project on motor policy with reference to new india assurance company ltd

8/12/2019 Project on Motor Policy With Reference to New India Assurance Company Ltd

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CHAPTER - 1

INTRODUCTION

Meaning of Insurance

Insurance means a promise of compensation for any potential future losses. It

facilitates financial protection against by reimbursing losses during crisis. There are

different insurance companies that offer wide range of insurance options and an

insurance purchaser can select as per own convenience and preference.

Several insurances provide comprehensive coverage with affordable premiums.

Premiums are periodical payment and different insurers offer diverse premium

options.The periodical insurance premiums are calculated according to the total

insurance amount.

Insurance is a specialized type of a contract. It is agreement between two parties.

One party is insurance company who takes the insurance of other party known as

insured party. Premium is the consideration of the contract of insurance. The insurer

issues document in writing in the name of the insured which is called policy. The

insurer has to pay certain amount of the money to the insured, if uncertain event

takes place after taking the insurance and before the epire of the policy. Insurance

is a method of spreading and transferring of risk. !osses of unfortunate people are

shared by many people who are eposed to the same type of risk. !oss of assets for

any reason deprives the owner of the epected benefit. Thus insurance is a

mechanism that helps to reduce the adverse conse"uences due to the loss of assets.

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The Reliancecompany to be set up by an Indian was Indian #ercantile assurance

$o. !td., which was established in %&'(. There emerged many a assurance player

on the Indian scene thereafter .The general assurance business was nationalized

after the promulgation of )eneral Insurance *usiness +ationalization- ct, %&(/.

The post0nationalization general assurance business was undertaken by the

assurance $orporation of India +)I$- and its 1 subsidiaries

!egally, no motor vehicle is allowed to be driven on the road without valid

insurance. 2ence, it is obligatory to get the vehicle insured. #otor insurance

policies cover against any loss or damage caused to the vehicle or its accessories

due to the following natural and manmade calamities. #otor insurance provides

compulsory personal accident cover for individual owners of the vehicle while

driving. One can also opt for a personal accident cover for passengers and third

party legal liability.

#ainly insurance is used as an effective tool of risk managements "uantified risks

of different volumes can be insured.

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CHAPTER - 2

METHODOLOG AND RE!IE" O# LITERATURE

2$1 O%&ECTI!E' O# THE 'TUD

i) To determine and analyze the #arket Potential of the 3eliance $o. !td.

ii) To determine whether the customers are satisfied with the #otor policy of the

company.

iii) To know the customer awareness regarding the 3eliance $o. !td and its products.

iv) To study and determine the competitor position in the market.

v) To know the future plans of the people for buying the policies.

2$2 RE!IE" O# LITERATURE'

'U&ATA DE! (2))*+,

The report on Indian Insurance Industry 4orecast +/''(0/''&- recently published by

3$OS it can be concluded that the market of life insurance in India is likely to

reach 3s.%567 billion by the net year. The ma8or factors that determine the status

of life insurance industry are9

changing consumer behavior growth rate of ):P

changing socio economy demography

natural calamity

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In pril /''(, general insurance players were able to manage an increase of%5;

whereas new businesses made a remarkable progress with an epansion by 7&;.

survey conducted by Insurance 3egulatory < :evelopment uthority reveals the

name of the ma8or organizations and role played by them in shaping the present

status of Indian life insurance industry. The ma8or profit making industries in this

regard are9

S*I !ife

I$I$I Prudential

!I$

2owever, agencies like *a8a8 llianz, I) =ysya and 3eliance !ife were unable to

contribute much to the profit making. 3eports published by *usiness Standard on

%7th >une /''( showed that !I$ is at the top of the pyramid by selling almost %?,

6&,567 of its policies. There has been a rise of ?(; in !I$@s new premium with a

value of 3s./%17 crore.

&AC %URE (Insurance .ar/e0ing &ul 2))3+,

A$3OSS SB!!I) Cemphasis that people depend on insurance agents or brokers

for the selection of and buying of policies related to life, health, automobiles etc.

but it has been found that most agents or brokers specialize in selling policies

related only to particular field. The statistics showed that the average merican had

(./ insurance policies i.e., selling more than one policy to their client. This can be

specified as cross selling or multiline marketing. #ore policies per client mean

lower ac"uisition cost, higher client retention and greater profit.

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D!TB3 :B OE:B : 3>)OP! F3IS2#E3T2G +health

insurance, 4eb /''5-9

The health insurance industry in India < its growing potentialC emphasis that

ensuring public health is the principal responsibility lay down by the Indian

constitution. The central government provides about %?; of the funding needs

mostly for national health programs. The family planning and healthcare initiatives

of the government have so far effective in reducing birthrates and improving

mortality rates. ccording to the D2O report published in /''/ India ranked %1

th

from the bottom in terms of public spending on health. lthough IndiaHs public

spending is low, overall health spending improved due to higher private spending.

$urrently less than %?; of the Indian population has some kind of health insurance

cover.

2$4 HPOTHE'I'

i) The new technologies adopted by the 3eliance $o. !td acts as a tool for improving

the performance of the company.

ii) It has reduced the role of other Private sector insurance companyHs < made the

#otor policy which is effective to the customers.

2$3 RE'EARCH METHODOLOG

The secondary data are obtained mostly form books, 8ournals, through website

officialHs reports periodicals brought by the )overnment of India in addition to

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these efforts would be made to collect as much information from the internet about

the Insurance Industries in India.

2$5 LIMITATION O# 'TUD

Though this study is purely eplorative in nature, it is brought with a number of

limitations. The most outstanding among them could be listed as follows.

i) de"uate secondary data are not available regarding financial aspects of 3eliance

$o. !td.

ii) This study concentrates more on the role and performance of 3eliance $o. !td

without considering the role played by the company in life insurance sector.

iii) This study does not analyze the problems faced by the customers.

Study of primary data is not available

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CHAPTER 4

MEANING O# IN'URANCE

Insurance is a specialized type of a contract. It is agreement between two parties.

One party is insurance company who takes the insurance of other party known as

insured party. Premium is the consideration of the contract of insurance. The insurer

issues document in writing in the name of the insured which is called policy. The

insurer has to pay certain amount of the money to the insured, if uncertain event

takes place after taking the insurance and before the epire of the policy. In case of

life insurance the claims is certain because the insurer has to pay the policy amount

to the insured together bonus at maturity. 2owever, in case of general insurance the

claim is not certain. The insured party can claim he compensation only if uncertain

event takes place and the insured suffers any loss or damage in monetary terms.

Insurance is a method of spreading and transferring of risk. !osses of unfortunate

people are shared by many people who are eposed to the same type of risk. !oss of

assets for any reason deprives the owner of the epected benefit. Thus insurance is a

mechanism that helps to reduce the adverse conse"uences due to the loss of assets.

Several insurances provide comprehensive coverage with affordable premiums.

Premiums are periodical payment and different insurers offer diverse premium

options. The periodical insurance premiums are calculated according to the total

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insurance amount. #ainly insurance is used as an effective tool of risk management

as "uantified risks of different volumes can be insured.

4$1 HI'TOR

brief history of the Insurance sector the business of life insurance in India in its eisting

form started in India in the year %6%6 with the establishment of the Oriental !ife

Insurance $ompany in $alcutta. Some of the important milestones in the life

insurance business in India are9

1*129 The Indian !ife ssurance $ompanies ct enacted as the first statute to

regulate the life insurance business.

