ICICI Lombard Project Report

1

PROJECT REPORT

ON

GENERAL INSURANCE &

AGENT ACQUISITION IN

SOM-LALIT INSTITUTE OF

BUSINESS MANAGMENT

SUBMITTED BY

UJJAWAL C SHELAT

2

CONTENT

CHAPTER

No.

Topic No. PARTICULAR

CHAPTER- 1 1 Preface

CHAPTER- 2 2 Acknowledgement

CHAPTER- 3 4 Executive Summary

CHAPTER- 4 5 Introduction 6 Introduction of Insurance sector 7 Introduction of History 8 Life Insurance The Time Line 9 About Industry 10 Multiple Distribution Channel 11 Multi Channel Approach 12 Organization Chart

13 Role of Insurance

14 IRDA 15 About Co. 16 ICICI Group 17 Current Scenario 18 The Opportunity 19 About us

20 Product Basket 21 Rewards

CHAPTER- 5 22 Training 23 Responsibilities 24 Market Share 25 Awards 26 About the promoters 27 Distribution 28 Product 29 Board of Directors 30 Management Team 31 Target & Task 32 Recruitment Strategies 33 Strategies Adopted 34 Procedure of Recruitment

3

35 Analysis of Performance Vs. Target 36 Limitations

CHAPTER- 6 37 Learning at Executive Training 38 Purpose of agency development 39 Tied agency

CHAPTER- 7 40 Agent the process 41 agency channel 42 Scenario of Ahmedabad City

CHAPTER- 8 43 Findings and Solutions

CHAPTER-9 44 Conclusion 45 Executive Summary

CHAPTER-10 46 Bibliography

4

PREFACE

India is on the threshold of being an open and liberated economy.

Globalization has changed the rules of competition, forcing Indian corporations

to expand beyond their traditional markets even as the face incursion of

foreign companies at home.

True learning is born out of experience and observation. There is a

large gap between theoretical knowledge and practical knowledge about

handling and managing a business. Only bookish knowledge cannot help me in

building up an effective administrator. So as a part of the syllabus of MBA

programmed, we all students are supposed to analyze the functional working

of any of the organization which gives us an opportunity to relate theoretical

knowledge with real corporate situations. A thorough and practical study,

knowledge and learning can only be useful to become more eligible and

competitive. It also helps to improve my analytical skill, communication skill

and knowledge.

This project is totally based on primary data and secondary data. Information

about Marketing and different organizational processes has been collected

from ICICI Lombard office.

In this project I have tried to analyze how to recruit agents in context of

general Insurance Industry and different organizational processes of ICICI

Lombard and sale policies of ICICI Lombard.

5

Acknowledgement

“Project” words seem to be gigantic. It could not be completed on my own.

This is the proper time where I want to thank all of them who have directly or

indirectly help in carrying out the activities.

It’s my delight to use the opportunity for conveying my thanks to all, who

motivate and supported throughout the project duration.

I would like to say thanks to my company guide Mr. Parad Inamdar (Sales

Manager) for his constant support and his guidance, also I extent my gratitude

towards Mr. Abhishek Shah (Unit Sales Manager) for his constant effort for

making us better all the time, I would also like to thank all the staff of ICICI

LOMBARD, especially, Ajay Sir who was constantly inspiring us for incurring our

best performance, also to Rasesh Sir, Mr. Nikhil, and also to the security staff,

Mr.Yogesh Nayak, Prahlad Bhai & Sanjay Bhai.

It’s my pleasure to say thanks to Ms. Rubi Saiyyed our SIP co-coordinator &

respected Principal Dr. Jagdish Joshipura, without help of whom I can’t see the

project to be completed. It’s their constant support and timely advises that

helped me in carrying out the project successfully.

I am very much thankful to my friends and colleague, Shaishav Dabhi, Arjun

Toliya, Ashok Chauhan, Divya Patel & Pooja Nair who have given their

constant support and motivation to do the task.

I don’t want to miss the opportunity to be thankful of the Almighty God, who

rules the world, & my family who were always been helping hand for me.

Hearty thanks to you all.

6

EXECUTIVE SUMMARY

Insurance industry in India has undergone a sea change in terms of delivering

value added services to the rising consumerism in India. The insurers are

constantly adopting innovative distribution channels in alliance with other

financial counterparts. Also new custom made products are introduced in the

market after through assessment of current requirements of customer needs.

Insurance companies have realized the need for higher returns on life

insurance product, introduced by many insurance companies, have made

returns transparent.

Today insurance companies are getting larger share of their collection through

tied agency channel of distribution. The LIC has channel well developed and of

wide reach. The mentality of most of the people in India is that they are ready

to buy insurance from a person whom they know, who is also doing the

business for quite a time, who can give advise in financial planning, and also

collect the premium from them. This shows the importance of tied agency

channel. There is still a wide scope for private life insurers in selection of

agencies. The rural India is almost out of the private life insurer’s functional

area, though they are slowly, firmly and aggressively making their presence

felt.

The large part of the mobilization of the rupee by life insurers comes from

government employees. This is because of the fact that government gives tax

benefits if employees invest in life insurance. This is clearly reflected in the

study conducted about life time plan among the employees.

ICICI Lombard General Insurance Company is a 74:26

ICICI Bank Ltd. &

Holdings Limited.

ICICI Bank is India’s second largest

diversified financial corporate engaged in general insurance, reinsurance,

insurance claims manag

Lombard Canada Ltd, a group of Fairfax Financial Holdings Limited, is one of

the Canada’s oldest property and casualty insurer.

ICICI Lombard General Insurance Company received regulatory approvals to

commence general ins


ICICI Bank Ltd. &

Holdings Limited.



insurance claims manag




commence general ins


ICICI Bank Ltd. & the $ 26 billion Canadian based company Fairfax Financial

Holdings Limited.



insurance claims management and investment management.




commence general insurance business in August 2001


the $ 26 billion Canadian based company Fairfax Financial



ement and investment management.




urance business in August 2001



ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is a







ICICI Lombard General Insurance Company is a 74:26 joint venture between


while Fairfax Financial Holdings is a







joint venture between














7







8

INTRODUCTION

CONTENTS:

� INTRODUCTION OF INSURANCE SECTOR

� CURRENT SENARIO

� MAIN INSURERS

� IRDA

New Idea of

insurance

9

INTRODUTION TO INSURANCE

SECTOR

We face a lot of risks in our daily lives. Some of these lead to financial losses.

Insurance is a way of protecting against these financial losses. For a payment

(premium), an insurance company will take the responsibility of compensating

your financial losses.

Insurance other than ‘Life Insurance’ falls under the category of General

Insurance. General Insurance comprises of insurance of property against fire,

burglary etc.

Private Sector Market Share:

10

Take a look at these statements:

� You carry loan on your dream home than it is much important to

protect that house from any natural or manmade calamities by

insuring it on that home.

� You are securing it against the uncertainty which includes risk in it.

� You are carrying huge risk if you are driving car without insurance.

� Even your family and kids may be exposed to any risk factor which

may affect their future life and your savings too if you are not

having medical policy

� Medical policies are also useful for tax benefit.

If you identify any of the above need as a saving boon for you then, you shall

clearly understand the need of General insurance acts as a buffer against

uncertainty. Moreover, it can be used as tax benefit u/s 80-D. Some portion of

your policy premium is eligible for tax rebate under section 80D.

11

1. What is non-life insurance and why do you need it?

Whether it is your home, your health or your business, everything is

exposed to any danger in these times. Non-life insurances you for calamities

like these at a minimal amount.

2. In what manner is a non-life claim settled?

The following steps are carried out:

� The claim is filed by the person suffering the loss

� A preliminary survey is conducted

� The final survey report is submitted on receipt of all your documents

� The claim payment is released

3. Tax implications of taking an insurance cover

A percentage of the amount that you invested mediclaim policy is

allowed, depending upon your total premium, as a tax rebate under section 88

against provisions of the income-tax liability, subject to provision of the

income-tax Act. Presently, there is a 12.36%service tax is applicable on general

insurance premium.

4. How much insurance should you have?

Insurance companies often conduct a thorough personal finance review and

use the concept of Human Life Value to ascertain the correct amount of

insurance you should have. “Human life value” is the net present value of

your potential future earning for the rest of your working life span. This is

typically a factor of your annual income.

12

5. In what manner do you evaluate the policies?

Decide the type of policy you want after asking some basic questions.

� What are the returns offered by the policy?

� What is your risk profile?

� Can you sustain payment of the premium amount?

� Is there flexibility in premium payment?

� How good is the surrender value of the policy?

Once you decide on these, you will be able to select better.

