report project srini

8/13/2019 Report Project Srini

1/50

1

A Study on Satisfaction of Motor Insurance claim settlement

Procedure among policyholders' with special reference to

Bajaj Allianz General Insurance Co. Ltd.,

A project report submitted in partial fulfillment for the award of the degree of

Master of Business Administration of Pondicherry University

By

SRINIVAS PERUMALLA

Register Number: 12395033

Under the Guidance of

Dr. S.A. Senthil KumarM.B.A., M Phil, Ph.D.

Associate professor

Department of Management

Pondicherry University.

Karaikal Campus

Karaikal609 605

DEPARTMENT OF MANAGEMENT

PONDICHERRY UNIVERSITY

KARAIKAL 609605


2/50

2

MAY JULY, 2013

CERTIFICATE

This is to certify that Mr. SRINIVAS PERUMALLA, Reg. No.12395033 has completed a

summer project titled A Study on Satisfaction of Motor Insurance claim settlementProcedure among policyholders' with special reference to Bajaj Allianz General

Insurance Co. Ltd., in partial fulfillment of the requirements for the award of MBA Degreein Insurance Management of Pondicherry University, Karaikal Campus during the academic

year 2012-2014 under my supervision and guidance.

(Prof. Lalitha Ramakrishnan) (Dr. S.A. Senthil Kumar)

Head of the Department Faculty guide

Mr. SRINIVAS PERUMALLA

Register number: 12395033

Department of Management

Pondicherry University

Karaikal 609605


3/50

3

DECLARATION

I hereby declare that the project entitled A Study on Satisfaction of Motor Insurance claim

settlement Procedure among policyholders' with special reference to Bajaj Allianz

General Insurance Co. Ltd. is carried out Pondicherry University in partial fulfillment of the

requirements for the award of the degree of Master of Business Administration in Insurance

Management carried out under the guidance of Dr. S.A. Senthil Kumar,Associate Professor

Department of Management from 13THMAY to08THJULY, is my original work and that no part

of it has been submitted for any degree, diploma or any other similar title.

Date: O8.07.2013

Place: Karaikal Mr. SRINIVAS PERUMALLA


4/50

4

CERTIFICATE

Submitted for viva-voce examination held at Pondicherry University on

Internal Examiner External Examiner

1.

2.


5/50

5

ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to everyone who directly or

indirectly helped me to complete this placement training within the prescribed time.

I would like to express my deep sense of gratitude to my faculty guide Dr.S.A.Senthil

Kumar for providing this opportunity and his valuable guidance and supervision from

time to time. I would express my gratitude to Prof. Lalitha Ramakrishnan for

providing this opportunity.

My special thanks to Mr. P. KISHORE (Branch ManagerKakinada Office), for giving

the permission to carry out the project work.

Finally, I would like to thank my parents and friends, who gave me moral support.

SRINIVAS PERUMALLA


6/50

6

CONTENTS

CHAPTER No. INDEX PAGENo.

I INTRODUCTIONIndustry profile

Company profile

Product

II RESEARCH METHODOLOGY

Need of the study

Objectives of the study

Scope of the study

Research design

Data collection

Sample size

Sample techniques

Data Analysis tools

Limitations of the study

III DATA ANALYSIS AND INTERPRETATION

Tabular and Graphical representation

Statistical inference

IV RESULTS AND RECOMMENDATION

Findings

Suggestions

Conclusion

Bibliography

Appendix


7/50

7

CHAPTER - I

INTRODUCTION AND DESIGN OF THE

STUDY

INTRODUCTION

Motor insurance is a contract between the vehicle owner and the motor insurance company,

where the latter agrees to indemnify any loss that may have been incurred by the person dueto involvement of his vehicle on road accidents, thefts, or damages etc. Motor Insurance

Covers a legal liability that a person may incur arising out of the use of a motor vehicle. Types

of policies include Comprehensive cover and Third Party only.

Its primary use is to provide financial protection against physical damage and/or bodily

injury resulting from traffic collisions and against liability that could also arise there from.The

Tariff Advisory Committee administers all tariffs relating to General Insurance. TAC is a

statutory body established under the Insurance Act 1938 (amended in 1968) to regulate the

rates, terms advantages and conditions relating to General Insurance business. Motor

Insurance in India is also governed by the India Motor Tariffs formulated by the TAC. This

tariff has undergone several revisions, the latest revision being effective from 1.7.2002. It

accounts for a major portion of insurance industry. More than 45% of premium is generated

from motor business only. It is a part of miscellaneous class of insurance. For the purpose of

insurance, motor vehicles are classified into three broad categories:

A. Private CarB. Motorcycle and ScooterC. Commercial Vehicles

i. Goods Carrying Vehiclesii. Passenger Carrying Vehicles

D. Miscellaneous Vehicles: Ambulances Publicity Van Dispensaries, etc.


8/50

8

Types of Losses can be arising in respect of motor vehicles are:

Loss or damage to the vehicles

Third party liability

Insured Declared Value (IDV)

A. Insured Declared Value is the maximum Sum Assured fixed by the insurer. Basically, IDV is

the current market value of the vehicle. Prior to revision, in case of Total Loss of the insured

vehicle, the Motor Policies indemnified the insured either the Insureds Estimated Value (IEV)

or the Market Value whichever is less. Invariable, at the time of loss, the market value of thevehicle, being the depreciated value, would be less than the IEV whereas the Insured would

have paid the premium for the IEV at the inception of the policy. The insured, naturally, would

prefer to be indemnified the full sum insured at the time of settlement of claim and not a

lesser value than for which the vehicle had been insured. With the introduction of the

concept of IDV, the sum insured no longer depends upon the vagaries of the market. Thus the

insured knows beforehand the sum insured which will be indemnified to him in case of total

loss or constructive total loss of the vehicle.

(a)In case of vehicle not exceeding 5 years of age the IDV has to be arrived at by applying thepercentage of depreciation specified in the tariff on the showroom price of the particular

make and model of the vehicle.

(b)In case of vehicles exceeding 5 years of age and Obsolete models (manufacture of thosevehicles which have been stopped by the manufacturers) they have to be insured for the

prevailing market value of the same as agreed to between the insurer and the insured.

B.Proposal form is required to be submitted by the insured to the insurer compulsorily incase of any material alteration.

C. The liability only Policy covers Third Party Liability for bodily injury or death and Property

Damage. A new Compulsory Personal Accident Cover for Owner-Driver is included.

D.No claim Bonus (NCB): A common NCB table has been introduced to apply to all classes of

vehicle except vehicles under Motor Trade Policies, road Transit Policies and Policies which

offer limited covers.


