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A Research Project ReportOn

Cancellation Control Mechanism for Mid-Term Cancellation

At

ICICI Lombard General Insurance Co. Ltd.

Bangalore

Submitted To

In partial fulfillment of the course of

Post Graduate Diploma inManagement 2009-2011

Under the Supervision of: Submitted By:

Mr. Sushil K. Maurya Arpan Shukla

P.G.D.M. 2009-2011


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Mangalmay Institute of Management Studies

Greater NoidaTO WHOMESOEVER IT MAY CONCERN

This is to certify that this summer project report entitle Cancellation ControlMechanismfor Mid-Term Cancellation at ICICI LombardGeneral InsuranceCompany Limited. Submitted by Mr. Arpan Shukla in partial fulfillment of theaward of the two years Post Graduate Diploma in ManagementIs a bonafide workcarried out by the student at our institute.

This summer project study is his original work and has not been submitted to any otherUniversity / Institute.

Sushil K Maurya Dr. Anupam Narula

(Project Mentor) (Director)

Date:

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ACKNOWLEDGEMENT

Change Is the Law of Life, Challenge Is the Aim of Life to experience the vast

Growing change of industries and challenges attached to working environment in India,

summer training is the best period to know the integrity of corporate world. On my

knowledge enhancing sojourn for summer internship at ICICI Lombard General

Insurance Company Limited. who has given me lot of insight into the intricacies of

marketing profession in such a short stint.

The entire project from the very idea of it to the reality would not have been possible

without the guidance and support ofMr. Amit Arora (Manager ICICILombard) andMr. Sushil Maurya (Project Mentor MIMS).I am also very thankful to Mrs. Gurmeet

Thind (HRM ICICI Lombard) and Dr. Anupam Narula (Director MIMS) because

without the permission of both of them this training could not be possible.

I express my sincere gratitude to the

ICICI Lombard General Insurance Co. Ltd.

From where I have been able to collect data for my project.

Finally I would extend my profound gratitude to all the customers of ICICI Lombard

for patiently filling up the questionnairewithout which the study was not possible.

Arpan Shukla

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Contents

Subject Page No.

Certificate of the Organization

Certificate of the Mentor 1

Acknowledgement 2

Preface 3

Company Profile

ICICI Lombard General Insurance Co. Ltd. 6

ICICI Bank Ltd. 7

Lombard Canada Ltd. 8

Company Overview 9

Vision & Mission of ICICI Lombard 10

ICICI Lombard Philosophy 11

IT Initiatives 12

Objective and scope of the Research 14

Research Methodology 16

Comparison of product & services of ICICI Lombard

With other companies. 18

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Comparison of Home Loans Interest Rates of ICICI Bank

With other companies. 43

Analysis of data & findings of the study 46

Suggestions and Conclusion 58

Annexure & Bibliography 60

Company

Profile

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Company Profile

ICICI Lombard

General Insurance Company

ICICI Lombard General Insurance Co. Ltd. is a joint venture between ICICI Bank Ltd.and Fairfax Financial Holdings Ltd. Where ICICI Bank boasts of being India's secondlargest bank, Fairfax Financial Holdings of Canada is a leading financial corporateengaged in general insurance, reinsurance, insurance claims management and investmentmanagement. In August 2001, ICICI Lombard General Insurance Company receivedregulatory approvals to instigate general insurance business in India.

In a short span of time, ICICI Lombard rose to become number one private generalinsurance company in India. Moreover, it's also the first company to get ISO 9001:2000certifications in India. ICICI Lombard has been assigned the iAAA rating by ICRA,indicating the highest claims paying ability. It is the first company to provide digitallysigned documents through an online interface. For its effective solutions and working, ithas got various recognitions like 'General Insurance Company of the Year' (2007), NDTVProfit Business Leadership Awards 2007, etc. Given here is a comprehensive list ofpolicies on offer by ICICI Lombard General Insurance Co. Ltd.

ICICI Lombard has the guidance of Lombard, Canada, on domain knowledge, product

innovation, business processes based on cutting-edge technology and international bestpractice in the insurance business. The company offers a wide range of retail andcorporate general insurance products for today's challenging business environment.

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ICICI Bank Limited

ICICI Bank is India's second largest bank with total assets of over Rs. 1 trillion, aNetwork of about 540 branches/offices and over 1,000 ATMs. ICICI Bank offers a wide

Range of banking products and financial services to corporate and retail customers

Through a variety of delivery channels.

Through its specialized subsidiaries and affiliates it offers Services in investmentbanking, life and non-life insurance, venture capital, asset Management and informationtechnology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai,Delhi, Kolkata, Vadodara, Mumbai and the National Stock Exchange of India Limited.

Its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE) - the first Indian company and one of the first banks/financial institutions fromAsia to be listed on the NYSE. ICICI Bank is the only Indian company to be rated higherthan the sovereign rating by Moody's.