What is insurance? “Insurance is a financial service for the saving of the public and providing them

with risk coverage”

Thus in insurance,

The Risk

The Insured the Insurer

General definition: “insurance is a plan by which large number of people

associate and transfer to the shoulders of all risks that attach to individuals.”—

JOHN MAGEE

13

Fundamental definition: “insurance is accumulated contributions of all parties

participating in the schemes”--- D. S. HANSELL.

Contractual definition: “insurance is a contract in which a sum of money is paid

to the assured as consideration of insurer’s incurring the risk of paying a large

sum upon a given contingency”--- JUSTICE TINDAL.

PRINCIPLES OF INSURANCE

� Principle of utmost good faith

� Disclosure of all facts

� Principle of Indemnity � Loss indemnified

� Not to earn profit

� Doctrine of Subrogation � Hold negligent person responsible for the loss

� Prevent the insured from collecting twice

� Principle of Causa Proxima � Cause of loss must be direct and insured

� Principle of Insurable Interest � Direct benefit to insured from the asset insured

14

Why do you need insurance cover?

Insurance provides a protection to the customers from certain and uncertain

risks. Certain risk involves events like death, retirement, pension, education,

marriage, etc. uncertain risk includes events like theft, accidents, fire and

earthquake risks.

In general insurance fire, accidents, medical claim and because of that if

third party damages occur than it also covered in it. General insurance is only

for unexpected or uncertain risks. Now there are more than 14 companies

under it. Government is more giving priority on medical policies as now

medical expenses are more expensive and for that tax benefits also available

for this kind of policies.

15

History of insurance sector

.

History of Insurance Business

Insurance probably made a beginning in the ancient land of Babylonia In

the 18th century B.C., Babylonian king Hammurabi developed a code of law,

known as the Code of Hammurabi, which codified many specific rules

governing the practices of early risk-sharing activities. For instance, the code

dictated that traders had to repay merchants who financed trading voyages

unless thieves stole goods in transit, in which case debts would be cancelled.

This was similar to the system of insurance known as bottomry which

existed in Phoenicia in 1200 B.C. In this system, backers loaned money to

merchants to finance voyages. Merchants offered their ships (the hull was

known as the ship’s ‘bottom’) as collateral for such loans. When a trip

succeeded, the merchant would pay the trip’s backer the original loan plus

interest, the equivalent of a premium. If a ship went down on its voyage, the

trip’s backer would cancel the merchant’s loan. The Greeks and Romans

developed the earliest systems of life insurance. They formed societies which

paid dues that went toward paying for the burial of members. Sometimes

these societies also paid for the living expenses of deceased members’

families. During the Middle Ages (5th to 15th centuries A.D.), workers joined

together in craft. Many guilds, particularly in England and Italy, provided

benefits to workers and their families in the event of illness or death.

16

Lloyd’s

Insurance as we know it today took its shape in 17th century England.

There was a place called Lloyd's Coffee House in London, owned by Edward

Lloyd, where merchants, ship-owners and underwriters met to discuss and

transact business. The Lloyd’s Act was passed in 1871 incorporating the

members of the association into a single corporate body with perpetual

succession and corporate seal. It extended from marine insurance to other

insurance and guarantee business. Today, Lloyd's has become the world's best

known insurance brand. It is commonly misunderstood that Lloyd's is an

insurance company. Actually, it is a society of members, known as

‘underwriters’, both corporate and individual, who underwrite in syndicates on

whose behalf professional underwriters accept risk. Thus, supporting capital is

provided by investment institutions, specialist investors, international

insurance companies and individuals.

Any insurer who wants to become a member of the association has to

deposit a certain fee as security for the regular payment of his liabilities. The

association will inquire about the financial position of the concern, business

reputation and experience. The business is conducted by these insurers called

underwriters, syndicates etc. Anybody desirous of taking insurance will

approach the ‘underwriters’ and not the ‘association’. Each underwriter will be

responsible for his business underwritten. Usually, the policy is underwritten

by several underwriters and their share or portion is fixed individually. If there

is claim on the policy, the insured gets the money from all the underwriters

according to their respective shares. If an underwriter fails to pay, the amount

is realized from the security taken at the time of enrolment from the

underwriter. Lloyd’s as a corporation is never liable on any policy.

Lloyd’s brokers bring business to the market. The risks placed with

underwriters originate from clients and other brokers and intermediaries all

over the world. Together, the syndicates underwriting at Lloyd's form one of

the world's largest commercial insurers and a leading reinsurer.

17

History of India’s Insurance Business

We find the term ‘Yogakshemam Bahamayam’ in our ancient texts. This

suggests that a form of "community insurance" was prevalent around 1000 BC

and practiced by the Aryans. In modern times, Triton Insurance Co. Ltd. was

the first general insurance company to be established in India in 1850. The

Bombay Mutual Life Insurance Society started its business in 1870. It was the

first company to charge same premium for both Indian and non-Indian lives.

The Oriental Assurance Company was established in 1880. Thereafter, many

players emerged. By 1956, there were around 240 private life insurers and

more than 100 general insurers. The Government of India, concerned by the

unethical standards adopted by some players against the consumers,

nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The

government brought together life insurers under one nationalized monopoly

corporation and LIC was born. The general insurance business remained in the

private sector till 1972. Then, nearly 107 insurers were amalgamated and

grouped into four companies- National Insurance Company, New India

Assurance Company, Oriental Insurance Company and United India Insurance

Company. They were subsidiaries of the General Insurance Company (GIC).

18

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and

RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance

industry and recommend its future direction. Financial sector reforms were

initiated and it was felt that insurance is an important part of the overall

financial system where it was necessary to address the need for similar

reforms. Some of the recommendations of the Malhotra committee included:

� Government stake in the insurance Companies to be brought down 50%.

� Government should take over the holdings of GIC and its subsidiaries so

that these subsidiaries can act as independent corporations

� All the insurance companies should be given greater freedom to operate

� Private Companies with a minimum paid up capital of Rs.1bn should be

allowed to enter the industry

� No Company should deal in both Life and General Insurance through a

single entity

� Foreign companies may be allowed to enter the industry in collaboration

with the domestic companies.

� The Insurance Act should be changed. An Insurance Regulatory

body should be set up.

19

� Investments- � Mandatory Investments of LIC Life Fund in government securities to be

reduced from 75% to 50%.

� GIC and its subsidiaries are not to hold more than 5% in any company

� Customer Service � LIC should pay interest on delays in payments beyond 30 days � Computerization of operations and updating of technology to be carried

out in the insurance industry.

The committee emphasized that it was essential that the sector was

open to competition to improve the customer services and increase the

coverage of the insurance industry. However, enough precaution should be

exercised to prevent failure of the new entrants .Hence a minimum capital

requirement of Rs.100crores was stipulated. To provide greater autonomy to

insurance companies and enable them to act as independent companies, it

proposed setting up an independent regulatory body.

20

About Industry

INSURANCE INDUSTRY AT GLANCE

Many may not be aware that the life insurance industry of India is as old

as it is in any other part of the world. The first Indian life insurance company

was the Oriental Life Insurance Company, which was started in India in 1818 at

Kolkata. A number of players (over 250 in life and about 100 in non life) mainly

with regional focus flourished all across the country. However, the Govt. of

India, concerned by the unethical standards adopted by some players against

the consumers, nationalized the industry in two phases in 1956(life) and in

1972(non-life). The insurance business of the country was then brought under

two public sector companies, Life Insurance Corporation of India (LIC). In line

with the economic reforms that were ushered in India in early nineties, the

Government set up a Committee on (popularly called the Malhotra

21

Committee) in April 1993 to suggest reforms in the insurance sector. The

Committee recommended throwing open the sector to private players to usher

in competition and bring more choice to the consumer. The objective was to

improve the penetration of insurance as a percentage of GDP, which remains

low in India even compared to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and

Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent

regulatory authority, which has put in place regulations in line with global

norms. So far in the private sector, 12 life insurance companies and 9 general

insurance companies have been registered.

22

ROLE OF INSURANCE

� The companies conducting business of insurance are referred to as Ìnsurers’. The

terms ìnsurance company' and ìnsurer' are interchangeable.

� Various groups of people are exposed to different types of risks, such as:

• People engaged in marine trade are exposed to the risks like damage to

goods, sea piracy, sinking of ship, vessel colliding with another vessel etc.

• Factory owners are exposed to different type of risks like fire, lightning,

hailstorm, flood, earthquake, burglary, etc.

