Innovative and customized policies ensure that even specialized insurance requirements are fully taken care of. The paid-up share capital of National is Rs.100 crores. Starting off with a premium base of 500 million rupees (50 crores rupees) in 1974, XXX's gross direct premium income has steadily grown to 4021.97 million rupees (4021.97 crores rupees) in the financial year 2007-2008. National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The Company offers protection against a wide range of risks to its customers. The Company is privileged to cater its services to almost every sector or industry in the Indian Economy viz.
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Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment, Space Research etc. XXX XXX is the second largest non life insurer in India having a large market presence in Northern and Eastern India. The steady growth in premium income has been commensurately matched by profits over the years. As of March 2008, XXX's general reserve stood at 1457.25 million rupees (1457.25 crores rupees) with an asset value of 8867.99 million rupees (8867.99 crores rupees) signaling strong financial fundamentals. No wonder than that XXX has been accorded “AAA/STABLE” financial strength rating by CRISIL rating agency, which reflects the highest financial strength to meet policyholders‟ obligations.
3.2.1 Achievements XXX XXX Company is the fastest growing Non-life Insurance Company in India The second largest Non-life Insurance Company in India Internationally recognized as one of the top 5 General Insurance Companies in the Asia Pacific. Establishing Connectivity among 1000 offices within the country Facility to get Policy through NET soon Tie-ups with leading Banks, Corporate Sectors, State Governments May I help you counters set up at Head Office and all Regional Offices. More than 200 products available to cater to the needs of various sectors of the economy. Continuous product development to meet emerging needs of society and industry. As a major strategic initiative, XXX XXX Company has tied up with commercial banks, Non Banking Financial Institutions, Automobile Manufacturers, NGOs and State Governments for marketing of its Insurance services.
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XXX XXX Company Limited ranks among the top GLOBAL BUSINESS INSURERS. XXX has been awarded the “AAA/STABLE” financial strength rating by CRISIL. It reflects the highest financial strength to meet policyholders‟ obligations.
3.2.2 Products and services XXXL has a range of coverage policies targeting different sectors:
Personal Insurance policies include medical insurance, accident, property and auto insurance coverage
Rural Insurance policies provide protection against natural and climatic disasters for agriculture and rural businesses
Industrial Insurance policies provide coverage for project, construction, contracts, fire, equipment loss, theft, etc.
Commercial Insurance policies provide protection against loss and damage of property during transportation, transactions, etc.
Below are the some of the products of XXX:
Personal Line Insurance Motor Policy - Two Wheelers Householders Policy Personal Accident Policy Critical Illness Policy NRI Accident Policy AmartyaSikshaYojana Policy RajrajeshwariMahilaKalyanYojana Policy Bhagyashree Child Welfare Policy Traffic Accident Policy NiwasYojana Policy
21
Baggage Policy Mediclaim Policy Motor Policy - Private Car Professional Indemnity for Doctors Star National SwasthyaBima Policy VIDYARTHI-Mediclaim for Students UCO Medi + Care Bima Policy VARISTHA Mediclaim for Senior Citizens BOI National SwasthyaBima Overseas Mediclaim Baroda Health Policy
Rural Line Insurance Cattle / Livestock Insurance Sheep and Goat Insurance Elephant Insurance Dog Insurance Silkworm ( Sericulture) Insurance Janata Personal Accident Insurance Horticulture/Plantation Insurance Kisan Agriculture Pumpset Insurance
Industrial Line Insurance Erection All Risks Insurance ( EAR ) Contractors All Risks Insurance (CAR) Machinery Insurance ( MI ) ElectroXXX Equipment Insurance ( EEI) Consequential Loss (Fire) Policy Standard Fire and Special Perils Policy Product Liability Insurance
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Public Liability Insurance
Commercial Line Insurance Burglary (Business Premises) Policy Shopkeepers Policy Bankers Indemnity Policy Office Package Policy Glass Insurance Money Insurance Jewelers Block Policy Extended Warranty Policy Directors and Officers Liability Policy Fidelity Guarantee Policy Marine Cargo Insurance
Personal Line Insurance: Personal Line Insurance is meant to cover risks of person and property of individuals or group of individuals or liability developing upon them. Insurance of persons
would
include Personal
Accident, Mediclaim, Critical
Illness, AmartyaSikshaYojana, among others. Insurance of property would include Householders', NiwasYojana, Motor etc. Insurance of liability would include liability devolving on a person arising out of his personal actions / inactions or out of the practice of his/her profession, such as, Personal Liability, Professional Indemnity for a Doctor / Lawyer etc
Rural Line Insurance:
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Since nationalization our Company is moving ahead with the task of taking General Insurance business to the rural segments, keeping in view the social objective of serving the needs of the economy in the best interest of the weaker sections of the community. To provide financial protection against loss of their small income generating assets due to the occurrence of fortuitous events, our company has devised a number of insurance policies specially designed for the rural people and weaker section of urban society.
