A STUDY ON GENERAL

INSURANCE WITH REF.

TO ICICI LOMBARD
BY AARTI RANI

UID-2191004

MBA 3RD
SEMESTER
 COMPANY PROFILE
 ICICI Lombard General Insurance

Company is a joint venture between

ICICI Bank - India’s second largest

bank and Fairfax Financial Holdings

Limited- a fi nancial services

company based in Toronto. ICICI

Bank had 64% stake in the venture

while Fairfax had 36% in the joint

GENERAL INSURANCE

 What is General Insurance?

  

 Insurance other than ‘Life Insurance’ falls under the category of General
Insurance. General Insurance comprises of insurance of property against
fire, burglary etc, personal insurance such as Accident and Health
Insurance, and liability insurance which covers legal liabilities. There are
also other covers such as Errors and Omissions insurance for
professionals, credit insurance etc.
COMPETITIVE ANALYSIS OF THE PRODUCT

Features ICICI Psu-medi Bajaj Alliainz Cholaman-

Lombard Claim Health Guard dalam

Floater cover for family X X

2 year assured cover X X X

Cashless hospital-
ization

No claim cash- back X X X

Free hea- lth chk up X X X

OBJECTIVE OF THE STUDY

 TO KNOW ABOUT THE ICICI LOMBARD PRODUCTS

RELATED TO INSURANCE

 TO GET THE DETAILED ANALYSIS OF GENERAL

INSURANCE
RESEARCH METHODOLOGY

 Secondary Sources

 The secondary sources of data were the various websites and insurance manuals.

 Secondary data- Secondary data is already available and published. It could be external
and internal source of data.

 Internal source- It is the one which originates from specific field or area where research
is carried out. Example- public brochure, official reports etc.

 External source- this originates outside the field of study like books, periodicals,
journals and internet etc.
INSURANCE PRODUCTS OF ICICI LOMBARD
 HEALTH INSURANCE

 CRI TIC A L CA RE PRE M IUM TA BL E

Sum Insured = Rs. 6 Lakh Sum Insured = Rs. 12 Lakh

Policy Tenure/Age Groups

(Years) 3 Years (Rs.) 5 Years (Rs.) 3 Years (Rs.) 5 Years (Rs.)

20 – 25 5,800 9,700 11,600 19,400

26 – 30 6,600 11,280 13,200 22,600

31 – 35 8,300 14,000 16,600 28,000

36 – 40 10,300 18,400 20,600 36,800

41 – 45 20,500 38,200 41,000 76,440

PERSONAL ACCIDENTAL INSURANCE

Accidental Death & Permanent Total Disablement Cover

Capital Sum Insured (Rs.)

Policy Period 3,00,000 5,00,000 10,00,000

3 years Premium (Rs.) 1125 1875 3750

4 years Premium (Rs.) 1500 2500 5000

5 years Premium (Rs.) 1875 3125 6250

 MOTOR INSURANCE

 MOTOR INSURA N C E IS OF 3 TY PE S:

 Ca r Ins ura nce

 A compr ehe ns ive poli c y t ha t not only c ove rs you ag a i nst t hir d pa r t y bu t al so a g a in st ac c ide nt s,
da mag e, i njur y an d m uch m or e

Two Wh ee ler In su ran ce

 A composi te poli cy th at p rote cts you a g a ins t unf or t un at e a c c ide nts , th ir d p ar ty li ab ili ty, i nju ri es
an d da ma g e s

Comme rcia l Vehi c le Ins ura nc e

 ICICI L om ba r d br ing s you C om m er ci a l Ve hi cl e In su ran ce off er in g t he m ost c ruc ia l c ove r o f Th ird

Pa r t y L i ab ili ty ( TPL ) . A s pec ia l ise d c over for Goods - ca rr y i ng Ve hi cl es – be it Pu bli c or Pr ivat e
Car rie rs
TRAVEL INSURANCE

Overseas Travel Insurance Policy Features

Eligibility: Insurance policy available for all ages between 1 – 70 years and senior
citizens between 71 to 85 years

Policy Duration: Cover trips from as short as 7 days to 180 days. Can be extended
online

Policy Maximum: The Plans offer various coverage options (US $ 50,000 to US $
250,000)

Premium: Premium is payable on a pay per day basis and not slab rates, pay at 0%
EMI on ICICI Bank Credit Cards

Pre-existing diseases: Pre-existing ailments and maternity are excluded except in

case of life-threatening situations i.e. until the insured's heath is stable
HOME INSURANCE

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

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 vehicle
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installation
- Aircraft damage
- Bursting and/or overflowing of water tanks, apparatus and pipes
FINDINGS

 Lack of awareness about ULIP – people do not fully understand what ULIP
is all about and they tent to think it is yet another mutual fund. D uring my calls,
to my surprise I found that a good number of investors were not even aware that
they have already taken ULIP policy previously which they think to be as ‘some
fund’.

 Reluctance towards long term plans- people are keen to invest in short term
like mutual funds and direct equity market. They are reluctant to make a long
term commitment. This is another reason why people shy away from insurance.
Even in mutual funds, they are more interested in short term. They also prefer
liquidity.

 Lack of knowledge about investments- I saw that many people are not aware
about mutual funds, demat system of securities etc. the sales offer in that case
should strive to make him understand first about all the investment avenues
before his making a decision.
 SUGGESTIONS

i. More of Tellecalling
As there is no tellecalling department, more focus is required to do telecalling by ROs.
For this they must be supported by a quality of database. Also training on telecalling
requires attention. Setting up a telecalling department though is practiced in other banks
but it has also got its own demerits.

ii. Large Product Mix

As of now ROs are selling only two products life long and saveguard since they provide
maximum revenue to the banks. But bank can offer more products of aviva under its
contract. So allowing and encouraging ROs to also sell other products will enable them
to offer large mix of products to their clients.

iii. Realistic Targets

tough setting high targets are always practiced but setting them too high may sometime
also be a source of demotivation.
 CONCLUSION

We found that there is a gross lack of awareness about the investment tools, especially
the ULIP products, which can greatly be improved by the sales peoples’ effort to
educate the customers about all the investment tools. The effort should be to equip them
with knowledge to let them make better decision, rather than making decision on their
behalf. The latter is a short term approach to selling, while the former will go a long
way in building the faith of the customer and thus the strong client.