� Insurers form a `group' of those persons who are exposed to the same risks. The

shares/contributions (called premium) collected from each of them, are pooled

together to create a common fund. Every premium represents a corresponding risk,

which it seeks to cover. These funds are held in trust for the benefit of the

policyholders. Compensations (claim) to those, who suffer, are paid out of this fund.

� Insurer's role is that of a trustee and it has to ensure that nobody takes undue

advantage. The insurer does this by:

• Preventing entry of people carrying higher risks through the process of

underwriting of risks

• Preventing payment of claims on losses that are not accidental.

When in government decided to privatize insurance sector in 1999, strong need

of a Regulatory authority was felt. This

investors who had been robbed before through various financial scams such as

stock exchange frauds, Chit funds, Plantation Investments etc. thus IRDA

(Insurance Regulatory and Development Authority) was born.

Mission

To protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or

incidental thereto.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Ac

Authority (IRDA, which was constituted by an act of parliament) specify the

composition of Authority.

The Authority is a ten member team consisting of

(a)

(b)






Mission



incidental thereto.






a Chairman;

five whole








incidental thereto.






a Chairman;

five whole-time members









As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development




time members;


of a Regulatory authority was felt. This was in the backdrop of experience of







t' 1999, Insurance Regulatory and Development




was in the backdrop of experience of





























23









24

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

• Issue to the applicant a certificate of registration, renew, modify,

withdraw, suspend or cancel such registration;

• Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,

settlement of insurance claim, surrender value of policy and other terms

and conditions of contracts of insurance;

• Specifying requisite qualifications, code of conduct and practical training

for intermediary or insurance intermediaries and agents;

• Specifying the code of conduct for surveyors and loss assessors;

• Promoting efficiency in the conduct of insurance business;

• Promoting and regulating professional organizations connected with the

insurance and re-insurance business;

• Regulating investment of funds by insurance companies;

• Regulating maintenance of margin of solvency;

• Adjudication of disputes between insurers and intermediaries or

insurance intermediaries;

• Supervising the functioning of the Tariff Advisory Committee;

• Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations

referred to in clause above;

25

• Specifying the percentage of life insurance business and general

insurance business to be undertaken by the insurer in the rural or social

sector; and

• Exercising such other powers as may be prescribed.

About company

ICICI Lombard General Insurance Company Limited is 74:26 joint ventures

between ICICI Bank Limited and the Canada based $26 billion Fairfax Financial

26

Holdings Limited. ICICI Bank is India's second largest bank; while Fairfax

Financial Holdings is a diversified financial corporate engaged in general

insurance, reinsurance, insurance claims management and investment

management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is

one of Canada's oldest property and casualty insurers. ICICI Lombard General

Insurance Company received regulatory approvals to commence general

insurance business in August 2001. Also ICICI Lombard is No. 1 insurance

company as far as private sector is concerned. Its core competency is in highest

and fastest claim settlement which attracts most of the customers. As far as

insurance sector is concerned all the insurance companies are under common

General Insurance Company limited same as Life Insurance Corporation. There

is cut throat competition in the market as there as more than PSU as well as

private sector player in the field of insurance. Also still on 0.68% in penetrated,

so there are lots of opportunities for companies to grow and perform well with

its core competencies. Its still long way to go, because there is need of

customized insurance that will really be a boon for customer, still we can see

that there is lack of decentralization as underwriter approval are to be taken

each and everywhere. But ignoring that we can say that insurance sector is

booming like anything. And ICICI Lombard is a key player in private sector

which is capturing huge part of market. It is following various marketing

27

Strategies and huge advertisement campaign that always keeps aware to the

people about its existence and its products.

Thus there is still long way to go, also various foreign companies are yet to

come, as they seek lots of business opportunities as there is so much yet to be

explored in India.

28

(ICICI GROUP)

ICICI LOMBARD CORE VALUES

Why ICICI Lombard

online data exchange

interface


• INTEGRITY

• HUMANITY

• POSITIVITY

• SENSIVITY

• PASSION

Why ICICI Lombard

India's number one private general insurance company

First general insurance company in India to be

Assigned the

Simple and fast documentation

Lightning fast claims settlement

Instant online policy issuance

Comprehensive product line

Highest security level offered through 128


First company to provide digitally signed documents through an

interface

Achieved financial

Achieved underwriting breakeven in second year of operations


INTEGRITY

HUMANITY

POSITIVITY

SENSIVITY

PASSION

Why ICICI Lombard

's number one private general insurance company


Assigned the iAAA rating by ICRA indicating highest claims paying ability



online policy issuance





Achieved financial breakeven in first full year of operations



INTEGRITY

HUMANITY

POSITIVITY

SENSIVITY

Why ICICI Lombard



rating by ICRA indicating highest claims paying ability







breakeven in first full year of operations
















First general insurance company in India to be ISO 9001:2000


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






ISO 9001:2000


bit encryption in case of





ISO 9001:2000 certified






29

certified



online

Adjudged as the 'General Insurance Company of the Year' at the 11th

Asia Insurance

Awarded the NDTV Profit Business

General Insurance category on July 27, 2007

Adjudged as the most Customer Responsive Company in the Insurance

category at the Economic alConnect Customer Responsiveness Award

2006

Awarded the Best Housing Insurance in th

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

Adjudged

category at the 9th Asia Insurance Industry Awards function held in

Singapore during September, 2005


Insurance Industry Awards 2007









March 31, 2006

Adjudged amongst the top three in the Insurance Website of the Year




Industry Awards 2007









amongst the top three in the Insurance Website of the Year




Industry Awards 2007

Awarded the NDTV Profit Business Leadership Awards 2007 in the












Leadership Awards 2007 in the




Awarded the Best Housing Insurance in the Smart Living Awards by 360










e Smart Living Awards by 360















30










About ICICI Lombard

•

•

•

•

•

•

•

Organizational Structure

ICICI Lombard’s organizational structure is designed to be flexible and

responsive with the ability to evolve and re

opportunities, while maintaining the required degree of risk management and

controls.

There are four principal group

Wholesale Business,

Banassurance & Retail Business,

About ICICI Lombard

Young Company

Largest private sector Insurer

Largest Capitalization in private sector

Financial & Underwriting Breakeven in 1

Pan India presence

time employees on 30 June’07

ICICI Lombard awarded the NDTV Profit Business Leadership Award

& Avaya Global Customer Responsiveness Award

International operations





controls.


Wholesale Business,


About ICICI Lombard

Young Company - August 2001




Pan India presence




International operations






Wholesale Business,


About ICICI Lombard

August 2001




Pan India presence – Over 227 branches, 176 locations, and 5349 full




International operations – UK since May’06





There are four principal groups:


About ICICI Lombard

August 2001




Over 227 branches, 176 locations, and 5349 full




UK since May’06


responsive with the ability to evolve and re-orient towards market



Financial & Underwriting Breakeven in 1st

& 2nd




UK since May’06


orient towards market


year












31


ICICI Lombard awarded the NDTV Profit Business Leadership Award 2007


Rural and Agricultural Business

Shared Services.

•


Shared Services.

The Wholesale Business Group

Focuses on large corporat

enterprises, state and central governments and government enterprises.

Key products include Fire, Marine, Engineering, Liability policies and

Group schemes for employees and large scale state level health and

personal accident schemes

The Bancassurance and Retail Business Group

Delivers products through multiple channels including bancassurance,

agents, feet

include Motor, Travel, Health and Home insurance.

The Rural and Agricul

It is responsible for reaching out to rural customers with relevant

products such as Weather insurance, Health and Personal Accident

covers.


Shared Services.


on large corporat






elivers products through multiple channels including bancassurance,

agents, feet-on-street, telesales and the internet. The key products



is responsible for reaching out to rural customers with relevant


Rural and Agricultural Business &


on large corporations and also on







street, telesales and the internet. The key products





&


ions and also on








The Rural and Agricultural Business Group




ions and also on small and medium








tural Business Group



small and medium











small and medium










32







Business Solutions

Burglary Insurance

Industrial All Risk

All Risk Insurance

Consequential Loss(Fire) Insurance

Electronic Equipment Insurance

Fidelity Insurance

Fire and Special Perils

Tea Corp Insurance

Marine export import

Machinery

Boiler Insurance

Inland Transit

Shared Services

It provides

These services

Operations, Reinsurance, Customer service, Human resources, Legal and

Marketing communications

Business Solutions

Burglary Insurance

Industrial All Risk

All Risk Insurance



Fidelity Insurance


Tea Corp Insurance


Machinery

Boiler Insurance

Inland Transit

Shared Services

provides support services to the business verticals.