1*269 The Indian Insurance $ompanies ct enacted to enable the government tocollect statistical information about both life and non0life insurance businesses.

%*469 Barlier legislation consolidated and amended to by the Insurance ct with the

ob8ective of protecting the interests of the insuring public .In %&?50/7? Indian and foreign

insurers and provident societies were taken over by the central government and

nationalized. !I$ formed by an ct of Parliament, viz. !I$ ct, %&?5, with a capital

contribution of 3s.?crores from the )overnment of India. The )eneral insurance

business in India, on the other hand, can trace its roots to the Triton Insurance$ompany !td., the first general insurance company established in the year %6?' in

$alcutta by the *ritish.

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1*)7,The Indian #ercantile Insurance !td. Set up, the first company to transact all

classes of general insurance business.

1*57,)eneral Insurance $ouncil, a wing of the Insurance ssociation of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1*869 The Insurance ct amended to regulate investments and set minimum

solvency #argins and Tariff advisory committee set up.

1*72,The )eneral Insurance *usiness +ationalization- ct, %&(/nationalized the

)eneral insurance business in India with effect from %st >anuary %&(1. %'( insurers

amalgamated and grouped into four companiesH viz. the ational Insurance

$ompany !td., the 3eliance $ompany !td., the Oriental Insurance $ompany !td, and

the Enited India Insurance $ompany !td. )I$ incorporated as a company.

4$2 ORIGIN O# IN'URANCE

Dhenever there is uncertainty there is risk. De do not have any control over

uncertainties which involves financial losses. The risk may be certain events like

death, pension, retirement or uncertain events like theft, fire, accident etc

.Insurance is a financial service for collecting the savings of the public and

providing them with risk coverage. It comes under service sector and while

marketing this service due care is taken in "uality product and customer

satisfaction. The main function of the Insurance is to provide protection against the

possible chances of generating losses. 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 the Indian insurance sector

reveals the 15'0degree turn witnessed over a period of almost two centuries.

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4$4 NEED #OR IN'URANCE

The business of insurance is related to the protection of the economic value of

assets. Bvery asset has value. The asset would have been created through the efforts

of the owner, in the epectation that, either through the income generated there

from or some other output, some of his needs would be met. In the case of a factory

or a cow, the production is sold and income generated. In the case of a motorcar, it

provides comfort and convenience in transportation. There is no direct income.

There is normally epected life time for the asset during which time it is epected toperform. The owner, aware of this, can so manage his affairs that by the end of that

life time, a substitute is made available to ensure that the value or income is not

lost. 2owever, if the assert gets lost earlier, being destroyed or made non functional,

through an accident or other unfortunate event, the owner and those deriving

benefits there from suffer. Insurance is mechanism that helps to reduce such adverse

conse"uences.

ssets are insured, because they are likely to be destroyed or made non0functional

through an accidental occurrence. Such possible occurrences are called perils. 4ire,

floods, breakdowns, lightning, earth"uakes, etc, are perils. The damage that these

perils may cause the asset, is the risk.

human life is also an income generating asset. This asset also can be lost through

unepectedly early death or made non0functional through sickness and disabilities

caused by accidents. ccidents may or may not happen. :eath will happen, but the

timing is uncertain. If it happens around the time of oneHs retirement, when it could

be epected that the income will normally cease, the person concerned could have

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made some other arrangements to meet the continuing needs. *ut if it happens

much earlier when the alternate arrangements are not in place, insurance is

necessary to help those dependent on the income.

In the case of a human being, he may have made arrangements for his needs after

his retirement. Those would have been made on the basis of some epectations like

he may live for another %? years, or that his children will look after him. If any, of

these epectations do not become true, the original arrangement would become

inade"uate and there could be difficulties. !iving too long can be as much a

problem as dying too young. These are risks which need to be safeguarded against.Insurance takes care.

The concept of insurance has been etended beyond the coverage of tangible assets.

Bporters run the risk of the importers in the other country defaulting as well as

losses due to sudden changes in currency echange rates, economic policies or

political disturbances. These risks are now insured. :octors run the risk of being

charged with negligence and subse"uent liability for damages. The amounts in

"uestion can be fairly large, beyond the capacity of individuals to bear. These are

insured. Thus, insurance is etended to intangibles. In some countries, the voice of a

singer or the legs of a dancer may be insured even through the advantages of

spread may not be available in these cases. The purpose of insurance is to safeguard

against such misfortunes by making good the losses of the unfortunate few, through

the help of the fortunate many, who were eposed to the same risk but saved from

the misfortune. Thus the essence of insurance is to share losses and substitute

certainty by uncertainty.

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4$3 #UNDAMENTAL PRINCIPLE' O# IN'URANCE

Insurance is a specialized type of contract. n insurance contract is also a

commercial contract. In India, all contracts are governed by the India $ontract ct,

%6(/. Ender this act, an agreement enforced by law is a contract. Such an

agreement must be entered into by two or more parties with intention of creating a

legally binding relationship. There are additional principles in that contract. The

following are the principles of insurances contract9

IN'URA%LE INTERE'T

Insurable interest means that the person opting for insurance must have pecuniary

interest in the property he is going to get insured and will suffer financial loss on

the occurrence of the insured event. This is one of the essential re"uirements of

any insurance contract. Therefore, a person can go for insurance of only those

properties where he stands to benefit by the safety of the property, and will suffer

loss, damage, in8ury if any harm takes place to such property.

PRINCIPLE O# UTMO'T GOOD #AITH

!ike in other contracts, the insurance contract must be based on good faith. If the

insurance contract is obtained by way of fraud or misrepresentation it is void.

PRINCIPLE O# INDEMNIT

The insurance contract should always be a contract of indemnity only and nothing

more. ccording to this principle, the insurance contract should be such that in

case of loss due to the eventualities mentioned in the contract, the insured should

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be neither better off nor worse off after receiving the insured amount. The main

ob8ect of this principle is to ensure that the insured is not able to use this contract

for speculation or gambling.

PRINCIPLE O# 'U%ROGATION

The doctrine of subrogation is a corollary to the principle of indemnity and applies

only to fire and marine insurance. ccording to it, when an insured has received full

indemnity in respect of his loss, all rights and remedies which he has against third

person will pass on to the insurer and will be eercised for his benefit until he +the

insurer- recoups the amount he has paid under the policy. It must be clarified here

that the insurerJs right of subrogation arises only when he has paid for the loss for

which he is liable under the policy and this right etend only to the rights and

remedies available to the insured in respect of the thing to which the contract of

insurance relates.

PRINCIPLE O#CONTRI%UTION

Dhere there are two or more insurance on one risk, the principle of contribution

comes into play. The aim of contribution is to distribute the actual amount of loss

among the different insurers who are liable for the same risk under different policies

in respect of the same sub8ect matter. ny one insurer may pay to the insured the

full amount of the loss covered by the policy and then become entitled to

contribution from his co0insurers in proportion to the amount which each has

undertaken to pay in case of loss of the same sub8ect0matter.

PRINCIPLE O#LO''MINIMI9ATION

ccording to the Principle of !oss #inimization, insured must always try his level

best to minimize the loss of his insured property, in case of uncertain events like a

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fire outbreak or blast, etc. The insured must take all possible measures and

necessary steps to control and reduce the losses in such a scenario. The insured

must not neglect and behave irresponsibly during such events 8ust because the

property is insured. 2ence it is a responsibility of the insured to protect his insured

property and avoid further losses.

