1.

1 EXECUTIVE SUMMARY

Insurance is not the sale of products, but servicing customers. It is a system, by which
the losses suffered by a few are spread over many, Exposed to similar risks. Insurance
is a protection against financial loss arising on the happening of an unexpected event.
Insurance companies collect premiums to provide for this protection. A loss is paid
out of the premiums collected from the insuring public and the Insurance Companies
act as trustees to the amount collected. The very fundamental principle of spreading of
the risk is actually practiced by the insurance companies by reinsuring the risks that
they have insured. The opening up of the Insurance Sector to Private Companies, has
made available more products and world class service to Indian Customer.
This project has been made with an objective to give an insight into various facts of
General Insurance sector in India. An attempt has been made to explain the apex body
of General Insurance. i.e. General Insurance Corporation of India, its structure,
products and subsidiaries.
Also the review of latest entrants into insurance sector viz. private players like TATA
AIG General Insurance Company, Reliance General Insurance Company limited,
Bajaj Allianz General Insurance Company, IFFCO Tokyo General Insurance
Company, Royal Sundaram General Insurance Company limited and ICICI Lombard
General Insurance Company have been described in brief, Due to the growth in the
technological sector of the country, the insurance companies have started utilizing
these technologies to itas optimum level.

1.2

INTRODUCTION TO

INSURANCE

INDUSTRY

a. Origin and Development of the industry

Till May, 1971 there were 107 companies operating in the market, both Indian and
foreign. Some companies were in the co-operative sector. The size of the companies
and there reach varied to a great extent. Whereas many companies used to underwrite
all types of covers fire, marine& miscellaneous insurance.
The government in May, 1971 took over the undertaking of all the Companies as a
prelude to ultimate nationalization. This was brought about under the General
insurance business (Nationalsation) Act, 1972.

Thus, effective 01/01/1973 a single holding company was created named as General
Insurance Corporation of India, with 4 subsidiaries to take care of the general
insurance business operation.
Brief History of the Insurance Sector
The business of life insurance in India in its existing form started in India in the year
1818 with the establishment of the Oriental Life Insurance Company in Colkata.
Some of the important milestones in the insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.

1956 :

245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Colkata 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 with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies.
The four subsidiaries formed were as under:
1. The National Insurance Co. Ltd
2. The India Assurance Co. Ltd
3. The Oriental Insurance Co. Ltd
4. The United India Insurance Co. Ltd

The four subsidiary companies operated under the all direction of the GIC . Each of
these had almost a similar structure with 4 tiers
The branch at the bottom rung,
The divisional office,
Regional office and
The Head Office at the apex.

b. Growth and Present status of the industry

At present 12 companies are operating in general insurance market for direct business.
The four public sector companies mentioned above and the following companies in
the private sector. These private companies were formed after the passing of the IRDA
Act, 1999. This removed the prohibition existing in the GIBNA Act relating to
formation of insurance companies other than the four Public sector companies.

The companies in the private sector are:1. Bajaj Allianz General Insurance Co.Ltd.
2. Cholamandalam General Insurance Co. Ltd.
3. HDFC Chubb General Insurance Co. Ltd.
4. ICICI LOMBARD General Insurance Co. Ltd.
5. IFFOCO Tokyo General Insurance Co. Ltd.
6. Reliance General Insurance Co. Ltd.
7. Royal Sundaram Alliance Insurance Co. Ltd.
8. Tata AIG General Insurance Co. Ltd.
The General Insurance Corporation is now only Reinsurance Company and operates
as the National Reinsures. There are however, some companies in the market, which
are formed for a specific purpose only.

1.3 OVERVIEW OF ICICI LOMBARD

The ICICI Ltd. was established in 1955 by the World Bank, the Government of India
and the Indian Industry, to promote industrial development of India by providing
project and corporate finance to Indian industry. Since inception, ICICI has grown
from a development bank to a financial conglomerate and has become one of the
largest public financial institutions in India. ICICI has thus far financed all the major
sectors of the economy, covering 6,848 companies and 16,851 projects.

Lombard Canada Ltd., is a leading insurance management company responsible for

providing insurance management services for all of the Lombard group's commercial,
personal, and specialized insurance companies. Canadian owned and operated,
Lombard Canada Ltd. has its head office in Toronto and has annual sales in excess
of $500 million and is a wholly owned subsidiary of Fairfax Financial Holdings
Limited (FFH on the TSF Lombard Canada Ltd. has achieved a reputation for
providing solid underwriting performance, diversified books of business and strong
capital positions.

