Navdeep
Navdeep
Navdeep
Insurance may be described as a social device to reduce or eliminate risks of lossto life and
properly. It is a provision which a prudent man makes against inevitablecontingencies, loss or
misfortune.O n c e F r a n k H . K n i g h t s a i d " R i s k i s u n c e r t a i n t y a n d u n c e r t a i n t y i s
o n e o f t h e fundamental facts of life." Insurance is the modern method by which men make
theuncertain certain and the unequal; equal. It is the means by which success is
almostguaranteed. Through its operation- the strong contribute to the support of the weak a n d
weak secure, not by favor sent by right duly purchased and paid for,
t h e support of the strong (Calvin Coolidge.)Under the plan of insurance, a large number
of people associate themselves bysharing risks attached to individuals. As in private
life, in business also there aredangers and risks of different kinds. The aim of all
types of insurance is to makeprovision against such dangers. The risks which can be insured
against include fire,t h e p e r i l s o f s e a ( m a r i n e i n s u r a n c e ) , d e a t h ( l i f e i n s u r a n c e )
a n d , a c c i d e n t s a n d burglary. Any risk contingent upon these, may be insured
against at a premium acommensurate with the risk involved. Thus, collective bearing of risks
is insurance.
Definition
Insurance in its basic form is defined as “ A contract between two
p a r t i e s whereby one party called insurer undertakes in exchange for a fixed sum
calledpremiums, to pay the other party called insured a fixed amount of money on
thehappening of a certain event."In simple terms it is a contract between the person who
buys Insurance and anInsurance company who sold the Policy. By entering into
contract the InsuranceCompany agrees to pay the Policy holder or his family members a
predetermineds u m o f m o n e y i n c a s e o f a n y u n f o r t u n a t e e v e n t f o r a
p r e d e t e r m i n e d f i x e d s u m payable which is in normal term called Insurance Premiums.
OBJECTIVE OF THE STUDY
The project deals with the customer survey on medical insurance, detailed study of the general
insurance industry, evaluating prospects of cross sales & selling health insurance & issues
Insurance has a long history in India. Life Insurance in its current form was introduced in 1818
when Oriental Life Insurance Company began its operations in India. General Insurance was
however a comparatively late entrant in 1850 when Triton Insurance company set up its base in
Kolkata.
History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b)
Nationalization and c) Post Nationalization. Life Insurance Corporation of India was formed by
General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of
India was set up as the controlling body with New India, United India, National and Oriental as
its subsidiaries. The process of opening up the insurance sector was initiated against the
background of Economic Reform process which commenced from 1991. For this purpose
Malhotra Committee was formed during this year who submitted their report in 1994 and
Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian
Insurance was opened for private companies and Private Insurance Company effectively started
The insurance sector was opened up for private participation few years ago. For years now, the
private players are active in the liberalized environment. The insurance markets have witnessed
dynamic changes which includes presence of a fairly large number of insurers both life and non-
life segment. Most of the private insurance companies have formed joint venture partnering well
CAPITAL REQUIREMENTS
&
FOREIGN PARTICIPATION
Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million
and that for reinsurance company is INR2000 million. A maximum 26% foreign equity stake is
allowed in direct insurance and reinsurance companies. In the 2004-05 budgets, the Government
proposed for increasing the foreign equity stake to 49%, this is yet to be effected.
There are currently twenty one non-life insurance companies, out of which two are
specialized Insurance companies viz. Agricultural Insurance Co, who handles Crop
Insurance business and Export Credit Guarantee Corporation, which only transacts
export Credit Insurance
SPECIAL PROVISIONS
PAYMENT OF PREMIUM BY INSURED
Section 64 VB of the Insurance Act 1938 prohibits insurance companies from extending credit so
Agency has been the traditional way in which insurance was transacted in the Indian market.
Agents act as the representatives of insurance companies. In the nationalized era, agents were a
very important source of business for the Public Sector Insurance Companies, as broking was not
allowed. Agents still hold a very large book of insurance business mainly in the personal lines.
CORPORATE AGENTS
Corporate Agents are corporate entities who acted as representative of insurance companies and
procured business on their behalf. However this concept of corporate agency was done away
Everybody is well known the profits of having a mediclaim policy. A sudden sickness or
accident can ruin your financial budget and at this stage mediclaim policy is always helpful.
