A

PROJECT REPORT

ON

MARKETING MIX AND INSURANCE AWARENESS

IN RETAIL SECTOR.

Submitted by

Prepared for

Reliance
General Insurance
Company Limited.
 DECLARATION

TO WHOM SOEVER IT MAY CONCERNED

I the undersigned, hereby declare that the research work done on the topic
“Marketing Mix and Insurance Awareness in Retail Sector ” for
Reliance General Insurance company Ltd. written & submitted by me is my
original work .

Date:

Place: Ahmednagar
Signature of Candidate
 ACKNOWLEDGEMENTS

I would like to thank ‘Reliance General Insurance Company Limited’

(Pune Office) for allowing me to conduct a study of Marketing Mix &
Insurance awareness.
I am thankful to Mr. C. Balaji , DGM (Operations) for extending the
necessary co-operation in carrying out this project.
I would like to thank Mr. Sameer Paranjpe who guided me and
encouraged me throughout the project.
I we thanks to all the clients for sparing some time from their busy
schedule and sharing their experience and suggestions.
I would like to thank all the executives of Reliance General
Insurance Ltd.(Pune) who have been supportive throughout this study.
I am also thankful to Prof. Raibagkar (Director, IBMRD), Prof. J.S.
Kadam who have supported to conduct the project.
 CONTENTS

 Objectives of the project……………………………..4

 Introduction…………………………………………..5

 Company Profile……………………………………...7

 Concept of Marketing and Marketing Mix………….10

 Types of insurance…………………………………..13

 Product Mix……………………………………….…14

 Price Mix………………………………………….…33

 Promotion Mix………………………………………44

 Place Mix……………………………………………45

 Questionnaire………………………………………..46

 Analysis……………………………………………...49

 Conclusion and Recommendations……………….…56

 Limitations…..…………………………..…………..57.

 Bibliography…………………………………………58.
 OBJECTIVES OF THE PROJECT.

1) To study the various products of the company.

2) To get familiar with corporate functions of the company.

3) To study the sales strategies of the company.

4) To imbibe practical experience.

INTRODUCTION:

The business of general insurance is related to the protection of economic

value of assets. The assets would have been created through the efforts of

owner. These assets are insured because they are likely to be destroyed or

made non-functional through an accidental occurrence called perils.

The business of insurance is nothing but sharing. It spreads losses of

Individuals who face common risk.

When the insured pays the premium and the insurer accepts the risk, the

contract of insurance is started. Policy issued by the insurer is the

evidence of a contract.

Nationalization of the general insurance business in India took place in

1973, only the General Insurance Corporation of India (GIC) and its four

subsidiaries are transacting general insurance business in India. As at the

beginning of the year 2000, the Insurance Regulatory and Development

Authority (IRDA) has been given powers to issue certificate

of registration to new insurance companies to transact general insurance

business in India.
The subsidiary companies are:

1) The New India Assurance Co. Limited.

2) The Oriental Insurance Co. Limited.

3) National Insurance Company Ltd.

4) United India Company Limited.

And the private companies are:

1) Bajaj Allianz General Insurance Co. Ltd.

2) ICICI Lombard.

3) Reliance General Insurance Co. Limited.

4) Tata AIG.

5) Iffcco-Tokyo General Insurance Co. Ltd.

6) Royal Sunderam General Insurance Co. LTD.

7) HDFC Chubb General Insurance Co. Ltd.

The project includes the study of Marketing Mix of personal products and

insurance awareness in retail sector.

Marketing Mix includes the variety of insurance products of the company,

its warranty period, prices of each product, discount given on it. Sales

promotion of the company and channels of distribution.

The study also covers the analysis of insurance awareness amongst the

shopkeepers and travel agencies.

COMPANY PROFILE

Reliance General Insurance Company Limited is a venture of the

Reliance Group, India’s largest and fastest growing business house,

Reliance General Insurance Company Limited is one of the first non-life

insurance Company to get license from Insurance Regulatory and

Development Authority (IRDA). The company has a paid up capital of

Rs.102crores and an authorized capital of Rs. 200 crores, from property

to marine to casualty and liability. RGICL offers an exhaustive range of

Insurance products, and It has maintained a consistent record of

Profitability from the very first year of its operation. Set

up with exclusively Indian expertise, the company aims to emerge as a

new generation insurance company, committed to offer sustained value

Propositions to its customers by keeping them at the focal point of all its

operations.

VISION….

1) To establish a world class end to end e- enabled Insurance enterprise.

2) To achieve customer satisfaction by putting to practice customer

facing processes, technology and customer delighting attitude.

3) To chart new vistas in General Insurance Market.

COMMITMENT….
OFFERS THE BEST.

1) Keep customer as focal point of all operations.

2) Adopt the best international practices in underwriting, policy servicing

and claim settlement.

3) To be more innovative in product development.

4) To establish an all India presence.

5) Protect policyholder’s interest.

6) Sustained value addition to all stakeholders.

PEOPLE….

The company has on board a highly talented and motivated team with a

Blend of the best domain expertise and successful record in client

Serving. With an average experience exceeding 20 years, the team brings

a deep understanding of the Indian Market.

BACKED BY THE WORLD`S BEST REINSURERS.

Apart from the utilizing capacity of the national reinsure as per IRDA

Guidelines, RGICL has established relation with the world’s best

Reinsures and has availed the capacity offers by them.

MORE VALUE TO THE CUSTOMER.

Risk Evaluation.