9/50

9

20% discount on OD Premium No claim made or pending during the preceding full year of insurance

25% discount on OD Premium No claim made or pending during the preceding 2 consecutive years of

insurance


insurance


insurance


insurance

E. Vehicles fitted with Anti-Theft Device (other than those covered under the Motor trade

Policies) are eligible for discount.

F.Long term policies hereto issued under the Two Wheeler section of the tariff is abolished.

G. Introduction of uniform codification based on the category of vehicle, zone where it isregistered, age of the vehicle and the risks covered.

H.New Regulation for vehicles fitted with Bi-fuel system such as Petrol/Diesel and CNG/LPG

provided.

I. Common table of depreciation for partial loss claims in respect of all categories of

vehicles/accessories.

1.1 Motor Vehicle insurance

Vehicle insurance (also known as Auto insurance, Car insurance or motor insurance) is

insurance Purchased for cars, trucks, motorcycles and other road vehicles. Its primary use to

provide financial protection against physical damage and/ or bodily injury resulting from

traffic collisions and against liability that could also arise there from.


10/50

10

Motor insurance is a contract between two parties the car owner and the motor insurance

company, where the latter agrees to indemnify any loss that may have been incurred due to

involvement of owners car in road accidents, thefts, or damages etc.

1.2 Types of Motor Insurance Cover

Broadly there are two types of insurances policies that offer motor insurance cover:

Liability Only Policy (Statutory requirement) Package Policy (Liability Only Policy + Damage to owners Vehicle)

Package Policy - Section I

Section(OwnDamage)ofPackage Policy:

Section I of package policy covers loss or damage to the vehicle and / or accessories due to

Accidental external means Fire Self ignition lightning Burglary house breaking or theft Terrorist activity Riot Strike and Malicious Damage Earthquake Flood cyclone and Inundation etc While in transit by rail road air elevator lift or inland waterways Landslide or work slide

None of the above perils can be excluded from the scope of a policy.

Loss or damage to accessories by burglary/house breaking/theft:

For private car it is covered In case of Motorized Two Wheelers this can be covered on payment of an additional

premium at 3% of the IDV of such accessories.


11/50

11

Loss or damage to Lamp Tires mudguard and / or Bonner side parts bumpers etc. canbe covered on payment of additional premium. This is applicable only to Commercial

Vehicles.

If the vehicle is disabled in an accident cover is provided for the reasonable cost of the

following:

Its removal to nearest repairers The cost of reasonable repairs immediately necessary subject to the limit provided for.

Package Policy - Section II

Section II ((Liability) of Package Policy :

Liability to third parties bodily injury and or death and property damage Personal accident cover for the owner driver for a specified sum insured.

The following are payable under Section II of the Package Policy subject to the limit of liability

laid down in the Motor Vehicles Act:

The insured's legal liability for death / disability of third party Loss or damage to third party property Claimant's cost as decided by the court All costs and expenses incurred with company's written consent In case of death of an Insured person entitled to indemnity for a liability incurred under this

policy his legal representative will be indemnified in place of insured if he observed all

conditions as the insured himself.

Contractual liability. War perils nuclear perils and drunken driving Consequential loss Depreciation Wear and tear mechanical or electrical break down Damage suffered due to driving the vehicle under the influence of intoxicating liquor or

drugs

Claims arising outside the geographical area specified in the policy Claims arising whilst the vehicle is used in contravention of the limitations as to use Claims arising when the vehicle is driven by a person without valid driving license.

Liability only policy:


12/50

12

Liability to third parties bodily injury and or death and property damage Personal accident cover for the owner driver for a specified sum insured

The following are payable under Section II of the Package Policy subject to the limit of

liability laid down in the Motor Vehicles Act:

The insured's legal liability for death / disability of third party Loss or damage to third party property Claimant's cost as decided by the court All costs and expenses incurred with company's written consent In case of death of an Insured person entitled to indemnity for a liability incurred under this

policy his legal representative will be indemnified in place of insured if he observed all

conditions as the insured himself.

Exclusions

Contractual liability. War perils nuclear perils and drunken driving Consequential loss Depreciation Wear and tear mechanical or electrical break down Damage suffered due to driving the vehicle under the influence of intoxicating liquor or

drugs

Claims arising outside the geographical area specified in the policy Claims arising whilst the vehicle is used in contravention of the limitations as to use Claims arising when the vehicle is driven by a person without valid driving licence.

1.3 NEED OF THE STUDY

We the members of the society, individually can afford to buy a motor vehicle of any

description for our use, but most of us cannot afford the luxury of meeting all the liabilities by

way of legal damage payable to third parties towards loss of or damage to third party

properties, personal injuries and /or death arising out of the use of such a vehicle in a public

place. The natures of these liabilities are TORTIOUS. It has to be borne in mind that the


13/50

13

driver of the motor vehicle has no intention to cause death, injuries to third party persons or

damage to a third party property unless the contrary can be proved.

The act of motor vehicle drivers a wrongful act in an accident which in turn results in

legal damages to the affected other persons and thus gives rise to a legal remedy in the form

of an action for damages. Thus the liabilities on the part of a driver of a motor vehicle are

tortuous. Thus in such cases the driver is liable to compensate the third parties affected in

Motor vehicle are tortuous. Thus in such cases the driver is liable to compensate the third

parties affected in the motor vehicle accident. If the driver of the motor vehicle is not the

owner , then the owner is vicariously liable for such damages, i.e; an employer is liable for the

tortious acts of his employee in course of such employee carrying on his duty for his employer

stands to gain the fruits of discharge of duty by his employee. All motor insurance policies

seek to indemnify the owners of insured motor vehicles of liabilities arising out of use of such

duly insured motor vehicles.

Motor Vehicles Act 1988, one of the social welfare pieces of legislation thus has come

into being as a matter of necessity like some other statues such as the Workmens

Compensation Act 1923 etc. The Motor Vehicles Act 1988 thus makes it a statutory obligation

on the part of owners of all motor vehicles to insure their motor vehicles at least against the

Liability Only cover as provided for in the act.

1.4 OBJECTIVES OF THE STUDY

To study the awareness level of motor insurance products (TP & OD) To study the claim settlement procedure in Bajaj Allianz General Insurance Co. Ltd. To analyze the customer satisfaction towards motor insurance policies offered by Bajaj

Allianz General Insurance Co. Ltd.

To identify the problems faced by the policy holders during lodging and getting claim To study the awareness level of No Claim Bonus (NCB) on motor insurance

customers


14/50


15/50

15

1.7Limitations of the Study

Limited sample size had been considered for the study and therefore, the conclusions drawn

based on this may not be a reflection of the entire population. Since the study was aimed to

collect the data related to motor insurance from existing motor insurance policyholders,

response bias might have occurred in primary data collection.Some of the respondents were

reluctant to give their responses.

