PROJECT REPORT ON

GENERAL INSURANCE & AGENT ACQUISITION

SUBMITTED BY: ANJANA CHOUDHARY YEAR: 2007-11 REG. NO. 200712629

DECLARATION BY THE LEARNER

This is to declare that I have carried out this project work myself in part fulfillment of the Post Graduate Diploma in Business Administration (Finance) Program of SCDL. The work is original, has not been copied from anywhere else and has not been submitted to any other University/Institution for an award of any degree/diploma.

----------------------------( Anjana Choudhary)

Date: Place:

CERTIFICATE OF SUPERVISIOR (GUIDE)

Certified that the work incorporated in this Project Report GENERAL INSURANCE & AGENT ACQUISITION in ICICI LOMBARD , submitted by Anjana Choudhary is his original work and completed under my supervision. Material obtained from other sources has been duly acknowledged in the Project Report.

Rahul Dubey (Project Guide)

Date: Place:

PREFACE

India is on the threshold of being an open and liberated economy. Globalization has changed the rules of competition, forcing Indian corporations to expand beyond their traditional markets even as the face incursion of foreign companies at home.

True learning is born out of experience and observation. There is a large gap between theoretical knowledge and practical knowledge about handling and managing a business. Only bookish knowledge cannot help me in building up an effective administrator. So as a part of the syllabus of MBA programmed, we all students are supposed to analyze the functional working of any of the organization which gives us an opportunity to relate theoretical knowledge with real corporate situations. A thorough and practical study, knowledge and learning can only be useful to become more eligible and competitive. It also helps to improve my analytical skill, communication skill and knowledge.

This project is totally based on primary data and secondary data. Information about Marketing and different organizational processes has been collected from ICICI Lombard office.

In this project I have tried to analyze how to recruit agents in context of general Insurance Industry and different organizational processes of ICICI Lombard and sale policies of ICICI Lombard.

ACNOWLEDGEMENT

Project words seem to be gigantic. It could not be completed on my own. This is the proper time where I want to thank all of them who have directly or indirectly help in carrying out the activities.

Its my delight to use the opportunity for conveying my thanks to all, who motivate and supported throughout the project duration.

I would like to say thanks to my company guide Mr. Rahul Dubey (Area Regional Manager) for his constant support and his guidance, also I extent my gratitude towards Mr. Abhishek Shah (Unit Sales Manager) for his constant effort for making us better all the time, I would also like to thank all the staff of ICICI LOMBARD, especially, Ajay Sir who was constantly inspiring us for incurring our best performance, also to Rasesh Sir, Mr. Nikhil, and also to the security staff, Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.

I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun Toliya, Ashok Chauhan, Divya Patel & Pooja Nair who have given their constant support and motivation to do the task.

I dont want to miss the opportunity to be thankful of the Almighty God, who rules the world, & my family who were always been helping hand for me. Hearty thanks to you all.

EXECUTIVE SUMMARY

Insurance industry in India has undergone a sea change in terms of delivering value added services to the rising consumerism in India. The insurers are constantly adopting innovative distribution channels in alliance with other financial counterparts. Also new custom made products are introduced in the market after through assessment of current requirements of customer needs. Insurance companies have realized the need for higher returns on life insurance product, introduced by many insurance companies, have made returns transparent.

Today insurance companies are getting larger share of their collection through tied agency channel of distribution. The LIC has channel well developed and of wide reach. The mentality of most of the people in India is that they are ready to buy insurance from a person whom they know, who is also doing the business for quite a time, who can give advice in financial planning, and also collect the premium from them. This shows the importance of tied agency channel. There is still a wide scope for private life insurers in selection of agencies. The rural India is almost out of the private life insurers functional area, though they are slowly, firmly and aggressively making their presence felt.

The large part of the mobilization of the rupee by life insurers comes from government employees. This is because of the fact that government gives tax benefits if employees invest in life insurance. This is clearly reflected in the study conducted about life time plan among the employees.

ICICI Lombard General Insurance Company is a 74:26 joint venture between ICICI Bank Ltd. & the $ 26 billion Canadian based company Fairfax Financial Holdings Limited.

ICICI Bank is Indias second largest bank; while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management.

Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of the Canadas oldest property and casualty insurer.

ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001

TABLE OF CONTENT

CHAPTER No. CHAPTER-1 CHAPTER-2 CHAPTER-3 CHAPTER-4

TOPIC No.

PARTICULAR Preface Acknowledgement Executive Summary Introduction Introduction of Insurance sector Introduction of History Life Insurance The Time Line About Industry Multiple Distribution Channel Multi Channel Approach Organization Chart Role of Insurance IRDA About Co. ICICI Group Current Scenario The Opportunity About us Product Basket Rewards

CHAPTER-5

Training Responsibilities Awards

About the promoters Distribution Product Board of Directors Management Team Target & Task Recruitment Strategies Strategies Adopted Procedure of Recruitment Analysis of Performance Vs. Target Limitations CHAPTER-6 Purpose of agency development Tied agency CHAPTER-7 Agent the process agency channel Scenario of Ahmedabad City CHAPTER-8 CHAPTER-9 Findings and Solutions Conclusion Executive Summary CHAPTER-10 Bibliography

INTRODUCTION
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CONTENTS: _ INTRODUCTION OF INSURANCE SECTOR _ CURRENT SENARIO _ MAIN INSURERS _ IRDA

INTRODUTION TO INSURANCE SECTOR

We face a lot of risks in our daily lives. Some of these lead to financial losses.
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Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses.

Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc.

Private Sector Market Share:

Take a look at these statements:

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You carry loan on your dream home than it is much important to protect that house from any natural or manmade calamities by insuring it on that home.

 You are securing it against the uncertainty which includes risk in it.  You are carrying huge risk if you are driving car without insurance.  Even your family and kids may be exposed to any risk factor which may affect their future life and your savings too if you are not having medical policy  Medical policies are also useful for tax benefit.  If you identify any of the above need as a saving boon for you then, you shall clearly understand the need of General insurance acts as a buffer against uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of your policy premium is eligible for tax rebate under section 80D.

1. What is non-life insurance and why do you need it?

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Whether it is your home, your health or your business, everything is exposed to any danger in these times. Non-life insurances you for calamities like these at a minimal amount.

2. In what manner is a non-life claim settled? The following steps are carried out:  The claim is filed by the person suffering the loss  A preliminary survey is conducted  The final survey report is submitted on receipt of all your documents  The claim payment is released  3. Tax implications of taking an insurance cover A percentage of the amount that you invested mediclaim policy is allowed, depending upon your total premium, as a tax rebate under section 88 against provisions of the income-tax liability, subject to provision of the income-tax Act. Presently, there is a 12.36%service tax is applicable on general insurance premium.