The Joint Venture ICICI Lombard General Insurance Co will be headed by Mr. Sanjiv
Kerkar. ICICI would hold about 74 percent stake, while Canadian insurer Lombard
would hold the maximum permissible 26 percent and commence business with a startup capital of Rs.100 crore. ICICl Lombard has plans to sell covers to the corporate
clients of ICICl. At the same time it will sell property insurance for ICICI home loan
seekers and auto insurance for those availing of car finance.

2.1 GENERAL INSURANCE MAJOR PRIVATE PLAYERS

2.2 MARKETING MIX OF ICICI LOMBARD

The marketing mix is the combination of marketing activities that an organisation
engages in so as to best meet the needs of its targeted market. The Insurance business
deals in selling services and therefore due weight-age in the formation of marketing
mix for the Insurance business is needed. The marketing mix includes sub-mixes of
the

P's

of

marketing

i.e.

the

product,

its

price,

place,

promotion, people, process & physical attraction. The above mentioned 7 P's can be
used for marketing of Insurance products, in the following manner:
1.

PRODUCT

A product means what we produce. If we produce goods, it means tangible product

and when we produce or generate services, it means intangible service product. A
product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance
company sells services and therefore services are their product.
Eg : MOTOR INSURANCE , HEALTH INSURANCE , TRAVEL INSURANCE ,
STUDENT MEDICAL INSURANCE , HOME INSURANCE ,
1. Car Insurance Introduction

ICICI Lombard brings a comprehensive Package Policy for your four-wheelers,

which covers Third Party Liability (TPL) for bodily injury and/or death, Personal
Accident cover for owner-driver and loss or damage to the vehicle insured (Own
Damage or OD).

Policy Coverage
a) Loss or damage to your vehicle: The policy covers you against any loss or
damage caused to the vehicle or its accessories due to the following natural
and man made calamities.

b) Natural Calamities Fire, explosion, self-ignition or lightning, earthquake,

flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm,
frost, landslide, rockslide.
c) Man made Calamities Burglary, theft, riot, strike, malicious act, accident
by external means, terrorist activity, any damage in transit by road, rail, inland
waterway, lift, elevator or air. The rates of the vehicle and its parts are subject
to depreciation as per the schedule provided by the Indian Motor Tariff.
d) Personal accident cover: The motor insurance provides compulsory personal
accident cover for individual owners of the vehicle while driving. You can also
opt for a personal accident cover for passengers.
e) Third party legal liability: This protects you against legal liability arising
due to accidental damages
-Any permanent injury/ death of a person
-Any damage caused to the property.
f) No Claim Bonus: If you do not make a claim during the policy period, a No
Claim Bonus (NCB) is offered on renewals.
g) Additional discounts: You can also avail of additional discounts if you are a
member of a recognized Automobile Association in India.
h) ARAI devices: In case you have installed ARAI approved anti theft device in
your vehicle, you get a discount of 2.5 % on the OD Premium to a maximum
of Rs. 500.
Key Benefits

A digitally signed policy is issued immediately through online facility.

You can claim towing charges up to Rs 1,500 through 24*7 call centers.

Cashless claim settlement at network garages all across India.

Policy Exclusions

Under this policy, you are not covered against -

Normal wear, tear and general aging of the vehicle

Depreciation or any consequential loss

8

Mechanical/ electrical breakdown

Wear and tear of consumables like tyres and tubes

Vehicle being used otherwise than in accordance with limitations as to use

Damage to/ by a person driving the vehicle without a valid license

Damage to/ by a person driving the vehicle under the influence of drugs or
liquor / Loss/ damage due to war, mutiny or nuclear risk

2.

TWO WHEELER INSURANCE

WHAT IS COVERED

Loss or Damage to your vehicle against Natural Calamities

Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon,

hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,
rockslide.
What is not covered

Normal wear and tear and general ageing of the vehicle.

Depreciation or any consequential loss.

Mechanical/

electrical

breakdown.

Sum Insured

All vehicles are insured at a fixed value called the Insured's Declared Value
(IDV).

IDV is calculated on the basis of the manufacturer's listed selling price of the
vehicle (plus the listed price of any accessories) after deducting the depreciation
for every year as per the schedule provided by the Indian Motor Tariff.