1.8 Claim Process

Notice of accident should be filed with the insurers. If damage is a major one, the accident may be reported before the vehicle is removed

from the spot so that the insurers can arrange for spot inspection of damage.

The vehicle may then be moved to a workshop, preferably to authorized workshop, forestimation of repair charges.

On receipt of completed claim form and estimate of repairs the insurers will arrangedetailed inspection of damage and cost of repairs will be ascertained.

The insurers will ensure that a person duly licensed drove the vehicle at the time ofaccident, they will verify the Registration Certificate and the Driving license of thedriver who drove at the time of the accident.

Upon completion of the above procedure, the repairers will be authorized to carry outrepairs. The insurer may undertake to settle the repair bills directly with the garage or

reimburse the insured.

Insurers would like to collect the damaged parts for which replacements have beenallowed, as salvage.

In case of theft of the car or its accessories, it has to be reported to the police and finalreport should be submitted.


16/50

16

1.9 RESEARCH METHODOLOGY

Research Design :- Descriptive research Sampling Design :- Non Probability sampling Sampling Techniques :- Convenient sampling Sample size:-The sample size of the survey is 70

1.10 Methods of Data Collection

Data collected:

Data includes facts which are required to be collected to achieve the objectives of the

project. In order to determine the present position and claim satisfaction level of

customers.The main source of information for this study is based on the data collection. Data

collected are both primary and secondary in nature.

Primary Data:

Primary data have been directly collected from insured through well-structured Interview

Schedule.

Secondary Data:

The secondary data was collected from the websites of IRDA & III, books, magazines, journals

and daily newspapers.


17/50

17

1.11 Sampling Technique and Sample Size

Sampling Technique used:

This report is based on convenient samplingtechnique because it is fast, inexpensive, easy

and the subjects are readily available.

Sample Size:

Sample size is the total number of samples selected for the study from the population Sample

was 70.

Data Collection Area

The survey was done at East Godavari District in Andhra Pradesh

Tools for Analysis

The main statistical tools used for the collection and analyses of data in this project are:

Simple Percentage Chi Square Test


18/50

18

CHAPTER - II

PROFILE OF THE INDUSTRY AND THECOMPANY

INDUSTRY PROFILE

(i) Indian insurance sectorThe purpose of insurance is to protect the unfortunate few who have suffered a loss

through the help of those who have not suffered a loss but were exposed to the same risks.

Section 1.02 In insurance, the insured makes payments called "premiums" to an insurer, andin return is able to claim a payment from the insurer if the insured suffers a defined type of

loss.This relationship is usually drawn up in a formal legalcontract.

Section 1.03 In one classic example of insurance, a ship-owner insures a ship andreceives payment if the ship is damaged or destroyed. This example is one of the earliest uses

and developments of concepts like insurance. Interestingly, ships are now more often insured

through risk pooling and spreading organizations such asLloyd's of London because the loss

of a large ship going down is too great for one insurer to accept As applied to insurance, this

means that the greater the number of similar risks, the greater accuracy with which insurers

can estimate the overall risk.

2.2 History of insurance

Insurance has been an institution of human society for thousands of years, having been

practiced by Babylonian traders as long ago as the 2ndmillenniumBCE. Eventually it was

given legal mention in theCode of Hammurabi,and practiced by earlyMediterranean sailing

merchants. The Greeks and Romans had "benevolent societies" which acted to care for thefamilies and funeral expenses of members upon death. Guilds in the middle Ages served a

similar purpose. Insurance became much more sophisticated in post-RenaissanceEurope,and

specialized varieties developed. In America,BenjaminFranklin helped to popularize and make

standard the practice of insurance, particularly against fire. The19thcentury saw a rise in the

government regulation of insurance, and the 20thcentury saw further specialization and, in

the United States, a bit of deregulation that allowed other financial institutions, such as banks,

to offer insurance. The ever-increasing ability of science to predict catastrophes of any

measure or variety continues to affect the way insurance is conducted.

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the developments in
http://www.bambooweb.com/articles/l/o/Loss.htmlhttp://www.bambooweb.com/articles/c/o/Contract.htmlhttp://www.bambooweb.com/articles/l/l/Lloyd's_of_London.htmlhttp://www.bambooweb.com/articles/b/a/Babylonia.htmlhttp://www.bambooweb.com/articles/2/n/2nd_millennium_BCE.htmlhttp://www.bambooweb.com/articles/c/o/Code_of_Hammurabi.htmlhttp://www.bambooweb.com/articles/m/e/Mediterranean.htmlhttp://www.bambooweb.com/articles/a/n/Ancient_Greece.htmlhttp://www.bambooweb.com/articles/a/n/Ancient_Rome.htmlhttp://www.bambooweb.com/articles/r/e/Renaissance.htmlhttp://www.bambooweb.com/articles/b/e/Benjamin_Franklin.htmlhttp://www.bambooweb.com/articles/1/9/19th_century.htmlhttp://www.bambooweb.com/articles/2/0/20th_century.htmlhttp://www.bambooweb.com/articles/2/0/20th_century.htmlhttp://www.bambooweb.com/articles/1/9/19th_century.htmlhttp://www.bambooweb.com/articles/b/e/Benjamin_Franklin.htmlhttp://www.bambooweb.com/articles/r/e/Renaissance.htmlhttp://www.bambooweb.com/articles/r/e/Renaissance.htmlhttp://www.bambooweb.com/articles/a/n/Ancient_Rome.htmlhttp://www.bambooweb.com/articles/a/n/Ancient_Greece.htmlhttp://www.bambooweb.com/articles/m/e/Mediterranean.htmlhttp://www.bambooweb.com/articles/c/o/Code_of_Hammurabi.htmlhttp://www.bambooweb.com/articles/2/n/2nd_millennium_BCE.htmlhttp://www.bambooweb.com/articles/b/a/Babylonia.htmlhttp://www.bambooweb.com/articles/l/l/Lloyd's_of_London.htmlhttp://www.bambooweb.com/articles/c/o/Contract.htmlhttp://www.bambooweb.com/articles/l/o/Loss.html


19/50

19

the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two

centuries.

Types of insurance

There are a number of different types of insurance:

Automobileinsurance also known as autoinsurance, carinsurance and in the UK as

motorinsurance, is probably the most common form of insurance and may cover both legal

liability claims against the driver and loss of or damage to the vehicle itself.

Property insurance provides protection against risks to property, such as fire, theft or

weather damage. This includes specialized forms of insurance such as fire insurance, flood

insurance,earthquakeinsurance,homeinsurance orboiler insurance.