4. How much insurance should you have? Insurance companies often conduct a thorough personal finance review and use the concept of Human Life Value to ascertain the correct amount of insurance you should have. Human life value is the net present value of your potential future earning for the rest of your working life span. This is typically a factor of your annual income.

5. In what manner do you evaluate the policies? Decide the type of policy you want after asking some basic questions.
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y y y y y

What are the returns offered by the policy? What is your risk profile? Can you sustain payment of the premium amount? Is there flexibility in premium payment? How good is the surrender value of the policy?

Once you decide on these, you will be able to select better.

What is insurance? Insurance is a financial service for the saving of the public and providing them with risk coverage

Thus in insurance, The Risk

The Insured

The Insurer

General definition: insurance is a plan by which large number of people associate and transfer to the shoulders of all risks that attach to individuals. JOHN MAGEE

Fundamental definition: insurance is accumulated contributions of all parties participating in the schemes--- D. S. HANSELL.
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Contractual definition: insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency--- JUSTICE TINDAL.

PRINCIPLES OF INSURANCE
  Principle of utmost good faith           Disclosure of all facts

Principle of Indemnity Loss indemnified Not to earn profit

Doctrine of Subrogation Hold negligent person responsible for the loss Prevent the insured from collecting twice

Principle of Causa Proxima Cause of loss must be direct and insured

Principle of Insurable Interest Direct benefit to insured from the asset insured

Why do you need insurance cover? Insurance provides a protection to the customers from certain and uncertain
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risks. Certain risk involves events like death, retirement, pension, education, marriage, etc. uncertain risk includes events like theft, accidents, fire and earthquake risks.

In general insurance fire, accidents, medical claim and because of that if third party damages occur than it also covered in it. General insurance is only for unexpected or uncertain risks. Now there are more than 14 companies under it. Government is more giving priority on medical policies as now medical expenses are more expensive and for that tax benefits also available for this kind of policies.

History of insurance sector

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.
History of Insurance Business Insurance probably made a beginning in the ancient land of Babylonia In the 18th century B.C., Babylonian king Hammurabi developed a code of law, known as the Code of Hammurabi, which codified many specific rules governing the practices of early risk-sharing activities. For instance, the code dictated that traders had to repay merchants who financed trading voyages unless thieves stole goods in transit, in which case debts would be cancelled.

This was similar to the system of insurance known as bottomry which existed in Phoenicia in 1200 B.C. In this system, backers loaned money to merchants to finance voyages. Merchants offered their ships (the hull was known as the ships bottom) as collateral for such loans. When a trip succeeded, the merchant would pay the trips backer the original loan plus interest, the equivalent of a premium. If a ship went down on its voyage, the trips backer would cancel the merchants loan. The Greeks and Romans developed the earliest systems of life insurance. They formed societies which paid dues that went toward paying for the burial of members. Sometimes these societies also paid for the living expenses of deceased members families. During the Middle Ages (5th to 15th centuries A.D.), workers joined together in craft. Many guilds, particularly in England and Italy, provided benefits to workers and their families in the event of illness or death.

Lloyds

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Insurance as we know it today took its shape in 17th century England. There was a place called Lloyd's Coffee House in London, owned by Edward Lloyd, where merchants, shipowners and underwriters met to discuss and transact business. The Lloyds Act was passed in 1871 incorporating the members of the association into a single corporate body with perpetual succession and corporate seal. It extended from marine insurance to other insurance and guarantee business. Today, Lloyd's has become the world's best known insurance brand. It is commonly misunderstood that Lloyd's is an insurance company. Actually, it is a society of members, known as underwriters, both corporate and individual, who underwrite in syndicates on whose behalf professional underwriters accept risk. Thus, supporting capital is provided by investment institutions, specialist investors, international insurance companies and individuals.

Any insurer who wants to become a member of the association has to deposit a certain fee as security for the regular payment of his liabilities. The association will inquire about the financial position of the concern, business reputation and experience. The business is conducted by these insurers called underwriters, syndicates etc. Anybody desirous of taking insurance will approach the underwriters and not the association. Each underwriter will be responsible for his business underwritten. Usually, the policy is underwritten by several underwriters and their share or portion is fixed individually. If there is claim on the policy, the insured gets the money from all the underwriters according to their respective shares. If an underwriter fails to pay, the amount is realized from the security taken at the time of enrolment from the underwriter. Lloyds as a corporation is never liable on any policy.

Lloyds brokers bring business to the market. The risks placed with underwriters originate from clients and other brokers and intermediaries all over the world. Together, the syndicates underwriting at Lloyd's form one of the world's largest commercial insurers and a leading reinsurer.

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History of Indias Insurance Business

We find the term Yogakshemam Bahamayam in our ancient texts. This suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. In modern times, Triton Insurance Co. Ltd. was the first general insurance company to be established in India in 1850. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. Thereafter, many players emerged. By 1956, there were around 240 private life insurers and more than 100 general insurers. The Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The government brought together life insurers under one nationalized monopoly corporation and LIC was born. The general insurance business remained in the private sector till 1972. Then, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. They were subsidiaries of the General Insurance Company (GIC).

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Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. Financial sector reforms were initiated and it was felt that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. Some of the recommendations of the Malhotra committee included:

 Government stake in the insurance Companies to be brought down 50%.  Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations  All the insurance companies should be given greater freedom to operate  Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry  No Company should deal in both Life and General Insurance through a single entity  Foreign companies may be allowed to enter the industry in collaboration with the domestic companies.  The Insurance Act should be changed. An Insurance Regulatory body should be set up.

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y
y

InvestmentsMandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company

y y y

Customer Service
LIC should pay interest on delays in payments beyond 30 days Computerization of operations and updating of technology to be carried out in the insurance industry.

The committee emphasized that it was essential that the sector was open to competition to improve the customer services and increase the coverage of the insurance industry. However, enough precaution should be exercised to prevent failure of the new entrants .Hence a minimum capital requirement of Rs.100crores was stipulated. To provide greater autonomy to insurance companies and enable them to act as independent companies, it proposed setting up an independent regulatory body.