2. PRICE
9

In

the

insurance

business

the

pricing

decisions

are

concerned

with:

i) The premium charged against the policies,

i) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities.
3. PLACE
This component of the marketing mix is related to two important facets -i)

Managing

the

ii)

Locating a branch.

insurance

personnel,

and

BRANCHES OF ICICI LOMBARD MAINLY INCLUDE :MALAD BRANCH

Ground & 4th Floor, Interface 11,Office No. 401 & 402, New Linking Road, Malad
(W) Mumbai 400 064 Maharashtra
J. B. Nagar, Andheri
403 , Centre Point, Andheri Kurla Road,J. B. Nagar, Andheri (E), Mumbai 400 059
Maharashtra Near Kohinoor Continental, JB Nagar
4. PROMOTION
The insurance services depend on effective promotional measures. In a country like
India, the rate of illiteracy is very high and the rural economy has dominance in the
national economy. It is essential to have both personal and impersonal promotion
strategies. In promoting insurance business, the agents and the rural career agents play
an important role. Due attention should be given in selecting the promotional tools for
agents and rural career agents and even for the branch managers and front line staff.
They also have to be given proper training in order to create impulse
buying.
Some Examples are
a)

No Parking Gate Boards- In keeping with focus on effective media

solution, ICICI Lombard pioneered the NON- PARKING SIGNBOARDS as a
10

marketing initiative. This activity combining a relevant message and brand

awareness across the country.

b)

Traffic Barricade Campaign- The traffic barricade campaign has been

one of the most intensive activities undertaken with a large number of barricades
planted across Mumbai alone. The barricades with a relevant road safety message
reflect

ICICI

Lombards commitment as a socially responsible corporate.

Furthermore, these public utilities have simultaneously provided us

with unique branding opportunity to make the presence felt in a clutter breaking
manner.

c)

Outdoor Campaign For Overseas Travel A month long sustained

awareness cum lead generation drive was undertaken in Delhi for Overseas Travel
Insurance. The creative was developed to communicate the benefits of the product
and a call to action upfront. In a city with limited outdoor opportunity, 3 mobile
vans carrying the communication constantly moved around the city in mapped ot
routes to get maximum mileage and leads from the activity.

11

d)

Rural- Sumo Campaign- Sumo Campaign gains its name from Sumos
moving around with the Weather Insurance Communication. This activity meant
to mark the launch of I Lombard- weather Insurance product for soyabean in Kota
& Jhalawar (Rajasthan). Aside from the visual branding these sumos also
generated considerable interest by announcing the product launch and the features
on speaker phones. The creative was a simple and reliable one for the rural
audience, highlighting the key benefits in language script. 7500 farmers enrolled
as a result of this communication drive.

12

PEOPLE:

Understanding the customer better allows to design appropriate products. Being a

service industry which involves a high level of people interaction, it is very important
to use this resource efficiently in order to satisfy customers. Training, development
and strong relationships with intermediaries are the key areas to be kept under
consideration. Training the employees, use of IT for efficiency, both at the staff and
agent level, is one of the important areas to look into.

6. PROCESS
The process should be customer friendly in insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be easy
and

convenient

to

the

customers.

Installment schemes should be streamlined to cater to the ever growing demands of

the customers. IT & Data Warehousing will smoothen the process flow.
IT will help in servicing large no. of customers efficiently and bring down overheads.
Technology can either complement or supplement the channels of distribution cost
effectively. It can also help to improve customer service levels. The use of data
warehousing management and mining will help tofind out the profitability and
potential of various customers product segments.

7. PHYSICAL DISTRIBUTION
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming.

13

2.3 WHY ICICI LOMBARD ???????????

INDIA'S NUMBER ONE PRIVATE GENERAL INSURANCE COMPANY

FIRST GENERAL INSURANCE COMPANY IN INDIA TO BE ISO 9001:
2000

CERTIFIED

ASSIGNED THE IAAA RATING BY ICRA INDICATING

HIGHESTCLAIMS PAYING ABILITY
SIMPLE AND FAST DOCUMENTATION
LIGHTNING FAST CLAIMS SETTLEMENT
INSTANT ONLINE POLICY ISSUANCE
COMPREHENSIVE PRODUCT LINE
HIGHEST SECURITY LEVEL OFFERED THROUGH 128 -BIT
ENCRYPTION IN CASE OF ON LINE DATA EXCHANGE
FIRST COMPANY TO PROVIDE DIGITALLY SIGNED DOCUMENTS
THROUGH AN ONLINE INTERFACE
ACHIEVED FINANCIAL BREAKEVEN IN FIRST FULL YEAR
ACHIEVED UNDERWRITING BREAKEVEN IN SECOND YEAR OF
OPERATIONS
ADJUDGED AS THE 'GENERAL INSURANCE COMPANY OF THE
YEAR' AT THE 11TH ASIA INSURANCE