PRINCIPLE O# CAU'A PRO:IMA

Principle of $ausa Proima +a !atin phrase-, or in simple Bnglish words, the

Principle of Proimate +i.e. earest- $ause, means when a loss is caused by more

than one causes, the proimate or the nearest or the closest cause should be taken

into consideration to decide the liability of the insurer. The principle states that to

find out whether the insurer is liable for the loss or not, the proimate +closest- and

not the remote +farest- must be looked into.

4O3BK#P!B9 0 cargo shipJs base was punctured due to rats and so sea water

entered and cargo was damaged. 2ere there are two causes for the damage of the

cargo ship 0 +i- The cargo ship getting punctured because of rats, and +ii- The sea

water entering ship through puncture. The risk of sea water is insured but the first

cause is not. The nearest cause of damage is sea water which is insured and

therefore the insurer must pay the compensation.

4$5 IN'URANCE INDU'TR CLA''I#ICATION

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1$ LI#E IN'URANCE

!ife insurance provides a monetary benefit to a decedentJs family or otherdesignated beneficiary, and may specifically provide for income to an insured

personJs family, burial, funeral and other final epenses. !ife insurance policies

often allow the option of having the proceeds paid to the beneficiary either in a

lump sum cash payment or an annuity. nnuities provide a stream of payments and

are generally classified as insurance because they are issued by insurance

companies, are regulated as insurance, and re"uire the same kinds of actuarial and

investment management epertise that life insurance re"uires. nnuities 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 complement of life insurance and, from an underwriting perspective,

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are the mirror image of life insurance. $ertain life insurance contracts accumulate

cash values, which may be taken by the insured if the policy is surrendered or

which may be borrowed against. Some policies, such as annuities and endowment

policies, are financial instruments to accumulate or li"uidate wealth when it is

needed. In the ES, the ta on interest income on life insurance policies and

annuities is generally deferred. 2owever, in some cases the benefit derived from ta

deferral may be offset by a low return.

2$ GENERAL IN'URANCE

lso known as non0life insurance, general insurance is normally meant for a short0

term period of twelve months or less. )eneral insurance means managing risk against

financial loss arising due to fire,marine or miscellaneous events as a result of contingencies,

which may or may not occur.3ecently, longer0term insurance agreements have made an

entry into the business of general insurance but their term does not eceed five

years. )eneral insurance can be classified as follows9

#ire Insurance

4ire insurance provides protection against damage to property caused by accidents

due to fire, lightening or eplosion, whereby the eplosion is caused by boilers not

being used for industrial purposes. 4ire insurance is a contract under which the

insurer in return for a consideration +premium- agrees to indemnify the insured for

the financial loss which the latter may suffer due to destruction of or damage to

property or goods, caused by fire, during a specified period. The contract specifies

the maimum amount, agreed to by the parties at the time of the contract, which the

insured can claim in case of loss. This amount is not , however , the measure of the

loss. The loss can be ascertained only after the fire has occurred. The insurer is

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liable to make good the actual amount of loss not eceeding the maimum amount

fied under the policy.

fire insurance policy cannot be assigned without the permission of the insurerbecause the insured must have insurable interest in the property at the time of

contract as well as at the time of loss. The insurable interest in goods may arise out

on account of +i- ownership, +ii- possession, or +iii- contract. person with a

limited interest in a property or goods may insure them to cover not only his own

interest but also the interest of others in them.

Marine Insurance

#arine insurance basically covers three risk areas, namely, hull, cargo and freight.

The risks which these areas are eposed to are collectively known as LPerils of the

SeaL. These perils include theft, fire, collision etc. #arine $argo9 #arine cargo

policy provides protection to the goods loaded on a ship against all perils between

the departure and arrival warehouse. Therefore, marine cargo covers carriage of

goods by sea as well as transportation of goods by land. #arine 2ull9 #arine hull

policy provides protection against damage to ship caused due to the perils of the

sea. #arine hull policy covers three0fourth of the liability of the hull owner +ship0

owner- against loss due to collisions at sea. The remaining %M7th of the liability is

looked after by associations formed by ship0owners for the purpose +P and I clubs-.

Miscellaneous

s per the Insurance ct, all types of general insurance other than fire and marine

insurance are covered under miscellaneous insurance. Some of the eamples of

general insurance are motor insurance, theft insurance, health insurance, personal

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accident insurance, money insurance, engineering insurance etc. #iscellaneous

Insurance refers to contracts of insurance other than those of !ife, 4ire and #arine

insurance. It covers a variety of risks, the chief of which are90

Personal Acci;en0 insurance, - Personal ccident insurance is insurance for

individuals or groups of persons against any personal accident or illness. The risk

insured is the bodily in8ury resulting solely and directly from accident caused by

violent, eternal and visible means. In India this type of insurance is done by the

)eneral Insurance $orporation. contract of personal accident insurance is not a

contract of indemnity and the insurer has to pay a fied sum of money on the death

or total disablement of the insured or provide medical benefits for recovery from the

in8ury. If risks against certain specified diseases are also covered, the policy is

known as JPersonal ccident and Sickness Insurance.

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#i;eli0 Insurance, - Ender it, the insurer undertakes to compensate the insured i.e.

the employers against the losses suffered by him due to the employees. The losses

may be due to fraud, dishonesty, and misappropriation of funds, goods or damages

to property caused by the employees. In order to avail the protection under it, the

employer is re"uired to provide all material facts about their employees to the

insurer and also, notify all changes in the condition of their service.

Cre;i0 Insurance, - $redit Insurance is a policy taken to cover the loss which may

arise due to bad debts or non0payment of dues by the debtors. It provides protection

to businessmen, who sell goods on credit terms while substantially reducing the

overall risk of eposure to non0payment. It protects them against losses arising out

of insolvency of their debtors. It thus enables a business to take advantage of peak

and cyclical selling periods and to safely epand into new product lines or

territories.

Tra=el insurance, - Travel insurance provides protection cover to all those

individuals travelling outside India against risks such as loss of baggage, travelrelated accidents including in8uries, illnesses and medical emergencies re"uiring

hospitalization treatment. In India, this insurance policy has become popular among

International travelers.

4$8 #OUR I>' O# IN'URANCE 'ER!ICE

The 7 IHs refers to the different dimensionsM characteristics of any service. Enlike

pure product, services have its own characteristics and its related problems. So the

service provider needs to deal with these problems accordingly. The service

provider has to design different strategies according the varying feature of the

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service. These 7 IHs not only represent the characteristics of different services but

also the problems and advantages attached to it.

These 7 IHs can be broadly classified as9

N Intangibility

Insurance is a guarantee against risk and neither the risk nor the guarantee is

tangible. 2ence, insurance rightly come under services, which are intangible

.Bfforts have been made by the insurance companies to make insurance tangible to

some etent by including letters and forms.

N Inconsistency

Service "uality is often inconsistent. This is because service personnel have

different capabilities, which vary in performance from day to day. This problem of

inconsistency in service "uality can be reduced through standardization, training

and mechanization.

N Inseparability

Services are produced and consumed simultaneously. $onsumers cannot and do not

separate the deliverer of the service from the service itself. Interaction between

consumer and the service provider varies based on whether consumer must be

physically present to receive the services.