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About Industry
INSURANCE INDUSTRY AT GLANCE

Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non life) mainly with regional focus flourished all across the country. However, the Govt. of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956(life) and in 1972(nonlife). The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC). In line with the economic reforms that were ushered in India in early nineties, the Government set up a Committee on (popularly called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer. The objective was to improve the penetration of insurance as a percentage of GDP, which remains low in India even compared to some
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developing countries in Asia. Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector, 12 life insurance companies and 9 general insurance companies have been registered.

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ROLE OF INSURANCE
 The companies conducting business of insurance are referred to as `Insurers. The terms `insurance company' and `insurer' are interchangeable.  Various groups of people are exposed to different types of risks, such as: People engaged in marine trade are exposed to the risks like damage to goods, sea piracy, sinking of ship, vessel colliding with another vessel etc. Factory owners are exposed to different type of risks like fire, lightning, hailstorm, flood, earthquake, burglary, etc.  Insurers form a `group' of those persons who are exposed to the same risks. The shares/contributions (called premium) collected from each of them, are pooled together to create a common fund. Every premium represents a corresponding risk, which it seeks to cover. These funds are held in trust for the benefit of the policyholders. Compensations (claim) to those, who suffer, are paid out of this fund.  Insurer's role is that of a trustee and it has to ensure that nobody takes undue advantage. The insurer does this by:

Preventing entry of people carrying higher risks through the process of underwriting of risks

Preventing payment of claims on losses that are not accidental.

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When in government decided to privatize insurance sector in 1999, strong need of a Regulatory authority was felt. This was in the backdrop of experience of investors who had been robbed before through various financial scams such as stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA (Insurance Regulatory and Development Authority) was born.

Mission
To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority. The Authority is a ten member team consisting of

(a) a Chairman; (b) five whole whole-time members; (c) four part-time members, (all appointed by the Government of India)

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Duties, Powers and Functions of IRDA

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;

Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

Specifying the code of conduct for surveyors and loss assessors;

Promoting efficiency in the conduct of insurance business;

Promoting and regulating professional organizations connected with the insurance and reinsurance business;

Regulating investment of funds by insurance companies;

Regulating maintenance of margin of solvency;

Adjudication of disputes between insurers and intermediaries or insurance intermediaries; Supervising the functioning of the Tariff Advisory Committee;

Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause above;

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 Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

Exercising such other powers as may be prescribed.

About company

ICICI Lombard General Insurance Company Limited is 74:26 joint ventures between ICICI Bank Limited and the Canada based $26 billion Fairfax Financial

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Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001. Also ICICI Lombard is No. 1 insurance company as far as private sector is concerned. Its core competency is in highest and fastest claim settlement which attracts most of the customers. As far as insurance sector is concerned all the insurance companies are under common General Insurance Company limited same as Life Insurance Corporation. There is cut throat competition in the market as there as more than PSU as well as private sector player in the field of insurance. Also still on 0.68% in penetrated, so there are lots of opportunities for companies to grow and perform well with its core competencies. Its still long way to go, because there is need of customized insurance that will really be a boon for customer, still we can see that there is lack of decentralization as underwriter approval are to be taken each and everywhere. But ignoring that we can say that insurance sector is booming like anything. And ICICI Lombard is a key player in private sector which is capturing huge part of market. It is following various marketing

Strategies and huge advertisement campaign that always keeps aware to the people about its existence and its products. Thus there is still long way to go, also various foreign companies are yet to come, as they seek lots of business opportunities as there is so much yet to be explored in India.

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(ICICI GROUP)

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ICICI LOMBARD CORE VALUES

 INTEGRITY HUMANITY POSITIVITY SENSIVITY PASSION

Why ICICI Lombard

y y y y y y y y India's number one private general insurance company First general insurance company in India to be ISO 9001:2000 certified. Assigned the iAAA rating by ICRA indicating highest claims paying ability Simple and fast documentation Lightning fast claims settlement Instant online policy issuance Comprehensive product line Highest security level offered through 128- bit encryption in case of online data exchange. y y y y First company to provide digitally signed documents through an online interface. Achieved financial breakeven in first full year of operations Achieved underwriting breakeven in second year of operations Adjudged as the 'General Insurance Company of the Year' at the 11th Asia Insurance Industry Awards 2007.

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Awarded the NDTV Profit Business Leadership Awards 2007 in the General Insurance category on July 27, 2007

Adjudged as the most Customer Responsive Company in the Insurance category at the Economic alConnect Customer Responsiveness Award 2006

Awarded the Best Housing Insurance in the Smart Living Awards by 360 degrees, a Times of India Group subsidiary, in Nov 2006

Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006

Adjudged amongst the top three in the Insurance Website of the Year category at the 9th Asia Insurance Industry Awards function held in Singapore during September, 2005

About ICICI Lombard

Young Company - August 2001 Largest private sector Insurer Largest Capitalization in private sector Financial & Underwriting Breakeven in 1st & 2nd year Pan India presence - Over 227 branches, 176 locations, and 5349 full time employees on 30 June07 y ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007 & Avaya Global Customer Responsiveness Award y International operations - UK since May06

y y y y y

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Organizational Structure
ICICI Lombards organizational structure is designed to be flexible and responsive with the ability to evolve and re-orient towards market opportunities, while maintaining the required degree of risk management and controls. There are four principal groups:-

Wholesale Business,

Ban assurance & Retail Business,

Rural and Agricultural Business

Shared Services.

The Wholesale Business Group

Focuses on large corporations and also on small and medium enterprises, state and central governments and government enterprises. Key products include Fire, Marine, Engineering, Liability policies and Group schemes for employees and large scale state level health and personal accident schemes

The Banc assurance and Retail Business Group

Delivers products through multiple channels including banc assurance, agents, feet- on street, telesales and the internet. The key products include Motor, Travel, Health and Home insurance.
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The Rural and Agricultural Business Group

It is responsible for reaching out to rural customers with relevant products such as Weather insurance, Health and Personal Accident covers.

Shared Services
It provides support services to the business verticals. These services include Finance & Accounts, Administration, Technology, Operations, Reinsurance, Customer service, Human resources, Legal and Marketing communications.