Provides expertise in risk evaluation and risk mitigation leading to the

most appropriate risk transfer solution.

Post Sales Service.

Differentiate on service parameters by ensuring prompt and correct

Documentation and fair, transparent and speedy claim settlement.

New Products.

Introduce innovative products suited to specific market segments.

Leverage State-of-the-art Technology

Use IT to ensure a customer-centric seamless service which facilitates

Real time on-line data.

CONCEPT OF MARKETING

Marketing is a process by which individuals and groups obtain what they

need and want through creating, offering, and freely exchanging products

and services of values with others.

Marketing Management is the process of planning and executing

conception, pricing, promotion and distribution of ideas, goods, and

services to create exchanges that satisfy individual and organizational

goals.

MARKETING MIX

Marketing mix is the set of marketing tools that the firms use to pursue its

marketing objectives in the target market.

Marketing mix can be classified into four broad groups called four P` s of

the marketing.

Marketing mix decisions must be made for influencing the trade channels

as well as the final products.

For service sector three additional P` s are given which are

People.

Physical evidence.

Process.
 MARKETING MIX

PRODUCTS PLACE

Product Variety. Channels.

Quality. Coverage.
Brand Name. Inventory.
Service
Warranty
PRICE PROMOTION

List Price. Sales Promotion.

Discounts. Advertising.
Allowances. Sales Force.
Payment Period. Direct Marketing.

PRODUCTS:

Products mean any thing that satisfies customer` s needs and wants.

Product can be a goods, service or idea.

Product adoption involves alternating the products to reset local conditions

or performances.

Product mix includes different things related to products of a organization

under one heading, i.e. different types of products (goods or services),

quality of each product, Brand name of the organization. After sales,

service of the company. And warranty period of each product.

PRICES:
 Pricing decision is the most important decision to any kind of
organization.

Companies have three choices:-

1) Setting a uniform price everywhere.

2) Setting a market based price in each country.

3) Setting a cost based price in each country.

Price Mix includes list prices of the products of company, discount given

on products. And the payment period decisions.

PROMOTION:

It is most important for an organization to promote their business in the

market.

Companies can run the same advertising and promotion campaigns used in

the home market. A process is called communication adoption.

Promotion Mix includes sales promotion in the market, advertising

campaigns for the products or services, sales persons of the company and

the direct marketing of the products.

PLACE:

Place means the area where the company operates its business.

Place Mix includes the areas of business, channels of the company,

transportation system and the inventory.

 TYPES OF INSURANCE PRODUCTS.

PERSONAL COMMERCIAL SPECIAL

PRODUCTS. PRODUCTS PRODUCTS

1) Shopkeeper` s Package Policy 1) Blood stock (Horse)

2) Householder` s Package Policy Insurance.
3) Overseas Travel care Policy 2) Satellite Insurances.
4) Personal Accident Policy. 3) Oil and Energy risk
5) Individual Mediclaim Policy. Insurance.
6) Motor Vehicle Policy. 4) Marine hull Insurance.

1) Property
2) Projects & Engineering.
3) Liability.
4) Other miscellaneous
Insurance.
PRODUCT MIX OF PERSONAL PRODUCTS.

A) SHOPKEEPER`S PACKEGE POLICY

Shopkeeper’s package policy is help to protect your business in terms of

money against accidental fire, housebreaking or Burglary.

Shopkeeper can choose the covers as per the specific needs of the

business.

Covers in the Shopkeeper’s package policy.

1) FIRE AND ALLIED PERILS:

The building in which the shop is situated can be covered against the

hazards of fire and allied perils like lightning, explosions, implosions,

riot, strikes, malicious damage etc.

Acceptance limit: Rs. 20lakhs.

2) BURGLARY AND HOUSEBREAKING:

Under this section contents in the shop can be covered against burglary

and housebreaking.

This section also covers the damage of shop and safe consulting from

burglary or housebreaking or any attempted treat.

Acceptance limit: Rs. 20lakh.

3) ELECTRICAL AND MECHANICAL APPLIENCES:

This policy is also covers the electrical/mechanical appliances,

apparatus, gadgets and installations pertaining to business.

The covers will available against loss or damage due to unforeseen and

sudden accidental physical damage cause by solely due to mechanical or

electrical breakdown.

Coverage: 1% of sum insured for each item up to 5 years

4) ELECTRICAL APPLIENCES:

Under this section policy can provide cover against damage or

breakdown to the electronic appliances, apparatus, gadgets and

electronic installations including computers. It also covers items like

data, data carrying materials and software/computer programs.

5) MONEY INSURANCE:

Any loss or money relating to trade or business due to accident or

misfortune while in transit or from the safe at the shop can also be cover

under this policy.

Acceptance limit: 10% of sum insured or Rs. 75000/- whichever is low.

6) BAGGEGE:

Baggage cover is available to proprietors, Partners, principle officers and

the permanent employees in the shop. It covers the loss of baggage due to

accident or misfortune during official journeys outside the city.

Acceptance limit: Rs. 25000/-.

7) FIXED PLATE GLASS AND SANITORY FITTINGS;

This section covers the loss or damage due to accidental breakage of –

A) Fixed plate glass and sanitary fittings contained in the shop.

B) Frames or Framework.

C) Lettering consequent upon the breakage of glass.

Acceptance limit: 10% of sum insured or Rs. 50000/- whichever is low.