Industrial Line Insurance: Industrial Insurance is another branch of non-life insurance which covers various risks faced by the industry and serves to sustain the growth of the industrial activity. These insurances can be sub-divided into broadly two heads as Project Insurance and Operational Insurance. The two basic forms of Project Insurance are Erection All Risk Insurance and Contractor's All Risk Insurance. Commonly chosen Operational Insurance policies are Fire policy, Machinery Insurance policy, ElectroXXX Equipment Insurance policy and Consequential Loss (Fire) policy.
Commercial Line Insurance: The mainstay of our economy is commercial activity of various kinds, covering trades, transport, banking etc. These organizations are exposed to risks, which can be categorized as loss of or damage to property / assets and liability arising out of an action /inaction in the course of the commercial activity. XXX XXX offers different options, which enable a commercial organization to protect itself against losses arising from various perils. These options can be classified as package policies, specific policies to protect against property loss and specific policies to cover liability arising due to errors and omissions in the course of transaction of commercial activity.
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Chapter – IV Methods/Tools of Analysis Data Analysis & Interpretation
4.1 METHODS / TOOLS OF ANALYSIS
25
Tools used for analysis are: Chi-square test Karl Pearson‟s coefficient of correlation Graph Percentage
1. CHI-SQUARE TEST There may be situation in which it is not possible to make any rigid assumption about distribution of the population from which samples being drawn. This limitation has led to the development of a group of alternative techniques known as non-parametric tests. Chi-square describes the magnitude of the discrepancy between theory and observation.
Formulae: χ² =∑
[(Oi – Ei) 2] with n-1 degrees of freedom i =1 Ei
2. KARL PEARSON’S COEFFICIENT OF CORRELATION Correlation analysis helps us in determining the degree of relationship between 2 or more variables. The value of the coefficient of correlation as obtained by the below formula shall always lie between +1 and -1. When r = +1, it means there is perfect positive correlation between the variables. When r = -1, there is perfect negative correlation between the variables and when r = 0, there is no relationship between the two variables. ∑ xy r = -------------------√∑x2 - ∑ y2 __ __ x = (X - X) ; y = (Y - Y)
3. PERCENTAGE ANALYSIS
26
Percentage analysis shows the entire population in terms of percentages. No. of respondents Percentage = ----------------------------- *100 Total respondents
4. GRAPHS Graphical method was used in order to represent the factor in various graphical methods like pie-chart, bar diagram and cylinder.
4.2 Data Analysis & Interpretation 4.2.1 TABLE SHOWING OCCUPATION OF RESPONDENTS
27
Sl.No
Occupation
No. Of Respondents
Percentage (%)
1
Service/Govt. Employee
14
28%
2
Business
7
14%
3
Professional
2
4%
4
Others
27
54%
Total
50
100%
Findings: The above table shows that 28% of respondents belong to the category of services & Govt. Employee, 14% belong to the category of business, 4% are professional and the rest 54% belong to other category, which comprises of private sector employee Inference: It is inferred thatthere is a higher percentage (i.e.54%) of respondents in the category comprising private sector employees. 4.2.1 CHART SHOWING OCCUPATION OF RESPONDENTS 60
54%
No. of Respondents
50 40
28%
30 20
14% 2%
10 0 Service/Govt. Employee
Business
Professional
Others
Occupation
4.2.2 TABLE SHOWING ANNUAL INCOME OF RESPONDENTS Sl.No
Annual income
No. Of Respondents
28
Percentage (%)
1
Less than Rs.1.5 lakhs
13
26%
2
Rs.1.5 to 3 lakhs