These services include Finance & Accounts, Administration, Technology,


Marketing communications

Product Range

Business Solutions

Burglary Insurance

Industrial All Risk

All Risk Insurance



Fidelity Insurance


Tea Corp Insurance


Boiler Insurance

Inland Transit Insurance

Shared Services

support services to the business verticals.

include Finance & Accounts, Administration, Technology,


Marketing communications.

Product Range



Insurance




.

Product Range





Product Range






33



Project Solutions

Contractors’ All Risk

Contractors’ Plant & Machinery

Erection All Risk

Performance Guarantee

Liability Solutions

Director’s & Officers Liability

Event Insurance

Product Liability

Public Liability

Workmen’s Compensation

Professional Indemnity

Export Solutions

Export Import Transit

Export Credit

Project Solutions



Erection All Risk


Liability Solutions


Event Insurance

Product Liability

Public Liability



Export Solutions


Export Credit

Project Solutions



Erection All Risk


Liability Solutions


Event Insurance

Product Liability

Public Liability



Export Solutions







34

Rural Solutions

Weather Insurance

Janata Personal Accident

Tractor

Farmer’s Package

Personal Solutions

Health

Health

Personal Accident

Group Personal Accident

Group Health

Travel Insurance

Domestic Travel

Individual Overseas Travel

Student Overseas Travel

Senior Citizen Overseas Travel

Corporate Overseas Travel

Pravasi Bhartiya Bima Yojana

Rural Solutions

Weather Insurance


Tractor

Farmer’s Package

Personal Solutions

Health Insurance

Health

Personal Accident


Group Health

Travel Insurance

Domestic Travel






Rural Solutions

Weather Insurance


Farmer’s Package

Personal Solutions

Insurance

Personal Accident


Group Health

Travel Insurance

Domestic Travel













35

Motor Insurance

Two Wheeler

Four Wheeler

Home Insurance

Motor Insurance

Two Wheeler

Four Wheeler

Home Insurance

It covers mainly all natural calamities and also gives covers against man

made calamities, which is very important to protect your dream house.

So ICICI Lombard

your dream home

Motor Insurance

Four Wheeler

Home Insurance



So ICICI Lombard general insurance company has variety of cover for

your dream home



general insurance company has variety of cover for













36




Key Products

Key ProductsKey Products

37

38

Motor Insurance

• What is motor insurance?

• How is motor insurance different from other forms of general insurance?

• Why do I need motor insurance?

• What is the kind of emergency that can strike?

• What are the exclusions under the policy?

• What is the maximum cover that can be availed for occupants of vehicle?

• What is compulsory deductible under Motor insurance?

• What is the difference between private motor insurance and commercial

motor insurance?

What is motor insurance?

Motor insurance protects you and your vehicle against every comprehensible

risk related to your vehicle – theft or damage to it, death of the driver and

passengers in an accident, and damage caused by your vehicle to another

person or property (Third Party Liability).

39

How is motor insurance different from other forms of general

insurance?

A motor insurance policy (Third Party Liability) is mandatory under the Motor

Vehicle Act, while other forms of general insurance are optional. The law

mandates that every owner of a motor vehicle must have a motor insurance

policy.

Why do I need motor insurance?

You need motor insurance for the following reasons:

• Third Party Liability (injury, death or property damage) is mandatory as per

the Motor

Vehicle Act

• Your car is one of your most coveted possessions

• Passengers in your car are mostly your near and dear ones

• Accident, theft, damage and third party liability can arise unexpectedly

What is the kind of emergency that can strike?

• Loss or damage to the vehicle insured

• Own damage

• Partial theft

40

• Total theft

• Third party injury

• Third party death

• Third party property damage

• Personal accident of owner-driver and other passengers

What are the exclusions under the policy?

The following are the specific exclusions under the policy:-

• Mechanical breakdown

• Wear & tear

• Consequential loss

• Depreciation

• Deliberate accidental loss

• Intoxicated driving

• Any contractual liability

What is the maximum cover that can be availed for occupants of

vehicle?

Under a package policy, the maximum cover that can be availed for the driver

and each passenger is Rs 1lakh and Rs 2lakh respectively.

41

What is compulsory deductible under Motor insurance?

Motor insurance policies have a compulsory deductible, wherein the claim

amount has to be borne by the insured.

• For private cars up to 1,500 cc – Rs 500

• For private cars above 1,500 cc- Rs 1,000

• For two wheelers – Rs 50

What is the difference between private motor insurance and

commercial motor insurance?

Vehicles owned by individuals and used for their personal purpose fall under

the category of private vehicles However, vehicles owned by companies or

individuals used for public utilities fall under the category of commercial

vehicle. The insurer’s liability is lower in private vehicles than in commercial

vehicles, where the third party liability is huge.

42

Home Insurance - Introduction

It is imperative that you secure your home from natural and man-made

catastrophes. Our Home Insurance Plan ensures you peace of mind by

protecting the structure and the contents of your home.

Policy Details

There is wide range of policy details regarding the hypothecation with bank,

and what kind of documentation is needed in acquiring of policy.

Policy Coverage

You can choose to buy insurance for only the building (structure) of your

home, or only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to

any natural and man made

The calamities covered are:

- Fire

- Riot, strike & malicious damage

- Explosion & implosion

- Earthquake

- Lightning

- Storm, cyclone, tempest, tornado, hurricane, flood & inundation

- Damage due to impact by vehicles

- Missile testing

- Subsidence, landslides and rockslides

- Leakage from automatic Sprinkler installations

- Aircraft damage

- Bursting and/or overflowing of water tanks, apparatus and pipes

Policy Coverage






Fire

Riot, strike & malicious damage

Explosion & implosion

Earthquake

Lightning

Storm, cyclone, tempest, tornado, hurricane, flood & inundation

Damage due to impact by vehicles

Missile testing

Subsidence, landslides and rockslides

Leakage from automatic Sprinkler installations

Aircraft damage

Bursting and/or overflowing of water tanks, apparatus and pipes

Policy Coverage










Missile testing operation



Aircraft damage





any natural and man made calamities






operation







calamities.






















43



Optional

Terrorism cover

contents of your home due to acts of terrorism.

Additional expenses of rent

If you are forced to shift into an alternative accommodation because your

home is destroyed or damaged by any insured peril, the policy will cover

you against the additional rent.

The maximum coverage is up to Rs. 1

available only if you are insuring the structure of your home.

Burglary cover (only for contents):

The contents of your home are

burglary or an attempted burglar

articles and precious stones kept under lock and key, up to 25% of the

total content sum insured or Rs. 1 Lac, whichever is lower.

Optional covers

Terrorism cover













covers:

Terrorism cover - Covers any damages and losses to the structure and / or













Covers any damages and losses to the structure and / or









The contents of your home are also covered against loss due to

burglary or an attempted burglary. It also covers loss of jewelry





Additional expenses of rent for alternative accommodation



The maximum coverage is up to Rs. 1, 00,000



also covered against loss due to

y. It also covers loss of jewelry





for alternative accommodation



00 for up to 6 months. The cover is



y. It also covers loss of jewelry







for up to 6 months. The cover is



y. It also covers loss of jewelry, silver








44

, silver



for alternative accommodation –




Key Benefits

Comprehensive cover

Avail 15% discount on a 3 years home insurance policy and

years policy.

Optional covers available

alternative accommodation.

Alternate Covers

cover for alternative rent & Terrorism cove

Need for Policy

FICCI surveys show that realty rates may escalate 10%

of 2007

According to official statistics, the Maharashtra floods on July 26, 2005, has

led to damages to over 1

families

Protect your single largest investment against losses due to natural or man

made calamities like fire, floods, burglary,

Cover your household contents including furniture, durables, clothes,

utensils, jewelry,

Key Benefits

Comprehensive cover


years policy.



Alternate Covers


Need for Policy


of 2007


led to damages to over 1

families




utensils, jewelry,

Comprehensive cover -




Alternate Covers - A Home Insurance cover allows you to avail an optional


Need for Policy



led to damages to over 1, 87,000




utensils, jewelry, at market value to accommodate inflation

Covers both structure and contents of your home.


Optional covers available - Terrorism and Additional expenses of rent for


A Home Insurance cover allows you to avail an optional




, 87,000 houses all over the State, affec




at market value to accommodate inflation



Terrorism and Additional expenses of rent for


cover for alternative rent & Terrorism cover.



houses all over the State, affec


made calamities like fire, floods, burglary, and earthquake







r.





and earthquake




Avail 15% discount on a 3 years home insurance policy and 25% discount on 5



FICCI surveys show that realty rates may escalate 10%-15% in next 6 months




and earthquake




25% discount on 5



15% in next 6 months


houses all over the State, affecting eight lakh



45


25% discount on 5



15% in next 6 months


ting eight lakh

Protect your single largest investment against losses due to natural or man-

46

Sum Insured

How to calculate the sum insured for the risk to be covered, also what is to be

excluded and what is included.

