HDFC ERGO SummeerIntern Ship Project Report

A
Project Study Report

On
Training undertaken at
HDFC ERGO GENERAL INS. CO. LTD

Titled
Comparative Analysis Of HDFC ERGO’s Health Insurance Products

With Major Players of General Insurance
(In partial fulfillment of Bachelor of Business Administration)

Submitted By: Submitted To:
Sudhir Kaushik University Of Rajasthan
Enrollment No. – 07/102494
BBA, Class of 2010
APEX INSTITUTE OF MANAGEMENT & SCIENCE
( Affiliated to university of Raj. Approved by AICTE,Govt.of India )
1
PREFACE
This project entitled:
To compare all the health products available in the market of all the general insurance
companies with HDFC ERGO’s Products and suggesting the corrective measures to
improve their plans.
To conduct market survey of Shopkeepers Insurance in Jaipur’s local markets.
To recruit the agents for general insurance business.
To sell the health products.
The project and accompanied training at HDFC ERGO General Insurance Co. Pvt. Ltd.
gave me thorough insight of practical world of insurance business; apart it was
beneficial in part of exposure that we got, being the part of one of the successfully
operating Multinational insurance company.
July17, 2009 Sudhir Kaushik

BBA-Part III
2
ACKNOWLEDGEMENT
The Project Title Comparative Analysis of Health Insurance Products & Market
Survey has been conducted by me during 01/05/09 to 15/06/09 at HDFC ERGO General
Insurance Co. Pvt. Ltd. I have completed this project, based on the Primary research,
under the guidance of Mr. Abhishek Tripathi
I owe enormous intellectual debt towards my guide Mr. Abhishek Tripathi, who
has augmented my knowledge in the field of Insurance & company Management. He has
helped me learn about the process and giving me valuable insight into the Insurance
Business.
I am obliged to Mr. C.P. Kaushik for cooperation during the Internship. My

increased spectrum knowledge in this field is the result of his constant supervision and
direction that has helped me to absorb relevant and high quality information.
I would like to thank all the respondents without whose cooperation my study
/project would not have been possible.
Last but not the least, I feel indebted to all those persons who helped directly or
indirectly in successful completion of this study.
July 17, 2007 Sudhir Kaushik

Enroll. No. 07/102494
3
To Whom So Ever It May Concern
This is to certify that Sudhir Kaushik, a student of BBA, class of 2010, Apex
Institute of Management & Technology, University of Rajasthan, bearing Enroll. No.
07/102494 has undertaken the Summer Internship Training at HDFC ERGO General
Insurance Co. Ltd. during 01/05/2009 to 15/06/2009. He has worked under my guidance
for the Project – To study the market trend & Health Insurance.
This project report is prepared in partial fulfillment of Bachelor of Business

Administration (BBA) to be awarded by University of Rajasthan.
To the best of my knowledge, the piece of work is original and no part of this report has
been submitted by the student to any other Institute/University earlier.
July 17, 2007 Mr. Abhishek Tripathi

Operations Manager
(Rajasthan)
4
EXECUTIVE SUMMARY
I did my summer training from HDFC ERGO General Insurance Co. Ltd.
The basic objective of doing this project was to compare all the health products of all
general insurance companies with HDFC ERGO’s products and suggesting the corrective
measures for improvement.
To conduct market survey on shopkeepers insurance and motivating the shopkeepers to
get their shops and belongings insured for the purpose of safety and security.
To learn about underwriting methods adopted by the company and to learn about marine
insurance.
To learn about the issuance and renewals of the policies and agency.
And lastly to sell the health products in market.
5
Table of Contents
Introduction………………………………………………………………………7
1. Rview of Literature………………………………………..…………………..8-18
 About Insurance
 About Insurance Industry
 Insurance in India
 History of Insurance in India
 Insurance Regulatory and Development Authority
 Reinsurance
 Different Insurance Companies
 Changing face of Indian insurance industry
 India: The Next Insurance Giant
2. About The Organisation……………………………………………………19-24
 About HDFC ERGO
 The Indian Promoter: HDFC Ltd
 The German Promoter : ERGO Insurance Group
 WHAT SAY THE NEWS HEAD LINES
3. Health Insurance & BAGIC…………………………………………………25-32
Types Of Health Prooduct
 Health Guard
 Hospital Cash
 Critical Illness
 Silver Health Insurance
 E-Opinion
 Personal Guard
 Star Package
4. Comparative Analysis Health Insurance Products of HDFC ERGO With Other
Insurance Companies………………………………………………………..33-48
 HDFC ERGO with Tata AIG
 HDFC ERGO with Star Health Insurance
 HDFC ERGO with National Insurance
 HDFC ERGO with ICICI Lombard
 HDFC ERGO with Reliance General
 HDFC ERGO with Royal Sundaram
 HDFC ERGO with Chola Mandalam
5. Market Survey…………………………………………………………………49-50
6. Questionnaire…………………………………………………………………...51-62
7. Research Methodolgy…………………………………………………………...63-65
8. Other Works…………………………………………………………………….66-67
• Recommendations …………………………………………………………………68
• Bibliography………………………………………………………………………..69
6
INTRODUCTION
About the project