17
34%
3
Rs.3 to 5 lakhs
15
30%
4
Rs.5 to 10 lakhs
5
10%
5
Above Rs.10 lakhs
-
-
Total
50
100%
Findings: The above table shows that 26% of respondents fall under the income category of less than Rs.1.5 lakhs, 34% fall under the category of Rs. 1.5 to 3 lakhs, 30% fall under the income category of Rs. 3 to 5 lakhs and rest of 10% in the Income category of Rs. 5 to 10 lakhs. Inference: It is inferred that there is a higher percentage (34%) of respondents in the income category of 1.5 to 3 lakhs and comparatively a very lower percentage (10%) of respondents in the income category of 5 to 10 lakhs. 4.2.2 CHART SHOWING ANNUAL INCOME OF RESPONDENTS
34% 35%
No. of Respondents
30%
30% 26%
25% 20% 15%
10%
10% 5%
0
0% < Rs. 1.5 Lakhs Rs. 1.5-3 Lakhs Rs. 3-5 Lakhs Annual Income
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Rs. 5-10 Lakhs > Rs. 10 Lakhs
4.2.3 TABLE SHOWING THE SOURCES MOST PREFERRED BY RESPONDENTS TO KNOW ABOUT XXX XXX COMPANY AND ITS PRODUCTS Sl.No
Preferred source of information
No. Of Respondents
Percentage (%)
1
Ads (print, radio & TV)
16
32%
2
Insurance agents
22
44%
3
Friends & Relatives
9
18%
4
Others
3
6%
Total
50
100%
Findings: The above table shows that 32% of respondents would prefer Ads, 44% of them prefer insurance agents, 18% of them prefer Friends & relatives, and the rest 6% of them would prefer other sources like company websites, SMS, etc, in order to know about an insurance company and its products. Inference: It is inferred that a higher percentage of respondents (44%) have stated insurance agents as the most preferred source. 4.2.3 CHART SHOWING THE SOURCES MOST PREFERRED BY RESPONDENTS TO KNOW ABOUT XXX XXX COMPANY AND ITS PRODUCTS
No. of Respondents
44% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
32%
18% 6%
Ads
Agents
Friends & Relatives Sources
30
Others
4.2.4 TABLE SHOWING NO. OF INSURANCE POLICIES HELD BY RESPONDENTS IN XXX Sl.No
No. of policies
No. Of Respondents
Percentage (%)
1
1
32
64%
2
2-4
13
26%
3
5+
5
10%
Total
50
100%
Findings: The above table shows that 64% of respondents hold 1 policy, 26% holds 2 to 4 policies and the rest 10% holds more than 4 general insurance policies in XXX XXX Company. Inference: It is inferred that a higher percentage (64%) of respondents holds 1 general insurance policy. 4.2.4 CHARTSHOWING NO. OF GENERAL INSURANCE POLICIES HELD BY RESPONDENTS IN XXX
35%
32%
No. of Respondents
30% 25% 20% 13%
15% 10%
5%
5% 0% 1
2 to 4 No. of Policies
31
5+
4.2.5 TABLE SHOWING THE RESPONDENTS SELECT THE SERVICES AT THE TIME OF CHOOSING A POLICY Sl.No
Services
No. Of Respondents
Percentage (%)
1
Third Party Insurance
19
38%
2
Third Party, Fire & Theft Insurance
20
40%
3
Comprehensive Insurance
11
22%
Total
50
100%
Findings: The above table shows that 38% of respondents would prefer Third Party Insurance, 40% of them prefer Third Party, Fire & Theft Insurance and rest of the 22% of them prefer Comprehensive Insurance, in order to select the services at the time of choosing a policy. Inference: It is inferred that a higher percentage of respondents (40%) have stated Third Party, Fire & Theft Insurance as the most preferred services. 4.2.5 CHART SHOWING THE RESPONDENTS SELECT THE SERVICES AT THE TIME OF CHOOSING A POLICY 20%
19% 20%
No. of Respondents
18% 16% 11%
14% 12% 10% 8% 6% 4% 2% 0% Third Party Insurance
Third Party, Fire & Theft Insurance Services
32
Comprehensive Insurance
4.2.6 TABLE SHOWING RESPONDENTS OPINION TOWATDS THE INFORMATION PROVIDED BY THE XXX ABOUT THE MOTOR INSURANCE POLICY Sl.No
Opinion
No. Of Respondents
Percentage (%)
1
Strongly agree
12
24%
2
Agree
17
34%
3
Undecided
13
26%
4
Disagree
6
12%
5
Strongly disagree
2
4%
Total
50
100%