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financialinstitution, in 1994. Four years later, when the company offered ICICI Bank's shares tothe public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bankoffered made an equity offering in the form of ADRs on the New York Stock Exchange(NYSE), thereby becoming the first Indian company and the first bank or financialinstitution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the

Bank of Madura Limited in an all-stock amalgamation. Later in the year and the nextfiscal year, the bank made secondary market sales to institutional investors.

With a change in the corporate structure and the budding competition in the IndianBanking industry, the management of both ICICI and ICICI Bank were of the opinionthat a merger between the two entities would prove to be an essential step. It was in 2001that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of

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ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal FinancialServices Limited and ICICI Capital Services Limited, with ICICI Bank. In the followingyear, the merger was approved by its shareholders, the High Court of Gujarat atAhmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank ofIndia.

Present Scenario

ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and theNational Stock Exchange of India Limited. Overseas, its American Depositary Receipts(ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008,ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion andprofit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Lombard Canada Limited

Lombard Canada Limited is responsible for the insurance management services for all of

The Lombard Group's commercial, personal, and specialized insurance companies.

Exceeding $500 million in annual sales, Lombard Canada Limited also provides

Insurance management services for external clients including the Tokyo Marine & Fire

Insurance Company Ltd.

Lombard General Insurance Company of Canada underwrites Commercial lines businessthrough select brokers across Canada. Lombard General Brokers have access to one ofthe industry's most powerful underwriting tools: Business Choice , a specialized point

of sale software developed by Lombard Canada. Beyond providing small and mediumsized businesses with the specialized insurance coverage They require, Lombard Generalalso offers custom marketing services and specialized Coverages designed to meet theneeds of businesses across the country.

Lombard Canada Ltd. is responsible for the insurance management services for all of theLombard group's commercial, personal, and specialized insurance companies. LombardCanada Ltd. also provides insurance management services for external clients including

the Tokio Marine & Nichido Fire Insurance Co., Ltd. Lombard Canada Ltd., and themember entities of the Lombard companies that it manages, are wholly ownedsubsidiaries of Northbridge Financial Corporation.

Lombard General Insurance Company of Canada underwrites commercial linesbusiness through select brokers across the country. Lombard General brokers have accessto one of the industry's most powerful underwriting tools: Business Choice , aspecialized point of sale software developed by Lombard Canada. Beyond providingsmall and medium sized businesses with the specialized insurance coverage they require,

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Lombard General also offers custom marketing services and specialized coveragedesigned to meet the needs of businesses across the country.

Lombard Insurance Company is a personal lines underwriting insurance providercommitted to providing Canadians with the most innovative personal lines insurance

solutions. Lombard Insurance was well ahead of the competition when it introduced itspackaged homeowner and automobile product Personal Choice - a package thatremains popular today. Lombard Insurance Company strives to stay on top of thechanging needs and lifestyles of its clients, that is why we have recently introduced twonew coverages - "Toys Coverage" for seasonal dwellings, watercraft, motorcycles, andsnowmobiles and Homework for the growing home based business sector.

Company Overview

ICICI Lombard General Insurance Company Limited operates as a general insurancecompany in India. The company provides health, home, motor, overseas travel, andStudents insurance products for individuals; and business, fire, marine, industrial,

corporate, liability, credit, and shop insurance products for businesses. It also offers ruralinsurance products, such as tractor and weather. In addition, the company provides claimservices, including health, home, motor, overseas travel, and students claims, as well asonline services. It offers its products through a network of branches. The company was

incorporated in 2000.

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 highest claims paying ability

Simple and fast documentation

Lightning fast claims settlement

Instant online policy issuance

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http://www.icicilombard.com/app/ISO-Certification.asphttp://www.icicilombard.com/app/ICRA-rating-iAAA.asphttp://www.icicilombard.com/app/ISO-Certification.asphttp://www.icicilombard.com/app/ICRA-rating-iAAA.asp


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Comprehensive product line

Highest security level offered through 128-bit encryption in case of online dataexchange

First company to provide digitally signed documents through an online interface

Achieved financial breakeven in first full year of operations

Achieved underwriting breakeven in second year of operations

Adjudged as the most Customer Responsive Company in the Insurance category at theEconomic Times Avaya Global Connect Customer Responsiveness Award 2006

Awarded the Best Housing Insurance in the Smart Living Awards by 360 degrees, a

Times of India Group subsidiary, in Nov 2006

Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI(Institute of Chartered Accountants of India) for the year ended March 31, 2006

Among the top three General Insurance Companies to be awarded the "GeneralInsurance Company of the Year" at the 10th Asia Insurance Industry Awards

Adjudged amongst the top three in the Insurance Website of the Year category at the9th Asia Insurance Industry Awards function held in Singapore during September,

2005

Vision & Mission of ICICI Lombard

Vision: To be the leading provider of financial services in India and a major globalGeneral insurance company.

Mission:

We will leverage our people, technology, speed and financial capital to:

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Be the insurance company of first choice for our customers bydelivering high quality, world-class services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of Indias potential.

Maintain a healthy insurance profile and diversify our earningsacross businesses and geographies.

Maintain high standards of governance and ethics.

Create value for our customers.