Home Structure:

The home insurance policy insures the structure of your home for its

reconstruction value (and not for market value). Reconstruction value is

defined as the cost incurred to reconstruct the home if it is damaged. On the

other hand market value is a combination of cost of land, demand & supply

scenario, etc.

Sum insured is calculated by multiplying the built up area of your home with

the construction rate per sq. feet, e.g. if your built up area of your home is

1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum insured

for your home structure is Rs. 8, 00,000.

We recommend the rate of construction for your location when you are buying

online. However, this value can be revised appropriately if expensive material -

like marble flooring, etc. – has been used in construction. If your home has

lawn / garden surrounded by a perimeter wall, the construction rate can be

revised to include the cost of construction of this wall in home structure sum

insured.

Home Contents:

The contents of your home

- are to be valued on market value basis i.e. the current market value of similar

items after depreciation. Deprec

Home Contents:


are to be valued on market value basis i.e. the current market value of similar


Home Contents:




The contents of your home - furniture, durables, clothes, utensils, jewelry,


items after depreciation. Depreciation does not apply for jewel

furniture, durables, clothes, utensils, jewelry,


iation does not apply for jewel



iation does not apply for jewel



iation does not apply for jewelry.



ry.

47

furniture, durables, clothes, utensils, jewelry, etc.


48

ICICI Lombard presents a completely new look to the Mediclaim concept.

Health Insurance (popularly known as Mediclaim) offers protection in case of

unexpected medical emergencies. In case of a sudden illness or accident, the

health insurance policy takes care of the hospitalization, medical and other

costs incurred.

We offer a range of innovative policies to choose from. Each plan offers

something unique (in addition to the usual mediclaim policies) to suit your

specific needs.

Buy insurance policy online with your ICICI Bank & Citibank Credit Card and pay

premium at interest free installments.

49

Health Plans

Critical Care

Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and

Procedures, Personal Accident and Permanent Total Disablement (PTD)

Health Advantage Plus Insurance

A unique policy that covers hospitalization and Outpatient Department

Expenses (including Dental treatment, cost of medicines and drugs) and

enables optimum tax savings of up to Rs. 5099 u/s 80D.

Family Floater Plan

A single policy that secures the hospitalization expenses of your entire family.

Personal Accident Insurance

A Policy that covers personal accident, permanent total disablement (PTD) and

loss due to terrorism.

50

Travel Plans

Individual Overseas Plan

All overseas travel policies charge premium on a slab basis. Which means if you

are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days.

But with us you ‘pay per day’. (Code: Misc 4030)

Student Medical Insurance

A comprehensive cover, which insures you against unfortunate incidents or

unexpected expenses abroad and provides timely assistance and support when

you need it the most. (Code: Misc 4050)

Achievements & Ratings

Best Customer Responsiveness:

Awarded the Economic Times Avaya Global

Award 2006 on Jan 19, 2007, for the most Customer Responsive Company in

the Insurance category.

Best Housing Insurance:

Conferred as the Best Housing Insurance in the Smart Living Awards by 360

degrees , a Times of India Group subsidiary,

Excellence in Financial Reporting:

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.

Top Insurers of Asia:

Among the top three

"General Insurance Company of the Year" at the 10th Asia Insurance Industry

Awards.

Insurance Website of the Year:

Among the top three to be awarded at the 9th Asian Insurance awards 2005

for the 'Insurance













Among the top three


Awards.



for the 'Insurance













Among the top three General Insurance Companies to be awarded the




for the 'Insurance website of the Year' category.











General Insurance Companies to be awarded the




website of the Year' category.


Awarded the Economic Times Avaya Global Connect Customer











Connect Customer



degrees , a Times of India Group subsidiary, in Nov 2006.







Connect Customer Responsiveness



in Nov 2006.






Responsiveness








51

Responsiveness







iAAA Rating by ICRA:

Granted with IAAA Rating by ICRA (Investment Information & Credit Rating

Agency of India Ltd.) for Highest Claims Paying Ability. ICRA is An Associate of

Moody's Investors' Services

Quality certification:

ICICI Lombard has acquired the ISO 9001:2000 certification from DET Norske

Veritas (DNV) for establishing a quality management system for settlement of

motor claims. DNV has issued the ISO certificate for ICICI Lombard's fast and

cost-effective settlement of motor claims.









effective settlement of motor claims.












Moody's Investors' Services.



























52






53

ICICI LOMBARD - Awards & Reputation’s

ICICI Lombard awarded the ‘General Insurance company of the year’

� ICICI Lombard has been awarded as the 'General Insurance Company of

the Year' at the 11th Asia Insurance Industry Awards 2007 held in

Singapore on November 5, 2007. ICICI Lombard becomes the first Indian

insurance company to win this prestigious award.

It was ICICI Lombard’s innovation that caught the eyes of the judging

panel. The innovations credited to ICICI Lombard include introduction of

biometric smart cards to rural customers for availing health insurance,

pioneering weather insurance along with the World Bank for farmers in

India and introducing online insurance for the customers.

� With more than 700 nominations received across 15 award categories

from various regions, the submissions of the short-listed candidates

were thoroughly scrutinized by the eminent judges. Audited by KPMG,

the distinguished panel of 20 judges comprised of regulators, industry

leaders, practitioners and association heads.

54

Financial Highlights

Financial Year 2006-07 2005-06

Figures in nos.

No. of policies sold 3,136,393 1,461,039

No. of claims handled 642,777 243,951

No. of employees 4,770 2,283

No. of offices 220 154

Rs. in Million

Gross Written Premium 30,035 15,920

Net Written Premium 14, 508 7,339

Net Earned Premium 10,667 5,277

Profit before Tax 801 545

Profit after Tax 684 503

Share Capital 3,357 2,450

Net Worth 9,427 3,729

Investments 17,105 9,065

Total asset 29,540 16,391

Ratios in %

Claim Ratio 76% 74%

Commission Ratio (13%) (17%)

Expense Ratio

Combined Ratio

•

•

•

•

•

•

Expense Ratio

Combined Ratio

Only General Insurance company having an ISO certification

Product delivery

o Web (remote access, anytime, anywhere)

o ILPOS (Point of Sale)

Number of polic

Total claims initiated

Servicing 300 of top 1000 corporate customers,

4 million retail customers and 100 million rural customers

Combined Ratio

Overview of Operations


Product delivery – automated

Web (remote access, anytime, anywhere)

ILPOS (Point of Sale)

Number of policies issued






automated


ILPOS (Point of Sale)

ies issued






automated


: 11,87,430



34%

97%




: 3.2 million

: 11,87,430






: 3.2 million p.a.





55

41%

97%

56

• Customer service

o 24x 7 call centre, branch contacts

o Loss assessment and approval decentralized for faster delivery

57

About Competitor

The general insurance industry grew 12 per cent till February in 2007-08 with

robust performance by private players including Reliance General, which

continues to be the fastest growing insurer. So Reliance General Insurance

Company is the main competitor in this sector as far the privet players are

concerned.

The 14 non-life insurers collected Rs 25,470 crore in premium till February in

FY'08, against Rs 24,998 crore collected in the last fiscal, according to the

industry data.

During the period, the four public sector non-life insurance companies

collected Rs 15,280 crore, as against Rs 14,686 crore in the same period last

fiscal. From this data we can say that public sector companies have greater

market share but because of cut throat competition in the sector they are not

growing as per industry rate.

The private players increased their business from Rs 7,981 crore to Rs 10,190

crore during the period. The growth in privet sector is much higher than

industry average

In percentage terms, while the public sector could increase their premiums by

just 4 per cent, nine private sector players clocked premium growth of 28 per

cent.

Private sector players' market share has grown to about 40 per cent in FY'08 so

far as compared to the public sector's 60 per cent share.

Reliance General Insurance continues to be the fastest growing insurer with a

premium collection of Rs 1,810 crore in this fiscal so far against Rs 803 crore in

the same period last year.

During the period, market leader New India Assurance premium collection

grew by six per cent to Rs 4,760 crore.

In the private sector space, the largest player - ICICI Lombard - collected nearly

58

12 per cent higher premium at Rs 3,143 crore. But still ICICI Lombard is

managed is No.1 position in spite of high competition.

In future also there are more upcoming players in this industry so competition

might increase further and because of D-Tariff the insurance might get chipper

further. New players like Apollo General insurance company and Future Group

are already started their products in General insurance field.