Product Range
Business Solutions
 Burglary Insurance  Industrial All Risk  All Risk Insurance  Consequential Loss(Fire) Insurance  Electronic Equipment Insurance  Fidelity Insurance  Fire and Special Perils  Tea Corp Insurance  Marine export import  Machinery  Boiler Insurance  Inland Transit Insurance

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Project Solutions
 Contractors All Risk  Contractors Plant & Machinery  Erection All Risk  Performance Guarantee

Liability Solutions
 Directors & Officers Liability  Event Insurance  Product Liability  Public Liability  Workmens Compensation  Professional Indemnity

Export Solutions
 Export Import Transit  Export Credit

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Rural Solutions
 Weather Insurance  Janata Personal Accident  Tractor  Farmers Package

Personal Solutions
 Health Insurance  Health  Personal Accident  Group Personal Accident  Group Health

Travel Insurance
 Domestic Travel  Individual Overseas Travel  Student Overseas Travel  Senior Citizen Overseas Travel  Corporate Overseas Travel  Pravasi Bhartiya Bima Yojana

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Motor Insurance
 Two Wheeler  Four Wheeler

Home Insurance
It covers mainly all natural calamities and also gives covers against man made calamities, which is very important to protect your dream house. So ICICI Lombard general insurance company has variety of cover for your dream home

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Key Products

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Motor Insurance

What is motor insurance? How is motor insurance different from other forms of general insurance? Why do I need motor insurance? What is the kind of emergency that can strike? What are the exclusions under the policy? What is the maximum cover that can be availed for occupants of vehicle? What is compulsory deductible under Motor insurance? What is the difference between private motor insurance and commercial motor insurance?

What is motor insurance?

Motor insurance protects you and your vehicle against every comprehensible risk related to your vehicle theft or damage to it, death of the driver and passengers in an accident, and damage caused by your vehicle to another person or property (Third Party Liability).

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How is motor insurance different from other forms of general insurance?

A motor insurance policy (Third Party Liability) is mandatory under the Motor Vehicle Act, while other forms of general insurance are optional. The law mandates that every owner of a motor vehicle must have a motor insurance policy.

Why do I need motor insurance?

You need motor insurance for the following reasons: Third Party Liability (injury, death or property damage) is mandatory as per the Motor Vehicle Act Your car is one of your most coveted possessions Passengers in your car are mostly your near and dear ones Accident, theft, damage and third party liability can arise unexpectedly

What is the kind of emergency that can strike?

Loss or damage to the vehicle insured Own damage Partial theft Total theft Third party injury Third party death Third party property damage Personal accident of owner-driver and other passengers

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What are the exclusions under the policy?

The following are the specific exclusions under the policy: Mechanical breakdown Wear & tear Consequential loss Depreciation Deliberate accidental loss Intoxicated driving Any contractual liability

What is the maximum cover that can be availed for occupants of vehicle?
Under a package policy, the maximum cover that can be availed for the driver and each passenger is Rs 1lakh and Rs 2lakh respectively.

What is compulsory deductible under Motor insurance?

Motor insurance policies have a compulsory deductible, wherein the claim amount has to be borne by the insured.

For private cars up to 1,500 cc Rs 500 For private cars above 1,500 cc- Rs 1,000 For two wheelers Rs 50
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What is the difference between private motor insurance and commercial motor insurance?
Vehicles owned by individuals and used for their personal purpose fall under the category of private vehicles However, vehicles owned by companies or individuals used for public utilities fall under the category of commercial vehicle. The insurers liability is lower in private vehicles than in commercial vehicles, where the third party liability is huge.

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Home Insurance Introduction

It is imperative that you secure your home from natural and man-made catastrophes. Our Home Insurance Plan ensures you peace of mind by protecting the structure and the contents of your home.

Policy Details
There is wide range of policy details regarding the hypothecation with bank, and what kind of documentation is needed in acquiring of policy.

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Policy Coverage
You can choose to buy insurance for only the building (structure) of your home, or only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to any natural and manmade calamities.

The calamities covered are:

- Fire - Riot, strike & malicious damage - Explosion & implosion - Earthquake - Lightning - Storm, cyclone, tempest, tornado, hurricane, flood & inundation - Damage due to impact by vehicles - Missile testing operation - Subsidence, landslides and rockslides - Leakage from automatic Sprinkler installations - Aircraft damage - Bursting and/or overflowing of water tanks, apparatus and pipes

Burglary cover (only for contents):

The contents of your home are also covered against loss due to burglary or an attempted burglary. It also covers loss of jewelry, silver articles and precious stones kept under lock and key, up to 25% of the total content sum insured or Rs. 1 Lac, whichever is lower.

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Optional Covers:
Terrorism cover - Covers any damages and losses to the structure and / or contents of your home due to acts of terrorism.

Additional expenses of rent for alternative accommodation

If you are forced to shift into an alternative accommodation because your home is destroyed or damaged by any insured peril, the policy will cover you against the additional rent.

The maximum coverage is up to Rs. 1, 00,000 for up to 6 months. The cover is available only if you are insuring the structure of your home.

Key Benefits
 Comprehensive cover - Covers both structure and contents of your home.  Avail 15% discount on a 3 years home insurance policy and 25% discount on 5 years policy.  Optional covers available - Terrorism and Additional expenses of rent for alternative accommodation.  Alternate Covers - A Home Insurance cover allows you to avail an optional cover for alternative rent & Terrorism cover.

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Need for Policy

 FICCI surveys show that realty rates may escalate 10%-15% in next 6 months of 2007.  According to official statistics, the Maharashtra floods on July 26, 2005, has led to damages to over 1, 87,000 houses all over the State, affecting eight lakh families.  Protect your single largest investment against losses due to natural or man- made calamities like fire, floods, burglary and earthquake.  Cover your household contents including furniture, durables, clothes, utensils, jewelry at market value to accommodate inflation

Sum Insured
How to calculate the sum insured for the risk to be covered, also what is to be excluded and what is included.

Home Structure:
The home insurance policy insures the structure of your home for its reconstruction value (and not for market value). Reconstruction value is defined as the cost incurred to reconstruct the home if it is damaged. On the other hand market value is a combination of cost of land, demand & supply scenario, etc.

Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet, e.g. if your built up area of your home is 1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum insured for your home structure is Rs. 8, 00,000.We recommend the rate of construction for your location when you are buying online. However, this value can be revised appropriately if expensive material -like marble flooring, etc. has been used in construction. If your home has lawn / garden surrounded by a perimeter wall, the
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construction rate can be revised to include the cost of construction of this wall in home structure sum insured.

Home Contents:
The contents of your home - furniture, durables, clothes, utensils, jewelry, etc - are to be valued on market value basis i.e. the current market value of similar items after depreciation. Depreciation does not apply for jewelry.

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ICICI Lombard presents a completely new look to the Mediclaim concept. Health Insurance (popularly known as Mediclaim) offers protection in case of unexpected medical emergencies. In case of a sudden illness or accident, the health insurance policy takes care of the hospitalization, medical and other costs incurred.

