AMITY BUSINESS SCHOOL

Operations
Management
[A Study of Insurance company
Operations]

2/25/2011

Submitted by :
V Guru Charan Teja L
 Abbreviations
LTGICL L&T General Insurance Company Ltd
IRDA Insurance Regulatory and Development Authority
SME Subject Matter Expertise
L&T Larsen and Toubro
LTF L&T Finance
FLS Front Line Sales
CR CRORE/CRORES
RFQ Request for Quotation
TAT Turn Around Time
U/w Underwriting
 Abstract

As a part of our learning the following functional areas at L&T General Insurance Company Limited
were studied by us

1. Sales (Retail & Commercial)

2. New Business Policy Issuance/ Endorsements (Retail & Commercial)
3. Underwriting (Retail & Commercial)
4. Claims Management

Stakeholders and SME’s from the above mentioned functions at LTGICL interacted with us and shared
their experience in the industry. We were also enlightened about the nuts and bolts of various business
processes within each function at LTGICL. This document details the valuable insight gained by us at
LTGICL.
1. Introduction

LTGICL is a wholly owned subsidiary of L&T Limited - one of the world's top 50 most reputed
companies in the June 2009 issue of Forbes “World’s Most Reputable Companies” survey. The company
aims to provide a complete range of Retail and Institutional insurance solutions catering to the needs of
Individuals, Small and Medium Enterprises and Corporate across urban and rural India.

Having established its foothold in engineering and construction, electrical and electronics, industrial
products and information technology, L&T forayed into the financial services space. Financial Services
has been identified as a strategically important business for L&T Group. It has been L&T’s vision to
become a ‘wholesome’ player in this area of business. With an entire range of products and service
offerings, L&T’s ‘Financial Services’ initiative will cater to an entire spectrum of customers, and their
various financial needs. The launch of the General Insurance business is a major step in this direction.

LTGICL has been started with an investment of Rs.175 CR. The company is now aiming a premium
collection of Rs. 1000 CR over the next five years and expect to break even in 5-7 years. The company
has already rolled out 10 products right from the first day of launch and is aiming to have 25-30 products.
Some of them are in pipeline to be approved by IRDA. The company has set up 10 branches so far and
has launched insurance products in verticals like car, commercial vehicles, tractors, fire, engineering and
micro-insurance. LTGICL plans to come out with 5-6 more health insurance products and four micro
insurance products. As the home insurance products are supposed to be the most neglected segment in
general insurance, the company aims to give emphasis on this segment and tends to roll out 3-4 products
soon.
1.1 Illustration of existing product line at LTGICL
2. Sales Function at LTGICL

Sales function is the life blood of any business. At LTGICL sales function is bifurcated in to the
following categories

1. Retail Sales
2. Commercial Sales

Note: The business boundaries between Retail and Commercial Sales are as laid down by LTGICL and
are confidential.

2.1 Retail Sales

Retail Sales at LTGICL encompasses the following portfolios.

1. Motor Insurance
2. Personal Accident Insurance
3. Home Insurance
4. Shop Insurance
5. Health Insurance

At present only the Motor Insurance products of LTGICL have been approved by the IRDA.

LTGICL has filed other products at IRDA and is awaiting approval from the same.

Note: Mr. Sachin Singhal informed us that LTGICL is expecting approval for its Health Insurance
product by the end of February 2011.

In line with the business trends of Indian General Insurance Industry, Motor Insurance is the major
revenue source for LTGICL. Currently all their energies are focused towards sales of motor products
only.

Note: Mr. Sandeep Jain informed us that Retails Sales contributes 70% of the total business at
LTGICL. 90% of Motor Insurance is done through Retail Sales.

2.1.1 Distribution Channels under Retail Sales

The various channels through which Retail Sales is generated are as given below

1. Agency
2. Retail Brokers
3. L&T Finance

2.1.1.1 Agency

The most tried and tested distribution channel in the industry, the Agency Channel hierarchy at LTGICL
is illustrated below.

2.1.1.1.1 Illustration of the Agency Channel Hierarchy

In the Retail Sales Hierarchy, the Foot Soldeirs/Front Line Sales are the Tied Agents spread
across the country who earn the bread and butter for the company.

Note: Mr. Sachin Singhal is Regional Manager, Sales for North Region.He has one Area
Head reporting to him. Currently there are 130 agents in the North Region under the Retail
Hierarchy out of which 65 are active Agents.