ICICI Lombard Philosophy

As India transforms into a key player in the global economic arena, multiple opportunitiesfor the insurance & financial services sector have emerged. We, at ICICI

Lombard, seek to partner the country's growth and globalization through the delivery of

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World-class financial services across all cross-sections of society.

From providing project and working capital finance to the buoyant manufacturing andinfrastructure sectors, meeting the foreign investment and treasury requirements of theIndian corporate with increasing levels of international engagement, servicing the India

linked needs of the growing Indian Diaspora, being a catalyst to the consumer financestory to serving the financially under-served segments of the society, our technologyempowered solutions and distribution network have helped us touch millions of lives.

Quality is an integral part of ICICI Lombard's well-defined and dynamic HumanResource (HR) policy. The company follows a strong value system which is driven byresult orientation, adaptability to change, humility and respect for colleagues and peers.We believe that investment in human capital is the key source of competitive advantageand sustained growth.

Our constant endeavor is to create and maintain a performance driven work culturefocusing on employee satisfaction and retention. With attractive compensation packages,positive and productive work environment and challenging assignments and opportunitiesacross the world, ICICI Lombard is committed to being the employer of choice whereverit operates. We not only want to attract and retain the very best of professionals, but alsowant them to be partners in progressive growth

Information Technology Initiatives

The IT group at ICICI Lombard is structured for quick response to a dynamic

Market place. The approach has been to Adopt a customer-centric strategy with greater

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Speed, higher accuracy and with enhanced capacity that is aligned with theOrganizations goals and objectives.

The following are the milestones in information technology:

Best IT implementation award - ICICI Lombard has been awarded theBest IT implementation award in the 'Maximum Business Impact' category for itsGIS based Risk Management System initiated on August 2004.

Online Manager - A web-based interface enables our customers andIntermediaries to independently process insurance transactions through the internet.

ICICI Lombard has sales and service abilities on the corporate website, providing

real time policy issuance for certain products.

Improved speed and accuracy of claims processing usingTalisma- A Customer Relationship Management (CRM) system and ClaimsProcessing System (CPS) system have been implemented on the Talisma platform.

ICICI Lombard has integrated the contact center for surveyors, dealers, operations,

Internal claim teams into a single interface leading to improved speed and accuracy

of claims processing.

Deployment of Citrix Meta Frame Presentation Server

for faster customer service, tracking and monitoring of

policy related issues at any time -In order to cater to the diversity oflocations at ICICI Lombard and a high volume of transactions, there was an acuteNeed to centralize applications for faster rollouts. The company partnered withWipro InfoTech to implement a solution using Citrix Meta Frame PresentationServer. Now, ICICI Lombards insurance employees andagents are now able tostructure all types of the companys insurance products,independent of timeandLocation. The system is designed to generate a policy in less than 10 minutes.

ICICI Lombard signed up for Consigntech "GoDB Platform" for

developing mobile and disconnected POS (point of sale) - ICICILombard signed up for Consigntech "GoDB Platform" a software from Consigntech

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for developing mobile and disconnected POS (point of sale). This reduces thetransaction cycle time for policy issuance to its customer at the intermediary andcustomer premises. As the processing gets distributed, the infrastructure required isreduced.

ICICI Lombard Launches Path Finder on May 2006- Toalign the organization with the growing pace of economic development and

expansion, ICICI Lombard has incorporated a cutting edge IT application called

Path Finder as its core policy administration system. It is a state-of-the-art system

that provides an efficient method to quote, issue, manage policies and critical

Insurance functions from the internet as well as the intranet. The system is based on

the top-of-the line hardware infrastructure to ensure its ability to handle the business

Growth.

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Objective and

Scope

Of the Research

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Objectives of the Research

The objectives of the study are given below:

The objective is to critically understand as to which region is the maximumcontributor in terms of cancellation and also analyze the reason behind thecancellation.

The purpose of the research is to evaluate the impact of the customer and theiropinion carried out in the organization.

The objective of the study is also feel the pulse of the customers views and theirreasons for the policy cancellation.

.

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ResearchMethodology

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Research Methodology

Keeping the objective of the study in mind carries out the research. For the purpose of thestudy data was collected from:

1. Primary Source

2. Secondary Source

To collect the primary data, I will use following techniques:-

1. Phone Calls 2. Filling up of questionnaire by the customers.

To collect the secondary data, I will use following techniques:-

1. Internet

2. Database of the company.

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Comparison of Product

And

Services of ICICI Lombard

with Other Companies

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Comparison of product and services

The names of various companies are given below:

Tata AIG General Insurance Company.

Reliance General Insurance Company.

HDFC Ergo General Insurance Company.

Cholamandalam MS General Insurance Company.

IFFCO Tokio General Insurance Company.

ICICI Lombard General Insurance Company

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Tata AIG General Insurance

Services:

Tata AIG General Insurance Company Limited offers a complete range of general

Insurance policies, for motor, home, accident and health, travel, energy, property and

Casualty, marine and liability purposes, as well as several specialized financial lines.

Apart from its wide and varied product basket, the insurance company also ensures quick

And easy claim settlements, which in turn, has helped it in not only retaining the old

Customers (winning their loyalty), but also gaining new ones.