Findings: The above table shows that 24% of respondents, who are policy holders with XXX XXX Company Strongly agree, 34% of them just agree, 26% of them undecided, 12% of them disagree and the rest 4% of them strongly disagree that XXX XXX Company is providing the Authentic Information about the Motor Insurance Policy. Inference: It is inferred that a higher percentage (34%) of respondents, who are policy holders with XXX XXX Company have agreed that providing the Authentic Information about the Motor Insurance Policy. 4.2.6 CHART SHOWING RESPONDENTS OPINION TOWATDS THE INFORMATION PROVIDED BY THE XXX XXX COMPANY ABOUT THE MOTOR INSURANCE POLICY
Strongly Dis-Agree
4%
Opinion
Dis-Agree
12%
Undecided
26%
Agree
34%
Strongly Agree
24% 0%
10%
20% No. of Respondents
33
30%
40%
4.2.7 TABLE SHOWING THE RESPONDENT’S COMMENT ON THE SERVICE OF XXX Sl.No
Comment
No. Of Respondents
Percentage (%)
1
Excellent
14
28%
2
Very good
24
48%
3
Moderate
8
16%
4
Poor
4
8%
5
Very poor
-
-
Total
50
100%
Findings: The above table shows that 28% of respondents have indicated the service of XXX XXX Company as excellent, and 48% of them have stated it as very good and 16% of them have indicated it as moderate and rest of them indicated the service of XXX is Poor. Inference: It is inferred that a higher percentage (48%) of respondents have indicated that the service rendered by XXX XXX Company is very good. 4.2.7 CHART SHOWING THE RESPONDENT’S COMMENT ON THE SERVICE OF XXX
Service Rendered by NIC Poor 8% Excellent 28%
Moderate 16%
Very Good 48%
34
4.2.8 TABLE SHOWING RESPONDENT’S OPINION TOWARDS XXX OFFERING OF CUSTOMER CENTRIC PRODUCTS Sl.No
Opinion
No. Of Respondents
Percentage (%)
1
Highly agree
7
14%
2
Agree
35
70%
3
Neither agree nor disagree
5
10%
4
Disagree
3
6%
5
Highly disagree
-
-
Total
50
100%
Findings: The above table shows that 14% of respondents, who are policy holders with XXX highly agree, 70% of them just agree, 10% of them neither agree nor disagree and the rest 6% of them disagree that XXX is offering customer-centric products. Inference: It is inferred that a higher percentage (70%) of respondents, who are policy holders with XXX have agreed that XXX is offering customer centric products. 4.2.8 CHART SHOWING RESPONDENT’S OPINION TOWARDS XXX XXX COMPANY OFFERING OF CUSTOMER CENTRIC PRODUCTS
0%
Highly Dis-Agree
6%
Opinion
Dis-Agree
10%
Neutral
70%
Agree 14%
Highly Agree 0%
10%
20%
30%
40%
50%
No. of Respondents
35
60%
70%
80%
4.2.9 TABLE SHOWING RESPONDENT’S COMMENT ON THE YEARLY PREMIUM PAID Sl.No
Comment
No. Of Respondents
Percentage (%)
1
Very High
6
12%
2
High
16
32%
3
Reasonable
21
42%
4
Low
5
10%
5
Very Low
2
4%
Total
50
100%
Findings: The above table shows that 12% of respondents, who are policy holders with XXX, have stated that the yearly premium paid is Very high, 32% of them have stated the premium is high, 42% of them have stated it is reasonable, 10% of them have stated it is Low and the rest of the 4% of respondents stated it is Very Low. Inference: It is inferred that a higher percentage (42%) of policy holders of XXX feel that the premium paid is Reasonable. 4.2.9 CHART SHOWING RESPONDENT’S COMMENT ON THE YEARLY PREMIUM PAID
No. of Respondents
50% 42%
40% 32% 30% 20%
12%
10%
10%
0%
4% Very High
High
Reasonable
Low Very Low
Comment
36
4.2.10 TABLE SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID Sl.No
Yearly premium paid
No. Of Respondents
Percentage (%)
1
Less than Rs.1000
24
48%
2
Rs.1000-2500
14
28%
3
Rs.2500-5000
8
16%
4
Greater than Rs.5000
4
8%
Total
50
100%
Findings: The above table showsthat 48% of respondents have been paying insurance premium less than Rs.1,000 yearly, 28% of them have been paying premium between Rs.1,000-2,500 yearly, 16% of them have been paying between Rs.2,500-5,000 as yearly premium and 8% of them have been paying more than Rs.5,000 as yearly premium. Inference: It is inferred that a higher percentage of respondents (48%) have been paying yearly insurance premium less than Rs.1,000. 4.2.10 CHART SHOWING THE AMOUNT OF YEARLY INSURANCE PREMIUM PAID