We offer a range of innovative policies to choose from. Each plan offers something unique (in addition to the usual mediclaim policies) to suit your specific needs.

Buy insurance policy online with your ICICI Bank & Citibank Credit Card and pay premium at interest free installments.

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Health Plans

Critical Care
Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and Procedures, Personal Accident and Permanent Total Disablement (PTD)

Health Advantage Plus Insurance

A unique policy that covers hospitalization and Outpatient Department Expenses (including Dental treatment, cost of medicines and drugs) and enables optimum tax savings of up to Rs. 5099 u/s 80D.

Family Floater Plan

A single policy that secures the hospitalization expenses of your entire family.

Personal Accident Insurance

A Policy that covers personal accident, permanent total disablement (PTD) and loss due to terrorism.

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Travel Plans
Individual Overseas Plan
All overseas travel policies charge premium on a slab basis. Which means if you are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days. But with us you pay per day. (Code: Misc 4030)

Student Medical Insurance

A comprehensive cover, which insures you against unfortunate incidents or unexpected expenses abroad and provides timely assistance and support when you need it the most. (Code: Misc 4050)

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Achievements & Ratings

Best Customer Responsiveness:
Awarded the Economic Times Avaya Global Connect Customer Responsiveness Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in the Insurance category.

y Best Housing Insurance:

Conferred as the Best Housing Insurance in the Smart Living Awards by 360 degrees , a Times of India Group subsidiary, in Nov 2006.

y Excellence in Financial Reporting:

Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31,2006.

y Top Insurers of Asia:

Among the top three General Insurance Companies to be awarded the "General Insurance Company of the Year" at the 10th Asia Insurance Industry Awards.

y Insurance Website of the Year:

Among the top three to be awarded at the 9th Asian Insurance awards 2005 for the 'Insurance website of the Year' category.

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y iAAA Rating by ICRA:

Granted with IAAA Rating by ICRA (Investment Information & Credit Rating Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of Moody's Investors' Services

y Quality certification:
ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske Veritas (DNV) for establishing a quality management system for settlement of motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and cost-effective settlement of motor claims.

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ICICI LOMBARD - Awards & Reputations

ICICI Lombard awarded the General Insurance company of the year

ICICI Lombard has been awarded as the 'General Insurance Company of the Year' at the 11th Asia Insurance Industry Awards 2007 held in Singapore on November 5, 2007. ICICI Lombard becomes the first Indian insurance company to win this prestigious award.

It was ICICI Lombards innovation that caught the eyes of the judging panel. The innovations credited to ICICI Lombard include introduction of biometric smart cards to rural customers for availing health insurance, pioneering weather insurance along with the World Bank for farmers in India and introducing online insurance for the customers.

With more than 700 nominations received across 15 award categories from various regions, the submissions of the short-listed candidates were thoroughly scrutinized by the eminent judges. Audited by KPMG, the distinguished panel of 20 judges comprised of regulators, industry leaders, practitioners and association heads.

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Financial Highlights

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Overview of Operations
y y Only General Insurance company having an ISO certification Product delivery automated o Web (remote access, anytime, anywhere) o ILPOS (Point of Sale) y y y y y Number of policies issued Total claims initiated : 3.2 million p.a. : 11,87,430

Servicing 300 of top 1000 corporate customers, 4 million retail customers and 100 million rural customers Customer service o 24x 7 call centre, branch contacts o Loss assessment and approval decentralized for faster delivery

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About Competitor
The general insurance industry grew 12 per cent till February in 2007-08 with robust performance by private players including Reliance General, which continues to be the fastest growing insurer. So Reliance General Insurance Company is the main competitor in this sector as far the privet players are concerned.

The 14 non-life insurers collected Rs 25,470 crore in premium till February in FY'08, against Rs 24,998 crore collected in the last fiscal, according to the industry data.

During the period, the four public sector non-life insurance companies collected Rs 15,280 crore, as against Rs 14,686 crore in the same period last fiscal. From this data we can say that public sector companies have greater market share but because of cut throat competition in the sector they are not growing as per industry rate.

The private players increased their business from Rs 7,981 crore to Rs 10,190 crore during the period. The growth in privet sector is much higher than industry average

In percentage terms, while the public sector could increase their premiums by just 4 per cent, nine private sector players clocked premium growth of 28 per cent.

Private sector players' market share has grown to about 40 per cent in FY'08 so far as compared to the public sector's 60 per cent share.

Reliance General Insurance continues to be the fastest growing insurer with a premium collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in the same period last year.

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During the period, market leader New India Assurance premium collection grew by six per cent to Rs 4,760 crore.

In the private sector space, the largest player - ICICI Lombard - collected nearly 12 per cent higher premium at Rs 3,143 crore. But still ICICI Lombard is managed is No.1 position in spite of high competition.

In future also there are more upcoming players in this industry so competition might increase further and because of D-Tariff the insurance might get chipper further. New players like Apollo General insurance company and Future Group are already started their products in General insurance field.

THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the industrys growth and imperil balance sheets of insurers. In the scramble to get new clients and retain the existing ones, companies are offering to cut old tariff rates by up to 75%. While discounts are squeezing margins at one end, the increase in rates by re-insurers is pushing up costs for insurers.

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Existing Players: (Government non life players)

Oriental Insurance Company Limited New India Assurance Company Limited National Insurance Company Limited United India insurance Company Limited

Non life insurers (Private Players)

Baja Allianz General Insurance Company Limited IFFCO- Tokyo General Insurance Company Limited National Insurance Company Limited New India Assurance Company Limited Oriental insurance Company Limited Reliance General Insurance Company Limited Royal Sundaram Insurance Company Limited Tata AIG General Insurance Company Limited United India Insurance Company Limited HDFC Chubb General Insurance Company Ltd.

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Customer
ICICI LOMBARD General Insurance segment serves a wide range of customers, from individuals to small and medium-sized businesses, commercial enterprises and major multinational corporations. This subsidiary of ICICI bank focuses on customer segments and key markets that present the best opportunities for sustained and profitable growth. Individual customers may take insurance for their Home Insurance, Health Insurance, Motor insurance, Student medical insurance and Domestic travel insurance. So they are the main focus area as far as the customer is concerned. ICICI Lombard is also providing the business products also so corporate is also a one of the major area for customers. In business segment Fire insurance, Marine insurance, Industrial insurance, corporate insurance is the main insurance service is mainly use by clients in corporate segment. ICICI Lombard is also providing service to the NRI they are also contributing very high to Lombards revenue. In NRI service main focus area of the products are Health insurance, Parents overseas insurance, Student medical, Home insurance, and Motor insurance. ICICI has major market share of 25% in Travel insurance. ICICI Lombard is providing services to rural area and for them also Home insurance, Health Insurance, Tractor insurance, Weather insurance and Shop insurance are available. Corporate agents are also plying the major role in Motor insurance to increase the customers and increase the market share in the sector.