Products:

Home

Fire Cover

Pre-Packaged Coverages

Supreme Cover

Privilege

Home sweet Home a destination, any individual or a family feels very close to the

Heart. It is an investment of ones lifetime savings, emotional dreams and aspirations to

realize their ideal home. Home signifies a set of emotions for any individual, be it pride,Ownership, stability or be it a sense of belonging. It echoes the owners sentiments Its

my house.

After all, ones Home including its contents is the single most important and expensiveasset that we have created for ourselves. We have learnt to value life and health

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sufficiently to understand the importance of insuring it. But when it comes to applying thesame logic to our home (around which our lives revolve) most of us suffer a blind spot. Itis only when a calamity or catastrophe strikes that we feel helpless.

Home Insurance provides exactly the care one needs at such times to safeguard against

unforeseen eventualities and to preserve ones lifestyle and that too at an affordable price.You can protect your priceless investment for very little money. Assuming you havepossessions worth Rs. 300,000 in your house, you can insure those possessions for aslittle as Rs. 3 a day - for Fire, Natural Hazards (Flood, Earthquake etc) and Burglary &Theft.

TATA AIGs HomeSecure takes the bother out of insuring your home. Nounnecessarypaperwork or awkward questions. Just smooth sailing all the way.

Fire Cover:

This policy covers against fire and some special perils listed below. Its attraction is thefact that it gives you this cover for surprisingly little money.

What is this for?

This policy covers buildings (RCC construction) and your household contents. Buildingvalue should be equal to present day cost of reconstruction, while contents should beinsured for their market value.

Perils Covered

Fire Lightning Explosion / Implosion Riot, Strike and malicious damage (RSMD) Flood, Storm, inundation

Aircraft Damage

Impact Damage by any rail/road vehicle or animal (other than damage by own

vehicle) Landslide, rockslide

Bursting and overflowing of water tanks, apparatus pipes. Missile testing operations Bush Fire Earthquake & Terrorism can be taken as add-on covers by paying extra premium

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It is important that you take care to adequately insure your property. In case the actualvalue of insured property at the time of loss under Fire Benefit is found to be greater thanthe sum insured opted by you, then the claim would stand to be reduced in the sameproportion.

Supreme Cover

This is flexible home insurance product, which can be customized for individualrequirements. You can customize your package by picking and choosing from a basket ofcoverages to design a product that you feel suits your needs.

Pre-packaged Cover

These are the six pre-packaged covers we have, to satisfy varying home insurance needs.

Privilege

This is unique, innovative product where one can insure ones most prized possessions as

Part of a privilege offer viz. Your car, home and life.

It is a comprehensive insurance scheme that protects you against the uncertainties of life

By giving you the convenience of protecting your Home Contents and your life against

Accidents while taking Car insurance i.e. 3 in 1 covers under the same roof.

While Car insurance is the default insurance, the client has the option of taking the Homeand/or Personal Accident cover under the same policy.

Product structure:

BenefitsSum Insured

Fire & Allied Perils (Home Contents) 200,000

Burglary & Theft (on 1st Loss) 200,000

ATM Cash 2,500

Public Liability 100,000

Contents exclude jewelry and valuables

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Premium:

Rs 1005/- including service tax @ 12.24%.

Also available on offer is a unique spot fulfillment product for Home Contents.

This product is over the counter in nature where the final policy itself is handed over to

the customer across the table at the point of sale. It requires minimum documentation, issimple to understand and hassle-free for execution.It is a simple Fire and Burglary product available in 2variants. The benefits under thisproduct are:

Fire and Allied Perils (incl. earthquake & terrorism) Home Contents: Sum Insuredoptions of Rs 3 lacks & Rs 5 lacks respectively.

Burglary &Theft - Home Contents (on1st loss): Sum Insured of Rs 1 lac common to bothvariants.

Product structure:

BenefitsOption 1-3 lacks

Sum insured (Rs)

Option 2-5 lacks

Sum insured (Rs)

Fire & Allied Perils includingEarthquake & terrorism - for contents

300,000 500,000

Burglary & Theft on 1st Loss - for

contents 100,000 100,000

Final Premium incl. Service Tax @12.24%

719 853

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Reliance General Insurance

Services:

Reliance General Insurance Company offers a wide range of innovative products to thePotential customers. Right from health and home insurance to car/motor and travelinsurance, you can get almost all types of individual policies with Reliance, that too at thebest premium rates. Apart from that, the company also caters to corporate and SMEclients, providing end to end insurance solutions. The product basket includes fire,engineering, liability, marine, travel and other types of insurance, for organizational riskmanagement.