14

 AWARDED THE NDTV PROFIT BUSINESS GENERAL INSURANCE

CATEGORY ON JULY 27, 2007
ADJUDGED AS THE MOST CUSTOMER RESPONSIVE COMPANY IN
THE INSURANCE CATEGORY AT THE ECONOMIC ALCONNECT
CUSTOMER RESPONSIVENESS AWARD 2006
AWARDED THE BEST HOUSING INSURANCE IN THE SMART LIVING
DEGREES, A TIMES OF INDIA GROUP SUBSIDIARY, IN NOV 2006
AWARDED THE GOLD SHIELD FOR "EXCELLENCE IN FINANCIAL
REPORTING" BY THEICAI (INSTITUTE OF CHARTERED ACCOUNTANTS
OF INDIA) FOR THE YEAR ENDED MARCH 31, 2006
ADJUDGED CATEGORY AT THE 9TH ASIA INSURANCE INDUSTRY
AWARDS FUNCTION HELD IN SINGAPORE DURING SEPTEMBER, 2005

15

16

SWOT ANALYSIS OF ICICI LOMBARD :

STRENGTHS :

Assigned the iAAA rating by ICRA indicating highest claims paying ability
Simple and fast documentation
Lightning fast claims settlement
Instant online policy issuance
Comprehensive product line

17

 Highest Security level offered through 128 bit encryption in case of online
data exchange
First Company to provide digitally signed documents through online
interfaces

WEAKNESS

Have to underwriters approval for every process

Less agent payout that is ( 10% to 15 % )

OPPORTUNITY

95% OF 2 wheelers are not insured

Beneficial in business sector because of corporate growth
Low market share in insurance sector
There is lot of innovation to be done
Customized insurance solution
Getting Fleet Owner

18

THREATS

There will be too many competitors in future

Because of d tariff margin may further shrink
Threat of new entries
Threat of Substitute products
Government Policies
PSU Companies

19

2.4

OVERVIEW OF BAJAJ ALLIANZ GENERAL INSURANCE CO

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both
enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration on 2nd May, 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 mark 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.
20

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

Mission:

As a responsible, customer focused market leader, we will strive to understand

the insurance needs of the consumers and translate it into affordable products
that

deliver

value

for

money.

Bajaj Allianz General Insurance offers technical excellence in all areas of

21

General and Health Insuranceas well as Risk Management. This partnership

successfully combines Bajaj Finservs in-depth understanding of the local market
and extensive distribution network with the global experience and technical
expertise of the Allianz Group. As a registered Indian Insurance Company and a
capital base of Rs. 110 crores, the company is fully licensed to underwrite all
lines of general insurance businessincluding health insurance.

Achievements:

Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of
Moodys Investors Services, for Claims Paying Ability. This rating indicates
highest claims paying ability and a fundamentally strong position.

Bajaj Allianz General Insurance has received the prestigious Business Leader in
General Insurance, awarded by NDTV Profit Business Leadership Awards 2008.
The company was one of the top three finalists for the year 2007 and 2008 in the
General Insurance Company of the Year award by Asia Insurance Review.

2.5 MARKETING MIX OF BAJAJ ALLIANZ GENERAL INSURANCE

22

7 Ps of marketing of Bajaj Allianz general Insurance :

1. Products and Services:

Bajaj Allianz General Insurance Company Ltd. offers a range of insurance
products to its clients. The following insurances are offered by the company:

Motor Insurance

Asset Insurance

Home Insurance

Shop / Showroom: Protection against all risks

Health Insurance

Health Guard

Personal Guard

Hospital Cash

Critical Illness

Silver Health

E-Opinion

Star Package

23

Health Ensure

Insta Insure

Sankat Mochan

Family Floater HG

Tax Gain
Travel Insurance

Travel Companion

Student Companion

Pravasi Bharati Bima Yojana

Travel Asia

Travel Elite

Travel Assist

Swades Yatra
Corporate Insurance

Specialty Lines

Aviation

Marine Hull Insurance

Project Insurance

Sports & Entertainment Insurance

Your Employees

Group Personal Accident

Group Health Guard

Group Critical Illness

Workmens Compensation

Group Travel
Office

24

Office Package

Burglary

Plate Glass

Public Liability

Fire

Money

D & O Liability

Fidelity Guarantee
Manufacturing Unit

Fire

Business Interruption

Industrial All Risk

Workmens Compensation

Engineering

Public Liability

Product Liability

Composite Public & Product Liability

Fidelity Guarantee

Marine Insurance
Credit Insurance

2. Price:

The price structure is based on the type of policies. The price variation has to be
kept due to intense competition among private players. Pricing element is very
important for Bajaj Allianz as they want to increase market share. The price of
Bajaj Allianz policies are made as per keeping the customer in mind.

3. Place:

3rd Floor, 349 Business Point,

Western Express Highway Road,

25

Andheri(E).
The locations of every corporate offices of Bajaj Allianz is magnificent. They locate
themselves in a very professional manner. This indicates their corporate approach
towards their work. Work culture is also conducive to such environment.

4. Promotion:

Huge advertisements on Television and radios.

Tele-marketing
Promotion in front of corporate offices
Internet Marketing
Hoardings and brochures

5. People:
People are the main assets of financial organization because of service factor
attached to it. Here in this case of insurance business, talented and experienced
personnel are required. Bajaj Allianz recruits highly intellectual persons with good
market knowledge. They also provide training to brief them up about Bajaj Allianz
to its new staff members. This is the reason they are No.1 position in General
Insurance among private players. They create an emotional commitment and strong
two-way relationship between the employees and the Company.

26

To have clear performance expectations and a clear return from the Company
(working environment, development, reward, career opportunities etc), which helps
employees to make a connection between their contribution and the progress made
by the Company.
To inspire and empower people to achieve their best and reward them competitively
for their contribution and provide attractive career opportunities.To build a learning
culture which fosters personal development and professional mobility and upholds
values of professionalism,innovation, pragmatism, team spirit, integrity.To respect
and value individuals, their diversity and support them in their need to balance
professional and personal lives.

6. Process:
The prestigious awards itself speaks the smooth functioning of the insurance
activities. They have the highest claims paying ability and a fundamentally strong
position. They want to be the first choice for insurers in the country. So, they
understand the insurance needs of the customers and translate it into affordable
products that deliver value for money. Below case study is a clear evidence of proof:

Bajaj Allianz General Insurance Company Limited

Parent Company

Bajaj Finserv LTD. And Allianz SE

Category

NBFC

Sector

Insurance and finance

Tagline/ Slogan

Jiyo Befikar; Life. Insured by Care

27

USP

Expertise in local market with global exposure

STP

Segment

Personal and Group Insurance

Target Group

Urban and Rural Investors

Positioning

Complete Insurance and financial solutions

SWOT Analysis

Strength

1. Global exposure in Insurance through Allianz SE and Strong Local

Implementation by Bajaj
2. Has network across 200 towns
3. Fundamentally Strong with good paying Capabilities
4. Allianz AG is an insurance conglomerate globally and one of the larges
asset managers in the world, managing assets worth worldwide with 115
years of financial experience in over 70 countries
5. Received the prestigious "Business Leader in General Insurance",
award by NDTV Profit
1. Lack of penetration in rural areas

Weakness

2. Smaller Infrastructure as compared to established players

1. Growing rural market potential

Opportunity

2. Urban Youth with growing income

1. Economic crisis and economic instability
2. Entry of new NBFCs in the sector

Threats

28

3. Increasing awareness amongst people about securing their future

29

3.3

KEY BENEFITS OF ICICI LOMBARD CAR INSURANCE

03

Cashless Claim Networks

Cashless claim service over 3100+ authorized network of garages across India

Discounts
A further discount on the premium is available if you opt for a Voluntary Excess in
addition to the Compulsory Excess. (Compulsory Excess is the amount of loss which
the insured has to bear in each and every claim.)

Accidental Cover /Customer Support

30

Accidental cover facility for co-passengers up-to Rs. 2 Lac

ADD-ON COVERS FOR ICICI LOMBARD CAR INSURANCE

03

Depreciation Cover
Avail coverage on replaced parts with zero deduction for depreciation.