8%
Premium Paid Yearly
> Rs. 5000
16%
Rs. 2500 - 5000
28%
Rs. 1000 - 2500
48%
< Rs. 1000 0%
10%
20%
30%
No. of Respondents
37
40%
50%
4.2.11 TABLE SHOWING THE PERIOD OF PAYING PREMIUM PREFERED BY THE RESPONDENTS Sl.No
Periods
No. Of Respondents
Percentage (%)
1
Annually
15
30%
2
Half Yearly
8
16%
3
Quarterly
2
4%
4
Monthly
7
14%
5
One Time
18
36%
Total
50
100%
Findings: The above table shows that 30% of respondents would prefer Annually, 16% of them prefer Half Yearly, 4% of them prefer Quarterly, 14% of them prefer Monthly and rest of the 36% of them prefer One Time, in order to Pay their premium. Inference: It is inferred that a higher percentage of respondents (36%) have stated to pay their premium by One Time. 4.2.11 CHARTSHOWING THE PERIOD OF PAYING PREMIUM PREFERED BY THE RESPONDENTS
Period of Premium Payment Annually 30%
One Time 36%
Half Yearly 16%
Monthly 14%
Quarterly 4%
38
4.2.12 TABLE SHOWING THE MODE OF PAYING PREMIUM PREFERED BY THE RESPONDENTS Sl.No
Periods
No. Of Respondents
Percentage (%)
1
Salary Deduction
8
16%
2
Through Agent
11
22%
3
By Cash
10
20%
4
By Cheque
9
18%
5
Online Payment
12
24%
Total
50
100%
Findings: The above table shows that 16% of respondents would prefer Salary Deduction, 22% of them prefer Through Agent, 20% of them prefer By Cash, 18% of them prefer By Cheque and rest of the 24% of them prefer Online Payment, in order to Pay their premium. Inference: It is inferred that a higher percentage of respondents (24%) have stated to pay their premium through the Online. 4.2.12 CHARTSHOWING THE MODE OF PAYING PREMIUM PREFERED BY THE RESPONDENTS
Mode of Paying Premium Salary Deduction 16% Online Payment 24% Through Agent 22%
By Cheque 18%
By Cash 20%
39
4.2.13 TABLE SHOWING RESPONDENT’S OPINION TOWARDS RETURN ON THEIR INVESTMENT Sl.No
Opinion
No. Of Respondents
Percentage (%)
1
Highly Satisfied
9
18%
2
Satisfied
24
48%
3
Neutral
11
22%
4
Dis-Satisfied
6
12%
5
Highly Dis-Satisfied
-
-
Total
50
100%
Findings: The above table shows that 18% of respondents, who are policy holders with XXX Highly Satisfied, 48% of them just Satisfied, 22% of them Neither Satisfied nor Dis-Satisfied and the rest 12% of them Dis-Satisfied that the return on their Investment from XXX. Inference: It is inferred that a higher percentage (48%) of respondents, who are policy holders with XXX have agreed that the Return on Investment from XXX is Satisfied.
No. of Respondents
4.2.13 CHARTSHOWING RESPONDENT’S OPINION TOWARDS RETURN ON THEIR INVESTMENT
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
48%
22% 18% 12% 0%
Highly Satisfied
Satisfied
Neutral Opinion
40
Dis-Satisfied
Highly DisSatisfied
4.2.14 TABLE SHOWING RESPONDENT’S SATISFACTORY LEVEL TOWARDS VARIOUS FEATURES OF XXX Sl.No
Attributes of XXX
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Total
1
Low premium
16
10
12
8
4
50
2
Claim settlement
9
15
11
10
5
50
3
Larger risk coverage
12
11
5
8
14
50
4
Money back guarantee
7
9
8
16
10
50
5
Easy access to agents
6
5
14
8
17
50
Total
50
50
50
50
50
250
From the above table we assumed: Rank 1
Highly Satisfied
Rank 2
Satisfied
Rank 3
Neutral
Rank 4
Dis-Satisfied
Rank 5
Highly Dis-Satisfied
Finding: The above table shows, majority of the respondents (i.e., 16) rated the 1st rank for Low Premium had make them to Buy the Policy in XXX, then 9 respondents for Claim Settlement, 12 respondents for Larger Risk Coverage, 7 respondents for Money back guarantee and rest of the 6 respondents rated Easy access to agents as a 1st rank. Inference: It is inferred that a large no. of respondents (i.e., 16), who are policy holders with XXX have rated the first rank for Low Premium among the other Attributes.