Products:

Home Insurance

Reliance Home Protect Householder's Package

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Reliance Home Protect

Policy Details

Plan Name Reliance Home Protect

Building No

Contents Yes

Baggage No

MBD (machinery breakdown) Yes

EEI (electronic equipment insurance) Yes

Personal accident Yes

Personal liability No

Pet Dog No

Burglary (content) Yes

Fire, Lightning, Explosion/implosion Yes

Earth quake Yes

Storm, Cyclone, Typhoon, Tempest Yes

Tornado, Flood and Inundation Yes

Impact damage No

Subsidence and landslide including Rockslide Yes

Missile testing operations No

Leakage from Automatic Sprinkler Installations No

Bush fire Yes

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Terrorist activities Yes/Optional

War No

Optional Coverage Terrorism at the option

of the insured

Householders Package

Policy Details

Plan Name Householders Package

Building No

Contents Yes

Baggage Yes




Personal liability Yes

Pet Dog No



Earth quake Yes

Storm,Cyclone,Typhoon,Tempest Yes


Impact damage Yes

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Subsidence and landslide including Rock slide Yes

Missile testing operations Yes

Leakage from Automatic Sprinkler Installations Yes

Bush fire Yes

Terrorist activities Yes

War No

HDFC Ergo General Insurance Company

Product and Services:

As HDFC Ergo aims to provide apt insurance solutions to all its customers, it keeps onConstantly customizing its product and services to meet the requirements of everyCustomer in the market. It also believes in providing a smooth hassle free service to allIts customers. To help its customers 24x7, it has also developed a superior customerSupport service.

Home Insurance Services:

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House holder Insurance

Policy Details

Plan Name Householder Insurance

Building Yes

Contents Yes



Earth quake Yes



Impact damage Yes




Bush fire Yes

Terrorist activities No

War No

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Optional Coverage You can also cover

Electronic, Equipments,

Furniture Furnishings,

Jewellery, Clothes etc.

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Cholamandalam MS General Insurance

Product and Services:

Cholamandalam MS General Insurance is involved in the non-life or general insuranceSector. With its efficient schemes and policies of consumer focus, the company is aimedTo become one of the largest players of insurance sector in India. Cholamandalam MSGeneral Insurance offers a varied list of services in accordance with the popularRequirements in the insurance sector. Here is the comprehensive list of product, policiesAnd services of the company-

Home Insurance:

Householder Insurance

Policy Details


Building Yes

Contents Yes

Baggage Yes





Pet Dog No



Earth quake Yes


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Impact damage Yes




Bush fire Yes

Terrorist activities No

War No

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IFFCO Tokio General Insurance

Products & Services:

Home Loan:

Householder Insurance

Policy Details


Building Yes

Contents Yes

Baggage Yes







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Earth quake Yes



Optional Coverage:

1. Professional fees of architects, surveyors etc. for superintendence of building

during reinstatement following a loss.

2. Debris removal cost.

3. Escalation of Sum Insured throughout the year to guard against inflation

4. Loss of rent as landlord and additional expenses on rent whether you are a

landlord or Tenant.

Bonus/Discounts:

Available if more than 6 options provided in the policy are opted.

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ICICI Lombard General Insurance

Products and Services:

Home Loan:

Home Safe +

Heart is where the home is and so, it is among our most prized possessions. But with the

many uncertainties that we are faced in life, we would want to secure it by preparing for

the unexpected. We at ICICI Lombard General Insurance Co. Ltd understand these

apprehensions and hence, present to you Home Safe+ to relieve you of the insecurities

that your Home Loan responsibility may be causing you.

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Home Safe + Product covers the sum insured subject to maximum liability as specified

under each cover, for maximum 5 year period on account of any of the following:

The product comprises of two covers:

Cover A:

1. Diagnosis of major medical illness* and procedures.

a. Cancer

b. Coronary Artery By Pass Surgery

c. Myocardial Infarction (Heart Attack)

d. Kidney Failure (End Stage Renal Failure)

e. Major Organ Transplant

f. Stroke

g. Paralysis

h. Heart Valve Replacement Surgery

i. Multiple Sclerosis

2. (i) Death of insured person on account of an accident.

(ii) Permanent Total Disablement (PTD) on account of an Accident.

3. Loss of employment on account of retrenchment or layoffs on account of:

a. Employer rules and regulations (Ex. Closure of a division or a department on

account of poor financial health); or

b. Action of any public authority leading to closure of the employer firm; or

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c. Termination from employment due to illness.

(For salaried employees only & Maximum Liability of the company- 3 EMIs)

Cover B :

Fire & Special Perils

Covers losses to the structure of the house and the content due to any natural and man-

made calamities.

The calamities covered are fire, earthquake, lightning, flood, explosion/implosion,

resultant damage from explosion of gas cylinder, spread of fire due to electric short

circuit, riot, strike, malicious damage, aircraft/impact damage, storm, cyclone, flood,

testing operation, leakage from automatic sprinklers, etc.

Burglary:

Loss of contents due to burglary or attempted bur glary.

Loss of jewellery, gold ornaments, silvers articles & precious stones kept under

lock and key.

Sum insured:

Coverage is based on sum opted for the respective covers at the time of availing of

the policies.

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The EMI payment will be aggregated and a cap of 3 EMIs for loss Employment

will apply.

Home Safe + Product Coverage:

Cover A:

In the unfortunate event of your death or Permanent Total Disablement on account

of an Accident, resulting in your inability to remain gainfully employed, the sum

insured opted for at the time of the policy is paid off.