In the current scenario, medical expenses are very high and its increasing everyday. The latest
family mediclaim insurance is ideal solution to save money and cover entire family under single
sum insured. This means no more multiple premiums and no more financial strain.
This policy is available in two variants - short term and long term and the coverage level is
similar like other traditional mediclaim policies. It provides covers for hospitalization expenses
for illness and diseases. It includes expenses for doctors fees, nursing expenses, medicines,
Mediclaim policy is a essential for the peoples because it saves financial loss in case of
hospitalization for any sickness, disease or accident. But it costs is much higher than other
Mediclaim premium calculator is very useful tool in such a condition because it helps to
calculate the your mediclaim costs. This online service is absolute free and specially designed for
customer convenience.
There are various mediclaim premium calculators are offered by insurance companies and
private websites. You can easily determine the cost of plan that you go for by doing just simple
work on such a calculator. Private websites also allows you to compare various insurance
Must-know-the-types-of-coverage-mediclaim
You may have come across many a time with the short forms in mediclaim articles/quotes like
HMO,PPO,POS,HSA, but could not make it, what the abbreviation stands for?
specialist, your family care doctor will help you in referring one. Mediclaim companies will not
insure you without the referral from your family doctor and therefore, you will have to pay
Through this plan you can analysis to any primary, specialist, or medical facility without referral
and get totally covered. It is the Mediclaim companies that covers you when your child breaks a
bone accidentally and you approach directly to the orthopedic doctor, without consulting your
primary doctor.
This plan essentially includes both an HMO and a PPO plan. Mediclaim companies give you the
option from the two plans for every medical case. The plan offers extra covered preventative
programs, however, you may have to pay more from your pocket, if you choose a doctor outside
your plan.
This plan is much more superior than the above mentioned mediclaim plans. The plan covers
savings account as long as withdrawals are concern for medical expenses. Funds outstanding at
the end of the year are carried forward into an IRA account.
Exclusions:
illness.
10. Naturopathy.
13. All external equipments such as contact lenses, cochlear implants etc.
Premium:
Mediclaim Premium is based on age of the proposer and geographical area of
treatment.
Features:
2. Loyalty Discount.
4. Cumulative Bonus.
Mediclaim insurance is a meant to covers all medical expenses in the case of hospitalization due
to certain serious sickness, disease or an accident. For this reason mediclaim insurance is always
advisable for yourself and your family members. But some times you can not require that the
purchase of high cost mediclaim insurance policy. Short term mediclaim insurance have been
Short term mediclaim insurance policy is a temporary solution and purchased for only short
period of time that is three months to one year. Generally, it covers all major health problems
like other standard health plans. This gives you freedom to choose doctor or specialist you wish
and the expenses are covered under this policy like doctors fees, hospital charge, surgery,
premium costs are considerably ow and paid on monthly basis. It provides only cover for the
Short term medical insurance cover is ideal for those under the jobs, temporary
employee, college students or just graduates.
Special mediclaim policy for senior citizens is specially designed to cater the needs of senior
citizens. It covers all hospitalization and domiciliary hospitalization expenses for illness and
disease. It includes expenses for doctors fees, hospital charge, anesthetist, nursing expenses,
This mediclaim policy is generally issued to peoples between the age of 60 to 80 years. It
provides the benefits of cumulative bonus, no claim bonus, cashless service and also tax benefit
is consider on insurance premium under section 80D of the income tax act.
The four public sector general insurance companies are offering these policies-
And private sector insurance company Bajaj Allianz General Insurance Company also
offer ‘Silver Health’ product for senior citizens.
Mediclaim Premium Rates
When you have decided to go for mediclaim policy, you will pay the premium on your
mediclaim policy to continue the coverage against any untoward situation. The premium paid is
Generally, the premium rates are vary from company to company and also depends on various
factors like age of the person, sum assured and policy coverage. The insurance companies also
determine the factors like advertising, selling, paying for health care service, investment of
The premium rates are different for smokers, the insurance companies charge
additional premium on their mediclaim policy.
Premium charged on individual plan is much higher compared to group plans due to
adverse selection. Because under group plans, company gets the more customer under
Basic Mediclaim Policy
specified mediclaim policy which provides coverage against medical expenses that are outcome
of the sickness or accident. In this plan, coverage is limited and pays for only one or two
expenses which are specified by the insured. This is the reason, policy is known as basic
mediclaim policy.