2.1.1.1.2 Features of Agency Sales

 The National Manager is put up at the Corporate Office in Mumbai.

 The entire business at LTGICL is divided into five geographic regions North, South,
East, West (West in turn is Split into two regions)
 Going forward in the future as business expands the regions will become zones; the
Regional Manager will become Zonal Manager; Area Heads will become Regional
Managers.
 LTGICL has planned to have 240 active agents under each Area Head. In tune with the
same each Area Head will have 8 Sales Managers under them.
 Each Sales Manager will be responsible to manage 30 active agents under them.

2.1.1.1.3 Training and Motivation of Agency

 In tune with Industry practices, LTGICL holds contests to motivate agents to bring in
more business. Contests create a competitive environment for Agents where they are
pitted against each other. At the end of each contest Agents are rewarded in cash or kind
in proportion to the business they bring in during the contest period. These rewards are
exclusive of the commission the Agents are eligible to receive.

Note: Mr. Sachin Singhal informed us that at least two contests are in the running at LTGICL
per quarter. Five Agents in North Region have been rewarded with a foreign trip.

 Induction training for the Agents (North Region) is conducted by two Training Institutes
namely RNIS and Trade wings (Dariyagunj).
 Refresher Trainings are conducted in the branch offices as per requirements.
 Apart from training, parties and social events are organised to motivate agents.

2.1.1.2 L&T Finance

L&T Finance Limited is a subsidiary of Larsen and Toubro. It was incorporated as a Non Banking
Finance Company in November 1994. Through LTF, L&T aims at making a strong foray in the ever-
expanding financial services sector.
As a business philosophy, LTF funds income generating assets/activities while maintaining a clear focus
on returns.

LTF offers a spectrum of financial products and services for trade, industry and agriculture. The
company's focus segments are corporate products, construction equipment, CVs and tractors.

L&T Finance is involved in financing Commercial Vehicles of all makes and sizes. It also undertakes
funding of the body of the Commercial Vehicles. Major manufacturers with whom L&T Finance has a
tie-up include Tata Motors, Ashok Leyland, Volvo, Eicher Motors, AMW, Force Motors and M&M.

Motor Insurance for vehicles financed by LTF is done through LTGICL. Sales at LTF locations happen
through LTF Teams (SBU). Such a sale is called LTF Captive Business. LTF Captive Business is handled
by advanced premium deposit (APD). LTF Non-Captive Business is one in which leads for Motor
Business are sourced through LTF Teams.

2.1.1.3 Salient Features of Retail Sales at LTGICL

L&T is one of the most trusted brands in India. LTGICL is the latest entrant into the Indian General
Insurance Space. “Start Slow but Start Solid “has been the approach of LTGICL. Many business
portfolios have been bleeding badly (e.g. Motor, Health). Most companies including big four PSU’s have
been surviving due to investment earnings. Underwriting Profits are hard to make. The more aggressively
an insurance company increases its top line the more losses it makes. LTGICL wants to have a solid
bottom line (30% margin for every rupee of premium) and very organic growth. The same it is reflected
in its Retail Sales philosophy.

 LTGICL regards ethics as paramount. LTGICL has done away with Overriding Commissions
(ORC) and has refused to do business with established agencies demanding high distribution
charges.

 LTGICL recruits only Fresher’s as Agents, training the hard and well.

 In Motor Insurance, LTGICL has not tied up with Car Dealers. The same is a practise in the
industry. Dealers usually charge high distribution and service charges than normally demanded in
the market. Instead, LTGICL is sourcing business for Car Dealers.

 LTGICL has not tied up with Car Manufacturers for its Motor portfolio. Reasons for the same are
due to similar problems faced when partnering with Car Dealers.

 Future prospects exist for Banc assurance and Franchise Model as Retail Sales Channel Partners.

 Online selling is also being contemplated.

 Direct sourcing of business is done only by tied agents.

Note: When asked to Mr. Sachin Singhal about sourcing leads for agents from arts colleges, Mr.
Singhal informed us that though he has been instructed to do the same, in his opinion college students
initially are not much interested in taking up agency career. In case of people who enter call centre
jobs after college, such individual due to the monotony of Call Centre Jobs tend to take Agency
Profession.