Third Party Cover

Third Party Legal Liability Protection against legal liability due to accidental damages
resulting in the permanent injury or death of a person, and damage caused to the
surrounding property.

31

Personal Accident Cover

Personal Accident Cover Coverage of Rs 1 Lakh for the individual owner/driver of
the vehicle while driving or travelling, Accidental cover facility for co-passengers upto Rs. 2 Lac

INCLUSION & EXCLUSION IN ICICI LOMBARD CAR

INSURANCE
02

Inclusion
Loss or Damage to your vehicle against Man-made Calamities like Burglary, theft and
any damage in transit by road, rail, inland waterway, lift, elevator or air.

32

Exclusion
Loss/ damage due to war, mutiny or nuclear risk

3.4 KEY BENEFITS OF BAJAJ ALLIANZ CAR INSURANCE3

Cashless Claim Networks

33

Cashless claim service over 1500+ authorized network of garages across India

Discounts
Renewing your car isnurance offers EEZEE card which enables discounts on certain
medical expenses like OPD, pathological investigations, select surgical procedures,
dental care, etc. at our tie-up network service providers.

Accidental Cover /Customer Support

If your car meets with an accident / breakdown taking place beyond 100 km from
your city and repairs for which will take more than 12 hrs,Hotel accommodation for
the occupants of your car for a maximum of two days and two nights limited to Rs.
2000 per person per day and maximum total of Rs. 16,000 through out the Policy
Period

ADD-ON COVERS FOR BAJAJ ALLIANZ CAR INSURANCE

34

Depreciation Cover
Depreciation shield cover standard for new cars nowadays owing to the fact that
insured will receive full claim amount without taking in consideration.

Third Party Cover

Protection against legal liability due to accidental damages resulting in the permanent
injury or death of a person, and damage caused to the surrounding property.

Personal Accident Cover

Personal Accident Coverage of Rs. 1 lakh for the individual owner/driver of the
vehicle while driving or travelling and mounting.

35

INCLUSION & EXCLUSION IN BAJAJ ALLIANZ CAR

INSURANCE
02

Inclusion
Protection against accidental damages resulting in the permanent injury or death of a
person and damage caused to the surrounding property.

Exclusion
36

Wear & tear, depreciation, mechanical or electrical breakdown

3.5

BASIS

What is it?
Key features

37

BAJAJ ALLIANZ CAR INSURANCE VS

ICICI LOMBARD CAR INSURANCE

BAJAJ ALLIANZ CAR INSURANCE

ICICI LOMBARD CAR

INSURANCE

Bajaj Allianz Car Insurance Policy is a

comprehensive plan to protect from
physical damage to your car, third party
liabilities and injury.

ICICI Lombard offers you a

comprehensive Package
Policy for your four-wheelers,
which covers Third Party
Liability for bodily injury
and/or death, Personal
Accident cover for ownerdriver and loss or damage to
the vehicle insured.

Cashless Claim processing

at 1500+ network garages across
India.

When insures online, a

signed policy is issued
immediately.

Customer service assistance in

available on phone for 12 hours.

Towing charges up to
Rs 1,500 can be
claimed.

A no Claim Bonus (NCB) can be

transferred from any insurer up

247 call centres.

Cashless claim
settlement at network
garages all across
India.

Take advantage of
following bonuses and
discounts:
transferrable NCB,
discount can go upto
50%, if ARAI is
installed in your
vehicle, you get a
discount of 2.5% on
OD premium to max
of Rs. 500.

Loss or damage to
vehicle due to natural
or man-made
calamities like: Fire,
explosion, self-ignition
or lightning,
earthquake, flood,
typhoon, hurricane,
storm, tempest,
inundation, cyclone,
hailstorm, frost,
landslide, rockslide or
Burglary, theft, riot,
strike, malicious act,
accident by external
means, terrorist
activity, any damage in
transit by road, rail,
inland waterway, lift,
elevator or air.

The motor insurance

provides compulsory
personal accident
cover for individual
owners of the vehicle

to 50%.

What is
covered?

Updates through messages on

claims.

0% interest EMI option for

Citibank Credit Card holders.

Loss or Damage to your car due

to man-made calamities like:
burglary, theft, riot, strike,
malicious act, accident by
external means, terrorist activity,
any damage in transit by road,
rail, inland waterway, lift,
elevator or air.