THE RATEWAR: A bruising rate war in non-life insurance is set to eat into the

industry’s growth and imperil balance sheets of insurers. In the scramble to get

new clients and retain the existing ones, companies are offering to cut old

tariff rates by up to 75%. While discounts are squeezing margins at one end,

the increase in rates by re-insurers is pushing up costs for insurers.

Existing Players: (Government non life players)

Oriental Insurance Company Limited

New India Assurance Company Limited

National Insurance Company Limited

United India insurance Company Limited

59

Non life insurers (Private Players)

Baja Allianz General Insurance Company Limited

IFFCO- Tokyo General Insurance Company Limited

National Insurance Company Limited

New India Assurance Company Limited

Oriental insurance Company Limited

Reliance General Insurance Company Limited

Royal Sundaram Insurance Company Limited

Tata AIG General Insurance Company Limited

United India Insurance Company Limited

HDFC Chubb General Insurance Company Ltd.

60

Customer

ICICI LOMBARD General Insurance segment serves a wide range of customers,

from individuals to small and medium-sized businesses, commercial

enterprises and major multi-national corporations. This subsidiary of ICICI bank

focuses on customer segments and key markets that present the best

opportunities for sustained and profitable growth.

Individual customers may take insurance for their Home Insurance, Health

Insurance, Motor insurance, Student medical insurance and Domestic travel

insurance. So they are the main focus area as far as the customer is concerned.

ICICI Lombard is also providing the business products also so corporate is also

a one of the major area for customers. In business segment Fire insurance,

Marine insurance, Industrial insurance, corporate insurance is the main

insurance service is mainly use by clients in corporate segment.

ICICI Lombard is also providing service to the NRI they are also contributing

very high to Lombard’s revenue. In NRI service main focus area of the products

are Health insurance, Parents’ overseas insurance, Student medical, Home

insurance, and Motor insurance. ICICI has major market share of 25% in Travel

insurance.

ICICI Lombard is providing services to rural area and for them also Home

insurance, Health Insurance, Tractor insurance, Weather insurance and Shop

insurance are available.

Corporate agents are also plying the major role in Motor insurance to increase

the customers and increase the market share in the sector.

Customer support

Wherever you are, we strive to provide excellent service to you. We welcome

you to Customer Service, our single point-of-contact for all your service

requests/needs. We are committed to resolving your concern fairly and

quickly.

Now reaching us has become a whole lot easier. Choose the channel suited to

your convenience and get an instant access to our services.

61

Self-Help

Choose the products, service request and we will contact you. Click here

Track Your Interaction Status

Enter your Request/Complaint No. or Policy Number to track your previous

interaction status. Click here

Email Us

Click here to e-mail us

24x7 Insurance Helpline

Call Toll free at 1800 209 8888 for your insurance needs.

Letters

send us a letter

All India Branches

ICICI Lombard has over 257 offices across 196 locations. Find one near you.

If you are not satisfied with the resolution provided to you by the above

channels, we will connect you to the grievance re

If you are happy and satisfied with our service and products,

feedback.

Corporate Profile

Genesis

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture

between ICICI Bank, India's largest private sector bank and Fairfax Financial

Holdings

company engaged in general in

management and investment management.

Lombard Canada Limited, a group company of Fairfax Financial Holdings

Limited, is one of Canada's oldest property and casualty insurers.

ICICI Lombard Corporate Highlights

Strong Pe

ICICI Lombard leverages ICICI Bank's strong brand equity, extensive

distribution network and sound technological

Grievance Re



Compliments


feedback.

Corporate Profile

Genesis



Holdings Limited;






Strong Perc



Grievance Re



Compliments


Corporate Profile



Limited; a Canada based $26 billion diversified financial services






centage:



Grievance Reddre



Compliments


Corporate Profile



a Canada based $26 billion diversified financial services

company engaged in general insurance, reinsurance, insurance claims





entage:



ressal







surance, reinsurance, insurance claims








channels, we will connect you to the grievance reddres











distribution network and sound technological infrastructure to service


ressal.

If you are happy and satisfied with our service and products, Please provide








infrastructure to service


Please provide









62


Please provide






Customer

innovation, business proc

international best practices in the insurance business.

Resourceful Customer Service:

ICICI Lombard services a wider foot

located in 127 cities across India. With a network

cities and around 1500 garages in 255 cities, ICICI Lombard offers cashless

claim settlement to its customers. We also have an online customer support

system which allows customers to track their claim status and facilitate

quick

Highest Levels of Security:

Security and privacy for customers remain our highest concern.

Click to view our security certificati

- TRUSTe Privacy Seal Program

- VeriSign Certification

Strong Claims paying ability:

We have been assigned the iAAA rating, indicating highest claims paying

ability. As of 2005

and over 2.4 lakh claims settled.

Customer needs. Lombard Canada assists on domain knowledge, product









quick response to service requests.




TRUSTe Privacy Seal Program

VeriSign Certification



ability. As of 2005


needs. Lombard Canada assists on domain knowledge, product









response to service requests.





VeriSign Certification



ability. As of 2005-06, over 14



innovation, business processes based on cutting edge technology and








response to service requests.







06, over 14, 51,000



esses based on cutting edge technology and



ICICI Lombard services a wider foot-print of customers with its offices





response to service requests. Click here





, 51,000 policies have been issued across India




print of customers with its offices

located in 127 cities across India. With a network of 3500 hospitals in 200




Click here


Click to view our security certifications:


policies have been issued across India





of 3500 hospitals in 200

















63









Comprehensive Products:

We have over 32

offered to the customer for their best insurance solution


We have over 32



We have over 32 customized



customized and innovative


and innovative


and innovative insurance solutions which are


urance solutions which are

offered to the customer for their best insurance solution.


64


S.W.O.T.

Strength

Weakness

•

•

S.W.O.T.

Strength

Assigned the







First company to provide digitally signed documents through an online

interface

Weakness

Have to take

Less agent payout that is (10 %to15%)

S.W.O.T. ANALYSIS OF ICICI Lombard

Assigned the iAAA rating by ICRA indicating highest claims paying ability








Have to take underwriters approval for every


ANALYSIS OF ICICI Lombard

GIC Ltd.









underwriters approval for every



GIC Ltd.








underwriters approval for every



GIC Ltd.


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


underwriters approval for every process






rocess





65





66

Opportunity

• 95% 2-wheelers are not insured

• Beneficial in business sector because of corporate growth

• Low market share in insurance sector

• There is lots of innovation to be done

• Customized insurance solution

• Getting Fleet owners

Threats

• There will be too many competitors in future

• Because of d-tariff margin may further shrink

• Threat of new entries

• Threat of substitute products

• Government Policies

• PSU Companies

67

68

MARKET SHARE

ICICI is holding 36% market share of insurance industry and other 13

insurance companies are with 66% market shares.

Increasing market share year-on-year

98%

1%

1%

94%

4%

2%

87%

9%

5%

75%

17%

9%

69%

20%

11%

0%

20%

40%

60%

80%

100%

2001-02 2002-03 2003-04 2004-05 H106

LIC Private Others ICICI Pru

36%

66%

1

2

69

About the Promoters

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector

bank with assets of Rs. 2958.32 billion as on December 31, 2006. ICICI Bank

provides a broad spectrum of financial services to individuals and companies.

This includes mortgages, car and personal loans, credit and debit cards,

corporate and agricultural finance. The Bank services a growing customer base

through a multi-channel access network which includes over 695 branches and

extension counters, 3051 ATMs, call centers and Internet banking.

Established in London in 1848, Prudential plc, through its businesses in the UK

and Europe, the US and Asia, provides retail financial services products and

services to more than 21 million customers, policyholder and unit holders

worldwide. Today, Prudential has millions of customers worldwide and over

£238 billion (as of 30 June 2006) of fund under management. In Asia,

Prudential is the leading European life insurance company with a vast network

of life and fund management operations in thirteen countries - China, Hong

Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore,

Taiwan, Thailand, Vietnam and United Arab Emirates.

70

Distribution

ICICI Lombard has one of the largest distribution networks amongst private

general insurers in India. As of January 31, 2007 the company has over 200

offices across the country and over 16,000 agents.

Thus this is the short and brief history of the ICICI Lombard as No1 private

company. It awareness amongst the customer is rated quite high, as its

marketing vertical is quite advance also they carry on large advertisement

campaigns. Through advertisement it is creating its brand value in the mind of

customer. As we can clearly see from the chart that ICICI Lombard grabs huge

amount of market share and its Product Bouquet is of wide range with meets

the customer requirement to its solutions, which the customer appreciates by

buying the product with faith in the company. Also its core competency of

fastest claim settlement makes customer to prefer ICICI Lombard as their first

choice. We can find n number of hoarding, banners, sign board which reflects

the brand image of ICICI Lombard.