2.2 Commercial Sales

Commercial Sales at LTGICL encompasses the following products (existing and awaiting approval from
IRDA)

1. Marine Cargo Insurance

2. Burglary and Housebreaking Insurance
3. Standard Fire and Special Perils Insurance
4. My:Jeevika Standard Fire and Special Perils Micro Insurance
5. Contractors Plant and Machinery Insurance
6. Contractor’s All Risk Insurance
7. Erection All Risk Insurance
8. Public Liability (Act) Insurance
9. Workmen Compensation Insurance
10. Electronic Equipment Insurance
11. Machinery Breakdown Insurance
12. Money Insurance
13. Fidelity Guarantee Insurance
14. All Risk Insurance
15. Plate Glass Insurance
16. Baggage Insurance
17. Neon Sign Insurance
18. Industrial All Risk Insurance
19. Consequential Loss (Fire) Insurance

Note: Ms.Saumya Dwivedi informed us that Engineering Policies are the major revenue earners under
Commercial Lines.

2.2.1 Distribution Channels under Commercial Sales

The various channels through which Retail Sales is generated are as given below

1. Direct Sales
2. Brokers
3. Corporate Agents
2.2.1.1 Direct Sales

Business is procured directly by the Commercial Sales Team without any intermediary. The Commercial
Sales Hierarchy at LTGICL is illustrated below.

2.2.1.1.1 Illustration of Commercial Sales Hierarchy at LTGICL

Note: Mr. Sandeep Malik is the Regional Manager (North Region). Regional Managers report directly
to the Business Head, who is put up at the corporate office in Mumbai. The incumbent Business Head
is also the COO of LTGICL. Currently three Managers report directly to Mr. Sandeep Malik.

2.2.1.2 Brokers

Brokers account for the maximum business under Commercial Lines at LTGICL in line with Industry
trends. Brokers place the risk of clients to Insurers. Brokers request the Insurers for a quotation – Request
for Quotation (RFQ). The Commercial Sales Team gets the pricing from the underwriters and the same is
communicated to the Brokers. The Brokers choose the best deal from RFQ’s received from various
Insurers.

Note: Ms.Saumya Dwivedi informed us that she handles 15-18 Brokers in the North Region.

2.2.1.3 Corporate Agents

Corporate Agents place the risk of clients to Insurers. They work on a fee based structure, holding a fixed
amount of their client’s risk transfer budget. The same is then provided to insurers on exercising due
diligence on the same lines of Brokers. Corporate Agents deal with only one insurer.

Note: Ms. Saumya Dwivedi informed us that LTGICL undertakes Co-Insurance of Risks for which
product approval is still pending with the IRDA.
3. New Business – Motor Policy Issuance / Endorsements at LTGICL

The Policy Issuance at LTGICL is carried out online on the IDIT system. The IDIT system is jointly
developed by IBM and L&T InfoTech for the purpose of carrying operations work for LTGICL. IDIT is
the Policy Administration System (PAS) at LTGICL.

Currently access to the IDIT system lies with the following:

 Branch Offices

 L&T Finance

 Sales Manager

Going forward, LTGICL is planning to provide the access of the IDIT System to their Agents so as to
maintain their TAT at Zero.

Policy Issuance on IDIT system is done for the following business scenarios/location:

 Branch Locations (Walk in Customer)

 Branch Operations (Sourced by Agents/Sales Managers)

 Branch Operations (Sourced by Corporate Agents)

 Non-Branch Locations (Sales Managers)

 L&T Finance

3.1 Policy Issuance Process at Branch Location

Policy Issuance at the LTGICL is through Branch Operations or Agents who can login to the IDIT system
at the Branch Locations only. Proposals are received in the branch office through the following sources

 Walk in Customers

 Agents

 Brokers

 Sales Manager.

Process Flow of Policy Issuance by Branch Operations:

 1. Branch Operations receives documents from Walk in Customer/Agents/Brokers/Sales Managers
and perform scrutiny as per Document Check List (maintained in MS Excel.)

2. If the complete information is available for contact creation (Unique Signature for a Customer),
the Transaction Summary Sheet is attached and data entry is done in the “Inward and
Discrepancy Management file". If complete information is not available then documents are
returned to the Walk in Customer. In case of sources other than Walk in Customer, additional
information is sought from the source of New Business.

3. Locate the contact, if contact is not found in the system; generate new contact number for the
policy.

4. Proposal data entry is done as per system manual, if any discrepancy is found during Proposal
data entry save the proposal with the “awaiting additional documents in the system”.