Customer support
Wherever you are, we strive to provide excellent service to you. We welcome you to Customer Service, our single point-of-contact for all your service requests/needs. We are committed to resolving your concern fairly and quickly.

Now reaching us has become a whole lot easier. Choose the channel suited to your convenience and get an instant access to our services.

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Self-Help
Choose the products, service request and we will contact you. Click here

Track Your Interaction Status

Enter your Request/Complaint No. or Policy Number to track your previous interaction status. Click here

Email Us
Click here to e-mail us

24x7 Insurance Helpline

Call Toll free at 1800 209 8888 for your insurance needs.

Letters
send us a letter

All India Branches

ICICI Lombard has over 257 offices across 196 locations. Find one near you.

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Grievance Reddressal
If you are not satisfied with the resolution provided to you by the above channels, we will connect you to the grievance reddressal.

Compliments
If you are happy and satisfied with our service and products, Please provide feedback.

Corporate Profile
Genesis
ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank, India's largest private sector bank and Fairfax Financial Holdings Limited; a Canada based $26 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.

Lombard Canada Limited, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers.

ICICI Lombard Corporate Highlights

y Strong Percentage:
ICICI Lombard leverages ICICI Bank's strong brand equity, extensive distribution network and sound technological infrastructure to service customer needs. Lombard Canada assists on
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domain knowledge, product innovation, business processes based on cutting edge technology and international best practices in the insurance business.

y Resourceful Customer Service:

ICICI Lombard services a wider foot - print of customers with its offices located in 127 cities across India. With a network of 3500 hospitals in 200 cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless claim settlement to its customers. We also have an online customer support system which allows customers to track their claim status and facilitate quick response to service requests. Click here

y Highest Levels of Security:

Security and privacy for customers remain our highest concern.

Click to view our security certifications:

-TRUSTe Privacy Seal Program
- VeriSign Certification

Strong Claims paying ability:

We have been assigned the iAAA rating, indicating highest claims paying ability. As of 2005-2006 over 14, 51,000 policies have been issued across India and over 2.4 lakh claims settled.

y Comprehensive Products:
We have over 32 customized and innovative insurance solutions which are offered to the customer for their best insurance solution.

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S.W.O.T. ANALYSIS OF ICICI Lombard GIC Ltd.

Strength

y y y y y y

Assigned the iAAA rating by ICRA indicating highest claims paying ability Simple and fast documentation Lightning fast claims settlement Instant online policy issuance Comprehensive product line Highest security level offered through 128 - 128-bit encryption in case of online data exchange

First company to provide digitally signed documents through an online interface

Weakness
Have to take underwriters approval for every process Less agent payout that is (10 %to15%)

y y

Opportunity

y y y

95% 2-wheelers are not insured Beneficial in business sector because of corporate growth Low market share in insurance sector
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y y y

There is lots of innovation to be done Customized insurance solution Getting Fleet owners

Threats
There will be too many competitors in future Because of d-tariff margin may further shrink Threat of new entries Threat of substitute products Government Policies PSU Companies

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MARKET SHARE

ICICI is holding 36% market share of insurance industry and other 13 insurance companies are with 66% market shares.

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About the Promoters

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with assets of Rs. 2958.32 billion as on December 31, 2006. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing customer base through a multi-channel access network which includes over 695 branches and extension counters, 3051 ATMs, call centers and Internet banking.

Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders worldwide. Today, Prudential has millions of customers worldwide and over 238 billion (as of 30 June 2006) of fund under management. In Asia, Prudential is the leading European life insurance company with a vast network of life and fund management operations in thirteen countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam and United Arab Emirates.

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Distribution
ICICI Lombard has one of the largest distribution networks amongst private general insurers in India. As of January 31, 2007 the company has over 200 offices across the country and over 16,000 agents.

Thus this is the short and brief history of the ICICI Lombard as No1 private company. It awareness amongst the customer is rated quite high, as its marketing vertical is quite advance also they carry on large advertisement campaigns. Through advertisement it is creating its brand value in the mind of customer. As we can clearly see from the chart that ICICI Lombard grabs huge amount of market share and its Product Bouquet is of wide range with meets the customer requirement to its solutions, which the customer appreciates by buying the product with faith in the company. Also its core competency of fastest claim settlement makes customer to prefer ICICI Lombard as their first choice. We can find n number of hoarding, banners, sign board which reflects the brand image of ICICI Lombard.

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Management Team

The ICICI Lombard General Insurance Company Limited Management team comprises very young and energetic people in its management team.

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Mr. Sandip Bakshi M.D & CEO

Mr. Rakesh Jain CFO

Mr. B. Anant - Head HR

Mr. Ritesh Kumar - Head-Retail, Rural and Reinsurance

Mr. Neelesh Garg - Head-Retail and Bancassurance

Mr. Bharathan K - Head GCG

Mr. Alok Agarwal - Head Corporate Business

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SCOPE
Purpose of Making of agents
Expansion of business has always proved as a sign of profit, same is in the business of insurance. Agency development means recruitment of educated, aware individuals with marketing flair, an elite group. In short companies are recruiting an advisor who comes with a handsome business; in return they get commission, incentives, and other benefits also.

The targeted segments are:

LIC Agents R.T.O agents Stock Brokers Tax consultants/CA Fleet Truck Owners Education consultants Financial service executives (Savings account etc.) Tour & Traveler Global consultant Auto Dealers Used car dealers Overseas consultant Earth movers Contractors Labour Union leader
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y y y y y y y y y y y y y y y

And there are many other upcoming segments in which agent acquisition is proving to be boon for the company for generating more and more business.

Tied agency channel

An Agent
Todays insurance agent has to know which product will appeal to the customer, and also know his competitors products in the same space to be an effective salesman who can sell his companys product, and himself to the customer. To the average customer, every new company is the same. Perception about the public sector companies are also cemented in his mind.

The new companies are looking for educated, aware individuals with marketing flair, an elite group.

Role of agents
The insurance agent is the interface between the customer and the insurance company. The agents should be able to accomplish the following to improve service.