71

Management Team

“The ICICI Lombard General Insurance Company Limited

Management team comprises very young and energetic people

in its management team.”

72

Mr. Sandip Bakshi – M.D & CEO

Mr. Rakesh Jain – CFO

Mr. B. Anant - Head HR

Mr. Ritesh Kumar - Head-Retail, Rural

and Reinsurance

Mr. Neelesh Garg - Head-Retail and

Bancassurance

Mr. Bharathan K - Head GCG

Mr. Alok Agarwal - Head Corporate

Business

73

OBJECTIVES OF MY SIP TRAINING IN ICICI

LOMBARD

As far as my objective of doing my SIP in ICICI Lombard was concerned, I was

always keen to know how the Insurance Company actually works, how the

funda of minimizing loss due to risk is works, also I was eager to know

Corporate Culture, and ICICI Lombard is much reputed firm as far as Insurance

Sector is concerned.

My basic objective was to apply my theoretical knowledge into practical

aspects; it was time to convert the 1year MBA programme into reality. As it

was time take the real corporate experience for my future career is concerned.

Other than this I was also interested to know how the Agent Acquisition helps

the company to generate business for them. What are the criteria of making

agents, what is process of making the Agent, how to attract an agent and

convince him for doing business with the company. Also I wanted to explore

the convincing skill which is very much important criteria as far as my

marketing career is concerned.

Thus with the blend of constant support of our company guide and my hard

work I think I was quite successful in achieving my objective. I acquired

valuable knowledge of marketing skills, and also I came across to the various

product line knowledge of ICICI Lombard and also how to survive in cut-throat

competition.

My study and research under the topic Agent Acquisition is very wide topic,

but still I managed to take the crux of the study, as the greatest limitation of

the study is the time duration of my SIP which was for 2months.

Now I shall discuss the details of my study under the topic I have chosen as

Agent Acquisition. I would like to start for the beginning of the topic. The

knowledge I acquired during my SIP is shown below.

74

SCOPE

Purpose of Making of agents

Expansion of business has always proved as a sign of profit, same is in the

business of insurance. Agency development means recruitment of educated,

aware individuals with marketing flair, an elite group. In short companies are

recruiting an advisor who comes with a handsome business; in return they get

commission, incentives, and other benefits also.

The targeted segments are:

• LIC Agents

• R.T.O agents

• Stock Brokers

• Tax consultants/CA

• Fleet Truck Owners

• Education consultants

• Financial service executives (Savings account etc.)

• Tour & Traveler

• Global consultant

• Auto Dealers

• Used car dealers

• Overseas consultant

• Earth movers

• Contractors

• Labour Union leader

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And there are many other upcoming segments in which agent acquisition is

proving to be boon for the company for generating more and more business.

Tied agency channel

An Agent Today’s insurance agent has to know which product will appeal to the

customer, and also know his competitor’s products in the same space to be an

effective salesman who can sell his company’s product, and himself to the

customer. To the average customer, every new company is the same.

Perception about the public sector companies are also cemented in his mind.

The new companies are looking for educated, aware individuals with marketing

flair, an elite group.

Role of agents The insurance agent is the interface between the customer and the insurance

company. The agents should be able to accomplish the following to improve

service.

• Assessing and analyzing the client’s risk profile

• Finding the best products available in the market

• Negotiating the best deal available

• Continuity of service throughout the period of insurance

• Claims advisory service

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In tied agency thus an agent has important role to play. It becomes his duty to

give the customer best service. Once that is done a customer is satisfied and

this in longer period is bound to bring in more business.

General insurance agency: the process

Once the right profile is found and he/she is ready to take up the agency there

is a fixed process that has to be followed.

Documentation:

A form has to be filled by the person who intends to take up the agency. He

has to submit documents related to Address proof, Education proof, Pan Card

copy, Photo and Cancel cheque.

Training:

Once the form is filled up and necessary documents submitted according to

IRDA guidelines the individual has to undergo a 50 hours training. Thus an

individual undergoes a total 50 hours or two weeks training which is

compulsory and product training is given by company.

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IRDA Exams and license:

Once the training has been imparted to the individual then to start working as

a general insurance agent than he needs an IRDA license which is given upon

clearing the IRDA exam taken by IRDA itself. This exam is written as well as

online. After clearing exam person gets the license. It is then that individual

become a General insurance agent and can start working.

Facilities provided by the company

• There is 100% management support to agents. For them agent service

desk is also available from there they can get solve any query and get

premium quotation.

• Company gives brochures, pamphlets and other material free of cost.

• In the initial time the unit Sales Manager or Unit Sales Manager also go

with the agent to reap the business and thus gives the practical

knowledge of marketing.

• At any point of time the unit managers are ready help their agents.

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Returns to an agent

A life insurance advisor earns in form of commissions, bonus, and incentives.

This commission is counted as some percentage of the policy premium. This

commission varies with different policies of a company as well as the policy

terms. It’s high in the year of policy, then decreases and later becomes

constant. For example an advisor can reap 10 to 15 % of commission.

An agent gets the commission till the client pays the premium. According to

IRDA norms certain cap for commission has fixed on various policies.

Apart from regular commission the advisors also gets the gifts as per their

performance. But this is totally an individual life insurance companies’

discretion. Different companies may adopt different strategies for the advisors.

Recruitment strategies In recruitment of the agents I have targeted the fleet owners who are the

transporter. They own more then 15 trucks with them so they are the initial

beneficial for acquiring the agency, as insurance on the goods carrying vehicle

is compulsory and also they are exposed to n number of risk as they are

constantly into to & fro on the highway road. The main benefit of targeting this

segment is that the owner is itself aware about the risk he is going to have.

And also he has a satisfaction that his property is insured and it would not

affect his financial position is case of any mishaps.

And the best part is that the agent himself can take 20% discount on his Own

Damage premium amount, which is know as OD discount. Still not over, he will

also get 10% payout of the business he gives to the company, so overall he will

be benefited by paying 30% on his own policy premium amount. And not only

will this but they also get No Claim Bonus (NCB) if there is no claim history in

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Past. Also company is giving RED CARPET service which is only for the fleet

owners as they are considered to be the Gold / Platinum category of the agent.

The red carpet service is the extra benefits which includes many things which

are not rendered by any other competitors.

It includes following benefits:

• Free cashless service in the more than 2000 garages across the country.

• Access to the nearest garage at the highway

• No documents required at the time of surveying

• Free eye check up camp for the drivers

• Free driving training at advance level for the drivers

• Payment of 50% of claim amount at the time of service if claim is more

than 1lakh Rs.

• Settling claims in less than 21days.

• He can insure the vehicle more than 5years of age which no company in

private sector does.

Thus the red carpet service is proving to be win-win situation for both the

company and the agent himself as this is very much beneficial scheme for the

agent himself who is a fleet owner. And thus he is easily convinced however it

is still difficult to trace fleet owner as they are quite busy in their schedule

itself, so taking a prior appointment is difficult task to do.

Also I would like to introduce other specialty which helps agent as a back up

support.

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� They can insure vehicles above the age of 5 years which generally

Reliance and Iffco tokio is not taking.

� We have agent desk department who is catering agent queries such like

policy, premium calculation if they have any problem regarding their

status and also their payout and claim problems.

� The retention team work as a back up support for the agent which deals

in renewing the old policy of the old customer. So the retention team

intimates the agent and inform about the nearest renewal date and

amount which the agent has to collect from his customer.

Procedure of Recruitment:

To achieve a goal successfully one need to sketch a perfect roadmap & also

adopt a strategy to the destination and also need to follow the path strictly.

My plan to achieve target is as follows:

a. Generating Database

In the very first step of recruiting agents is to prepare contact numbers’

list for that I have used natural market contacts, referral contacts and

also I have done cold calling for that. In cold calling I take name and

number of that person and also profile of that person.

b. Tele calling

Tele calling is one way of convincing customers by doing phone calls and

explaining whole procedure of becoming agents and their pay roll

structure and how ICICI providing service to agents. And if possible tele

callers may take appointment so that face to face conformations can be

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Beneficial to understand the policy. This support was given by Divya

Patel & Pooja Nair who was on Agent Service Desk support.

c. Appointments

After Tele calling if customers are interested they give appointment for

meet. Both our self and customer conveniently decide the place for

meet.

d. Collecting documents and filling the forms

There are criteria for customer for becoming a. So, after fulfilling criteria

forms are filled and documents attached.

e. Submitted forms in company

After attaching documents and taking signature of customer forms are

submitted in the company. This is to be handover to the operations

department, as entry would be done in MIS after checking the details and

eligibility of the Agent from the document he has submitted, his signature is

verified, also his identity is cross checked, by the document itself or but

telephonic questioning if required.