Casualty insurance insures against accidents, not necessarily tied to any specific piece

of property.

Liability insurance covers legal claims against the insured. For example, a doctor may

purchase insurance to cover any legal claims against him if he were to make a mistake in

treating a patient.

Financial loss insurance protects individuals and companies against various financial

risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a

factory prevented it from carrying out its business for a time. Insurance might also cover

failure of a creditor to pay money it owes to the insured. Fidelity bonds and surety bonds are

included in this category.

Title insurance provides a guarantee on research done on public records affecting title

to real property, usually in conjunction with a search done at the time of a real estate

transaction, such as a sale, or amortgage.

Healthinsurance covers medical bills incurred because of sickness or accidents. Life

insurance provides a benefit to a decedent's family or other designated beneficiary, usually to

make up for their loss of his or herincome.
http://www.bambooweb.com/articles/a/u/Automobile_insurance.htmlhttp://www.bambooweb.com/articles/a/u/Auto_insurance.htmlhttp://www.bambooweb.com/articles/c/a/Car_insurance.htmlhttp://www.bambooweb.com/articles/m/o/Motor_insurance.htmlhttp://www.bambooweb.com/articles/e/a/Earthquake_insurance.htmlhttp://www.bambooweb.com/articles/h/o/Home_insurance.htmlhttp://www.bambooweb.com/articles/b/o/Boiler_insurance.htmlhttp://www.bambooweb.com/articles/c/a/Casualty_insurance.htmlhttp://www.bambooweb.com/articles/l/i/Liability.htmlhttp://www.bambooweb.com/articles/s/u/Surety_bond.htmlhttp://www.bambooweb.com/articles/t/i/Title_insurance.htmlhttp://www.bambooweb.com/articles/r/e/Real_property.htmlhttp://www.bambooweb.com/articles/r/e/Real_estate.htmlhttp://www.bambooweb.com/articles/m/o/Mortgage.htmlhttp://www.bambooweb.com/articles/h/e/Health_insurance.htmlhttp://www.bambooweb.com/articles/l/i/Life_insurance.htmlhttp://www.bambooweb.com/articles/l/i/Life_insurance.htmlhttp://www.bambooweb.com/articles/i/n/Income.htmlhttp://www.bambooweb.com/articles/i/n/Income.htmlhttp://www.bambooweb.com/articles/l/i/Life_insurance.htmlhttp://www.bambooweb.com/articles/l/i/Life_insurance.htmlhttp://www.bambooweb.com/articles/h/e/Health_insurance.htmlhttp://www.bambooweb.com/articles/m/o/Mortgage.htmlhttp://www.bambooweb.com/articles/r/e/Real_estate.htmlhttp://www.bambooweb.com/articles/r/e/Real_property.htmlhttp://www.bambooweb.com/articles/t/i/Title_insurance.htmlhttp://www.bambooweb.com/articles/s/u/Surety_bond.htmlhttp://www.bambooweb.com/articles/l/i/Liability.htmlhttp://www.bambooweb.com/articles/c/a/Casualty_insurance.htmlhttp://www.bambooweb.com/articles/b/o/Boiler_insurance.htmlhttp://www.bambooweb.com/articles/h/o/Home_insurance.htmlhttp://www.bambooweb.com/articles/e/a/Earthquake_insurance.htmlhttp://www.bambooweb.com/articles/m/o/Motor_insurance.htmlhttp://www.bambooweb.com/articles/c/a/Car_insurance.htmlhttp://www.bambooweb.com/articles/a/u/Auto_insurance.htmlhttp://www.bambooweb.com/articles/a/u/Automobile_insurance.html


20/50

20

Annuities provide a stream of payments and are generally classified as insurance

because they are issued by insurance companies and regulated as insurance. Annuities and

pensions that pay a benefit for life are sometimes regarded as insurance against the

possibility that a retiree will outlive his or her financial resources. In that sense, they are the

opposite of life insurance.

Credit insurance pays some or all of a loan back when certain things happen to the borrower

like unemployment, disability, or death.

Political risk insurance can be taken out by businesses with operations in countries in

which there is a risk that revolution or other political conditions will result in a loss

Types of insurance companies

Insurance companies may be classified as

Life insurance companies, who sell life insurance, annuities and pensions products. Non-lifeorgeneralinsurance companies, who sell other types of insurance.

Reinsurancecompanies sell insurance cover to other insurance companies. This helpsinsurance companies to spread their risks, and protects them from very large losses. A

few very large companies, with huge reserves, dominate the reinsurance market.

History of General Insurance in India

The General insurance business in India, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the

Year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in

India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code

of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the

General insurance business in India.
http://www.bambooweb.com/articles/a/n/Annuity.htmlhttp://www.bambooweb.com/articles/p/e/Pension.htmlhttp://www.bambooweb.com/articles/c/r/Credit_insurance.htmlhttp://www.bambooweb.com/articles/p/o/Political_risk_insurance.htmlhttp://www.bambooweb.com/articles/r/e/Reinsurance.htmlhttp://www.bambooweb.com/articles/r/e/Reinsurance.htmlhttp://www.bambooweb.com/articles/p/o/Political_risk_insurance.htmlhttp://www.bambooweb.com/articles/c/r/Credit_insurance.htmlhttp://www.bambooweb.com/articles/p/e/Pension.htmlhttp://www.bambooweb.com/articles/a/n/Annuity.html


21/50

21

January 1973. 107 insurers amalgamated and grouped into four companies:

The National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. And The United India Insurance Company Ltd

Features of Indian general insurance market

Low market penetration. Ever-growing middle class component in population.

Growth of consumer movement with an increasing demand for better insuranceproducts.

Inadequate application of information technology for business. Adequate fillip from the Government in the form of tax incentives to the insured, etc. India is one of the least insured countries but the potential for further growth is

phenomenal.

Rates of claim settlement were earlier in India the highest in the world, 70 per cent ingeneral insurance, compared to around 40 per cent internationally.

Non-life premium has a 0.71 per cent share of GDP.

Mission of Insurance Regulatory and Development Authority Act

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-time members;

(c) Four part-time members;(All appointed by the Government of India)


22/50

22

Likely changes in the insurance sector

The general insurance industry is one of the strongholds of the Government has beenunder State monopoly for the last four decades. This sector is now on the threshold of being

thrown open. To the Indian private sector and international players. Prodded more by the

pressure of international lending agencies, the government has at last realized that the

performance of State-owned insurance companies has been dismal in terms of the corporate,

social and financial objectives.

It has been felt over the year that the totally protected industry insurance business has

failed to provide any information to the management to keep abreast of the development witha view to formulation polices and measures rapid growth consistent with customer

satisfaction.