N Inventory

o inventory can be maintained for services. Inventory carrying costs are more

sub8ective and lead to idle production capacity. Dhen the service is available but

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there is no demand, cost rises as, cost of paying the people and overhead remains

constant even though the people are not re"uired to provide services due to lack of

demand.

4$7 AD!ANTAGE' ? DI'AD!ANTAGE' O# IN'URANCE

AD!ANTAGE'

3BSO*!B P3O4IT

The businessmen can earn a reasonable profit for their businesses. The insurance

can help them to earn the same rate of profit if their business fails to generate

income.

SBSB O4 SB$E3ITG

There are many chances of losses in a business. *ut due to insurance, the risk of

losses is transferred to insurance company and it gives the sense of security to

businessman.

B#P!OG#BT I$3BSB

The insurance companies provided the 8obs to thousands of people. In this way the

problem of unemployment is reduced.

P3OTB$TIO O4 P3OPB3TG

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:ue to insurance the personal and business property is protected from natural losses

such as accident, fire, etc.

SO!=B T2B SO$I! P3O*!B#

Insurance is useful device for solving the social problems. In cash of death provides

finance to his family compensation is available to overcome the industrial in8uries

and road accident.

4=O3*!B *!$B O4 PG#BT

The insurance of business is an invisible eport and it provides sufficient

contribution toward the balance of payment

BEIT*!B P3B#IE#

The large policy holders provide large funds and small policy holders pay less

money in common funds. In the way the amount of premium becomes e"uitable.

3BSB3$2 4$I!ITIBS

The insurance companies can conduct research about the rate of accidents, death

and losses faced by business units.

!OD P3I$B

The risk of loss is covered by the insurance policy. In the way insurance companies

help the business to sell their products as low prices.

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SP3B: O4 3ISF

large number of persons get marine, fire, life insurance policies and pay

premiums to the insurance companies whenever a loss occurs, it is compensated outof the funds of the insurers. The loss is spread among a large number of policy

holders.

P3O#OTBS B$OO#I$ )3ODT2

Insurance contributes to the efficiency of the business and promotes economic

growth and development.

)I=BS SBSB O4 SB$E3ITG

t every moment there is a chance of loss in business. :ue to insurance risk is a

transferred to the insurance company and gives the sense of security to

businessman.

P3O#OTBS *ESIBSS $O#PBTITIO

Insurance also protects the small industrial units and also provides credit facility. So

competition with the big firms increase which is very useful the customer.

DI'AD!ANTAGE'

Term insurance provides coverage only for a limited period of time, although some

term policies can be renewed indefinitely.

Premium rates are guaranteed only until the end of the term. :epending on the

policy, premiums may be level for a period of %, ?, %', %?, /', /?, or 1' years and

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then cease without any renewal option, or offer continual renewals at a higher

premium rate.

:eteriorating health can trap you in a policy with rapidly increasing premiums.

CHAPTER - 3

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MOTOR IN'URANCE - AN ANAL'I'

=ehicle insurance +also known as auto insurance, )P insurance, car insurance, or

motor insurance- is insurance purchased for cars, trucks, motorcycles, and other

road vehicles. Its primary use is to provide financial protection against physical

damage andMor bodily in8ury resulting from traffic collisions and against liability

that could also arise there from. The specific terms of vehicle insurance vary with

legal regulations in each region. To a lesser degree vehicle insurance mayadditionally offer financial protection against theft of the vehicle and possibly

damage to the vehicle, sustained from things other than traffic collisions.

uto Insurance in India deals with the insurance covers for the loss or damage

caused to the automobile or its parts due to natural and man0made calamities. It

provides accident cover for individual owners of the vehicle while driving and also

for passengers and third party legal liability. There are certain general insurance

companies who also offer online insurance service for the vehicle.

uto Insurance in India is a compulsory re"uirement for all new vehicles used

whether for commercial or personal use. The insurance companies have tie0ups with

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leading automobile manufacturers. They offer their customers instant auto "uotes.

uto premium is determined by a number of factors and the amount of premium

increases with the rise in the price of the vehicle. The claims of the uto Insurance

in India can be accidental, theft claims or third party claims. $ertain documents are

re"uired for claiming uto Insurance in India, like duly signed claim form, 3$

copy of the vehicle, :riving license copy, 4I3 copy, Original estimate and policy

copy.

3$1 NEED #OR MOTOR IN'URANCE

De need car insurance because itHs mandatory itHs the law. 4or any vehicle to

drive on Indian roads, it must have a valid insurance policy that at a minimum

covers the cost of damage that you might cause to other people or vehicles.

3ather than have to pay from our own pocket, if we have a valid car insurance

policy, the insurer will assume the liability, as long as the damage is covered under

the terms of the insurance contract and there is no case of fraud.

Situations where a car insurance policy can cover costs are damages arising from an

accident, theft, fire and any natural calamities like flood, earth"uake, or cyclone.

$ar insurance policies are valid only for a year and need to be renewed annually.

Bven though the law re"uires every car to have a valid policy, the reality is that

there are still lacs of vehicles in India that are not insured. Bven the cost of repairs

would be eorbitant. In case of hospitalization, the cost can even go up. It would be

a great burden for an individual to bear his loss and hence the insurance company

can indemnify against such losses and the financial liability.

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This is because people want to save money by not paying insurance and the

policing system to check if every car is insured is not perfect. evertheless, itHs

worth spending a few thousand rupees to get car insurance, so that we donHt put our

self under any out of pocket risk if we are in the unfortunate situation of an accident

or in8ury.

3$2 IMPORTANCE O# MOTOR IN'URANCE

>ust as buying car is an inescapable process, getting a motor insurance India plan is

crucial too. De definitely need one to ensure absolute security for our car and

timely financial assistance during emergencies. 2owever, it is important to make

sure that the insurance comes from the right source. $omparing a lot of insurance

"uotes online will certainly help us in this respect. The motor insurance plan is an

obligation to all car owners irrespective of the type and age of our vehicle. These

plans are intended towards ensuring security to our car under various emergency

situations. These plans are widely available online these days. $omparing "uotes is

the best way to make sure you reach to the most trusted company in India.

These days, people are leading a busy life. They have to accomplish multiple tasks

in a day and the ever increasing responsibilities related to family, work and society

have left them with no time. They are buying cars to save time during transportation

and feel the comfort while moving around on road. >ust as buying car is

inescapable, a motor insurance plan too is an obligation. Dith rapid increase in the

number of accidents on road and theft of cars, it has become a compulsion for

motor owners to buy a car $ar Insurance as we all know is an arrangement

between the Insurer and the =ehicle Owner wherein, the insurer provides coverage

against any financial loss happening because of damage to the car. This is

applicable in situations where the damage has been caused either through an

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accident or because of any natural calamity or any liability that could result as a part

of accident or theft.

:riving a vehicle at the time of stress is seriously not recommended. obody evendrives at the time of stress. 2ere comes the role of insurance company and they take

care of your needs in the perfect manner. To be benefited by such plans we need to

contact the concerned issuer and also you need to understand the steps involved in

the plans.

TheyHll be educating us on some of the finer aspects that are very much associated

with any uto insurance plans. TheyHll clear your concept and make you understand

it importance in perfect manner.

If we will pay attention to the history of utomobile insurance and compare it with

the present day, then we will understand that number of people has been increased

manifold having auto insurance. It very much suggests that people have understood

the importance of auto insurance plan.