The project deals with comparative analysis of different insurance products offered by insurance
companies.
Purpose of the project

The main purpose of the project is to do comparative analysis of different insurance products,
check the awareness level and perception of insurance by the individuals.
The project would also help in understanding preference of people regarding private and
public insurance companies. The main objective of the research is
• · Making comparative analysis between:-

1. HDFC ERGO with TATA AIG.
2. HDFC ERGO with Star Health Insurance
3. HDFC ERGO with National Health Plan
4. HDFC ERGO WithReliance
• · Finding out the features and benefits of these plans
• · To find out the awareness level of insurance in Kolkata
• · To determine customer preference towards private insurance companies and
• public insurance companies.
• · Marketing of different insurance products.
1.3: Scope of the project

The entry of foreign MNC’s and the conductive business environment fostered by
thegovernment, it is no wonder that the re-entry of private insurance has marked a secondcoming
for the sector. In just five years, the sector has undergone a makeover, offeringmore choice, better
services, quicker settlement, tighter regulation and greaterawareness ‘s the environment become
more and more competitive and services and products become alike, creating a differentiation is
becoming extremely tough. Thus,the main objective of my project was to find out the preference
of people regarding insurance companies, which would help karvy employees to market their
product. Thestudy then goes on to evaluate and analyze the findings so as to present a clear
pictureof recent trends in the Insurance sector.
7
CHAPTER – 1
Review of Literature
8
REVIEW OF LITRATURE
ABOUT INSURANCE
Insurance defined.—Insurance is a provision for the distribution of risks; that is to say, it is a
financial provision against loss from unavoidable disasters. The protection which it affords takes
the form of a guaranty to indemnify the insured if certain specified losses occur. The principle of
insurance, so far as the under-taking of the obligation is concerned, is that for the payment of a
certain sum the guaranty will be given to reimburse the insured. The insurer, in accepting risks, so
distributes them that the sum total of all the amounts paid for this insurance protection will be
sufficient to meet the losses that occur.
Insurance, then, indicates divided responsibility. This principle is introduced in most stores where
a division is made between the sales clerk and the cashier's department, the arrangement dividing
the risk of loss. The insurance principle is similarly applied in many other cases of divided
responsibility. As a business, however, insurance is usually recognized as some form of securing
a promise of indemnity by the payment of a premium and the fulfillment of certain other
stipulations.
Early instances of insurance.—Forms of insurance were known to the Romans and to
some extent were practiced among the Collegia. In certain respects these bodies resembled our
benefit societies. For example, they provided for burial and also made some form of provision for
promotion among the soldiers in their organizations. In reality, then, they were based on the
insurance principle since they accepted from their members a certain stipulated sum and in return
agreed to perform certain services. Demosthenes describes marine loans made to the ancient
Greeks ; we also have record that insurance existed among the Chinese 2500 years ago. In none
of these early instances, however, did insurance reach anything like large proportions. In fact, so
far as we know, it entirely disappeared, many centuries passing before there was a revival. It is
true that certain laws among the Romans governing annuities necessitated a mortality table, but it
was, however, for this sole purpose and apparently not in any sense an insurance matter.
Present forms of insurance.—The business of insurance is divided into four main
branches: marine insurance, fire insurance, life insurance and casualty insurance. The first three
state the form of disaster against which insurance is provided. The fourth—originally accident
insurance—includes all forms not embraced in the other three. An idea of the variety of events
against which insurance is offered.
Marine insurance antedates every other form, its history dating back over seven centuries.
It appears to have been practiced in the Mediterranean, and at least one old policy has come down
from the thirteenth century, proving that marine insurance was an established practice among the
commercial countries of that time. A broad gap exists between that period and the continuous
history running back now some four hundred years, but since that time insurance has been an
established business among those engaged in maritime adventures.
Fire insurance, the second oldest form to become permanently established, dates from the great
London fire of 1666.
Life insurance followed a little later, although not until 1760 was a company founded on a
modern basis.
Casualty insurance owes its origin to the application of steam to railway travel; its more
common name of accident insurance was due to the fact that the first events to be insured against
were those of accidents to the person on a railway journey. It originated in England in the first
half of the nineteenth century.
The theory of probabilities.—All forms of insurance have a fundamental basis in the theory of
probabilities. This theory deals with those events which seemingly do not lend themselves to a