5. If there is no Underwriting approval required save the proposal with “premium awaiting” in the
system.

6. Once the proposal is saved it is shown in the Underwriting Bucket, Underwriter approve/reject or
ask for the additional information and also replies to the E-mail in which his/her approval is
requested.

7. Operations then hand over the CHEQUE to the Branch Cashier for receipting and banking.

8. Quality Check for the data entry is done and quality update is done as per quality checklist
available in the Transaction Summary Sheet.

9. After Receipting and Banking, the Branch Operation generates the policy Number and policy
schedule only for the walk in customer and a scanned copy of proposal form and Pre-inspection
Report in the IDIT system is uploaded.

10. Policy pack is dispatched through centralized printing vendor subject to proposal form
scan image is uploaded in the system.

11. An E-mail is generated through the system and sent to customer and intermediary.

Process Flow of Policy Issuance by Sales Manager/Agent at Branch Location:

The Sales Manger has access to IDIT system and can carry out the policy issuance. Once Policy schedule
is created by the Sales Manager, all documents need to be handed over to the Branch Operations. The
Branch Operations performs Quality Check of the data entry and passes endorsement in case of errors.
Scanned copy of proposal form is uploaded only by the Branch Operation upon which policy dispatch
occurs.

3.2 Policy issuance by Sales Manager (At Non Branch locations)

Resident Sales Managers at the non-branch locations (Currently apart from the 10 Branches Sales
Manager are stationed with agency Team to procure business) have the ability to issue policy and take the
print out of the policy schedule.

Process Flow of Policy Issuance by Sales Manager/Agent at Non Branch Location:

1. Scrutiny is performed as per the Document Check List on the document received from the
customer/ intermediary.
2. Locate the contact. If contact is not found in the system, generate new contact number.
3. Proposal data entry in system as per system manual.
4. If there is no underwriting approval required. Save the proposal with premium awaiting(Go to
step no. 6)

If underwriting approval required, user is not be allowed to issue the policy, hence user need to
save the proposal.

5. Once proposal is saved it is shown in LTGICL underwriting bucket. Underwriting may approve,
Decline or ask for additional premium/ information-Underwriter communicates the decision to
the branch, Operations and subsequently branch operations communicate the same to the sales
managers.

Approved It is seen in system as approved.

Rejected It is seen in system as rejected.

Additional document/ information required U/W sends the email to branch ops asking for
additional document. Branch ops sends the
email to respective sales manager and get the
resolution – further decision is taken by U/W.

6. Pass a receipting entry, handover the cheque to CMS.

7. Policy generation and take the printout if required.
8. Attach the policy copy and send all the supporting documents to Branch OPS.
9. Receipt of entire document after policy issuance, attach the Transaction.

Summary sheet

Check whether scan copy of proposal form is uploaded, if Not upload the proposal scan copy.
 10. Perform quality check of data entry and update OC tracker as per ‘OC checklist” available in
Transaction summary sheet- Motor.

Note: OC tracker is managed at the branch level.

11.Policy pack is dispatched through centralised printing vendor.

3.3 Policy Issuance by LTF

For policy issuance at LTF locations where sales happen through LTF teams (SBU). There is a separate
group (MSG) at select locations are responsible for policy issuance, receipting and CHEQUE banking for
non-captive cases.

The LTF Captive Business is handled through an advance premium deposit (APD). .

3.4 Endorsement Issuance Process by Branch Operations

Endorsement for cancellation /change or addition, deletion of policy covers or insured details.
Endorsement issuance is done at Branch operations only.

Once proposal/ documents are received in the Branch through Walk in Customer, Sales Managers or
Agents/ Broker Agents, Branch Operations checks whether all supporting documents are available and
complete the proposal data entry in system. Operations hand over the cheque to Branch Cashier for
receipting and banking if premium bearing endorsements.

After confirmation of receipting, Branch operations generate the endorsement number and endorsement
schedule. An e-mail and SMS is generated through the system.

A copy of the endorsement schedule is handed over.

In case of LTF, LTF MSG sends all the documents to Branch OPS for endorsement issuance. If premium
bearing endorsement Branch operations does the data entry in the system and request to pass a receipting
in system and deposit the cheque to LTF. LTF MSG confirms to Mapped Branch Operations and Branch
Operations generates the endorsements number.