8) NEON SIGN/GLOW SIGN/ HOARDINGS:

The neon sign, glow sign, hoardings to and fixed in the shop can be cover

against loss or damage due to accidental external means like fire,

lightning, external explosions, theft of whole sign, riot, strike, malicious

damage, earthquake, flood, storm, tempest, typhoon, hurricane, tornado

and cyclone.

Acceptance limit: 10% of sum insured or Rs. 50000/- whichever is low.

9) PERSONAL ACCIDENT:

This policy can provide a personal accident cover so much needed for all

of us. The covers basically provide for compensation in the event of

accidental death or disablement of the insured persons. The coverage can

also be extended to insured’s spouse and dependant children. It can also

covers the medical expenses upto 40% of the compensation paid or 20%

of the sum insured.

10) INFIDELITY/ DISHONESTY OF EMPLOYEES:

It covers against any direct pecuniary loss caused by the dishonest acts/

infidelity of employees who are in the permanent employ of the shop

keeper.

11) A) LEGAL LIABILITY TOWARDS EMPLOYEE:

This policy covers legal liability towards employees and working in the

insured` s shop under fatal accident act 1855/ workmen` s compensation

act 1923 and in common law. To pay compensation in respect of

accidental death or injury.

B) LEGAL LIABILITY TOWARDS THIRD PARTY:

This sub –section covers subject to certain limitations, legal liability to

pay compensation to third parties including cost, fees and expenses

incurred any where in India, in accordance with the Indian law.

B) HOUSEHOLDER` S PACKAGE INSURANCE POLICY

This is a package policy which covers propose` s household/ domestic

property.

This policy covers the following sections.

1) FIRE AND ALLIED PERILS:

The section of the policy covers building/s against fire and allied perils. It

also covers earthquake ( Fire and Shock) risk additionally.

Acceptance limit: For Building:- Rs. 1crore.

For Contents: Rs. 1crore.

2) BURGLARY AND HOUSEBREAKING:

A) The policy covers praposer` s house including item of property therein

for which the praposer is accountable against burglary.

B) The policy covers damage to praposer` s house and/ or safe resulting

from burglary and /or any attempted thereat subject to a maximum of

5% of capital sum insured under this section of policy.

Acceptance limit: Rs. 1crore.

3) ALL RISKS (JEWELLERY AND VALUABLES)

The section covers the jewellery and valuables against loss or damage

by accident or misfortune whilst any where in India, subject to liability

of the company. The valuables will includes item like watches, cameras,

expensive art pieces etc.

Acceptance limit: 50% of sum insured or Rs. 10lakhs whichever is low.

4) DOMESTIC MECHANICAL AND ELECTRICAL

APPLIENCES:

Section covers all domestic and mechanical appliances, apparatus, or

gadgets, and/ or damage due to unforeseen and sudden accidental

physical damage.

Only items up to 5 years of age shall be accepted.

5) DOMESTIC ELECTRONIC APPLIENCES:

It covers computers, other domestic electronic appliances and/ or any

electronic installations while contained or fixed in the praposer` s house.

6) TELEVISION SET:

The section covers the loss or damage to television set, accessories

forming part of the set and antenna while contained or fixed in the house

of the praposer by

A) Fire, lightning, explosions of gas in domestic appliances.

B) Bursting and overflowing of water tank.

C) Aircraft dropped there from.

D) Earthquake.
 E) Flood, inundation, typhoon, storm.

F) Riot, strike, terrorism.

G) Burglary and/or housebreaking.

H) Accidental external mean.

I) Mechanical and electrical breakdown.

7) FIXED PLATE GLASS:

The section covers loss or damage due to accidental breakage of

A) Fixed plate glass.

B) Frame or framework.

C) Lettering consequent upon the breakage of glass.

8) BAGGAGE:

The section covers the loss or damage to personal baggage of praposer

and/or family members who are permanently residing with praposer due to

accident or misfortune during any journey undertaken in India whilst on

tour or on holidays outside the city town or municipal limits of the place

where the praposer` s house is situated.

9) PEDAL CYCLE:

Covers loss or damage to pedal cycle due to fire and allied perils, burglary,

housebreaking, theft and earthquake.

10) PERSONAL ACCIDENT:

This policy provide compensation towards accidental death/disablement

covering insured and his/her members of family ( age from 5 to 75 years)

on the payment of extra premium.

11) A) LEGAL LIABILITY TOWARDS SERVANTS:

The policy can covers legal liability to domestic servants including drivers

and gardeners.

B) LEGAL LIABILITY TOWARDS THIRD PARTIES:

This policy covers legal liability to pay compensation to third parties in

accordance with Indian law.

C) OVERSEAS TRAVEL CARE INSURANCE POLICY:

The policy covers accident or sickness in foreign land where treatment is

quite expensive or an eventuality of loss of passport/ baggage in respect to

the financial implications.

This policy provides special purpose insurance cover for persons

undertaking travel abroad.

The policy covers:

1) Emergency medical expenses and assistance outside the Republic of

India by the insoured person for bodily injury, sickness, disease or death.

2) Dental expenses to cover acute anesthetic treatment of a natural tooth

or teeth.

3) Transportation of the insured person: If medically necessary from

the foreign country to the insured person` s permanent place of residence

or the nearest hospital.

4) Transportation for an accompanying person when it is necessary

medically necessary, this might be a physician, nurse, relative, friends or

colleagues.

5) Transporting the mortal remains of the deceased, in case of death,

back home or the extra costs required for burial at the place of death

abroad.
6) Total loss of checked baggage caused by a carrier.