Dependence on premium:

The annual premium income of general insurance corporation (GIC) and life insurance

corporation (LIC), the two public sector behemoths which straddle the insurance sector,

exceeds Rs.3, 500 crores and Rs.8, 000 crores respectively. The overwhelming dependence of

GIC on its premium income prevents formulation of innovative and coast effective schemes.

The Indian Insurance market as it stands today is a regulated one with a host of tariff

rates, market agreements, rules and regulations. But, since there is growing competition in

several sections of the financial market, particularly in the banking sector, mutual funds and

merchant banking, it would be advisable to make the insurance sector more competitive by

permitting the private sector also to enter into the general insurance business.

Major Weakness:

The major weakness noticeable in the business development so far has been

overwhelming depending upon the secondary or the manufacturing sector of the economy

which accounts for less than a third of the gross balance in the business portfolio, is amply

illustrated by the fact that personal risk cover accounts for less than 20 percent of the

premium income in India as compared to over 75 percent across the developed world.

Similarly, the rural sector which accounts for over a third of the national income provides only

3 percent of the GICs annual premium income.


23/50

23

At the present, the general insurance industry is likely to generate and annual

premium of Rs.11, 000 crores. Service nearly 100 million policy holders annually and pay

nearly 10 million claims involving an outgo of about Rs.7, 000 crores per annual. The life

insurance business is also showing a tremendous growth.

The LIC and GIC are areas of tremendous growth potential. On opening up the policy

holders will not only get a range of new products but also improved services. It is also agreed

that premium rates will come down if more players are allowed into the insurance market

due to competitiveness.

Currently, GIC and LIC have to invest about 80 percent of their money in law-yieldinggovernment securities. Experts feel this should be brought down to a level of 25 percent in

order to generate a larger population of non-premium income which alone can make the risk

protection regime more cost effective.

The corporate sector is in favor of privatization of insurance companies. Bodies like the

India merchants chamber (IMC) have demanded off loading of 50 percent of Government

holding in GIC. When all other sections are thrown open by the government the IMC feels the

insurance sector not only be keep under Government control.

The major shot-coming of nationalization functioning is the fear of job insecurity

amongst the employees resulting in low efficiency and poor customer service.

Other View:

Introduction of new players in the field may not necessarily lead to efficiency and

reduced premium. What is needed is to have a look at the existing legal framework relating to

insurance and the supervisory mechanism. At the same time there is the need to grant

insurance companies more operational flexibility and the freedom to take investment

decisions.


24/50

24

Now withstanding the pressure of international agencies, experts feel that a lot needs

to be improved in the insurance sector and the stepping stone should be privatization and

new competition.

A number of foreign companies like sun Insurance Corporation, royal insurance andthe American insurance group are waiting in the wings. Several companies in Indian are also

interested in entering this new area.

Privatization of Insurance

When the cloud of privatization is enveloping almost every government holding, there

was one area which was left untouched in the current financial overhaul, i.e. the insurance

industry, at last, the government is on the threshold of throwing open the sector, which is one

of he last vestiges of state monopoly. Prodded more by the pressure of international lending

agencies, the government has at last realized that the performance of the state owned

insurance companies had been dismal. This was basically due to the protected regularity

frame works under which the insurance companies were operating. This kept them away

from keeping abreast of the new resulting in stagnation of growth and inconsistent of

customer satisfaction.

One of the main reasons for the present state of insurance companies in India is their

heavy dependence on premiums. The annual premium of general Insurance Corporation is

Rs.8000 cores, and depends vastly on this premium products and better service standards.

Basically arising due to the low return on FGICs annual investments in low yielding

government securities as it invests around 80 percent of its money in these kinds of securities.

Experts feels that it should be brought down to 25% in order to generate a larger proportion

on non-premium income to be cost effective in this area of heavy competition.

The other major weakness noticeable in the insurance business in India is its

overwhelming dependence on the manufacturing sector. This is because manufacturing sector

of Indian Economy amounts to less than a third of Indias gross domestic product. Thus the

personal risk coverage sector has totally been ignored. This imbalance in the business

portfolio is far from favorable for the industry. The premium generated from the personal risk

coverage in India is just 20% as compared to over 75% the world over. Similarly the rural

sector which accounts for over a third of the national income has only 3 percent of its share inthe annual premium generated by GIC. The enormity of the potential of this particular market


25/50

25

can be easily visualizes, since Indias prosperous professional classes along practically equal

the population of the European community or the United States.

This potential in the insurance sector has generated the interest of a lot of private

Indian and International players. Indian companies like HDFC, Reliance, ITC and Tatas arealready looking at the business, foreign insurances including American Insurance group the

first foreign insurance being allowed to operate in China and sun life PIC which has a tie-up

with LIC in the UK, have suffering around the edges of the insurance market in India.

This spurt of interest puzzles some observers. But with the western insurance market

in its worst slump over, foreign insurers are obviously on the lookout for newer markets. Over

100 insurers in US have closed down in recent times. Thus it is not surprising that the US

government has been exerting a little super 301 muscle to open up this sector in India. Thiscan be helped little because industry sources way that, the percentage of premium income in

India relative to the gross domestic product is only 0.58 percent as compared to 3.37 and 4.45

percent in the US and UK markets respectively.

This does not mean that the insurance industry is free of any criticism from the public

in India. Both the insurance corporation, LIC and GIC are already overstaffed. A large number

of agents final to meet their annual quotas mainly because they are poorly qualified and badly

trained, resulting in their termination leaving policy holders orphaned. Although computerhas been introduced according to officers, they remain grossly underutilized. Poor customer

service due to such factors is clearly evident.

Apart from his, insurance official plead that they are hamstrung by the bureaucratic

controls open them like CAG Audits, Vigilance committees, strong unions and government

committees. If they do not settle a claim soon, the customer service cells active themselves,

and if a claim is settled soon, the vigilance department is upon them.

More than new products, flexibility is required and the industry has been long asking

for a system of merit rating, where companys loss prevention practices and l ower claims

ratio are rewarded with discounts. Providing discounts would encourage companies to adopt

a better risk management technique which ultimately is beneficial for the insurer too.

But, if the insurance industry opens up the is still one question i.e. how will the existing

insures are in the face of the competition/According to analysts, they are fairly strong. And

they could pick up the benefits of technology and modernization themselves. In fact tie up


26/50

26

with a foreign company would make great sense. With the reach, knowledge of the market

and financial backing of the existing corporations and the technology and innovations of the

foreign companies, any joint venture should be marriage made in heaven.