3. 5 Major points while accepting the cheques

1. There should not be any alteration to the instruments. As per recent RBI guidelines, once the
cheque is filled completely, no subsequent changes are allowed to be carried on the instrument
customers can’t even authorize any changes or modifications themselves. In case of any such
observations, please request customers to issue a fresh cheque.
2. Check whether the payee name is mentioned correctly. All cheques are to be drawn favouring
“L&T General Insurance Company” Ltd.
 3. Check whether the instrument is crossed and a word. “A/c payee” is mentioned in between two
parallel lines.
4. Check the date mentioned on the instrument. If any post dated cheques are received from
customers, they should be deposited only on the due date of instrument, and not before that. All
anti dated cheques more than 6 months old should not be accepted.
5. Check whether amount mentioned in words and figures match with each other.

In case of corporate cheques, please look for a phrase” Authorised signatory or signatories” on the cheque
leaves. In case of authorised signatory phrase appearing in the cheque, it should be signed by one
signatory, else in case of “Authorised Signatories” the cheque leaves to be jointly signed by two
signatories

3.6 Cheque Dishonour

In the event of Cheque Dishonour the following steps are undertaken at LTGICL

1. Receipt of MIS from bank with all details such as cheque no. Amount, reason of cheque bounce.
2. Distribute cheque dishonour details to Branch cashiers.
3. Share the cheque dishonour information with Branch operations.
4. Update the cheque dishonour information in cheque bounce tracker file.

Note: If the cheque dishonour happens before conversion of the proposal into the policy, Branch
operations will first convert the proposal into policy.

5. Pass cancellation endorsement/ Request Corporate Operations team to pass Cancellation

Endorsements.( Commercial Products)

Note- For policy issued in IDIT-

User has to select actions- Policy Cancellations-

Endorsements Effective Date- Policy Start Date

Endorsements Reason = Cheque Bounce

Ensure Endorsement is 100% of the reversal of Policy Premium.

6. Print and dispatch ( through Regd. AD) the cheque dishonour letter

Note- One copy of the letter needs to be filed for future reference.
 7. Inform Branch Cashier to pass accounting entries as under-

Policies issued in IDIT system – Receipt Reject (in IDIT)

Policies issued in Offline mode- Stomp Receipt (in IDIT)

8. Pass accounting entries in receipt of intimation from Branch Operations.

9. Provider statement of cheque dishonoured but polices not cancelled (for ageing more than 5 days)
to Head- Branch Operations.

Process Flow:

1. The Sales Manager shares the list of vehicles that have to be inspected via email or call the
branch operations team. The request is sent by the sales manager in the format (Pre – Inspection
Request format) attached.

Note: Request for inspection can only be accepted from LTGICL employees.

2. A tracker is maintained at the branch level for all the pre inspection requests received.
3. Branch operations enter the details given by the sales manager in pre inspection tracker.
4. A unique reference number is generated by the Branch Operations.

Logic of Unique Reference Number = “PI”+ Branch Code+ “Running Serial Number 5 Digits”
e.g. first reference no. For Mumbai branch is “P2010000001”

5. Branch operation allocates the pre inspection request between the various agencies (applicable as
on date for each location) on alternate basis.
6. Pre- inspection Agency contacts the customer for inspection of the vehicle and fixes up an
appointment with him.
7. Inspection is completed as per the defined service levels. Matrix of service levels for each of the
inspection agency is attached.
8. Pre- inspection Agency sends an SMS to the customer and the intermediary about the status of
the inspection (whether recommended or not) and substantially update the inspection reports and
photographs in the website of the inspection agency. Mobile number of the proposer and
intermediary is mandatory.
9. The sales manager takes a print out of the inspection report from the website of the inspection
agency; attach it with the proposal form.
 10. The customer sales manager has to deposit the proposal forms with complete details at the nearest
LTGICL branch within 24 hours once the inspection is done and report indicates recommended.

4. UNDERWRITING FUNCTION AT LTGICL

4.1 Introduction

Underwriting at LTGICL is bifurcated in to the following

1. Retail Underwriting

2. Commercial Underwriting.

Motor Insurance is the major revenue earner at LTGICL. The volume of policies underwritten in Motor
portfolio is very high. To make the motor portfolio profitable, Underwriting is done carefully and with
utmost prudence at LTGICL. The acceptance of risks is to ensure that existing damages are carefully
noted and cannot be claimed from LTGICL later. This applies to both new business as well as renewals
with a break in insurance.