Because-
Mediclaim protects from the monetary and financial problems when one is hospitalized by
sickness. But choice is yours to choose between comprehensive health coverage and specified
health coverage.
Mediclaim Insurance
Tax Benefits:
1. Credit card or cheque pay premium for this insurance is eligible for relief
under Section 80D of the Income Tax Act.
Claims Procedure:
1. Inform the ID number to the insurer for easy acknowledgment.
2. In case of getting hospitalized,should inform within 24 hours before getting
admitted into the hospital.
3. If the case is emergency, information to be given within 24 hours after
hospitalization.
Tax benefits on your Mediclaim Policy
There is no way anyone can save themselves from paying tax. But yes we can sure use various
tax-saving instruments to lower down our tax payment burden and get maximum benefit from
these.
Mediclaim is one way of saving our huge heap of tax burden, we just need to be smart
enough to grab the right opportunity.
2. Rs. 15000 can be claimed to be deducted on health insurance under Section 80 (D) 3. Deduct
premium paid towards a critical illness rider on your life insurance policy under Section 80 (D).
Deductions under Section 80 (D) are over and above the deductions under Section 80(C) of Rs. 1
lakh.
RESEARCH METHODOLOGY
The research undertaken was that of a descriptive type. Descriptive research aims at fact finding
and more often is based on surveys. Its purpose is to describe the present state of affairs of the
topic of study.
In case of primary sources the information was retrieved directly from the customers and sales
consultants. We have done the analysis with the help of the inputs provided by the customers of
the products of the insurance companies. The primary data is collected through conducting a
survey with the help of a questionnaire designed by me. In the Bank, customers were approached
and detailed responses were taken and their future interest in insurance and suggestions for the
company were duly recorded. For the other subsidiary projects, the promotion and sales were
done at the showroom itself while the interaction that took place for filling the questionnaire. The
prospective customers for health insurance were contacted through Tele-calling and thereafter
SECONDARY DATA
Secondary data was collected from books and the internet.
By this method of data collection more accurate and reliable information on the subject can be
obtained. In order to get aware of the customer behavior, we designed a questionnaire which
would help us extract maximum information so as to analyze the factors that play a decisive role
CALLING
After getting the customer details from the questionnaires filled them, the
prospective customers for health insurance were called & sales were done.
RESEARCH APPROACH
The product portfolio of IFFCO TOKIO is wide.
Following are some methods, which have been taken in order to complete the
project and make it successful:
Understanding the basics of insurance Business and getting familiar with the
product range of IFFCO TOKIO.
Assessing the present situation of IFFCO TOKIO in motor insurance Business.
COMPARISON OF RATES OF IFFCO TOKIO
WITH OTHER COMPANIES
CONCLUSION :
• Continued strength in the broader economy and gradual reform in the non life
sector are expected to combine to produce strong premium growth in the
Indian market over the next few years.
• Whilst India currently remains a medium sized non -life market, the growth predicted over the
medium to long term is attracting increasing levels of foreign investment and competition. Many
of the world’s largest insurers such as AIG, IFFCO TOKIO & ALLIANZ are present in the
market. The new private insurers are growing fast and have already developed a combined
market share of 40 %.
• As the market is liberalized and becomes more mature the private firms are considered well
placed to capture an even greater share of a fast growing market. The main risk to private
insurers is the high likelihood of sustained price competition as tariffs are removed from some
In the end, notions about exactly what constitutes good customer service are evolving, driven by
increasingly knowledgeable customers who have become empowered by their own willingness
informational services will be adapted to deliver service that not only offers higher levels of
customer satisfaction, but delivers opportunities for insurers to grow revenue and profitability.
As each study do we have some benefit and some scope , there is one more thing which is mostly
found in any research work and that is limitation .Limitation are the restricting factor
encountered during the research study , it does have some limitation , which was present during
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Due to some of the customer was not ready to respond.
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The degree of brand awareness is not the mark.
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Allowances of the and the cost as well.
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Reserve nature of customer.
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Transparency.
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Penetration.
BIBLIOGRAPHY:
www.iffco-tokio.com
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www.google.com
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The Economic Times
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www.gicofindia.in
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www.irdaindia.org
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www.insuranceage.com
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www.itgi.in