In case you contact any of the major medical illness & procedures covered under

this Policy, then ICICI Lombard will pay the sum insured at time of availing of

the policy.

If you lose your job on account of causes listed in the Policy then ICICI Lombard

will pay the EMI due on the loan till you can find an alternative job (subject to a

maximum of 3 EMIs).

Covers B:

The structure of your home is covered on a Reinstatement Value basis, which is

the cost of rebuilding your home with a similar new construction.

It does not cover the market value of your home, as the value of the land is

included in market value and cannot be insured because it is indestructible.

The contents are covered on a Market Value basis. i.e. the cost of buying a

similar new item, after deducting appropriate depreciation on the basis of the age.

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This includes appliances, furniture, personal effects, utensils & miscellaneous

items.

Features of Home Safe + Product:

For being a valued ICICI Bank customer, ICICI Lombard has arrived at special

rates for you for this policy.

Simple health declaration required. No medical check-up required.

Easy claim settlement with minimal documentation multiple applicants of the loan

can be covered under the policy.

Premium Payable:

The premium for Home Safe + Product depend on the applicants age, loan amount,

loan tenure, sum insured and applicants occupation & is payable in accordance with

arrangements with ICICI Bank.

Home Safe + Product Exclusions:

Any major medical illness & procedures existing before the commencement of the

policy or discovered within 90 days of the inception of the policy.

Any unemployment occurring within 90 days of the inception of the policy.

Mental disorder & insanity.

Intentional self-injury or suicide or attempted suicide.

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Use/misuse of liquor/drugs

Venereal diseases, AIDS

Pregnancy & childbirth

Any congenital illness or condition

War, terrorism acts

Nuclear weapons induced acts

Structure cover for commercial loan is valid for one year only(applicable for

resident Indians)

Mounting into, dismounting from or travelling in any balloon or aircraft other than

as a fare paying passenger in any scheduled airline any where in the world

Willful destruction of property

Loss, damages & destruction caused by war perils, wear & tear, atmospheric

conditions, etc

Losses if your house has been unoccupied for more than 30 days

Cash, bullion, paintings, works of art & antiques

Eligibility Conditions:

Home Safe + Product will be offered to the ICICI Bank Home Loan customers who

Meet the following criteria:

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Age criteria at entry: Minimum 20 years, Maximum 50 years

Minimum loan tenure: 36 months

You should not have suffered from any of the major medical illness & procedures

covered under this Product. (if any of them are pre-existing as indicated in the

Proposal Form, they will be excluded from the cover as available to you).

Satisfactory completion of health declaration form

Self-employed person will not be eligible to be covered for loss of employment

ICICI Bank loan is also available without this policy.

Coverage Period:

The cover under the product commences right from the first disbursal of the loan or the

premium cheque date whichever is later (subject to receipt of satisfactory health

declaration & realization of premium cheque)

The cover ends if any of the following occurs:

Expiry of the policy period

In case of payment of Death/Disability & major medical illness & procedures

claim;

In case of maximum payment (in aggregate) of 3 EMIs for unemployment then

this benefit will not be available to you. The Death, Disability, major medical

illness & procedures Cover will be still valid

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When the Insured Person attains the age of 55.

Premium Refunds:

Under cover A, in case of full pre-payment of the loan, short term Refunds will be

applicable on the policy. For Part-Prepayment of the loan, no premium refunds are

applicable.

Conformation of cover

On receipt of satisfactory health declaration & premium, ICICI Lombard General

Insurance Co. Ltd will send the insurance policies to you.

Claim process for Home Safe + Product:

In case of claim, please follow the procedure given below:

ICICI Lombard General Insurance Co. Ltd. to be informed giving the details of

the policies cover as may be issued to you.

Submit documents to ICICI Lombard General Insurance Co. Ltd.

Claim will be settled by ICICI Lombard General Insurance Co. Ltd. within 21days

of receipt of all completed documents such as death certificate, doctors

certificate, employers certificate, FIR, police report etc.

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Products which are given by ICICI Lombard and other companies:

Products ICICI

Lombard

TATA

AIG Life

Reliance

General

HDFC

Ergo

Iffco

Tokio

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Health

Insuranc

e

Yes Yes Yes Yes Yes

Home

Insuranc

e

Yes Yes Yes Yes Yes

Motor

Insuranc

e

Yes Yes Yes Yes Yes

Travel

Insuranc

e

Yes Yes Yes Yes Yes

Student

Medical

Insuranc

e

Yes No No No No

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Business

Insurance Yes Yes Yes Yes Yes

Rural

Insurance Yes Yes Yes Yes Yes

NRI

Services Yes No No No No

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Comparison Of Home

Loan Interest Rate

Of ICICI Bank

With Other Companies

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Home Loans Interest Rates of Various

Companies Comparative Chart*

Bank Name Floating

Interest Rate

Processing Fee Prepayment

Charge

Allahabad Bank

10.00 %

0.50% of loanamount, MaximumRs. 10,000/-

N.A.