7) Death or loss of eye(s) or limb(s) or other permanent partial

disability sustained by the insured person during the foreign trip caused

solely and directly by accidental, external, violent and visible means and

such bodily injury.

8) Personal legal liability to pay for accidental bodily injury to third

parties or for accidental damage to third party properties during the foreign

trip.

The policy not covers.

1) Claims in respect of diseases existing at the time of commencement of

journey.

2) Pregnancy of the insured person childbirth, miscarriage or related

complications.

3) Claim where the insured person is traveling against the advice of a

physician or is traveling for the purpose of obtained treatment.

4) Claims for manual works or hazardous occupation, self-explosions to

needless perils (except in attempt to save human life) or if engaged in any

criminal or illegal act, suicide or attempted suicide.

5) Participation in winter sports, mountaineering and such other

professional sports or any other hazardous or potentially dangerous sports.

DETAILS:

Policies are available for individual or groups for either short period or

annual cover (covering any numbers of trips of an individual with each

trip not exceeding 30 or 45 days )

Policies are also available for corporate for bulk travel.

The travel is classified in to the following plans.

1) For worldwide travel excluding USA/ Canada.

2) For worldwide travel including USA/ Canada.

D) INDIVIDUAL PERSONAL ACCIDENT POLICY:

1) The policy covers the physical loss to an individual due to accidental

injury.

2) The policy pays a compensation for death or disablement from

accidental bodily injury.

3) Happening any where in the world.

4) Age Limit: Between 5 to 70 years.

5) The age limit is also extended beyond 70 to 80 years with additional

premium.

Medical expenses extension:

Policy covers maximum of 40% of the compensation paid on settlement of

A valid claim under this policy or 20% of the CSI whichever is less on the

payment of 20% extra premium.

Education Grant:

In the event of death or permanent total disablement of the primary sum

insured due to accident .

The company pays as education grant for dependant children as given

below.

A) One dependant child below the age of 25 years. Amount equal to 10%

Of CSI to maximum of Rs. 5000/-.

B) More than one dependant child below the age of 25years. Amount

Equal to 10% of CSI upto Rs. 10000/-.

Classification of Risk

Risk group I:

Accountants, Doctors, Lawyers, Architects, Consulting Engineers,

Teachers, Bankers, Persons engaged in administrative functions.

Risk Group II:

Builders, Contractors and Engineers engaged in superintending functions

only, Veterinary Doctors, Paid drivers of motor cars and light motor

vehicles.

All persons engaged in manual labours, cash carrying employees, garage

and motor mechanics, machine operators, drivers of trucks, lorries and

other heavy vehicles, sportsmen.

Risk Group III:

Persons working in underground mines, explosives, magazines, workers

involved in electrical installations with high tension supply, Jockeys,

circus personals, mountaineering, winter sports, skiing, ice hockey,

Ballooning, hand gliding.

E) INDIVIDUAL MEDICLAIM INSURANCE POLICY:

The policy covers hospitalization and domiciliary hospitalization

expenses incurred by the insured ( Including family members) for illness/

disease or accidental injury and shall include hospital charges ( Room,

boarding and operation theatre). Fees of surgeon, anesthetist, nurses, cost

of medicine, oxygen, blood, cost of appliances like pacemaker, artificial

limbs and cost of organs.

Scope of covers:

The policy covers the individuals of the age between 5 to 75 years.

Actual hospitalization expenses subject to maximum of Rs. 15000/- to

500000/-

Actual domiciliary hospitalization expenses limited to Rs. 3000/- to

Rs. 65000/- depending upon the sum insured.

Sum insured under the policy shall be progressively increases by 5% in

respect of each claim free year of insurance subject to maximum

accumulation of 10 claim free years of insurance.

Exclusions:

The policy will not cover expenses relating to,

1) Treatment of asthma, chronic nephritis, syndrome, gastro-enteritis,

diabetes mellitus and insipidus.

2) Pre and post hospitalization.

3) Any treatment relating to any illness/disease already in existence at the

time of praposal.

4) Any disease/injury during first 30 days of commencement of policy

(Accidental injury is not exclusion)

5) Treatment of cataract, begin prosthetic hypertrophy, hysterectomy for

menorrhagia on fibromyoma, hernia,

6) Vaccination, inoculation, circumcision or change of life or cosmetic or

aesthetic treatments, plastic surgery, unless necessitated due to accident

or as a part of any illness.

7) Dental surgery or treatment unless requiring hospitalization.

8) Cost of spectacles, contact lenses, hearing aids.

9) Any variation of deficiency syndrome or AIDS.

10) Any treatment arising from pregnancy.

RATING:

A rating of this policy is as per the rating schedule given. The rating is

based on the factors like age, sum insured selected etc. an additional

premium of 6% to 10% will be charged for third party administrator

fund.
F) MOTOR VEHICLE INSURANCE POLICY:

1) Private car insurance policy.

2) Motor cycle/ scooter insurance policy.

The policy covers any light vehicle as well as motorcycle, scooter,

mopeds, auto cycles and mechanically assisted pedal cycles, three

wheelers, invalid carriage used for social, pleasure, domestic purposes as

well as for the own business of the insured. Any individual, corporate

owner as well as financier of the vehicle can take this policy.

The policy covers the following:

1) A) Loss or damage by accident, fire, lightning, self-ignition, external

explosion, burglary, housebreaking or theft, malicious act.