41
4.2.14 CHART SHOWING RESPONDENT’S SATISFACTORY LEVEL TOWARDS VARIOUS FEATURES OF XXX XXX COMPANY
18
17 16
16 15
16 No. of Respondents
14 12 10
14 12
14
12 11 10
10
11
10
9
Highly Satisfied
9 8
8
8
8
7
8
6
6
4
5
5
5
Satisfied Neutral Dis-Satisfied
4
Highly Dis-Satisfied
2 0 Low Premium
Claim Settlement
Larger risk coverage
Money back guarantee
Feature
42
Easy access to agents
4.2.15 TABLE SHOWING THE CLAIMS MADE BY RESPONDENTS ON THEIR MOTOR INSURANCE POLICY Sl.No
Claims in XXX
No. Of Respondents
Percentage (%)
1
Yes
36
72%
2
No
14
28%
Total
50
100%
Findings: The above table shows, 72% of the policy holders had made Claim and the rest of the 28% of the policy holders does not make any claim against the Motor Insurance Policy. Inference: It is inferred that a higher percentage (72%) of respondents, who are policy holders with XXX have made a claim against their Motor Insurance Policy. 4.2.15 CHART SHOWING THE CLAIMS MADE BY RESPONDENTS ON THEIR MOTOR INSURANCE POLICY
Claim on Motor Insurance Policy No 28%
Yes 72%
43
4.3 Statistical Analysis
44
4.3.1 APPLYING CHI-SQAURE TEST BY COMPARING THE PERIOD OF GENERAL INSURANCE COVER AND THE PREMIUM RANGE Period of insurance cover
Premium range Very high
High
Reasonable
Low
Very low
Total
Annually
1
4
6
3
1
15
Half Yearly
1
5
2
0
0
8
Quarterly
0
1
1
0
0
2
Monthly
1
1
5
0
0
7
One Time
3
5
7
2
1
18
Total
6
16
21
5
2
50
Ho:
There is no significant difference between premium and period of insurance policy
H1:
There is a significant difference between premium and period of insurance policy
Table of expected frequency: Expected Value = row total * column total Grand total 1.8
4.8
6.3
1.5
0.6
0.96
2.56
3.36
0.8
0.32
0.24
0.64
0.84
0.2
0.08
0.84
2.24
2.94
0.7
0.28
2.16
5.76
7.56
1.8
0.72
Formulae:
χ² =∑ i=1
[(Oi – Ei) 2] with n-1 degrees of freedom Ei
45
O 1 4 6 3 1 1 5 2 0 0 0 1 1 0 0 1 1 5 0 0 3 5 7 2 1
Oi 5 6 5 5
5
6
8
10
E 1.80 4.80 6.30 1.50 0.60 0.96 2.56 3.36 0.80 0.32 0.24 0.64 0.84 0.20 0.08 0.84 2.24 2.94 0.70 0.28 2.16 5.76 7.56 1.80 0.72
Ei
(Oi-Ei) 2 (Oi-Ei) 2 /Ei
6.60
2.56
0.3879
6.30
0.09
0.0143
3.06
3.76
1.2299
2.56
5.95
2.3256
7.32
5.38
0.7353
5.18
0.67
0.1298
8.90
0.81
0.0910
10.08
0.01
0.0006
Total
4.9145
χ²cal = 4.9145 χ²0.05 with (n-1) (n-1) = (5-1) (5-1) = 16 χ²0.05with 16 D.F = 26.3 χ²cal < χ²0.05 Hence, we accept Ho
Conclusion: We conclude that there is no significant difference between premium and period of general insurance policy.