Assessing and analyzing the clients risk profile Finding the best products available in the market Negotiating the best deal available Continuity of service throughout the period of insurance Claims advisory service
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In tied agency thus an agent has important role to play. It becomes his duty to give the customer best service. Once that is done a customer is satisfied and this in longer period is bound to bring in more business.

General insurance agency: the process

Once the right profile is found and he/she is ready to take up the agency there is a fixed process that has to be followed.

Documentation:
A form has to be filled by the person who intends to take up the agency. He has to submit documents related to Address proof, Education proof, Pan Card copy, Photo and Cancel cheque.

Training:
Once the form is filled up and necessary documents submitted according to IRDA guidelines the individual has to undergo a 50 hours training. Thus an individual undergoes a total 50 hours or two weeks training which is compulsory and product training is given by company.

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IRDA Exams and license:

Once the training has been imparted to the individual then to start working as a general insurance agent than he needs an IRDA license which is given upon clearing the IRDA exam taken by IRDA itself. This exam is written as well as online. After clearing exam person gets the license. It is then that individual become a General insurance agent and can start working.

Facilities provided by the company

There is 100% management support to agents. For them agent service desk is also available from there they can get solve any query and get premium quotation. Company gives brochures, pamphlets and other material free of cost. In the initial time the unit Sales Manager or Unit Sales Manager also go with the agent to reap the business and thus gives the practical knowledge of marketing. At any point of time the unit managers are ready help their agents.

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Returns to an agent
A life insurance advisor earns in form of commissions, bonus, and incentives. This commission is counted as some percentage of the policy premium. This commission varies with different policies of a company as well as the policy terms. Its high in the year of policy, then decreases and later becomes constant. For example an advisor can reap 10 to 15 % of commission. An agent gets the commission till the client pays the premium. According to IRDA norms certain cap for commission has fixed on various policies.

Apart from regular commission the advisors also gets the gifts as per their performance. But this is totally an individual life insurance companies discretion. Different companies may adopt different strategies for the advisors.

Recruitment strategies
In recruitment of the agents I have targeted the fleet owners who are the transporter. They own more then 15 trucks with them so they are the initial beneficial for acquiring the agency, as insurance on the goods carrying vehicle is compulsory and also they are exposed to n number of risk as they are constantly into to & fro on the highway road. The main benefit of targeting this segment is that the owner is itself aware about the risk he is going to have. And also he has a satisfaction that his property is insured and it would not affect his financial position is case of any mishaps.

And the best part is that the agent himself can take 20% discount on his Own Damage premium amount, which is known as OD discount. Still not over, he will also get 10% payout of the business he gives to the company, so overall he will be benefited by paying 30% on his own policy premium amount. And not only will this but they also get No Claim Bonus (NCB) if there is no claim history in Past. Also company is giving RED CARPET service which is
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only for the fleet owners as they are considered to be the Gold / Platinum category of the agent.

The red carpet service is the extra benefits which includes many things which are not rendered by any other competitors.

It includes following benefits:

Free cashless service in the more than 2000 garages across the country. Access to the nearest garage at the highway No documents required at the time of surveying Free eye check up camp for the drivers Free driving training at advance level for the drivers Payment of 50% of claim amount at the time of service if claim is more than 1lakh Rs. Settling claims in less than 21days. He can insure the vehicle more than 5years of age which no company in private sector does.

Thus the red carpet service is proving to be win-win situation for both the company and the agent himself as this is very much beneficial scheme for the agent himself who is a fleet owner. And thus he is easily convinced however it is still difficult to trace fleet owner as they are quite busy in their schedule itself, so taking a prior appointment is difficult task to do.

Also I would like to introduce other specialty which helps agent as a back up support.

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 They can insure vehicles above the age of 5 years which generally Reliance and Iffco tokio is not taking.  We have agent desk department who is catering agent queries such like policy, premium calculation if they have any problem regarding their status and also their payout and claim problems.  The retention team work as a back up support for the agent which deals in renewing the old policy of the old customer. So the retention team intimates the agent and inform about the nearest renewal date and amount which the agent has to collect from his customer.

Procedure of Recruitment:
To achieve a goal successfully one need to sketch a perfect roadmap & also adopt a strategy to the destination and also need to follow the path strictly. My plan to achieve target is as follows:

a. Generating Database
In the very first step of recruiting agents is to prepare contact numbers list for that I have used natural market contacts, referral contacts and also I have done cold calling for that. In cold calling I take name and number of that person and also profile of that person.

b. Tele calling
Tele calling is one way of convincing customers by doing phone calls and explaining whole procedure of becoming agents and their pay roll structure and how ICICI providing service to agents. And if possible tele callers may take appointment so that face to face conformations can be Beneficial to understand the policy. This support was given by Divya Patel & Pooja Nair who was on Agent Service Desk support.
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c. Appointments
After Tele calling if customers are interested they give appointment for meet. Both our self and customer conveniently decide the place for meet.

d. Collecting documents and filling the forms

There are criteria for customer for becoming a. So, after fulfilling criteria forms are filled and documents attached.

e. Submitted forms in company

After attaching documents and taking signature of customer forms are submitted in the company. This is to be handover to the operations department, as entry would be done in MIS after checking the details and eligibility of the Agent from the document he has submitted, his signature is verified, also his identity is cross checked, by the document itself or but telephonic questioning if required.

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Limitations Limitations

Generating the Data base of the customers is a quite time consuming for me.

Appointments at improper timings. Set the time according to the customer convenience.

Getting Quality Customers who would really trust IPRU was very difficult at initial phase. Aware them about the other company policy and differentiate between IPRU and its competitors products.

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Learning at Executive Training

Improvement in my convincing skill. Time management. Leadership. Get the knowledge of corporate world. Working effectively and efficiently. Team work Working according to the company policies. Regular follow up the agents who are in pipeline. It is really important to know what the customers requirement is. How business & ethics work together Regular reporting with my company guide. Interacting with different type of agents Provide me an opportunity to apply the concepts learned in real life situations. It sensitizes us about nuances of work place by the time-bound projects assigned by the company. It creates awareness about the strengths & weaknesses in the work environment It provides a platform to develop a network while OJT (On-the-job- Training), which would be useful in enhancing career prospectus. Know the day-to-day functions of the company. It provides a unique opportunity to get exposed to corporate culture, professional experience & professional behavior & putting the theoretical concepts learned in the classroom for developing managerial skills. To gain a deeper understanding of the work culture, deadlines, pressure etc. of an organization.

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 It gives a flavor of teamwork, organization culture, team dynamics, result orientation, organizational pressures, complexities in achieving the desired results etc. It provides direct exposure to the execution & support functions of the departments. It provides a good scope for developing necessary managerial skills & positive attitude.