Reforms into the insurance industry

Jaibharat Reddy Committee which was framed to look into the need for reforms serves as

a backgrounder for the recently commissioned R.N. Malhotra Committee. The terms of

reference of the committee which first met in Bombay recently are to:

Examine the structure of the insurance industry and recommend ways to make itefficient.

Suggested ways to improve the functioning of General Insurance Corporation and theLife Insurance Corporation.

Review existing regulations of Insurance companies. Suggest changes in the legislation.


27/50

27

COMPANY PROFILE

Bajaj Allianz General Insurance Co. Ltd

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General

Insurance business (including Health Insurance business) in India. The Company has an

authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the

remaining 26% is held by Allianz, SE.

As on 31st March 2009, Bajaj Allianz General Insurance maintained its premier position in the

industry by achieving growth as well as profitability. The company garnered a premium

income of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has

made a profit before tax of Rs. 149.8 crore and has become the only private insurer to cross

the Rs.100 crore marks in profit before tax in the last three years. The profit after tax was

Rs.95 crores, which is also the highest by any private insurer.

Bajaj Allianz today has a countrywide network connected through the latest technology for

quick communication and response in over 200 towns spread across the length and breadth

of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are

interconnected with the Head Office at Pune.

Vision

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value


28/50


29/50

29

Visit Bajaj Auto's Website www.bajajauto.com

Allianz AG, Germany

Allianz AG is in the business of General (Property & Casualty) Insurance; Life & healthinsurance and Asset Management and has been in operation for over 110 years. Allianz is one

of the largest global composite insurers with operations in over 70 countries. Further, the

Group provides Risk Management and Loss Prevention Services. Allianz has insured most of

the world's largest infrastructure projects (including Hong Kong Airport and Channel Tunnel

between UK and France), further Allianz insures the majority of the fortune 500 companies,

besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial

and personal lines sector, using a wide variety of innovative distribution channels.

Allianz AG has the following to offer Bajaj Allianz General Insurance Company Ltd.:

Set up and running of General insurance operations

New and improved international products

One ofthe world's leading insurance companies

More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide

Provides insurance to almost half the Fortune 500 companies

Technology

Why Bajaj

Business strategy aligned to clients' needs and trends in Indian and global economy

industry

internationally experienced core team, majority with local background

Fast, decentralized decision making

Long-term commitment to market and clients

Trust

At Bajaj Allianz, we realize that you seek an insurer whom you can trust. Bajaj Auto Limited is


30/50

30

trusted name for over 55 years in the Indian market and Allianz AG has over 110 years of

global experience in financial services. Together we are committed to provide you with time

tested and trusted financial solutions that provide you all the security you need for your

investments. And more..

Underwriting Philosophy

Our underwriting philosophy focuses on:

Understanding the customer's needs Underwriting what we understand Meeting the customer's requirements Ensuring optimal coverage at lowest cost

Claims Philosophy

The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims

processing. We pride ourselves on a friendly and open approach. We are focused towards

providing you a hassle free and speedy claims processing.

Our claims philosophy is to:

Be flexible and settle fast

Ensure no claim file to be seen by more than 3 people

Check processes regularly against the global Allianz OPEX(Operational Excellence) methodologysold over 1 million since inception.

Customer Orientation

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All ourefforts are directed towards understanding the culture, social environment and individual

insurance requirements - so that we can cater to all your varied needs.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are

supported by the necessary international expertise required to analyze and assess them.

Service engineers located in every major city


31/50

31

Superior Technology

In order to ensure speedy and accurate processing of your needs, we have establishedworld class technology, with renowned insurance software, which networks all our

offices and intermediaries

Using the Web, policies can be issued from any office across the country for retailproducts

Unique, user friendly software developed to make the process of issue of policies andclaims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

Special PA cover for AmaranthYatris Film insurance Event management cover Sports & Entertainment Insurance Package

Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:

Risk identification: Inspections Risk analysis: Portfolio review and gap analysis Risk retention Risk Transfer: To an insurer as well as reinsurer (as required) Creation of need based products Ongoing dialogue and proactively

Kakinada branch

The BAJAJ ALLIANZ branch in Kakinada was a very successful one. The scope of this

branch is from Rajahmundry to Vishakhapatnamthere are about fifty employees and ninetyagents working in this branch. It is closing about twelve hundred to thirteen hundred policies

per month and is generating a premium of about two crores per monthand the sum assured is


32/50

32

about three hundred to three fifty crores.

Geographical coverage of Kakinada branch office

VIJAYAWADA ANAKAPALLI SRIKAKULAM VIJAYANAGARAM RAJAHMUNDRY VISHAKHAPATNAM BHIMAVARAM ELURU GUNTUR ONGOLE

Customers

HINDUSTAN ZINC EIPL SHIPYARD DREDGING CORPORATION STEEL AUTHORITY OF INDIA LIMITED COROMANDEL PAINTS COROMANDEL FERTILIZERS

Top Management of Bajaj Allianz

The top management of Bajaj Allianz General Insurance consists of people having

Domain knowledge of insurance as well as specialists in their respective field.

KameshGoyal is the CEO of Bajaj Allianz General Insurance Company Limited,

Sam Ghosh, who was the CEO of Bajaj Allianz earlier, has taken over as Country

Manager and is also the CEO of Bajaj Allianz Life Insurance Company Limited.


33/50

33

Data Analysis & Interpretation

Research design : Descriptive Research Sampling technique : Convenience sampling .

technique

Sample size : 70 Sample respondents : Policy holders who lodged claim

on motor vehicle insurance

Research instrument : Interview Schedule Tools used : Percentage analysis

and Chi-square test

1. Gender of the respondents

INTERPRETATION

From the above table it is found that majority of the respondents are male with 82.9%

very few respondents are female with 17.1%.

GENDER No of Respondents Percentage

MALE 58 82.1 %

FEMALE 12 17.9 %

TOTAL 70 100 %


34/50

34

2. Age of the respondents

AGE No of Respondents Percentage

21 30 7 10%

31 40 14 20%

41 50 33 47.1%

51 above 16 22.9%

Total 70 100%

INTERPRETATION

From the above table it is found that majority of the respondents are under the age

group of 41 - 50 with 47.1% and very few respondents belong to the age group above

21 - 30 with 10.0%.

3. Education of the respondents

Education Number Respondents

Post Graduate 12 17.1%

Under Graduate 30 42.9%

12th 16 22.9%

10th 8 11.4%

Below 10th 4 5.7%

Total 70 100%


35/50

35

INTERPRETATION

From the above table it is inferred that majority of the respondents have the Under

Graduates as their educational qualification with 42.9% .