One phenomenon that has been very clearly noticed is increase in vehicles numbers

on the road. That surely demands etra attention, and also drivers need to be highly

cautious so that we can reach safely. Single mistake can cost our life or some

serious damage. It could be very much disastrous for both people in the car as well

as for our car. De might be lucky but chances of your car to be lucky are very less.

Then itHs 8ust the nice insurance plan that can rescue us.

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3$4 MOTOR !EHICLE ACT

The motor vehicle act was first introduced in %&1& and was revamped in %&66.

ccording to the new ct all motor vehicles that ply in public places are to be

compulsorily insured.

The ct covers the following liabilities9

%. ny liability that arises in respect of damage or bodily in8ury to any person

including the owner of the vehicle or the authorized person in the carriage.

/. ny liability that is insured in respect of damage to any property of a third party.

1. !iability incurred in respect of the death or bodily in8ury of any passenger of a

public service vehicle.

7. !iability that arises under the DorkmenHs $ompetition ct, in respect of in8ury

or death of9

Dorkers carried in a goods vehicle.

$onductor or ticket eaminer.

paid driver of the vehicle.

?. !iability for bodily in8ury or death of passengers who are carried for reward or

hire by reason of a contract of employment.

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5. The policy should carry a QO 4E!TH liability limited to a sum assured rs

?',''' in case of death rs /?,''' in case of permanent disability and rs 5,''' in

case of damage to any property.

3$3 TPE' O# MOTOR IN'URANCE

The types of motor insurance are usually two types i.e. Third Party !iability $over

< $omprehensive $over policy which are described below9

1$ T


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31

Co=erages in a T


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2$ Co.re


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33

Co=erages in a

Co.re


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3$5 %ENE#IT' O# MOTOR IN'URANCE

It is important to get motor insurance India. This will works towards protecting our

car from all kinds of perils. The motor insurance facility is also available these

days. De can get the cheapest car insurance plan via comparing "uotes.

#otor insurance is etensively known as vehicle or motor assurance. It is pro8ected

towards the repayment of ependitures sustained by the insured individual towards

the following9

N 3epairs

N Theft

N ccidents

N ormal wear and tear

N Bmergencies

N #any other problems

FBG *BB4ITS O4 $3 ISE3$B

$ar insurance offers multiple benefits9

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$overage against loss of or damage to the vehicle insured

$overage against loss or damage to your vehicle caused by

Theft

4ire, Bplosion, Self Ignition, !ightning

3iots, Strikes or act of terrorism

ny atural $alamity

!iability to Third Parties, arising out of an In8ury or :eath of a third party and

Property :amage

Personal ccident $over 4or :river.

3$8 !EHICLE CLA''I#ICATION

Two of the most important factors that go into determining the underwriting risk on

motorized vehicles are9 performance capability and retail cost. The most commonly

available providers of auto insurance have underwriting restrictions against vehicles

that are either designed to be capable of higher speeds and performance levels, or

vehicles that retail above a certain dollar amount. =ehicles that are commonly

considered luury automobiles usually carry more epensive physical damage

premiums because they are more epensive to replace. =ehicles that can beclassified as high performance autos will carry higher premiums generally because

there is greater opportunity for risky driving behavior. #otorcycle insurance may

carry lower property0damage premiums because the risk of damage to other

vehicles is minimal, yet have higher liability or personal0in8ury premiums, because

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motorcycle riders face different physical risks while on the road. 3isk classification

on automobiles also takes into account the statistical analysis of reported theft,

accidents, and mechanical malfunction on every given year, make, and model of

auto.

3$7 COMPREHEN'I!E MOTOR IN'URANCE CO!ER

This type of insurance covers all the risks covered in the #otor =ehicles ct +as

above-, plus loss or damage caused to the vehicle due to9

ccident

4ire, Bplosion, self0ignition, lightning

*urglary, house0breaking, theft

3iots < strikes

Barth"uakes

4lood, typhoon, hurricane, storm, cyclones

#alicious acts

Terrorism

Transit by railMroad. air, waterways

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lso included is the Towing charge +up to 3s.%, ?''M0 for private vehicles and 3s./,

?''M0 for commercial vehicles- incurred due to accident to the vehicle.

EBclusions 0o 0


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PREMIUM CHARGE'

:epending on the 8urisdiction, the insurance premium can be either mandated by

the government or determined by the insurance company, in accordance with aframework of regulations set by the government. Often, the insurer will have more

freedom to set the price on physical damage coverageHs than on mandatory liability

coverageHs.

Dhen the premium is not mandated by the government, it is usually derived from

the calculations of an actuary, based on statistical data. The premium can vary

depending on many factors that are believed to have an impact on the epected cost

of future claims. Those factors can include the car characteristics, the coverage

selected +deductible, limit, covered perils-, the profile of the driver +age, gender,

driving history- and the usage of the car +commute to work or not, predicted annual

distance driven-.

#ac0ors Affec0ing Car Insurance Pre.iu. in In;ia

$ars and two wheelers have become a necessity in todayHs lifestyle. It has multiple

utility. It can be used for business which you have set up after years of hard work.

Therefore it is important to make an informed choice when you are buying one.

This section deals with the information you need regarding vehicle insurance. It

helps you choose the car insurance that is 8ust perfect for you. It provides tips which

can be referred to while buying low cost car insurance.

t times car insurance can be confusing and difficult to understand. One has to

follow certain guidelines while buying an insurance policy. lways shop around for

the lowest car insurance "uote. If you are unable to find one, then use our state of

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the art comparing system. Our $omparison system gives you the best way to shop

for cheapest car insurance.

There are innumerable car insurances available in the market with different cost and

benefits. *ut how do you figure out which is the most suitable one for you. Dell it

all depends on your re"uirements. Dhat all you wish to cover under the benefitR It

is advisable to go for a policy which covers almost every aspect that might incur

loss of a huge sum. There are many other factors which help in determining the

eact insurance that youHre car needs and the premium you have to pay.

!et us view what these factors are, that determine the insurance needs and thepremium.

%. $ar information9

#ake of the $ar like 2yundai, #ercedes, 2onda, etc.

$lass of the car like SE=, Sedan, 4amily car, etc.

#odel of the car like Bscort, 4iesta, 4usion, 2yundai, ( series

$ar by 4uel type such as petrol, diesel, !P), etc.

Gear of manufacturing of car

Place of registration of car

$urrent showroom price of the car.

umber of Filometers used.

#odifications done on a car.

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/. :rivers age and eperience affects the premium amount of the car insurance

policy.

1. 2igher voluntary ecess also reduces the Insurance premium. ItHs the amount theinsured volunteers have to pay in case of any claim.

7. $overage level of the insurance is a ma8or factor in determining the premium you

may have to pay out. The more coverage you opt for higher will be the premium

and vice versa.

Tical "as 0o Re;uce our Car Insurance Pre.iu.

Save big bucks by shopping around for cheap car insurance. Our analysis shows a

big gap between the most epensive and cheapest policies in India. 2owever,

people often pay according to the amount of cover that they get. Other than

shopping around, there are ways to get cheap auto insurance. 4ollowing are top %'

ways to get cheap carMauto insurance9

%. $ar insurance premium increases depending on the number of luury gadgets we

add to like night vision, ultrasound sensors, etc.

/. 4acilities like immediate assistance from the insurer in case of car breakdown

will add to your premium cost.

1. The amount of voluntary ecesses us to choose the pay also determines the cost

of your policy to some etent. This refers to the amount that you will have to

pay in case of an accident. Thus, higher the voluntary ecess, the lower will be

the insurance premium.