Loss or Damage to your car due

to natural calamities like fire,
explosion, self-ignition or
lightning, earthquake, flood,
typhoon, hurricane, storm,
tempest, inundation, cyclone,
hailstorm, frost, landslide and
rockslide.

Personal Accident Cover

Coverage of Rs.1 Lakh for the
individual owner/driver of the
vehicle while driving or
travelling.

38

247 Towing Facility in case of

breakdown.

Third Party Legal Liability

Protection against legal liability

due to accidental damages

resulting in the permanent injury
or death of a person, and damage
caused to the surrounding
property.

Depreciation or any consequential

loss

Mechanical breakdown

Damage to/ by a person driving

the vehicle under the
consumption of alcohol or drugs

Loss/ damage due to war, mutiny

or nuclear risk

while driving.

Third party legal

liability.

Wear and tear due to

daily use of vehicle

Depreciation or any
consequential loss

Mechanical
breakdown of your car

Wear and tear of

consumables like tyres
and tubes

Damage to/ by a
person driving the
vehicle under the
consumption of
alcohol or drugs

Loss/ damage due to

war, mutiny or nuclear
risk

Exclusions

Online?

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The plan can be purchased online.

Only private cars can be

insured online.

RECOMMENDATIONS

People do not have enough knowledge about the insurance policies provided by the
ICICI LOMBARD. Therefore ICICI LOMBARD Company should bring awareness
in the customers.
THE RECOMMENDATIONS I WOULD LIKE TO MAKE ARE:
There is a necessity to make more advertising and

promotions by the

Insurance Company through TV, newspapers, magazines and pamphlets to

make aware the customers about the insurance provided by them.
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 Need for proper channel to reach to the customer.

Marketing executives and agents should maintain good communication with
the customers to create the awareness of the policies like Mediclaim, GPA
(Group personnel accidental) burglary, and other insurance policies provided
by the company.
The employees should be given incentives and bonus to motivate to
accomplish their targets.
ICICI LOMBARD is concentrating only urban areas it should concentrate on
semi urban and rural areas also.
As it was found that customers preparing only Government companies for
their office insurance so create trust in costumers about private insurance
companies by rendering good services like proper claims, good response to
costumer queries and maintaining good relationship with costumers.
Building internal technical expertise requiring well stacked library resource
by way of settled cases of claims at every zonal office is an immediate
necessity.
The staff of the insurers should be encouraged to refer to these references
often with a view to bring about early settlement to the satisfaction of
claimants.

6.1

CONCLUSION

The challenges in the insurance industry and the accelerating pace of developments
have provided the much-needed impetus to ICICI Lombard to enhance its
performance. The company is growing at a steady pace and has carved a niche for
itself in the general insurance segment.

ICICI Lombard General Insurance has obtained ISO 9001:2000 certification from
DET Norske Veritas (DNV) for establishing a quality management system with regard
to settlement of motor claims, according to a release.
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ICICI Lombard has an aggressive future road map. it plans to add various BI related
features, such as time-series analysis and trend analysis, which will be available to the
sales force. The system would also allow rural data mapping, weather insurance,
analysing historical weather information depicting natural catastrophes and allow for
corporate database mapping

The post-liberalized insurance industry panorama in India is witnessing dramatic

changes in terms of a slew of latest products and services, new channels of
distribution, greater use of I.T. as a service facilitator and a further use of diverse tools
of communication and promotion to tackle this issue. It is now seeking to leverage on
the power of internet and mobile for faster customer value deliverability and policy
management operations.

According to industry experts, the marketing and communication initiatives will now
become much more specific and one-to-one marketing will see a rise.

BIBLIOGRAPHY

http://shodhganga.inflibnet.ac.in/bitstream/10603/7336/16/16_chapter%204.pdf
http://www.answers.com/Q/7p%27s_of_marketing_mix_of_insurance_sector
http://www.bankbazaar.com/insurance/bajaj-allianz-car-insurance.html
https://www.icicilombard.com/about-us/insurance-industry-news-detail.aspx?
id=1290160258
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http://www.myinsuranceclub.com/car-insurance/bajaj-allianz-car-insurance
http://www.mycarhelpline.com/index.php?
option=com_easydiscuss&view=post&id=1662&Itemid=78
http://www.loansninsurances.com/articles/insurance/bajaj-allianz-car-insurance-vsicici-lombard-car-insurance/

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