fixed law but which in reality occur with such approximate regularity that a definite law may be
9
deduced from a sufficient number of these uncertain events, the law being that these events will
occur with sufficient regularity over a period of time so that conclusions may safely be drawn
from them.
The possibilities contained in the theory of probabilities were first brought to light by the
famous solution of a gaming problem. Two noblemen, engaged in a game of cards called the
Game of Points, were obliged to cease play before the game could be finished. Being unwilling to
separate with each retaining his own stakes, they asked Pascal, the eminent Frenchman, to
suggest how the stakes should be divided. The stakes amounted to $64, each having contributed
$32, and it was necessary for one of the players to make three points before he would be entitled
to the stakes. At the time they appealed to Pascal, one player had two points to his credit and the
other player had one. Pascal submitted the following solution: "Suppose," he said, "that you had
played another hand. One of two things would necessarily happen : either the player who has two
points would gain one, and, having three points to his credit, would claim the stakes; or the player
with one point to his credit would win another so that he would have two points to his credit, the
same as his opponent. If this latter should happen, each would have retained his individual stake.
The chances of winning I consider equal, and as it is evident that the player with two points
cannot, if he plays another hand, lose his original stake of $32, the other 832 should be divided
into two parts and the player who has one point to his credit retain $16 and the player with two
points receive $16, or the whole stake be divided into proportions of 48 and 16.
Pascal submitted two other suggestive solutions to clinch his theory, but they need not be
discussed here. Gambling at that time was prevalent in the courts, and nothing pleased the
gamblers more than to be shown ways whereby their games could be decided although not played
to a conclusion. Great intellectual interest was aroused in the theory of probabilities, and out of
this condition the business of insurance in its modern aspect originated. At this point it should be
said that insurance, although often compared with gambling—possibly because of these early'
associations—is entirely different from it in principle. Gambling is an attempt to increase, one's
means by a venture not based on any known factors; that is, it is purely and simply a chance.
Insurance, on the other hand, takes into consideration all the factors that enter into the problem
and that may affect the hazard insured against, or the factors that may, if guarded against, prevent
the contingency from happening.
Logic of insurance
It is a system by which the losses suffered by a few are spread over many, exposed to similar
risks. Insurance is a protection against financial loss arising on the happening of an unexpected
event. Insurance companies collect premiums to provide for this protection. A loss is paid out of
the amount premiums collected from the insuring public and the Insurance Companies act as
trustees to the collected.
Need of insurance
Insurance is desired to safeguard oneself and one's family against possible losses on account of
risks and perils. It provides financial compensation for the losses suffered due to the happening of
any unforeseen events. By taking life insurance a person can have peace of mind and need not
worry about the financial consequences in case of any untimely death. Certain Insurance contracts
are also made compulsory by legislation. For example, Motor Vehicles Act 1988, stipulates that a
person driving a vehicle in a public place should hold a valid insurance policy covering “Act"
risks.
Another example of compulsory insurance pertains the Environmental Protection Act,
wherein a person using or to carrying hazardous substances (as defined in the Act) must hold a
valid public liability (Act) policy.
About Insurance Industry
10
"Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a
fixed amount of money on the happening of a certain event."Insurance is a protection against
financial loss arising on the happening of an unexpected event. Insurance companies collect
premiums to provide for this protection. A loss is paid out of the premiums collected from the
insuring public and the Insurance Companies act as trustees to the amount collected. For
Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person
receives a fixed compensation on the death of the insured. Similarly, in a car insurance, in the
event of the car meeting with an accident, the insured receives the compensation to the extent of
damage. It is a system by which the losses suffered by a few are spread over many, exposed to
similar risks.
Insurance in India
Insurance is a federal subject in India and has a history dating back to 1818. Life and general
insurance in India is still a nascent sector with huge potential for various global players with the
life insurance premiums accounting to 2.5% of the country's GDP while general insurance
premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of
phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up
the insurance sector by allowing private companies to solicit insurance and also allowing FDI up
to 26%. Ever since, the Indian insurance sector is considered as a booming market with every
other global insurance company wanting to have a lion's share. Currently, the largest life
insurance company in India is still owned by the government.
History of Insurance in India

Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company
was started by Europeans in Kolkata to cater to the needs of European community. Pre-
independent era in India saw discrimination among the life of foreigners and Indians with higher
premiums being charged for the latter. It was only in the year 1870, Bombay Mutual Life
Assurance Society, the first Indian insurance company covered Indian lives at normal rates.
At the dawn of the twentieth century, insurance companies started mushrooming up. In the year
1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to regulate the
insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an actuary. However, the
disparage still existed as discrimination between Indian and foreign companies. The oldest
existing insurance company in India is National Insurance Company Ltd, which was founded in
1906 and is doing business
even today. The Insurance industry earlier consisted of only two state insurers: Life Insurers i.e.
Life Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance
Corporation of India (GIC). GIC had four subsidiary companies. With effect from December
2000, these subsidiaries have been de-linked from parent company and made as independent
insurance companies: Oriental Insurance Company Limited, New India Assurance Company
Limited, National Insurance Company Limited and United India Insurance Company Limited.
Life insurance
Life insurance or life assurance is a contract between the policy owner and the insurer, where the
insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured
individual's or individuals' death or other event, such as terminal illness or critical illness. In
return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or
in lump sums. There may be designs in some countries where bills and death expenses plus
catering for after funeral expenses should be included in Policy Premium. In the United States,
the predominant form simply specifies a lump sum to be paid on the insured's demise.
11
Life Insurance Corporation Act, 1956
Even though the first legislation was enacted in 1938, it was only in 19 January 1956,
that life insurance in India was completely nationalized, through a Government
ordinance; the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the
same year to, inter-alia, form LIFE INSURANCE CORPORATION after
nationalization of the 245 companies into one entity. There were 245 insurance
companies of both Indian and foreign origin in 1956. Nationalization was accomplished
by the govt. acquisition of the management of the companies. The Life Insurance Corporation of
India was created on 1 September, 1956, as a result and has grown to
be the largest insurance company in India as of 2006 .
General Insurance
General insurance or non-life insurance policies, including automobile and homeowners policies,
provide payments depending on the loss from a . particular financial event. General insurance
typically comprises any insurance that is not determined to be life insurance. It is
called property andcasualty insurance in the U.S. and Non-Life Insurance in Continental Europe
In the UK, General insurance is broadly divided into three areas: personal lines, commercial
lines and London market. The London market insures large commercial risks such as
supermarkets, football players and other very specific risks. It consists of a number of insurers,
reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the
City of London. The Lloyd's of London is a big participant in this market. The London Market
also participates in personal lines and commercial lines, domestic and foreign,
through reinsurance.
Commercial lines products are usually designed for relatively small legal entities. These would
include workers' comp (employers liability), public liability, product liability, commercial fleet
and other general insurance products sold in a relatively standard fashion to many organisations.
There are many companies that supply comprehensive commercial insurance packages for a wide
range of different industries, including shops, restaurants and hotels. Personal lines products are
designed to be sold in large quantities. This would include autos (private
car), homeowners (household), pet insurance, creditor insurance and others.
General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize
the 100 odd general insurance companies and subsequently merging them into four
companies. All the companies were amalgamated into National Insurance, New India
Assurance, Oriental Insurance, and United India Insurance which were headquartered
in each of the four metropolitan cities.
Insurance Regulatory and Development Authority
The Insurance Regulatory and Development Authority (IRDA) is a national agency of