7. Insurance for loss of personal belongings, car locks, etc. adds to the premium

cost.

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?. o $laim *onus can also fetch us with some good amount of discount. These

discounts increase as the $* years increase. Obviously, there is an upper limit

to $*.

5. ominating drivers or restricting the use of your car to drivers of certain age will

also help you reduce the premium.

(. The safety and anti0theft features our car has like airbags, antilock brakes and

immobilizers should help us to get a better premium because these are used for

safety reasons.

6. Insurance companies may offer discounts to the insured owning more than one

policy with the same company.

&. void lapses of the policy it might dis"ualify the discounts you otherwise have

benefited from.

%'.If you have a garage, then start sheltering the car in the garage, such vehicles

attract discount.

The 8ob is not yet over, we might have managed to get a good reduced premium this

year but what happens net yearR Dell, 8ust remember few things and observe it as

measures to control your insurance premiums. !et us list them below.

%. 4irst and foremost drive safe

/. If we are changing your vehicle, consider a more traditional car. It will not

only save you a fortune on fuel but a ton on your insurance premiums

1. :onHt add younger or ineperienced drivers to your insurance, it may let your

premiums go sky high

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CLAIM'

In the event of an incident giving rise to a claim under the policy, the following

steps should be taken9

In case of acci;en0al ;a.age 0o 0


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?. fter approval of the claim by the company, get the 3egistration $ertificate

transferred in the name of the company, hand over the keys of the vehicle, and

submit a letter of Subrogation and Indemnity on stamp paper duly notarized.

In case of lia@ili0 clai.,

%. Inform insurance company immediately of any incident likely to give rise to

liability claim.

/. On receipt of summons from $ourt, the same should be sent to the company

immediately.

$laim 4orm duly filled in along0with copies of 3egistration $ertificate, :iving

!icense, 4I3 are to be submitted.

#rau; Car clai.s an; Au0o Insurance #rau; in In;ia

Insurance fraud has been in eistence since the beginning of insurance as a

commercial enterprise. Insurance crimes range in severity, from slightly

eaggerating claims to deliberately causing accidents or damages. Insurance fraudposes a significant problem and the government is making efforts to deter such

activities. 4raud car claims cost the insurance industry a huge sum every year.

bout &' percent of auto insurance fraud is the result of claims padding +which

means to add damages, in8uries and fictitious passengers to insurance claims-. The

other %' percent of insurance fraud comes from organized accident0staging.

Innocent victims like private motorists, truck drivers, etc. are targeted by organized

auto0accident rings. These rings make an AaccidentC happen by setting up innocent

people for a rear0end collision. 3eporting that your car has been stolen when you

really hid it in the woods is a good eample of false claim. Bven if one never files a

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claim, lying on the application for insurance is still accountable for fraud case.

Esing forged documents for claiming is also a fraud case.

2ere are a few tips on how to deal with potential scammers and other enemies ofinsurance claims9

%. )et a police report even for a minor accident. This makes it difficult for cheaters to

file a false claim if they have to deal with the facts of an officerHs report.

/. It is advisable to keep a camera in your glove bo. picture is worth a thousand

lies and can stop a scammer from making fraud claims.

1. $all your own tow truck and avoid business with crooked repair shops.

Mo0or Insurance Clai. Is Reec0e;

It is common for motor insurance companies to re8ect large number of car insurance

claims or to reduce their payment values. )enerally they would do this, only if they

have genuine reasons. 4iling claims and receiving the monetary benefits could be a

difficult task. There are several factors that can result in claims re8ection9

%. The insurer may come to the conclusion that driver was largely or entirely at

fault in case the claim is related to theft from the vehicle or of the vehicle itself. The

car insurance policy may contain a clause which invalidates the claim.

/. The insurer may call off the claim if the information provided during

application was inaccurate or false.

1. nother reason why a claim may get re8ected is that the customer may have

taken an insurance policy for a normal private car while it was actually used for

commercial purposes. Dhen a customer has a tai, he should use a policy which is

designed for tais.

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7. In case of partial damages, which occur as a result of accidents, a customer

often gets claims lesser than demanded because of the depreciation of the vehicle.

So, an insurance company puts a car back in the same position as it was prior to the

damage of the vehicle. 4or eample, if the engine of a five0year old #aruti car is

damaged, the insurance company is liable to pay the customer e"uivalent to five

year old engine. If it is replaced with the new one, then the depreciation is deducted

as per the tariffs so as to bridge the gap between the cost of the new engine and

five0year old engine.

?. If you are unable to provide receipts to backup claims of theft of items from

your vehicle.

5. If the value of the car is considerably less than the money youJve invested in

restoration or enhancements.

In any insurance policy your insurer epects you to disclose all the information that

could be of importance to them. Gou are obliged to do this even if the detail is not

re"uested. This process is known as Autmost good faithC. Insurance companies often

use this etremely wooly approach to sharing information to 8ustify re8ecting or

downscaling claims. If such situations arise with your car insurance claim, there are

certain important points to remember9

o The small print of your policy carries a lot of weight, read it thoroughly

before, during and after your claim.

o Feep the accurate records of conversations and correspondence along with all

the receipts backing up your claim.

The payout figure announced by your insurance company is not a set in stone.

3ather than 8ust accepting the amount on offer you are perfectly entitled and

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rightful to "uestion the payout. nd you can put forward your case for why it

should be increased.

Roa; Traffic Acci;en0 Clai.s

ccident is inevitable and anyone of us can be its victim. $ar accident can be of

different nature, it can be due to collision or non collision. n accident can bring

life to an end. If you find yourself in such circumstances, do the following. 4irstly

calm down, secondly get medical attention or help if necessary, thirdly respect the

police and their efforts. :o not make an immediate statement to the police or to any

insurance company. !et the police know that you will speak to them later after you

have calmed down and sought medical attention. !astly contact a professional to

make sure before proceeding with your matter further.

It means that if the party who in8ured you can show that you were in some way at

fault in causing the accident, then your claim can be denied. Speed can be used as

contributing factors to deny an in8ury claim. Bven if the other party is more at fault

than you, it can 8eopardize your claim. #ost people are not looking at their

speedometer at impact. Therefore, mostly people guess at their speed. t the scene

of an accident, you may be confused and shocked, be in pain and you may be angry.

#ostly you may not be accurate and the insurance company will rely on that

statement to evaluate your case. >ust avoid making any statement at such a painful

time. =isit the closest hospital and get a thorough check up done. #ake your

statement at a later date mainly after you have had time to calm down and reflect.:uring this course get in touch with your insurer and confirm the coverage and the

claim.

Our small statement can reduce our chances of getting the claim processed. Feep

the steps mentioned below in mind to avoid compleities in case of car accident.

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%. :o not give any statement immediately after the accident.

/. :o not sign anything unless you fully understand what it is.

1. :o not accept the blame if we think it is not our fault.

7. :o not lose our temper.

?. :o not use bad language.

5. :o not behave aggressively.

3$* CAR IN'URANCE GLO''AR

!ike all other industries, insurance industry also use specific terms that is often

difficult for a layman to understand the meaning. In the following we have tried to

simplify the terms as much as possible.