B) Riot and strike, terrorism, earthquake, flood, cyclone and inundation.

C) Whilst in transit by rail, road, air, elevator, lift.

2) Liability for third party injury/ death, third party property and liability

to paid driver.

3) On the payment of appropriate additional premium, loss/ damage to

electrical / electronic accessories, PA cover for drivers, insured or any

named person, unnamed passengers can also be taken the sum insured is

insured` s declared value for the vehicle fixed at the commencement of the

policy. This is based on manufacturer-listed price of the brand and model

and depreciation as per the schedule in the tariff.

The policy pays as follows.

Own Damage:

1) Actual amount spend for repairs / replacement as assessed subject to

sum insured.

2) Garaging and towing charges,

(for car) upto Rs. 1500/-

(for Two / Three wheelers): upto Rs.300/-

3) Damage to tires (when vehicle is also damage):- 50% of the cost of

replacement.

4) Depreciation on plastic/ rubber parts: - 50% (for cars)

5) Depreciation on all fiberglass components: - 30%

6) Depreciation on all parts made of glass: - Nil.

7) Other parts including wooden parts as per India motor tariff.

In case of total loss, market value at the time of loss or sum insured

whichever is less.

ACT LIABILITY:-

1) Death or bodily injury to third parties as per motor vehicle act.

2) Death or bodily injury to any person carried in the car provided they are
not insured` s employees and not carried for hire or reward as per motor
vehicle act.

3) Third party damage:

(for cars):- upto Rs.750000/-.

(for two/three wheelers):- upto 100000/-.

4) All cost and expenses incurred with company` s written consent.

Options available (for car)

1) Restricted cover for fire and /or theft risks.

2) Restricted cover for liability only with fire and/or theft risk.

Extra benefits (for car policy)

1) Legal liability to paid drivers and/or cleaners.

2) Legal liability to employees of insured traveling in or driving the

vehicle.

3) Reliability trials in India by manufacturers.

4) Rallies in India.

5) Trailers.

Benefits ( for two/ tree wheelers)

1) Loss of accessories.

2) Legal liability to person employed.(paid drivers/ cleaners)

3) Legal liability to employees of the insured (other than paid

drivers/cleaners).
4) Rallies held in India.

5) Reliability tests in India by manufacturers.

EXCLUSIONS:

This policy excludes the following.

1) Consequestional loss.

2) Depreciation wear and tear.

3) Mechanical and electrical breakdown, failure or breakage.

4) When the vehicle is used outside the geographical area.

5) Driven by the persons other than the driver stated in driver` s clause.

6) War perils, nuclear perils and drunken driving.

Rating:

Rating will be as per India motor tariff.

The purpose of rating under this tariff, the whole of India has been divided

in to the following zones depending upon the location of the office of

registration of the vehicle concerned

ZONE A:

Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai,

New Delhi, and Pune.

 PRICE MIX:

1) SHOPKEEPER` S PACKAGE POLICY:

The prices (Premium rates) of the policy are given below:

Section & Description Rate (%0) (Rs.)

1) Fire & Allied Sum insured under A) 2.25 (Including
perils & B) upto Rs. 10lakhs. earthquake)
A) Building. Sum insured under A) As per Tariff plus
B) Contents. & B) upto Rs. 10lakhs. 0.10 for EQ.

Terrorism (optional under section 1) 0.30

2) Burglary and housebreaking. 1.00
3) Electrical and mechanical Appliances. 2.50
4) Electronic Appliances. 10.00
Terrorism (optional under section 4) 0.50
5) Money Insurance 2.00
6) Baggage 7.50
7) Fixed plate glass/ Sanitary fittings 10.00
8) Neon / Glow sign / Hoardings 10.00
9) Personal Accident. 0.45 to 3.00
10) Infidelity/ Dishonesty of Employees. 10.00
11) A) Legal Liability towards employees. As per W.C. Tariff
12) B) Legal liability towards Third Parties. 1.00

There should be a minimum of four sections to be selected under this

policy.
Discount.

For covering three or four sections. 10%

For covering five or six sections. 15%

For covering seven and above 20%.

Renewal Discounts.

1st renewal 5%

2nd renewal 10%

3rd renewal 15%

4th renewal 20%

45 days grace period is allowed

 2) HOUSEHOLDER`S PACKAGE POLICY:

The rates of this policy are as follows.

Section no. Rate (% 0)

1) Fire and Allied perils 0.50
Terrorism (Optional) As per terrorism pool
2) Burglary and housebreaking 0.50
3) All Risk (Jewellery and Valuables) 10.00
4) Domestic Electrical and Mechanical 2.50
Appliances
5) Domestic Electronic Appliances 10.00
6) TV/VCR/VCP/DVD/VCD player 10.00
7) Fixed Plate Glass. 10.00
8) Personal Baggage. 7.50
9) Pedal Cycles 20.00
10) Personal Accident 0.45 to 3.00
11) A) Legal Liability towards servants. As per WC Tariff.
11) B) Legal Liability towards Third Parties 0.50

Discount.

For covering three or four sections. 10%

For covering five or six sections. 15%

For covering seven and above 20%.

Renewal Discounts.