The profitability of the Company depends on the quality of underwriting of the risks. With the growing
activities and expansion, the need for more effective underwriting to render the activities more efficient,
more profitable, more regulated and for better customer service has been felt. An analysis has been made
based on loss severity and frequency- make wise and model wise. LTGICL has the referral list of vehicles
based on various locations.

In an ever changing environment, the approach and techniques are constantly reviewed and realigned. It is
decided which make and model of vehicles are to be profitably underwritten and which ones are to be
charged at higher rate based on month on month analysis. The basic guidelines have been laid down. The
underwriter applies his mind and individual skills.

4.2 Underwriting Approach

The traditional approach towards motor insurance has been one of abundance and plenty. As an
organization, LTGICL has a prudent approach where in based on the financial authority matrix and the
analysis of various risk categories. LTGICL has come out with general motor underwriting guidelines
which comprises of the Private car segment, two wheelers, the Commercial and the miscellaneous
category.

4.3 The Product My: Asset private car package policy

The devised vanilla motor product has following scope of cover.

1. Comprehensive

2. Fire and Theft only with Liability

3. Fire with Liability

4. Theft with Liability

5. Fire and Theft

6. Fire only

7. Theft only

8. Liability only.

RISKS COVERED PREMIUM

Fire only 0.50% on IDV

Theft only 0.50% on IDV

Fire and theft only 0.75% on IDV

Liability only policy with fire cover Liability only Premium + 25% of the applicable
O.D premium

Liability only policy with theft only cover Liability only Premium + 30% of the applicable
O.D premium

Liability only policy with fire and theft cover Liability only Premium + 50% of the applicable
O.D premium

4.3.1 PREMIUM FOR LIABILTY ONLY COVER

CUBIC CAPACITY OF THE VEHICLE PREMIUM

Not exceeding 1000cc Rs.670/-

Exceeding 100cc but not exceeding 1500 cc Rs.800/-

Exceeding 1500 cc Rs.2500/-

4.3.2 Perils covered in Private car insurance

LTGICL indemnifies the insured against loss or damage to the vehicle insured hereunder and / or its
accessories whilst thereon.
 i. By fire explosion self ignition or lightning;

ii. By burglary housebreaking or theft;

iii. By riot and strike;

iv. By earthquake(fire and shock damage);

v. By flood typhoon hurricane storm tempest inundation cyclone hailstorm frost;

vi. By accidental external means;

vii. By malicious act;

viii. By terrorist activity;

ix. Whilst in transit by road rail inland water way lift elevator or air;

x. By landslide/rockslide.

4.4 RATING PARAMETERS FOR PRIVATE CARS

Currently used in the policy:

1. Insured’s Declared Value of the vehicle

2. Location where the vehicle is plying

3. Age of the vehicle

4. Manufacturer

5. Model

6. Segment

7. Fuel type

8. No claim Bonus

9. Age of the policy holder

To be used in future:

1. Number of renewals with LTGICL(i.e. policy age)

2. Profession/Occupation of the policy holder

3. Type of policy holder, whether urban/rural/semi-urban.

Rates for Additional Coverage

 Owner Driver PA cover private car----Rs. 100/-

 PA cover for unnamed passenger private car----Rs. 5per10000(Dependant on seating capacity)

 PA for Owner Driver Compulsory for 2,00,000/-

 PA for passengers optional up to 2,00,000/- per passenger

 Legal liability for paid driver----Rs. 25/-

 Liability for employees- Private car----Rs. 25/-

 Geographical Area Extension----Rs. 500/-

 Loading for vehicles imported without duty

 Additional Premium for bi-fuel System-@4% on the value of such kit

 An additional premium of Rs. 60/- per vehicle to be charged towards Liability only cover on
account of CNG/LPG system

 Additional premium for fibre glass fuel tanks-Rs. 50/-in the Own Damage Section

 Reduction in the limit of liability for Property Damage to Rs. 6000/- in which case the basic TP
premium applicable would be reduced by Rs.100/-(Midterm change of TPDD limits is not
permitted).

4.5 General Underwriting Guidelines

 LTGICL accepts the imported vehicles for insurance after an inspection and valuation of the
vehicle.