3BP3BSBTTI=B

n insurance sales person Independent representative who works for or on behalf

of an insurance company *roker is an insurance sales person who deals with agents

and companies to find the right insurance policy for the customer. $laim 0 n

insurance owner re"uests the insurer to pay the loss covered under a policy. Gour

claims to your company are Lfirst0party claims. Dhen a person claims against the

other personJs insurance company it is called Lthird0party claims.L

$O!!ISIO $O=B3)B

Optional insurance covers the damage to our car caused by collision with another

car or ob8ect. Is fre"uently re"uired if we have a car loan.

$O#P3B2BSI=B P2GSI$! :#)B $O=B3)B

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Optional insurance covering damage to your car caused by something other than a

collision or the car rolling over, such as fire, theft, vandalism, flood or hail Is

fre"uently re"uired if you have a car loan. $onditions 0 These are part of an

insurance policy that states the obligations of the insurance owner and those of the

insurance company in order for the policy to be in effect.

ISE3B: :B$!3B: =!EB +I:=-

The premium is calculated on the basis of the I:= of the vehicle, which is

basically the depreciated value of the vehicle agreed upon by the insurer and the

policyholder. The I:= of a vehicle reduces with age.

!I*I!ITG $O=B3)B

Offers you and any other party involved in an accident a significant sum to cover

mainly the medical epenses ormally these figures are divided into three parts,

first one represents the maimum your insurance will pay an individual, second

represents a cover to all individuals and third one covers damage to another car orproperty at the time of collision.

O $!I# *OES +$*-

If we do not make a claim during the policy period, a o $laim *onus is offered

on renewals. Insurers reward policyholders by giving them substantial discounts on

the Own :amage Premium. 2owever the $* is applicable only if the policy isrenewed within &' days of the epiry date of the previous policy.

OD :#)B P3B#IE# +O:-

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Payment of O: premium entitles to claim compensation in case of theft or damage

of your vehicle due to fire, earth"uake, etc.

PB3SO! $$I:BT $O=B3

It covers us not only against ccidental :eath and Permanent Total :isablement

+PT:-, but also against terrorism and acts of terrorism.

PO!I$G PB3IO:0

It is the period when the policy is in force.

PO!I$G 2O!:B3

Owner of the policy

P3B#IE#

The amount a policy holder agrees to pay the insurer for covering the risk.

P3OO4 O4 !OSS

:ocuments we provide to the insurer to support our re"uest for payment of losses.

The company uses these documents to determine whether and how much it will

pay. 4or eample written repair estimates from auto body shops, police reports, etc.

EISE3B: #OTO3IST $O=B3)B

Eninsured motorist coverage can pay for the in8uries caused to us and damage to

our property following an accident and the driver at fault does not own a valid

insurance.

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3$1) CAR IN'URANCE O!ER!IE"

#otor Insurance or vehicle Insurance is all about protecting against financial losses

arising out of vehicle usage. Dith the multifold rise in usage of four wheelers,motor Insurance is also termed as $ar Insurance or uto Insurance. uto Insurance

is one of the most common types of general insurance products. $ar Insurance is

mandatory by law and protects us and the people riding in our car from any legal

claim or penalty made by a third party. 4amily members who may drive car can

also be covered through auto insurance.

$ar insurance rates have been steadily rising in India over the past few years.

Therefore it becomes very important that to get best insurance rates for our car. So

that we can compare car insurance "uotes to get best deal on our vehicle insurance

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CHAPTER - 5

RELIANCE COMPAN LTD

INTRODUCTION

ssurance industry has always been a growth0oriented industry globally. On the

Indian scene too, the assurance industry has always recorded noticeable growth vis0

0vis other Indian industries. The reliance $o. !td. was the first general assurance

company to be established in India in %6?', which was a wholly *ritish0owned

company. The reliance company to be set up by an Indian was Indian #ercantile

assurance $o. !td., which was established in %&'(. There emerged many a

assurance player on the Indian scene thereafter .The general assurance business wasnationalized after the promulgation of )eneral Insurance *usiness +ationalization-

ct, %&(/. The post0nationalization general assurance business was undertaken by

the assurance $orporation of India +)I$- and its 1 subsidiaries9

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%. 3eliance $ompany !imited.

/. Enited India Insurance $ompany !imited.

1. ational Insurance $ompany !imited.

Towards the end of /''', the relation ceased to eist and the four companies are, at

present, operating as independent companies. The !ife assurance $orporation +I$-

was established on '%.'&.%&?5 and had been the sole corporation to write the life

assurance business in India. The Indian assurance industry saw a new sun when the

assurance :evelopment uthority invited the applications for registration as

assurors in ugust, /'''. Dith the liberalization and opening up of the sector to

private players, the industry has presented promising prospects for the coming

future. The transition has also resulted into introduction of ample opportunities for

the professionals including $hartered ccountants.

The Indian assurance industry is featured by the attributes9

!ow market penetration

Bver0growing middle class component in population. )rowth of consumer

#ovement with an increasing demand for better assurance products

Inade"uate application of information technology for business .de"uate

4illip from the )overnment in the form of ta incentives to the assured, etc.

The industry formations need to keep vigil on these characteristics of the Indian

market and formulate their strategies to entail maimum contribution to the output

of the sector. The Indian life and non0life assurance business accounted for

merely'.7/ percent of the worldJs life and non0life business in %&&(. The figures

of the basic parameters of the industryJs performance viz. assurance :ensity and

assurance Penetration also are evident of the hitherto eisting low0yield Indian

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Only $ompany to develop significant International operations, long record of

successful trading outside India

Shri #. :. #allaya, $hairman < #anaging :irector, *ank of *aroda, has been

appointed as :irector The 3eliance $ompany limited. Since its inception in %&&7,

has emerged as TT 4inancial Services Inc. One of IndiaJs leading financial

managing assets of a large investor base. The fund offers a range of investment

options, which include diversified and sector specific e"uity schemes, fund of fund

schemes, hybrid and monthly income funds, a wide range of debt and treasury

products and offshore funds.

3eliance $ompany !imited follows a long0term, fundamental research basedapproach to investment. The approach is to identify companies, which have

ecellent growth prospects and strong fundamentals. The fundamentals include the

"uality of the companyJs management, sustainability of its business model and its

competitive position, amongst other factors TT 4inancial Services Inc.

$ompany has one of the largest team of research analysts in the industry, dedicated

to tracking down the best companies to investing. TT 4inancial Services Inc.

Strives to provide transparent, ethical and research0based investments and wealth

management service and / Subsidiary companies in the year /''70'?. Overseas

Premium of 3s.6&/.1? cores in the year /''70'?, which accounts for more than

6'; of total overseas premium in India

Co.an '0reng0


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operating performance Strong market position Only company to develop significant

International operations, long record of successful trading outside India

Pioneers

4irst company to set up an viation Insurance :epartment in %&75.

4irst company to handle the 2ull Insurance re"uirements of the Indian Shipping

4leet.

4irst company to establish its own Training School.

4irst company to introduce the concept of J#odel Office TrainingJ.

4irst company to create department in Bngineering insurance.

!ision

To be the most trusted name in investment and wealth management, to be the

preferred employer in the industry and to be a catalyst for growth and ecellence of

the asset management business in India. The vision is to make assurance $ompany

the dominant new insurer in the life insurance industry. This it hopes to achieve

through our commitment to ecellence, focus on service, speed and innovation, and

leveraging our technological epertise. The success of this organization will be

founded on its strong focus on values and clarity of purpose. These include9

N Enderstanding the needs of customers and offering them superior products and

N To be the first choice insurer for customers

N To be the preferred employer for staff in the insurance industryN To be the number one insurer for creating shareholder value.