1st renewal 5%

2nd renewal 10%

3rd renewal 15%

4th renewal 20%

 3) OVERSEAS TRAVEL CARE POLICY:

Sum Insured for the policy are as follows:

Aggregate 50000 100000 250000 500000

Maximum
Liability per
person in
US$
Geographical Plan A Plan C Plan E Plan G
scope of World-wide World-wide World-wide World-wide
cover. Plan B Plan D Plan F Plan H
(coverage World-wide World-wide World-wide World-wide
outside India excluding excluding excluding excluding
only) USA, USA, USA, USA,
Canada. Canada. Canada. Canada.

Limits per person and Deductibles per claim

per policy period.
Medical Expenses As Aggregate US$ 50
Maximum Liability
Dental Treatment. US$ 200 US$ 50
Transport of the mortal US$ 7000. -
remains or burial of the
place of death abroad.
Total Loss of checked US$ 500 (Plan A-D) -
Baggage. US$ 1000 (Plan E-H)
Loss of passport. US$ 150 US$ 25
Personal Accident. US$ 25000 -
Personal Liability. US$ 20000 -
Aggregate 50000 100000 250000 500000
Max.
Liability
AP AP AP AP AP AP AP AP
50/30 50/45 100/30 100/45 250/30 250/45 500/30 500/45
1-40 1 2146 2906 2414 3264 2906 3935 3845 5097
2 1744 2370 1833 2504 2549 3443 3443 4605
41-60 1 2370 3219 2683 3666 3309 4471 4426 5857
2 1923 2593 2101 2772 2862 3890 3935 5231
61-70 1 3979 5500 4605 6304 6036 8182 8048 10641
2 3309 4561 3666 5008 5008 6841 6975 9345

DISCOUNTS AND LOADINGS:

1) Group Discounts:

For 10-20 persons 10%.

For 21-50 persons 15%.

For 51 and more 20%.

2) Premium loading: 100% for professional and semi-professional

sportsmen.

3) Premium loading: 200% for dangerous kinds of sports such as

parachuting, hang-gliding, circus activities, polo, racing of any kind,

shipping, mountaineering, use of ropes/guides, diving.

 A Death 100% of Capital Sum
Insured (CSI)

INDIVIDUAL PERSONAL ACCIDENT POLICY:

COVERAGE WHAT IS COVERED? COMPENSATION

PAYABLE

BENEFITS

B Permanent total disablement 100% of CSI.

Loss of two limbs/two eyes or
One limb/one eye 100% of CSI.

50% of CSI.
C Permanent partial disablement Varies from 1% to 75%
of CSI.
D Temporary total disablement 1% of CSI per week
subject to maximum of
Rs. 5000/- per week for
100 weeks.

RATING:

Table Risk Group Rate of Premium per

mile.
Risk Classification.
I II III
A Benefits as per A of table of benefits. 0.45 0.60 0.90
B Benefits as per A of table of benefits. 0.70 0.90 1.30
C Benefits as per A of table of benefits. 1.00 1.25 1.75
D Benefits as per A of table of benefits. 1.50 2.00 3.00
 Family package covers:
Earning members (Person Insured)
and spouse if earning.
Spouse (If not earning members)
Children (Between the age of 5 years
to 25 years)
CSI for each as per norms.
50% of CSI of the earning members
or Rs. 1 lakh whichever is low.
25% of the CSI of either earning
members or Rs. 50000/- whichever is
low per child.
 MOTOR VEHICLE INSURANCE POLICY:

A) FOR PRIVATE CAR POLICY:

Minimum values for the purpose of computation of premium.

CUBIC CAPACITY MINIMUM VALUE

Not exceeding 1000cc Rs. 15000/-
Exceeding 1000cc but not exceeding 1500cc Rs. 20000/-
Exceeding 1500cc Rs. 30000/-

Rate of premium.

ZONE B ZONE A
CUBIC CAPACITY CUBIC CAPACITY
Age Not Exceeding Exceeding Not Exceeding Exceeding
of the exceedin 1000cc 1500cc exceedin 1000cc 1500cc
vehicle g 1000cc but not g 1000cc but not
exceeding exceeding
1500cc 1500cc
Not 3.039 % 3.191 % 3.343 % 3.127 % 3.283 % 3.440 %
exceeding on IDV on IDV on IDV on IDV on IDV on IDV
5 years
Exceeding 3.191 % 3.351 % 3.510 % 3.283 % 3.447 % 3.612 %
5 years. on IDV on IDV on IDV on IDV on IDV on IDV
But not
exceeding
10 years.
Exceeding 3.207 % 3.430 % 3.594 % 3.362 % 3.529 % 3.698 %
10 years. on IDV on IDV on IDV on IDV on IDV on IDV
 Discounts:

The following discounts may be granted

A) Voluntary Deductibles:

Voluntary Discount
Deductibles
Rs. 2500/- 20% on the OD premium of the vehicle, subject to maximum
of Rs. 750/-
Rs. 5000/- 25% on the OD premium of the vehicle, subject to maximum
of Rs. 1500/-
Rs. 7500/- 30% on the OD premium of the vehicle, subject to maximum
of Rs. 2000/-
Rs. 15000/- 35% on the OD premium of the vehicle, subject to maximum
of Rs. 2500/-

B) Premium for liability only cover

CUBIC CAPACITY PREMIUM

Not exceeding 1000cc Rs. 500/-
Exceeding 1000cc but not exceeding 1500cc Rs. 600/-
Exceeding 1500cc Rs. 700/-
 B) FOR MOTORCYCLE/SCOOTER INSURANCE POLICY:

Minimum values for the purpose of computation of premium.