Axis Bank

8.75 %

1% of the loan

amount + applicabletaxes

1% (For Fixed

scheme ), NIL( ForFloating)

Barclays Bank

9.25 % 0.5 %

Part pre-paymentwith Zero pre-payment chargessubject to maximum25% of the principaloutstanding amountelse 2% prepaymentcharges have to pay

Bank of India

9.25%

For loans upto

Rs.30 lacs One time@ 0.55% of loanamount min. Rs.3000/- and max.Rs.10000/-For Loan over Rs.30Lacs upto Rs.50lacks One timeflat Rs.15,000/-For Loan over Rs.50Lacs up to Rs.1.00

crore One timeflat Rs.20,000/-

N.A

48
http://www.deal4loans.com/loans/home-loan/allahabad-bank-home-loans-interest-rate-processing-fee/http://www.deal4loans.com/loans/home-loan/barclays-home-loan-interest-rates-emi-apply/http://www.deal4loans.com/loans/home-loan/bank-of-india-home-loan-processing-fee-interest-rate-emi/http://www.deal4loans.com/loans/home-loan/allahabad-bank-home-loans-interest-rate-processing-fee/http://www.deal4loans.com/loans/home-loan/barclays-home-loan-interest-rates-emi-apply/http://www.deal4loans.com/loans/home-loan/bank-of-india-home-loan-processing-fee-interest-rate-emi/


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*Interest rate on 20 July 2010

Citibank 9.75%(For 20years)

N.A

N.A

HDFC Ltd

8.25% (Up to Mar31,2011),9.25%(from Apr 1,2011 -Mar 31,2012), Then9%

Rs. 10,000/- or0.5% of loanamount(whicheveris lesser) + ServiceTax

If 25% ofoutstanding amountis paid every yeartill 3 years - NoPenalty , otherwise2% of outstandingamount

ICICI BankHome Loan

8.75% 0.50% of loanamount up to 1

crore

Rs.10,000/- above 1crore If FullPayment - 2% ofoutstanding amountIf Part Payment -No Penalty

LIC Housing

8.9%(Fixed rate for3 years) Floating8.75%

1% of loan amount

2% of outstandingPayment

Punjab National

Bank

9.75%0.75%( from 10 lac- 15 lac ) , 0.5%( above 15 lac)

No Charges if 20%of the outstandingamount pay in asingle year afterthat 2%

State Bank of

India

8% (1st yr),9%(2nd and 3rd

yr),10%(after 3years)

0.50% of loanamount with a cap

of Rs.10,000 +service tax

N.A

StandardChartered

8.25% to 8.75%(basis on theprofile)

0.25%-0.50% 0floan amount

2% of outstandingPayment

DHFL 8.50% 0%( below 10 lacs),

1%(above 10 lacs)

Before 5 years-2%,For BalanceTransfer -3%

49
http://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/hdfc-bank-home-loan.phphttp://www.deal4loans.com/icici-hfc-home-loan.phphttp://www.deal4loans.com/icici-hfc-home-loan.phphttp://www.deal4loans.com/lic-housing-home-loan.phphttp://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/home-loan-standard-chartered-bank.phphttp://www.deal4loans.com/home-loan-standard-chartered-bank.phphttp://www.deal4loans.com/dhfl.phphttp://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/hdfc-bank-home-loan.phphttp://www.deal4loans.com/icici-hfc-home-loan.phphttp://www.deal4loans.com/icici-hfc-home-loan.phphttp://www.deal4loans.com/lic-housing-home-loan.phphttp://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/home-loans-interest-rates.phphttp://www.deal4loans.com/home-loan-standard-chartered-bank.phphttp://www.deal4loans.com/home-loan-standard-chartered-bank.phphttp://www.deal4loans.com/dhfl.php


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Analysis of Data

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Analysis of Data And Findings Of The Study

Q.1 Reason for cancellation of policy a.Foreclose b. Mis-selling c.Not interested

d. Others

Ans. The main reason of the cancellation which is find out by the Survey is foreclosure

Of loan. The percentage of Loan foreclosure is very higher than the otherreasons.

80%

10%

5%5%

Reasons

Loan Foreclosuer

Not interested

Mis-selling

Others

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Q.2 You have foreclosed your loan,

a. From own funds

b. Balance Transfer

c. Any other reason, please specify

Ans. Mainly the customers foreclosed our loan. The customers paid all the amount from

His own fund or transfer the Balance in any other company. But the percentage of

The Paid all the amount from his own fund is higher than balance Transfer.

70%

29%

1%

foreclose

from own fund

balance transfer

others

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Q. 3Did anyone get in touch with you from ICICI Lombard? a. Yes

b. No

Ans. No, Mostly customers did not get any phone call from ICICI Lombard. Approx

80% Customers did not get any phone call from ICICI Lombard.

80%

20%

did not get call

get the phone call

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Q.4 If yes, then the procedure & refund process was explained

a. Yes

b. No

Ans. Yes, the procedure & refund process was explained to those Customers who getthe Phone call from ICICI Lombard. The percentage of the customers who get the

phone call & explained by the employee is approx 96%.