the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament
known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging
requirements. Mission of IRDA as stated in the act is "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."
12
Insurance Regulatory and Development Authority (IRDA) Act,1999
Till 1999, there were not any private insurance companies in Indian insurance sector. The
Govt. of India then introduced the Insurance Regulatory and Development Authority Act in 1999,
thereby de-regulating the insurance sector and allowing private companies into the insurance.
Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance
companies. In recent years many private players
entered in the Insurance sector of India. Companies with equal strength started
competing in the Indian insurance market. Currently, in India only 2 million people
(0.2 % of total population of 1 billion), are covered under Med claim, whereas in
Developed nations like USA about 75 % of the total population are covered under some
Insurance scheme. With more and more private players in the sector this scenario may
Change at a rapid pace
Power, Duties and Functions Of the authority
The Authority has been entrusted with the duty to regulate, promote and ensure the orderly
growth of the insurance and re-insurance business in India. In furtherance of this responsibility, it
has been conferred with numerous powers and functions which include prescribing regulations on
the investment of funds by insurance companies ,regulating maintenance of the margine of
solvency, adjudication of disputes between insurers and intermediaries, supervising the
functioning of the tariff advisory comitee,specifying the percentage of premium income of the
insurer to finance schemes for promoting and regulating professional organizations and
specifying the percentage of Life & General Insurance business to be undertaken by the insurer in
the rural or social sector
Reinsurance
Reinsurance is a means by which an insurance company can protect itself with other insurance
companies against the risk of losses. Individuals and corporations obtain insurance policies to
provide protection for various risks (hurricanes, earthquakes, lawsuits, collisions, sickness and
death, etc.). Reinsurers, in turn, provide insurance to insurance companies. The company
requesting the cover is called the cedant and the reinsurer can be called the ceded, although the
latter term is not in common use.
The main use of any insurer that might practice reinsurance is to allow the company to assume
greater individual risks than its size would otherwise allow, and to protect a company against
losses. Reinsurance allows an insurance company to offer higher limits of protection to a
policyholder than its own assets would allow. For example, if the principal insurance company
can write only $10 million in limits on any given policy, it can reinsure (or cede) the amount of
the limits in excess of $10 million.
Reinsurance’s highly refined uses in recent years include applications where reinsurance was
used as part of a carefully planned hedge strategy
Different Insurance Companies

Insurance is an upcoming sector, in India the year 2000 was a landmark year for life
insurance industry, in this year the life insurance industry was liberalized after more
than fifty years. Insurance sector was once a monopoly, with LIC as the only company,
a public sector enterprise. But nowadays the market opened up and there are many
private players competing in the market. There are fifteen private life insurance
companies has entered the industry. After the entry of these private players, the market
share of LIC has been considerably reduced. In the last five years the private players is
13
able to expand the market (growing at 30% per annum) and also has improved their
market share to 18%. For the past five years private players have launched many innovations in
the industry in terms of products, market channels and
advertisement of products, agent training and customer services etc.
The various life insurers entered India:-

Life Insurer in Public Sector
1. Life Insurance Corporation of India
Life Insurers in Private Sector
2. MetLife India Life Insurance
3. ICICI Prudential
4. Bajaj Allianz Life Insurance
5. Max New York Life Insurance
6. Sahara Life Insurance
7. TATA AIG Life Insurance
8. HDFC Standard Life
9. Birla Sunlife
10. SBI Life Insurance [1]
11. Kotak Life Insurance
12. Aviva Life Insurance
13. Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC
14. ING Vysya Life Insurance
15. Shriram Life Insurance
16. Bharti AXA Life Insurance Co Ltd
17. Future Generali Life Insurance Co Ltd
18. IDBI Fortis Life Insurance
19. AEGON Religare Life Insurance
20. DLF Pramerica Life Insurance
21. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE
14
The various other general Insurance Companies are as under:-
Non-Life Insurer in Public Sector
1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited
3. National Insurance Company Limited
4. United India Insurance Company Limited.
Non-Life Insurers in Private Sector