 In rollover (renewal of other company) cases, the Insured’s Declared Value (IDV) is as per the
system of LTGICL.

 Proposal form fully completed in all aspects and signed by the customer is mandatory along with
a copy of the Registration Certificate.

 LTGICL issues policies on annual basis and short period policies are referral unless there is a
cancellation to coincide with the financial year.

 Vehicles up to maximum age of 7 years old are accepted beyond which they are referred to the
corporate office.

 The break in insurance period should not exceed 30 days. Compulsory pre-inspection report
required.
  All standalone TP/Liability Proposals are referred to the corporate office.

 In case of change to high cover, proposals are referred and are accepted post inspection.

 In transfer cases, pre-acceptance inspection is mandatory.

 Premium is accepted up to 90 days in advance.

 In case of a cheque dishonour, the premium for the same vehicle is accepted in the following
mode:

- Cash(in the office)

- Demand Draft

- Pay Order

 A second premium cheque for the same risk is avoided. An inspection becomes must if there is a
break in insurance due to CHEQUE dishonour.

5. Claims Function at LTGICL

The Claims Process at LTGICL works on an outsourcing model. This has been done since LTGICL has
recently entered the market.

Note: Ritesh Gupta, Manager (Motor Claims) has informed us that the North region has received only
36 Claims till now out of which 31 are from Motor portfolio. Once business grows, the In-house claims
department will be expanded. A location needs to incur at least 60 Claims for appointment of Claims
Personnel from LTGICL.

The Customer makes the Claim Intimation by calling LTGICL’s toll free number. The toll free number is
the Customer Care Department which is managed by an outsourced Call Centre. The Call Centre
employee will generate the Claim Reference Number and will guide the customer with the next steps and
documents required.

The Claims Manager receives the Claim intimation from the Call Centre as per respective location. There
are two Surveyor & Loss Assessor agencies in the Northern Region contracted by LTGICL for Pre-
inspection and Claims Survey.

Note: There are 8 states in the Northern Region. Each Surveyor is entrusted with 4 states for the
purpose of Pre-Inspection and Claims Survey.

The Claims Manger appoints a Surveyor or intimates the respective agency to appoint a Surveyor
for Claims Survey. The Surveyor inspects the subject matter and submits the necessary Survey
Report as per the TAT defined by LTGICL. With the necessary reports in hand the claims
manager decides on the merits of the claim for payment or future course of action.
5.1 Overview of Motor Claim Process

1. Claim intimation by Insured/Insured Rep. /Agents to LTGICL 16*7 Call Centre.

2. Receipt of Claim intimation by Claims Managers at respective LTGICL location (currently 10
locations pan India).
3. In case of any injury to third party/occupants, Insured to provide copy of FIR.
4. Surveyor appointment by Survey agency / LTGICL Claims Managers for survey within one hour
of claim intimation.
5. Inspection of vehicle by the appointed surveyor at the designated location within 4 working hours
in urban locations and within 12 hours in semi urban/ rural locations.
6. Insured to provide: Claim form, RC( Registration Certificate), DL( Driving License) self attested
for all losses up to Rs. 30000/= and produce RC, and DL in original in case loss exceeds Rs.
30000
7. Survey completion by surveyor and information recd by insured and also to LTGICL Claims
personnel.
8. Insured is kept informed on timely basis during progress of the claims.
9. Surveyor will re inspect the vehicle on completion if the loss exceeds Rs. 20000. And also if the
surveyor feels he needs to perform re-inspection if the claim is below 20000 he can call for the
same.
10. In case of Cashless claims, workshop will send bill of repairs to the assigned surveyor/ LTGICL
off for calculation of final amount payable.
11. Insured to sign Satisfaction note on Delivery of the vehicle from the garage, and garage personnel
to submit the duly sign Satisfaction note to the surveyor or LIGICL Manager.
12. LTGICL Claims Managers/ Surveyor will send final calculated liability to the dealer and also
keep Insured informed about the same.
13. The final amount will be settled to the garage directly.
14. If the vehicle is repaired at non cashless garage the customer will have pay the full amount to the
garage and submit the bill with the payment receipt to the Surveyor/LTGICL.
15. LTGICL will make payment also give the liability calculation to the customer within 7 working
days.
16. Claim closed.

6. REFERENCES

http://www.ltinsurance.com/default.htm

Operations Manual – LTGICL.