96%

4%

process was explained or not

process was explained

not explained

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Q.5 If the procedure & refund process was explained, then has the refund beenReceived

Ans. Most of the customers who get the phone call from ICICI Lombard & refund

Process was explained to him, have received his refund amount. The percentage

Is 95%, who received his amount.

95%

5%

Refund been received or not

refund been received

not received till now

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Q.6 Given an opportunity would you like to have relationship with us in future?Ans.Most of the customers would like to have relationship with ICICI Lombard in

Future. The percentage is 90%.

90%

10%

Customer interested in future realation ornot

interested in future realation

not interested in future

reaalation

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Findings of the study

While conducting the study over this topic certain things are finds:

I found the 4 major contributor regions in term of cancellation. These regions

are given below

Mumbai

Pune

New Delhi &

Bangalore

These 4 regions collect over 50% cancellation in the respective Zones (these zones are

West, North & South). Here I am giving my study on these 3 zones with pie charts -

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1. West Zone :

In west zone Mumbai & Pune collect the highest number of cancellation.

These two regions collect approx 85% of cancellation.

The similarity in both regions is, most of the customers foreclosed the loan

and paid the entire amount through his own funds. In west zone other regions

are Ahmadabad, Rajkot, Nagpur, Jaipur, Surat etc.

45%

35%

10%

10%

West Zone

Mumbai

Pune

Ahmedabad

Others

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2. North Zone: New Delhi is the maximum contributor region in the north Zone. Only New DelhiCollect approx 45% of cancellation. In this region again the highest reason of

Cancellation is Loan Foreclosure and customer paid all the amount from his own

Fund. Other reasons of north zone are Ghaziabad, Kanpur, Chandigarh, Amritsar,

Lucknow etc.

45%

20%

15%

20%

North Zone

New Delhi

Ghaziabad

Chandigarh

Others

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3. South Zone:

Chennai, Hyderabad, Vishakapatnam, Madurai, Sucenderabad etc are the

Various regions of the south zone.

In All these regions, Bangalore is the major contributor region in term of

Cancellation. It collects 60% of cancellation.

In Bangalore region most of the customers Foreclose our loan and paid all the

Amount from his own fund.

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60%20%

5%

15%

South Zone

Bangalore

Hyderabad

Chennai

Others

Maximum contributor Regions of

Cancellation

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Zone Region State

Maximum

Reason of

Cancellation

West Mumbai Maharashtra

In Mumbai region

the maximumreason of

cancellation is LoneForeclosure

West Pune MaharashtraThe maximum

reason ofcancellation is Lone

Foreclosure

North New Delhi New DelhiIn various reasons

the maximumreason is LoneForeclosure

South Bangalore KarnatakaAgain the

maximum reason isLone Foreclosure

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If the tenure of the product can be increased then it might help to bring down

The retention level by 25-30%.

Rather than offering customized product to customer, If customer can be

Given an option to choose the coverage and accordingly rates can also be

Decided

There should be proper tracking mechanism to handle cancellations, As

Observed most of the time customers have not been contacted by various

Teams.

There is potential to pitch Home insurance to all the cancelled policies as even

Foreclosed loan has the requirement for the same.

As I learned many things from this industrial exposure. This customers study conductedat ICICI Lombard, has given a view of the working of an organization. It also helpedme to understand the customer and their views.

Insurance industry is one of the major growth contributors in Service Sector. RetentionOf the customer is one of the major concerns in this industry. In this project study I foundmostly the customers have foreclosed our loan. They paid the entire amount from his own

fund because they want to close our loan for saving our money which is given by him oninterest rate. The servicing of the ICICI Lombard is very good and mostly customerssatisfied with ICICI Lombard.

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Q.2Reason for cancellation a. Foreclose

b.Mis-selling

c.Not interested

d.OthersQ.3You have foreclosed your loan,

a. From own funds

b. Balance Transfer

c. Any other reason, please specify

Q.4Did anyone get in touch with you from ICICI Lombard? a. Yes

b.No

Q.5If yes, then the procedure & refund process was explained a.Yes

b. NoQ.6If yes, then has the refund been receivedQ.7Are you having any other loan..

a. Home Lone

b. Health Insurance

Q.8Given an opportunity would you like to have relationship with us in future?

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Bibliography

BIBLIOGRAPHY

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www.icicilombard.com

www.tata-aiggeneral.com

www.hdfcergo.com

www.cholamandalam-ms.com

www.google.com

www.reliancegeneral.com

www.iffco-tokio.com

Times Of India (News Paper)
http://www.icicilombard.com/http://www.tata-aiggeneral.com/http://www.hdfcergo.com/http://www.cholamandalam-ms.com/http://www.google.com/http://www.reliancegeneral.com/http://www.iffco-tokio.com/http://www.icicilombard.com/http://www.tata-aiggeneral.com/http://www.hdfcergo.com/http://www.cholamandalam-ms.com/http://www.google.com/http://www.reliancegeneral.com/http://www.iffco-tokio.com/

project arpan

Documents