4. Occupation of the respondentsOccupation Number Percentage

Govt. Employee 9 12.9%

Corporate Employee 20 28.6%

Self-Employee 31 44.3%

Others 10 14.3%

Total 70 100%

INTERPRETATION

From the above table it is found that majority of the respondents are business people

or self-employed with 44.3% and least number of respondents are others with 14.3%

5. Product Purchased

Product Frequency Percentage

OD 56 80.0

Third Party 14 20.0

Total 70 100.0

INTERPRETATION

From the above table it is found that most (80.0%) of the respondents are purchased OD

insurance and the remaining 20.0% of the respondents purchased Third party Liability

insurance .


36/50


37/50

37

INTERPRETATION

Based on the table value it is found that most of the respondents opine that delay in settling

the claim with 15.7%.

9. Awareness on No Claim BonusAwareness (NCB) Frequency Percent

Yes 21 30.0

No 49 70.0

Total 70 100.0

INTERPRETATION

From the above table it is found majority of the respondents are not having sufficient

knowledge about No Claim Bonus with 70.0% in motor insurance contract.

Chi square test

1. Hypothesis to study the awareness level of motor insurance products (TP & OD)

Ho: There is no significant difference between Gender and awareness level of motorinsurance products (TP & OD)

H1: There is a significant difference between Gender and awareness level of motorinsurance products (TP & OD)

Ho: There is no significant difference between age and awareness level of motorinsurance products (TP & OD)

H1: There is a significant difference between age and awareness level of motorinsurance products (TP & OD)


38/50

38

Ho: There is no significant difference between Occupation and awareness level ofmotor insurance products (TP & OD)

H1: There is a significant difference between Occupation and awareness level of motorinsurance products (TP & OD)

Ho: There is no significant difference between Education Qualification and awarenesslevel of motor insurance products (TP & OD)

nH1: There is a significant difference between Education Qualification and awarenesslevel of motor insurance products (TP & OD)

awareness

level of

motor

insurance

products

(TP & OD)

Tests Chi

square

Value

df P-value Significant/

Not

significant

Ho

Acceptability

Gender Pearson

Chi-Square

0.949 1 0.004 Significant Rejected

Likelihood

Ratio

0.950 1 0.004

Age Pearson

Chi-Square

5.997 3 0.112 Not significant Accepted

Likelihood

Ratio

6.592 3 0.186

Occupation Pearson

Chi-Square

4.599 3 0.207

Not significant Accepted

Likelihood

Ratio

4.853 3 0.183

Educational

qualification

Pearson

Chi-Square

17.814 4 0.001

Significant Rejected

Likelihood

Ratio

17.141 4 0.002


39/50

39

INFERENCE

Since the P value of Gender 0.004 is less than 0.05 and it is Significant. Hence, there isa significant difference between Gender and awareness level of motor insurance

products.

Since the P value of Gender 0.112 is greater than 0.05 and it is not significant. Hence,there is no significant difference between age and awareness level of motor insurance

products.

Since the P value of Gender 0.207 is greater than 0.05 and it is not significant. Hence,there is no significant difference between education and awareness level of motor

insurance products.

Since the P value of Gender 0.001 is less than 0.05 and it is Significant. Hence, there isa significant difference between educationalqualification and awareness level of motor

insurance products.

2. Hypothesis to identify the problem faced by the policy holders during lodging

and getting claim

Ho: There is no significant difference between Gender and problem faced by the policyholders during lodging and getting claim

H1: There is a significant difference between Gender and problem faced by the policyholders during lodging and getting claim

Ho: There is no significant difference between Age and problem faced by the policyholders during lodging and getting claim

H1: There is a significant difference between Age and problem faced by the policyholders during lodging and getting claim

Ho: There is no significant difference between Occupation and problem faced by thepolicy holders during lodging and getting claim

H1: There is a significant difference between Occupation and problem faced by thepolicy holders during lodging and getting claim


40/50

40

Ho: There is no significant difference between Educational Qualification and problemfaced by the policy holders during lodging and getting claim

H1: There is a significant difference between Educational Qualification and problemfaced by the policy holders during lodging and getting claim

awareness

level of

motor

insuranceproducts

(TP & OD)

Tests Chi

square

Value

Df P-value Significant/

Not

significant

Ho

Acceptability

Gender Pearson

Chi-Square


Likelihood

Ratio

3.116 1 0.048

Age Pearson

Chi-Square


Likelihood

Ratio

4.529 3 0.210

Occupation Pearson

Chi-Square

1.349 3 0.718


Likelihood

Ratio

1.305 3 0.728

Educational

qualification

Pearson

Chi-Square

8.131 4 0.087


Likelihood

Ratio

8.018 4 0.091


41/50

41

INFERENCE

Since the P value of Gender 0.041 is less than 0.05 and it is Significant. Hence, There isa significant difference between gender and problem faced by the policy holders

during lodging and getting claim

Since the P value of Gender 0.251 is greater than 0.05 and it is not significant. Hence,There is no significant difference between age and problem faced by the policy holders

during lodging and getting claim

Since the P value of Gender 0.718 is greater than 0.05 and it is not significant. Hence,There is no significant difference between occupation and problem faced by the policy

holders during lodging and getting claim

Since the P value of Gender 0.087 is greater than 0.05 and it is not significant. Hence,There is no significant difference between educational qualification and problem faced

by the policy holders during lodging and getting claim

3. Hypothesis to analyze the customer satisfaction towards motor insurance policies

offered by Bajaj Allianz General Insurance Co. Ltd.

Ho: There is no significant difference between Gender and customer satisfaction H1: There is a significant difference between Gender and customer satisfaction

Ho: There is no significant difference between Age and customer satisfaction H1: There is a significant difference between Age and customer satisfaction

Ho: There is no significant difference between Occupation and customer satisfaction H1: There is a significant difference between Occupation and customer satisfaction

Ho: There is no significant difference between Educational Qualification and customersatisfaction


42/50

42

H1: There is a significant difference between Educational Qualification and customersatisfaction

awareness

level ofmotor

insurance

products

(TP & OD)

Tests Chi

squareValue

Df P-value Significant/

Not significant

Ho

Acceptability

Gender Pearson

Chi-

Square


Likelihood

Ratio

1.767 3 0.622

Age Pearson

Chi-

Square


Likelihood

Ratio

7.899 9 0.544

Occupation Pearson

Chi-

Square

3.669 9 0.932


Likelihood

Ratio

4.775 9 0.854

Educational

qualification

Pearson

Chi-

Square

13.364 12 0.343


Likelihood

Ratio

13.587 12 0.328

INFERENCE

Since the P value of Gender 0.625 is greater than 0.05 and it is not significant. Hence,There is no significant difference between gender and customer satisfaction