46
4.3.2 APPLYING KARL PEARSON’S CORRELATION COEFFICIENT BY COMPARING ANNUAL INCOME AND THE YEARLY PREMIUM AMOUNT PAID Premium amount
Less than
Rs.1000 - 2500
Rs.2500 - 5000
Rs.1000 No. of respondents
Annual income
No. of respondents
More than Rs.5000
24
14
Less than
Rs.1.5-3
Rs.1.5 lakhs
lakhs
13
17
Premium amount (X)
8
Rs.3-5 lakhs
4
Rs.5-10 lakhs
Above Rs.10 lakhs
15
Annual income (Y)
24
13
14
17
8
15
4
5
∑ xy r = -------------------_________ √∑x2 - ∑ y2 __ __ x = (X - X) ; y = (Y - Y)
47
5
0
Annual
Premium
income (Y)
(X)
x
x2
y
y2
Xy
24
11.5
132.25
13
3
9
34.5
14
1.5
2.25
17
7
49
10.5
8
-4.5
20.25
15
5
25
-22.5
4
-8.5
72.25
5
-5
25
42.5
-
-
-
0
-10
100
0
∑ x2= 227
∑ Y= 50
∑y2= 208
∑xy = 65
∑X = 50
_ X = 50 = 12.5 4 _ Y = 50 = 10 5 ∑x2= 227; ∑y2= 208; ∑xy = 65 65 r = ------------ = 0.299 √ 227 * 208 Conclusion:
The variables annual income and premium amount paid are positively correlated. Hence, the annual income has an impact on the premium amount paid.
48
Chapter – V Findings Suggestions Conclusions
49
5.1 Findings Majority of the respondents (i.e.54%), who has taken Motor Insurance Policy are private sector employees. It is inferred that there is a higher percentage (34%) of respondents in the income category of 1.5 to 3 lakhs and comparatively a very lower percentage (10%) of respondents in the income category of 5 to 10 lakhs. Majority of respondents (44%) have stated insurance agents as the most preferred source to know about XXX XXX Company and its products. It is evident from the study conducted that majority (64%) of the respondents holds at least 1 Insurance Policy. It is contingent that a higher percentage of respondents (40%) have stated Third Party, Fire & Theft Insurance as the most preferred services. It is inferred that a higher percentage (34%) of respondents, who are policy holders with XXX XXX Company have agreed that providing the Authentic Information about the Motor Insurance Policy. It is inferred that a higher percentage (50%) of respondents have indicated that the service rendered by XXX XXX Company(XXX) as very good, while 28% of respondents have indicated the service of XXX as excellent, 16% of the respondents have indicated the service of XXX as Moderate and the rest 8% of them have indicated it as Poor. Majority of respondents (i.e., 70%), have agreed that XXX is well known for offering Customer Centric Products. Among the policy holders of XXX, 42% of the respondents feel that the premium paid on their policy is Reasonable. Among the respondents, who are holding Motor Insurance Policy it is found that a higher percentage of respondents (48%) have been paying yearly insurance premium is less than Rs. 1000.
50
With the application of Karl Pearson‟s Correlation Coefficient it is found that the variables annual income and premium amount paid are positively correlated. Most of the respondents (i.e., 36%), wants to pay their premium for their Insurance Policy by one time in life. According to the Chi – Square test conducted, it is found that there is no significant difference between premium and period of Paying an Insurance Policy. 24% of the respondents, who are policy holder of the XXX, are willing to pay their premium amount through the Online. It is inferred that a higher percentage (i.e., 48%) of respondents, who are policy holders with XXX have agreed that the Return on Investment from XXX is Satisfied. It is inferred that a higher percentage (72%) of respondents, who are policy holders with XXX have made a claim against their Motor Insurance Policy.
51
5.2 SUGGESTIONS The present scenario demands almost all the customers to have a Motor Insurance Policy in order to protect from future uncertainty. The company always has an opportunity to grow and expand its operations in the non-life insurance segment. Hence, the company can seize this opportunity and pay attention to introduce more Insurance Policies to cater to the needs of various classes of people. Majority of the respondents, who are policy holders with XXX have felt that the premium being paid is comparatively reasonable and the 32% of them says its high with the premium rates of other insurance companies. Hence, amendments can be made in this regard by offering insurance cover at low premium rates to increase the customers and their satisfaction level. The promptness of claim settlement procedure can be maintained as it is one of the important aspects which would enhance the reputation of the company, as well as build trust in the minds of the customers. Also, it helps to retain existing customers and attract new customers. The company has to focus more on the Auto/Car/Motor Insurance segment. Majority of the respondents have preference towards Auto/Car/Motor Insurance as it is a must to have insurance for their vehicles by law. Therefore, the company has got enough opportunities to earn huge profits from this segment. The company can create more awareness about its products among potential customers by means of advertisements and efficient insurance agents, which in turn will help in increasing its customer base.