CUBIC CAPACITY MINIMUM VALUE

Not exceeding 150cc Rs. 5000/-
Exceeding 150cc but not exceeding 350cc Rs. 6000/-
Exceeding 350cc Rs. 7000/-

Rate of premium.

ZONE B ZONE A
CUBIC CAPACITY CUBIC CAPACITY
Age Not Exceeding Exceeding Not Exceeding Exceeding
of the exceedin 150cc but 350cc exceedin 150cc but 350cc
vehicle g 150cc not g 150cc not
exceeding exceeding
350cc 350cc
Not 1.676 % 1.760 % 1.844 % 1.708 % 1.793 % 1.8793.440
exceeding on IDV on IDV on IDV on IDV on IDV % on IDV
5 years
Exceeding 1.760 % 1.848 % 1.936 % 1.793 % 1.883 % 1.973 %
5 years. on IDV on IDV on IDV on IDV on IDV on IDV
But not
exceeding
10 years.
Exceeding 1.802 % 1.892 % 1.982 % 1.836 % 1.928 % 2.020 %
10 years. on IDV on IDV on IDV on IDV on IDV on IDV
 Discounts:

The following discounts may be granted

A) Voluntary Deductibles:

Voluntary Discount
Deductibles
Rs. 500/- 5% on the OD premium of the vehicle, subject to maximum
of Rs. 50/-
Rs. 750/- 10% on the OD premium of the vehicle, subject to maximum
of Rs. 75/-
Rs. 1000/- 15% on the OD premium of the vehicle, subject to maximum
of Rs. 125/-
Rs. 1500/- 20% on the OD premium of the vehicle, subject to maximum
of Rs. 200/-
Rs. 3000/- 25% on the OD premium of the vehicle, subject to maximum
of Rs. 250/-

B) Premium for liability only cover

CUBIC CAPACITY PREMIUM

Not exceeding 75cc Rs. 135/-
Exceeding 75cc but not exceeding 150cc Rs. 160/-
Exceeding 150cc but not exceeding 350cc Rs. 175/-
Exceeding 350cc Rs. 190/-
PROMOTION MIX:

Promotion Mix includes sales promotion, Advertising, Managing sales

force, public relation and direct marketing.

As the sales promotion strategies are mostly for goods industries, it cannot

be used for service industry like Insurance.

Advertising is for, to aware the customers about companies` s products. It

includes three M` s which are Mission: For what we have Advertising? .

Money: How much should we invest in advertising? And Message: What

message we are giving?

‘Insurance Advertisement’ means and includes any communication

directly or indirectly related to a policy.

Reliance General Insurance Co. Ltd does its advertising mostly by sales

talk, i.e. agents who contacts directly to the customers.

Another tool of advertising is the hoardings at corporate and area offices.

Another way of advertising is the representation by intermediaries and also

by business cards of company executive.

Sales force of the company includes Marketing Manager, Marketing

Representatives and agents.

PLACE MIX:

Place Mix includes the Coverage area, Channels of distribution and

Inventory.

Place means the geographical area where the company does its business.

As far as Reliance General Insurance Company is concern, it has

established an all India presence.

RGICL has its Corporate office at Mumbai while the area offices are at,

Mumbai, Pune, Baroda, Surat, Ludhiana, Amristar, Lucknow, Hyderabad,

Delhi, Ahmedabad, Kolkata, Chandigarh, Jallandar, Chennai and

Bangalore,

The company has two sources of channels of distribution, Agents and

brokers.

As far as Pune office is concerned, it covers the areas of Ahmednagar city,

district, Solapur city & district and Akaluj city & district. Each area has

one Marketing Representative under whom the agents are working.

Total number of agents under Pune office is 35 while the brokers are five.

Total turnover of the office is Rs. 6crores (i.e. the premium collection) for

last year, while the profit is Rs. 4crores

Basic capital provided for the company is Rs. 200crore.

SURVEY FOR INSURANCE AWARENESS:

I have conducted a survey of insurance awareness in the market as a

part of summer project of MBA (Marketing). As a part of it I have visited

to fourty five shops and five travel agencies.

I have prepared the following questionnaire for collecting a data.

NAME::

ADDRESS:
 QUESTIONNAIRE

Q.1 Are you aware of the entry of private players in the Insurance?

YES NO

Q.2 How did you know about private Insurance companies?

B) Word of Mouth.
C) Paper Advertising.
D) Hoardings.
E) Electronic Media
F) Any Other.(specify)

Q.3 Which of the following factors attribute you to buy Insurance policy?

B) Risk Involved in the Business.

C) For the sake of financial protection.
D) Experience of previous losses.
E) Any Other.(specify)

Q.4 With which company are you associated for Insurance cover?

A) The New India Assurance Co. Ltd.

B) The Oriental Insurance Ltd.
C) United India Insurance Ltd.
D) National Insurance Co. Ltd.
E) Bajaj Allianz General Insurance Ltd.
F) Tata AIG.
G) Reliance General Insurance Co. Ltd.
H) ICICI Lombard.
I) Iffcco-Tokyo General Insurance Ltd.
Q.5 Which factors attract you to buy from this Insurance Company?

A) Attractive product features.

B) Influence of Agent / Broker.
C) Pricing.
D) Value added services.
E) Convenience.
Very Poor Average Good Very Excellent
Poor Good

Q.6 Which
are the
various Insurance policies have you taken?

Q.7 Please rate your overall satisfaction with the current Insurance
Company?

Q.8 Would you like to continue renewing your Insurance policies

from the same Insurance Company?