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Limitations

• Generating the Data base of the customers is a quite time consuming for

me.

• Appointments at improper timings. Set the time according to the

customer convenience.

• Getting Quality Customers who would really trust IPRU was very difficult

at initial phase. Aware them about the other company policy and

differentiate between IPRU and its competitors products.

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Learning at Executive Training

• Improvement in my convincing skill.

• Time management.

• Leadership.

• Get the knowledge of corporate world.

• Working effectively and efficiently.

• Team work

• Working according to the company policies.

• Regular follow up the agents who are in pipeline.

• It is really important to know what the customer’s requirement is.

• How business & ethics work together

• Regular reporting with my company guide.

• Interacting with different type of agents

• Provide me an opportunity to apply the concepts learned in real –life

situations.

• It sensitizes us about nuances of work place by the time-bound projects

assigned by the company.

• It creates awareness about the strengths & weaknesses in the work

environment

• It provides a platform to develop a network while OJT (On-the-job-

Training), which would be useful in enhancing career prospectus.

• Know the day-to-day functions of the company.

• It provides a unique opportunity to get exposed to corporate culture,

professional experience & professional behavior & putting the

theoretical concepts learned in the classroom for developing managerial

skills.

• To gain a deeper understanding of the work culture, deadlines, pressure

etc. of an organization.

It gives a flavor of teamwork, organization culture, team dynamics, result

orientation, organizational pressures, complexities in achieving the desired

results etc.

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• It provides direct exposure to the execution & support functions of the

departments.

• It provides a good scope for developing necessary managerial skills &

positive attitude.

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Looking forward in insurance market in 2010 The Indian non-life market has experienced significant changes that are likely

to influence the country’s development of its insurance market in the medium

to long term.

So far, the entry of a large number of Indian and foreign private companies has

led to greater choice in terms of products and services for Indian consumers. A

growing realization of the benefits and importance of sophisticated insurance

and reinsurance tools has broadened the pool of potential buyers of insurance.

Given this backdrop, the Indian insurance market has experienced

considerable growth since its liberalization in 2000. Over the next three years,

the Indian insurance market is. Likely to see its process of maturation

accelerate.

Regulatory drivers

Regulatory changes in the four areas discussed in the previous section –

products, market players, distribution and reinsurance – will drive change in

the Indian insurance market in the medium term. In some areas, such as

detariffication, the majority of reform has already taken place, although the

consequences are yet to be seen. In other areas, while the reform is promised,

it is difficult to anticipate when it will occur. As a result, there is a lot of

uncertainty in the Indian insurance market. The four main areas of change are

now considered in turn.

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Detariffication

The process of detariffication, first begun in 1994, has gradually moved the

Indian market to a position where the overwhelming majority of insurance is

transacted without a tariff. As of

1 January 2007, tariff rates have been withdrawn from all lines of business

except for motor third-party (TP) liability. While hitherto, insurance

professionals had limited exposure to

Sophisticated technical pricing based on actuarial data analysis, in a detariffed

market, this is increasingly a necessity for businesses in order for them to

remain profitable.

Foreign ownership

As discussed earlier, foreign ownership is currently restricted to 26%, although

there are plans to increase this limit. The typical structure adopted by the

Indian government for the Phasing in of foreign-owned entities across other

industries (such as construction and pharma) has been as follows:

1. Phase I: Allow foreign entity to have 26% stake in joint

venture.

2. Phase II: Increase foreign entity maximum stake from 26% to 49%.

3. Phase III: Increase foreign entity maximum stake from 49% to 74%.

4. Phase IV: Allow 100% foreign-owned entity to operate in market.

In January 2007, the Indian government reiterated its claim to

Increase the cap from 26% to 49%

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In January 2007, the Indian government reiterated that it would introduce

legislation to hike the FDI cap in the insurance sector to 49%. No time limit has

been set for taking a decision on it although consultations with the industry

and stakeholders are underway. There is ample opposition from the left, but

analysts expect that this change will be made effective in. The next one to two

years. The effect of this change will be twofold. Firstly, it will increase the focus

of the existing Private insurers operating within the Indian market. As

discussed in the previous section, the private companies are increasingly

diverging on strategy as they are influenced by their foreign partners. It is likely

that increased foreign ownership will lead to differentiated strategy, more

niche players and a wider product range.

Secondly, it is expected to increase the supply of capacity in the market as new

investors will decide to enter the market. Indeed, a number of insurers have

commented that, as soon as foreign companies are allowed more than 26%

ownership, they would move as quickly as possible to participate in the

market.

Broker distribution

The broker channel was recognized in 2002; again, foreign capital providers

can take up to a 26% stake in an Indian brokerage operation. There is also no

indication at the time of writing as to whether the constraints placed on

Brokers, such as high set-up costs and activity restrictions will eventually be

removed. What remains clear, however, is the fact that in a detariffed market,

the broker has more opportunity to demonstrate value to both the customer

as well as the insurer. Value-added services can be in the form of consulting

regarding risk management responsibilities as well as more traditional

insurance-related roles.

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Compulsory Sessions

In line with detariffication, there has been some progress in reducing the

compulsory session to the GIC from 20% to 15%.

The 20% compulsory cession has been reduced to 10% in 2007

However, a complete abolishment of the remaining 15% compulsory cession to

the GIC is unlikely to occur in the medium term. Although it would seem

natural to liberalise this position as the broader non-life market begins to open

up, the Indian government and Legislator reiterated their desire to retain

insurance premium in India in the central legislation of 2000, and there is no

reason to believe that this position has since changed. In addition, many local

companies are happy with the automatic reinsurance support that they receive

from the GIC.

The PSUs are pleased that they are able to cede 15% of their poorly performing

motor book on to their parent whereas the growing number of private insurers

are grateful for the additional capacity that they receive from the GIC’s de

facto proportional treaty coverage. While a further reduction to 10% is

expected in 2008, abolishing compulsory cessions

Altogether is not at the top of the legislator’s agenda.

Growth drivers

Overall, sales of both commercial and retail products are expected to benefit

from India’s surging economic output over the medium term. Economists

expect India’s output to grow by around 6% per annum over the next ten to 15

years, and the political and business environments are expected to stabilize

further.79 The combination of this economic growth, Increased stability and

the liberalization of the non-life sector is expected to provide premium growth

in the range of 10% to 15% per annum over the short to medium term.

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Personal lines insurance premium growth drivers:

Personal lines products are expected to develop quickly as Indians grow

wealthier although probably not of immediate interest to Lloyd’s underwriters,

a developing economy’s initial growth in insurance penetration is often driven

by personal lines products, especially motor cover as this tends to compulsory.

Indeed, India’s fast-developing private insurers expect retail products to

provide them with their main source of premium growth over the medium

term.

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Conclusion

It was really a great experience to be associated with such a great corporate

company. Its was a great pleasure to work with reputed firm ICICI Lombard

which is No. 1 player as far as private company in insurance sector. Also I am

once again thankful to my company guide and staff of ICICI Lombard who really

worked hard as far as my training was in process. I have learned enormous

things during these 2 months, which will prove a solid platform as far as my

future career is concerned. It really enhanced my marketing skills, and also it

gave me solid motivation to face the critical situation, also I came across to the

various people and cultures which are in the corporate culture. I can say that

SIP was like net practice before playing any big game. It gave me ample of

knowledge regarding my study on Agent Acquisition.

I also got experience of hardcore selling as it was part of my SIP training. Thus

this 2months of SIP has pumped in lot of motivation and enthusiasm in me. It

also upgraded my confidence level and gave me boosting to face new

challenges and gave me path of not only surviving but also to grow in this

competitive work. I can say that my dedication and hard work towards my

decided task really gave me good result in the end.

I also learned to work in a team and how to cope up with team spirit. Positive

reinforcement was the most motivating factor which makes us to work in a

healthy atmosphere.

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BIBLOGRAPHY

Address:-

ICICI Lombard General insurance co. LTD.

6th

floor,

BBC Tower, Law Garden Road,

Near Mithakhali Six Road,

Ahmedabad.

WEBSITES

� www.ICICIbank.com

� www.icicilombard.com

� Search engine like: www.google.com

Magazine

� The Economic Times

� The business times

News paper

� The Times of India

� Gujarat samachar

Documents

ICICI Lombard Project Report