N !everaging technology to service customers "uickly, efficiently and conveniently.

Mission

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)O!

The assurance $ompany collects money in the form of premium from individuals

+, *, $ < :-. The money collected from people is used to meet one personJs

calamity.

The assurance $ompany enters into the process of canalizing by disbursing the

amount collected into the command economy. Thus a significant part of the

activities of the insurance industry of an economy entails mobilization of domestic

savings and its subse"uent disbursal to investors.

The main risk faced by the assurance company is when all the ssurors claim for

the reimbursement at the same time. This situation is very rare to occur, and is oneof the ma8or threat that the assurance company faces in its business operations.

To provide financial security to individuals, trade, commerce and all other segments

of the society by offering insurance products and services of high "uality at

affordable. To consistently pursue investorJs wealth optimization by achieving

superior and consistent investment results. To develop general insurance *usiness

in the best interest

$reating a conducive environment to hone and retain talent.

Providing customer delight.

Institutionalizing system0approach in all aspects of functioning.

Epholding highest standards of ethical values at all times.

!alues

2ighest priority to customer needs

2igh standards of public conduct

Transparency in operations.

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5$2 AGGREGATE PER#ORMANCE O# THE COMPAN in cores

The company has seen a remarkable rise in its )ross Premium from 3s ??'6.6/

crores in /''60/''& to )ross Premium of 3s 6?7/.65 cores in the year /'%%0/'%/.

The company has ac"uired total assets of 3s7/%5/.(7 cores as on 1%st #arch, /'%%.

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Dith its /5 regional offices, 1&? divisional offices, ?&% branches, /( direct agent

branches and /1 etension counters, the company is ranked as number one in the

Indian market. It feels proud to call the company as the largest on0!ife Insurer in

fro0sia including >apan which is also the first Indian on0!ife insurance

company to cross 3s (''' cores )ross Premium and in providing )lobal 3e0

Insurance facilities to a number of overseas countries.

5$4 O!ER!IE" O# COMPAN

ew India is a leading global insurance group, with offices and branches

throughout India and various countries abroad. The company services the Indian

subcontinent with a network of %'56 offices, comprising /6 3egional offices, 1&1

:ivisional offices and 576 branches. Dith approimately /%''' employees, ew

India has the largest number of specialist and technically "ualified personnel at all

levels of management, who are empowered to underwrite and settle claims of high

magnitude.

ew India has been rated L0L +Bcellent- by .#.*est $o., making it the only

Indian insurance company to have been rated by an international rating agency.

3ating based on following factors9

Superior $apital Position

Strong Operating Performance

Only $ompany to develop significant International operations, long record of

successful trading outside India

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The reliance company provides fleibility stability consistency great leadership

with trust in their service towards customerHs corporate sector. The company offers

a wide range of services to assist investors have a fulfilling and rewarding financial

planning eperience with us. De have designed our services keeping in mind the

needs of our investors, giving them a smooth and hassle0free financial planning

process.

5$3 RELIANCE MOTOR POLIC

The motor insurance plan provided by the company covers scooters, motorcycles,

private cars and all types of commercial vehicles. The policy is available under two

variants0 liability only policy and package policy. !iability only policy covers third

party liability for bodily in8ury, death and property damage, personal accident cover

for driver is also included under the liability variant while package policy covers

loss or damage to the vehicle plus everything covered under liability policy. The

package policy also covers loss arising from fire, eplosion, earth"uake, flood, riot,

strike and any damage from terrorist activity. =arious add on covers like damage or

loss to electrical and other accessories, legal liability to employees can be added by

paying etra premium.

The 3eliance car insurance claim is settled with the help of trained surveyors and

by filling up forms. The 3eliance car insurance premium and 3eliance car insurance

"uotes can be compared online in order to understand details of the policy. The

3eliance car insurance renewal can be done by visiting companyHs network branch

as it has etensive network across India. 4urther, 3eliance car insurance plans can

be compared online with the plans provided by other general insurance providers

that will help you to buy the policy fulfilling your re"uirements.

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HIGHLIGHT'

This policy covers all types of vehicles plying on public roads such as90

Scooters < #otorcycles

Private cars

ll types of commercial vehicles

#otor Trade +vehicles in show rooms and garages-

s per the #otor =ehicles ct, %&66 it is mandatory for every owner of a vehicle

plying on public roads, to take an insurance policy, to cover the amount, which the

owner becomes legally liable to pay as damages to third parties as a result of

accidental death, bodily in8ury or damage to property. $ertificate of Insurance

must be carried in the vehicle as a proof of such insurance.

Two types of covers are available9

%. !iability only policy. This covers third party liability for bodily in8ury liability and M

or death and property damage. Personal ccident cover for Owner0driver is also

included.

/. Package policy. This cover loss or damage to the vehicle insured in addition to +%-

above.

o0 claim discounts are available on renewal of policy, ranging from /'; to ?';,

depending upon the type of vehicle and the number of years for which no claim has

been made.

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'COPE

Lia@ili0 Onl olicies,

The policy covers the vehicle ownerJs legal liability to pay compensation for9

%. :eath or bodily in8ury to a third party person.

/. :amage to third party property.

!iability is covered for an limited amount in respect of death or in8ury and damage

to third party property for 3s.(.? lacs under $ommercial vehicle and private and 3s.

% lacs for Scooters M #otor $ycles.

Pac/age Polic

In addition to the coverage under liability only, this policy covers loss or damage to

the insured vehicle and its accessories due to9

%. 4ire, eplosion, self0ignition or lightning.

/. *urglary, housebreaking or theft.

1. 3iot and Strike.

7. #alicious ct.

?. Terrorist ct.

5. Barth"uake +4ire and Shock- :amage.

(. 4lood, Typhoon, 2urricane, Storm, Tempest, Inundation, $yclone and 2ailstorm.

6. ccidental eternal means.

&. Dhilst in transit by road, inland waterway, lift, elevator or air.

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%'.*y landslideM3ockslide

The policy also pays for towing charges from the place of accident to the workshop

up to a maimum limit of 3s.1''M0 for ScootersM#otorcycles and 3s.%?''M0 for carsand commercial vehicles. It is also permissible to opt for higher towing charges

sub8ect to payment of etra premium.

restricted cover is also available covering the risk of 4ire andMor Theft only, in

addition to the compulsory cover granted under L!iability Only PolicyL. 2owever

the same is not available in case of vehicle ratable under $lass :, Tariff for

#iscellaneous and special types of vehicles.

The important eclusions under the policies are9

Dear and tear, breakdowns

$onse"uential loss

!oss when driving with invalid driving license or under the influence of alcohol.

!oss due to war, civil war, etc.

$laims arising out of contractual liability.

Ese of vehicle otherwise than in accordance with @limitations as to use J +e.g. private

car being used as a tai-

PRI!ATE CAR IN'URANCE

The #otor Policy offered by 3eliance provides insurance cover to scooters uly /'%%

Blements of *anking < Insurance, /''5, >yotsana Sethi

Innovations in *anking < insurance, 3omeo S. #ascarenhas

Bnvironmental < 4inancial Services, P.F.*andgar

"E%'ITE'

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www.newindia.co.in

www.wikipedia.org

www.myinsuranceclub.com

www.policybazaar.com

www.insuranceepert.in

project on motor policy with reference to new india assurance company ltd

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