YES NO

Q.9 Which factors will force you to Shift to another company?

A) Competitive Premium.
B) Unsatisfactory After Sales Service.
C) Delay in Claim Settlement.
D) Any other.(specify)

(Signature)
ANALYSIS OF QUESTIONNAIRE

Q.1 Are you aware of the entry of private players in the Insurance?

All the clients (i.e.50) which have been interviewed are aware of the entry

of private insurance companies in the market.

Q.2 How did you know about private Insurance companies?

Most of the clients i.e. 60% knew about private players from word of

mouth i.e. agents or brokers. 20% of clients knew it from paper

Advertising. Almost 7% of clients knew it from Electronic media. While

14% of clients knew about private players from all the sources.

13%
7%

word of mouth
20%
Paper Advertising
Electronic media
All
60%
Q.3 Which of the following factors attribute you to buy Insurance policy?

13% of interviewees took polices for risk involved in their business.

While as much as 67% of clients took the policy for the sake of protection.

Almost 13% of clients took policies for both risk involve in the business

and for the sake of financial protection. While 7% took it for risk involve

and for experiences of previous losses.

13%
Risk involve in the
7% Business
13% For the sake of
protection
Both 1 and 2

Both 1 and 3
67%
Q.4 With which company are you associated for Insurance cover?

19 % of clients took the policies of New India Assurance Co. Ltd. while

10% of clients have the policies of Oriental Insurance. 12% of clients have

it from United India. Private players like Bajaj Allianz has the share of

17% . ICICI Lombard has 12% share. 4% of customers are associated with

Tata-AIG. Reliance has 6% share. Iffcco-Tokyo has 4% share.

While travel agencies took the policies from both Bajaj Allianz and ICICI

Lombard has the share of 8%.

New India Assurance Co.

Ltd.
The Oriental Insurance Ltd.

United India Insurance Ltd.

19%
8% National Insurance Co. ltd.
10%
4%
Bajaj Allianz General
Insurance Co. Ltd.
Tata-AIG
12% 12%
Reliance General
6% 8%
4% 17% ICICI Lombard.

Iffcco-tokyo insurance
co.ltd.
Both Bajaj & ICICI Lombard.
Q.5 Which factors attract you to buy from this Insurance Company?

7% of interviewees bought the policies from particular companies because

of attractive product features. While 13% of client bought it because of

influence of agent/broker. 7% of clients took policies because of

pricing.7% took it for value added services of company. While as much as

67% of clients bought the policies because of convenience.

7% Atrractive product
13% features

Influence of
7% agent/broker

Pricing

7%
Value added
services
66%
Convenience
 Q.6 Which are the various Insurance policies have you taken?

Twelve out of fifteen are shopkeepers who have taken different covers of

shopkeeper ` s package policy which are shown in following graph.

All the shopkeepers (i.e. 100%) have taken fire & burglary coverage. while

33% of clients have taken coverage of electronic appliances. 92% of

clients have taken the coverage of money insurance. 58% of clients have

taken the coverage of fixed plate glass/sanitary fittings.8% of them have

taken for neon sign/glow sign. While 50% of them have taken for personal

accidental coverage. 8% of clients taken it for legal liability.

120

100

80

60

40

20

0
re y . .
Fi ar ce
s
ce gs ng nt ty
gl an de ili
r n in di i b
u lia su
r itt r cc lia
B p f oa la l
ap In ry /h a ga
ic y to gn n e
n ne ni si rs
o L
ro o sa
ct M
ss
/ ow Pe
El
e la / gl
te
g gn
la si
p n
ed eo
ix N
F
Q.7 Please rate your overall satisfaction with the current Insurance

Company?

7% of clients feels that their companies` s performance is average. While

as much as 80% of clients rate their companies` s performance as good.

13% of them feels that their companies` s performance is very good.

13% 7%
Average

Good

Very Good
80%
 Q.8 Would you like to continue renewing your Insurance policies

from the same Insurance Company?

Almost 94% of clients want to continue with same company. While only

7% of them want to shift to another company.

7%

YES

NO

93%

Q.9 Which factors will force you to Shift to another company?

Only one client (i.e. 7%) out of 15 wants to shift to another company

because of the competitive premium.

CONCLUSION:

Insurance sales are characterized by certain specialties. These products can

be marketed mainly through the edge of service delivery.

In the industry of insurance, most important role is of the agent who hold

the key of the business.

As far as Reliance General Insurance Ltd. is concerned, it is a fast growing

insurance firm, which has different products broadly classified in to two

different groups as Personal products and commercial products.

Company has superior premium rates than competitors. Specially

‘Overseas Travel care policy’ is one of the product that has much lower

rates than competitors.

RECOMMENDATIONS TO THE COMPANY:

 Advertisement is the best medium for increasing the business so

company should go for it, especially for ‘ Paper Advertising’.

 Company should give some cashless facilities to customers.

 Company should be liberal on low claim settlement.

 Company should go for untouched areas of the country.

LIMITATIONS OF SURVEY:

It was very difficult to interview the clients, as the responses from them

are not so positive especially for insurance related activities. One of the

reasons is that the shops which has been visited is located in the areas like

Deccan, J.M. Road, and Lakshmi Road which has been crowded by

customers throughout the day.

BIBLIOGRAPHY:

Marketing Management:- Philip Kotler.

The Essence of Services Marketing:- Adrian Payne.

The I.C. 56( For Insurance Guide)