52
5.3 CONCLUSIONS
The study was conducted to find the Awareness of Motor Insurance policy and the performance with the reference of XXX XXX Company. The study has been able to accomplish its objectives, by thoroughly analyzing and identifying the competitive position of XXX among the clients of various insurance companies, customer‟s awareness and perception about the company and its products. The company may highly be benefited by the outcome of this study. The outcome of the study has proved that the performance and the customers are highly aware about the company is outstanding in the non-life insurance segment and that the company has a higher reputation among customers. It is concluded that the company could initiate various steps based on the recommendations given in this report. The company by adopting some of the recommendations, if not all, can further improve its performance and occupy a leading position among other competitors in the non-life insurance market in future years to come.
53
Appendix
54
Bibliography
55
References & Recommendation Readings Donald H. McBurney & Theresa L. White, Thomson Wadsworth, Research Methods K. Subramani & A. Santha, Scitech, Statistics for Management C. R. Kothari, New Age International Publishers, Research Methodology Kotler & Keller, Pearson, Marketing Management
Recommended Websites
http://www.nationalinsuranceindia.com http://www.scribd.com http://www.citehr.com http://www.managementparadise.com http://www.slideshare.net British Library. Risk Assessment 2007: British Library Digital Preservation Team. http://www.bl.uk/aboutus/stratpolprog/ccare/introduction/digital/riskassess ment.pdf Advice Guide, Citizens Advice Bureau, http://www.adviceguide.org.uk
56
Annexure
57
Questionnaire Dear Sir/Madam
Gender
:
Age
:
No of dependants
M
F Phone No:
:
E-Mail ID:
I am the student of Apollo Engineering College, Department of Management studies, Poonamallee and presently doing a project on “A Study of Product Awareness of Motor Insurance Policy with Reference of XXX XXX Company”. I request you to kindly fill the questionnaire below and assure you that the data generated shall be kept confidential.
1. What is your Occupation? Services/Govt. Employee
Business
Professional
3-5 Lakhs
5-10 Lakhs
Others
2. What is your Annual Income? < 1.5 Lakhs
1.5 – 3 Lakhs
>10 Lakhs
3. What makes you to know about the XXX XXX Companies and theirProducts? Ads
Insurance agents
Friends & Relatives
Others
4. How many Insurance policies you have currently taken in XXX XXX Company? 1
2-4
4+
58
5. Which of the below services would you like to select at the time of Choosing an Insurance? Third Party Insurance Third Party, Fire & Theft Insurance Comprehensive Insurance 6. Do you think XXX XXX Company gives you authentic information about the Motor Insurance Policy? Strongly Agree Dis-Agree
Agree Undecided Strongly Dis-Agree
7. How will you rate the services provided by XXX XXX Company? Excellent
Very Good
Moderate
Poor
Very Poor
8. Did XXX XXX Company is providing Customer Centric Products? Highly Agree Disagree
Agree Neutral Highly Disagree
9. What do you think about the Premium paid by you? Very High
High
Reasonable
Low
Very Low
10. How much did you pay in Total Policy Costs last year? <1,000
1,000-2,500
2,500-5,000
>5,000
11. From the below periods, How do you want to pay your premium? Annually
Half Yearly
Quarterly
Monthly
12. How do you prefer to pay your premium amount? Salary Deduction
Through Agent
59
By Cash
One Time
By Cheque
Online Payment
13. What do you think about the return on your investment from the XXX XXX Company? Highly Satisfied Dis-Satisfied
Satisfied Neutral Highly Dis-Satisfied
14. Rate the below features of XXX XXX Company, which make you satisfied with their services? Features
Rank
Low Premium Claim Settlement Larger risk coverage Money back guarantee Easy access to agents
15. Have you ever made a claim on your Motor Insurance Policy? Yes
No
*~*Thank You for Spending your Valuable Time*~*
60