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Looking forward in insurance market in 2010

The Indian non-life market has experienced significant changes that are likely to influence the countrys development of its insurance market in the medium to long term. So far, the entry of a large number of Indian and foreign private companies has led to greater choice in terms of products and services for Indian consumers. A growing realization of the benefits and importance of sophisticated insurance and reinsurance tools has broadened the pool of potential buyers of insurance. Given this backdrop, the Indian insurance market has experienced considerable growth since its liberalization in 2000. Over the next three years, the Indian insurance market is. Likely to see its process of maturation accelerate.

Regulatory drivers
Regulatory changes in the four areas discussed in the previous section products, market players, distribution and reinsurance will drive change in the Indian insurance market in the medium term. In some areas, such as detariffication, the majority of reform has already taken place, although the consequences are yet to be seen. In other areas, while the reform is promised, it is difficult to anticipate when it will occur. As a result, there is a lot of uncertainty in the Indian insurance market. The four main areas of change are now considered in turn.

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Detariffication
The process of detariffication, first begun in 1994, has gradually moved the Indian market to a position where the overwhelming majority of insurance is transacted without a tariff. As of 1 January 2007, tariff rates have been withdrawn from all lines of business except for motor third-party (TP) liability. While hitherto, insurance professionals had limited exposure to Sophisticated technical pricing based on actuarial data analysis, in a detariffed market, this is increasingly a necessity for businesses in order for them to remain profitable.

Foreign ownership
As discussed earlier, foreign ownership is currently restricted to 26%, although there are plans to increase this limit. The typical structure adopted by the Indian government for the Phasing in of foreign-owned entities across other industries (such as construction and pharma) has been as follows:

1. Phase I: Allow foreign entity to have 26% stake in joint venture. 2. Phase II: Increase foreign entity maximum stake from 26% to 49%. 3. Phase III: Increase foreign entity maximum stake from 49% to 74%. 4. Phase IV: Allow 100% foreign-owned entity to operate in market. In January 2007, the Indian government reiterated its claim to Increase the cap from 26% to 49%

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In January 2007, the Indian government reiterated that it would introduce legislation to hike the FDI cap in the insurance sector to 49%. No time limit has been set for taking a decision on it although consultations with the industry and stakeholders are underway. There is ample opposition from the left, but analysts expect that this change will be made effective in. The next one to two years. The effect of this change will be twofold. Firstly, it will increase the focus of the existing Private insurers operating within the Indian market. As discussed in the previous section, the private companies are increasingly diverging on strategy as they are influenced by their foreign partners. It is likely that increased foreign ownership will lead to differentiated strategy, more niche players and a wider product range.

Secondly, it is expected to increase the supply of capacity in the market as new investors will decide to enter the market. Indeed, a number of insurers have commented that, as soon as foreign companies are allowed more than 26% ownership, they would move as quickly as possible to participate in the market.

Broker distribution
The broker channel was recognized in 2002; again, foreign capital providers can take up to a 26% stake in an Indian brokerage operation. There is also no indication at the time of writing as to whether the constraints placed on Brokers, such as high set-up costs and activity restrictions will eventually be removed. What remains clear, however, is the fact that in a detariffed market, the broker has more opportunity to demonstrate value to both the customer as well as the insurer. Value-added services can be in the form of consulting regarding risk management responsibilities as well as more traditional insurance-related roles.

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Compulsory Sessions
In line with detariffication, there has been some progress in reducing the compulsory session to the GIC from 20% to 15%. The 20% compulsory cession has been reduced to 10% in 2007 However, a complete abolishment of the remaining 15% compulsory cession to the GIC is unlikely to occur in the medium term. Although it would seem natural to liberalise this position as the broader non-life market begins to open up, the Indian government and Legislator reiterated their desire to retain insurance premium in India in the central legislation of 2000, and there is no reason to believe that this position has since changed. In addition, many local companies are happy with the automatic reinsurance support that they receive from the GIC.

The PSUs are pleased that they are able to cede 15% of their poorly performing motor book on to their parent whereas the growing number of private insurers are grateful for the additional capacity that they receive from the GICs de facto proportional treaty coverage. While a further reduction to 10% is expected in 2008, abolishing compulsory cessions Altogether is not at the top of the legislators agenda.

Growth drivers
Overall, sales of both commercial and retail products are expected to benefit from Indias surging economic output over the medium term. Economists expect Indias output to grow by around 6% per annum over the next ten to 15 years, and the political and business environments are expected to stabilize further.79 The combination of this economic growth, Increased stability and the liberalization of the non-life sector is expected to provide premium growth in the range of 10% to 15% per annum over the short to medium term.

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Personal lines insurance premium growth drivers:

Personal lines products are expected to develop quickly as Indians grow wealthier although probably not of immediate interest to Lloyds underwriters, a developing economys initial growth in insurance penetration is often driven by personal lines products, especially motor cover as this tends to compulsory. Indeed, Indias fast-developing private insurers expect retail products to provide them with their main source of premium growth over the medium term.

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Conclusion
It was really a great experience to be associated with such a great corporate company. Its was a great pleasure to work with reputed firm ICICI Lombard which is No. 1 player as far as private company in insurance sector. Also I am once again thankful to my company guide and staff of ICICI Lombard who really worked hard as far as my training was in process. I have learned enormous things during these 2 months, which will prove a solid platform as far as my future career is concerned. It really enhanced my marketing skills, and also it gave me solid motivation to face the critical situation, also I came across to the various people and cultures which are in the corporate culture. I can say that SIP was like net practice before playing any big game. It gave me ample of knowledge regarding my study on Agent Acquisition.

I also got experience of hardcore selling as it was part of my SIP training. Thus this 2months of SIP has pumped in lot of motivation and enthusiasm in me. It also upgraded my confidence level and gave me boosting to face new challenges and gave me path of not only surviving but also to grow in this competitive work. I can say that my dedication and hard work towards my decided task really gave me good result in the end.

I also learned to work in a team and how to cope up with team spirit. Positive reinforcement was the most motivating factor which makes us to work in a healthy atmosphere.

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BIBLOGRAPHY
Address:ICICI Lombard General insurance co. LTD.

6th floor, BBC Tower, Law Garden Road, Near Mithakhali Six Road, Ahmedabad. WEBSITES  www.ICICIbank.com  www.icicilombard.com  Search engine like: www.google.com

Magazine  The Economic Times  The business times News paper  The Times of India


Gujarat samachar

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