43/50

43

Since the P value of Gender 0.236 is greater than 0.05 and it is not significant. Hence,There is no significant difference between age and customer satisfaction

Since the P value of Gender 0.932 is greater than 0.05 and it is not significant. Hence,There is no significant difference between occupation and customer satisfaction

Since the P value of Gender 0.625 is greater than 0.05 and it is not significant. Hence,There is no significant difference between educational qualification and customer

satisfaction

4. Hypothesis to study the awareness level of No Claim Bonus (NCB) on motor

insurance customers

Ho: There is no significant difference between Gender and awareness level of NoClaim Bonus (NCB)

H1: There is a significant difference between Gender and awareness level of No ClaimBonus (NCB)

Ho: There is no significant difference between Age and awareness level of No ClaimBonus (NCB)

H1: There is a significant difference between Age and awareness level of No ClaimBonus (NCB)

Ho: There is no significant difference between Occupation and awareness level of NoClaim Bonus (NCB)

H1: There is a significant difference between Occupation and awareness level of NoClaim Bonus (NCB)

Ho: There is no significant difference between Educational Qualification andawareness level of No Claim Bonus (NCB)

H1: There is significant difference between Educational Qualification and awarenesslevel of No Claim Bonus (NCB)


44/50

44

awarenesslevel of

motor

insurance

products

(TP & OD)

Tests Chisquare

Value

Df P-value Significant/Not

significant

HoAcceptability

Gender Pearson

Chi-Square

0.040 1 0.841 Not

significant

Accepted

Likelihood

Ratio

0.000 1 0.841

Age Pearson

Chi-Square


Likelihood

Ratio

12.557 3 0.006

Occupation Pearson

Chi-Square

14.218 3 0.003

Significant Rejected

Likelihood

Ratio

15.078 3 0.002

Educational

qualification

Pearson

Chi-Square

23.053 4 0.000

Significant RejectedLikelihood

Ratio

28.869 4 0.000

INFERENCE

Since the P value of Gender 0.841 is greater than 0.05 and it is not significant. Hence,There is no significant difference between Gender and awareness level of No Claim

Bonus (NCB)


45/50

45

Since the P value of Gender 0.008 is less than 0.05 and it is significant. Hence, There is asignificant difference between age and awareness level of No Claim Bonus (NCB)

Since the P value of Gender 0.003 is less than 0.05 and it is significant. Hence, There is asignificant difference between occupation and awareness level of No Claim Bonus

(NCB)

Since the P value of Gender 0.000 is less than 0.05 and it is significant. Hence, There is asignificant difference between educational qualification and awareness level of No

Claim Bonus (NCB)

CHAPTER - V

FINDINGS, SUGGESTIONS AND

CONCLUSIONS

5.1 FINDINGS

Research finding proved that out of 70 respondents most of them (82.9%) are maleand rest of (17.1%) are female.

The Female Respondents are having lack of awareness of motor insurance policies.

Most number of the respondents are having Own Damage insurance (i.e. 80.0%)

Here we can find that 60 percentage are well educated and remaining are belowHigher Secondary

Majority of the respondents are satisfied with the services of Bajaj Allianz GeneralInsurance Co. Ltd with 62.9% and some of respondents are dissatisfied with the

service of the company with 27.1%.

Most of the respondents opine that delay in settling the claim with 15.7% Here 37.1% respondents faced difficulties during the claim settlement procedure..


46/50

46

The Gender of the respondents have relation with the awareness level of motorinsurance products (TP & OD) and problem faced by them.

Majority of the respondents are not having sufficient knowledge about the No ClaimBonus with 70.0% in the motor insurance contract.

The demographic profile like age, occupation and educational qualification influencesthe awareness level of No Claim Bonus (NCB).

There is a significant difference between Gender , Educational Qualification andawareness level of motor insurance products (TP & OD)

There is no significant difference between Demographic factors such as Age,Occupation, Educational Qualification and problem faced by the policy holders during

lodging and getting claim

There is no significant difference between Demographic factors such as Age, Gender,Occupation, Educational Qualification and customer satisfaction

5.2 SUGGESTIONS AND IMPLICATIOS

The company or the customer care executive may create awareness on intimation ofthe claim on time at the time of taking the motor insurance policy.

The Company should take necessary action to settle the claims as quick as possible toincrease the satisfaction level among the customers.

All the customers should be treated equally. create awareness on No Claim Bonus and its benefits among the policy holders Increase the no claim bonus percentage to retain the existing policy holders and it

avoids small claims.

The finding of the study expected to help the management to understand the basicproblems in claim settlement and the result of the study enable the management of

insurance company to do up their strategy and to redraft their policy regarding the

claims settlement.

The identification of claim settlement problems and internal steps to improve mayhelp the insurance company decision making authorities to think the general insurance

management concepts to have a model shift in their approach.


47/50


48/50

48

Insurance watch

Insurance world

QUESTIONNAIRE

SECTION - I

DEMOGRAPHIC

1. Name :__________________________________________________________________2. Gender

Male Female

3. AgeBelow 20 20-30 31-40

41-50 51 and above

4. OccupationGovt. employee Corporate employee Self employee

Others

5. Educational QualificationPost graduate Under Graduate 12th 10thBelow 10th

SECTION-2

CUSTOMER AWARENESS


49/50

49

6. Are you aware of motor insurance products of Bajaj Allianz General InsuranceCompany?

Yes No

7. If yes, what is the source of awareness?Company Internet Television

Newspapers Others, Specify__________________

8. Which product have you purchased from Bajaj Allianz General Insurance Co. Ltd?OD Insurance Third Party Insurance only

9. Why you have chosen the product of Bajaj Allianz General Insurance. Co. Ltd?Brand Value ReputationNear By Area

Others (Specify).

10.How are the services offered by Bajaj Allianz General Insurance Co. Ltd?

Excellent Good Poor

11.Have you ever made a claim more than one time on motor insurance?Yes No

12.Within how many days has claim been settled by Bajaj Allianz General InsuranceCo. Ltd?

30 days

13.Are you satisfied with motor insurance claim settlement done by Bajaj AllianzGeneral Insurance Co. Ltd?


50/50

Highly satisfy eSatisfied NS/NDS Dis Satisfied

Highly dissatisfied

14.Will you being continue as customer after made claim in Bajaj Allianz generalinsurance company Ltd.?

Yes No

15.Have faced any problems during lodging and getting claim?

Yes No

16.If YES,(Please specify)_________________________________________________________________________

____________________________________________________________________________________________________

____________________________________________________________________________________________________

____________________________________________________________________________________________________

____________________________________________________________________________________________

17.Any suggestions for claim settlement process?

report project srini

Documents