1. Bajaj Allianz General Insurance Co. Ltd.
2. ICICI Lombard General Insurance Co. Ltd.
3. IFFCO Tokio General Insurance Co. Ltd.
4. Reliance General Insurance Co. Ltd.
5. Royal Sundaram Alliance Insurance Co. Ltd
6. Tata AIG General Insurance Co. Ltd.
7. Cholamandalam MS General Insurance Co. Ltd.
8. HDFC ERGO General Insurance Co. Ltd.
9. Export Credit Guarantee Corporation of India Ltd.
10. Agriculture Insurance Co. of India Ltd.
11. Apollo Munich Health Insurance Company Limited
12. Future Generali India Insurance Company Limited
13. Universal Sompo General Insurance Co. Ltd.
14. Shriram General Insurance Company Limited,
15. Bharti AXA General Insurance Company Limited
16. Raheja QBE General Insurance Company Limited,
17. SBI General Insurance Co. Ltd.
Reinsurers
GENERAL INSURANCE CORPORATION OFINDIA
15
Changing face of Indian insurance industry
Indian life-insurance market is the target market of all the companies who either want to
extend or diversify their business. To tap the Indian market there has been tie-ups
between the major Indian companies with other International insurance companies to
start up their business. The government of India has set up rules that no foreign
insurance company can setup their business individually here and they have to tie up
with an Indian company and this foreign insurance company can have an investment of
only 24% of the total start-up investment. Indian insurance industry can be featured by:
• Low market penetration.

• Ever growing middle class component in population.
• Growth of customer’s interest with an increasing demand for better insurance products.
• Application of information technology for business.
• Rebate from government in the form of tax incentives to be insured.
Today, the Indian life insurance industry has a dozen private players, each of which are
making strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country. Several
of private insurers have introduced attractive products to meet the needs of their target
customers and in line with their business objectives
India: The Next Insurance Giant

Market Performance & Forecast: In 2000, Indian insurance market size was $21.71
billion. Between 2000 and 2007, it had an increase of 120% and reached $47.89 billion.
Between 2000 and 2007, total premiums maintained an average growth rate of 11.96%
and the CAGR growth during this time frame has been 11.96%. It was one of the most
consistent growth patterns we have noticed in any other emerging economies in Asian
as well as Global markets.
Indian Insurance Market

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd
largest in terms of purchasing power parity. With factors like a stable 8-9 per cent
annual growth, rising foreign exchange reserves, a booming capital market and a
rapidly expanding FDI inflows, it is on the fulcrum of an ever increasing growth curve.
Insurance is one major sector which has been on a continuous growth curve since the
revival of Indian economy. Taking into account the huge population and growing per
capita income besides several other driving factors, a huge opportunity is in store for
the insurance companies in India. According to the latest research findings, nearly 80%
of Indian population is without life insurance cover while health insurance and non-life
insurance continues to be below international standards. And this part of the population
is also subjected to weak social security and pension systems with hardly any old age
income security. As per our findings, insurance in India is primarily used as a means to improve
personal finances and for income tax planning; Indians have a tendency to invest in
properties and gold followed by bank deposits. They selectively invest in shares also but the
percentage is very small 4-5%. This in itself is an indicator that growth potential for the insurance
16
sector is immense. It’s a business growing at the rate of 15-20% per annum and presently is of the
order of $47.9 billion.
India is a vast market for life insurance that is directly proportional to the growth in
premiums and an increase in life density. With the entry of private sector players backed
by foreign expertise, Indian insurance market has become more vibrant. Competition in
this market is increasing with company’s continuous effort to lure the customers with
new product offerings. However, the market share of private insurance companies
remains very low -- in the 10-15% range. Even to this day, Life Insurance Corporation
(LIC) of India dominates Indian insurance sector. The heavy hand of government still
dominates the market, with price controls, limits on ownership, and other restraints.
Major Driving Factors

• Growing demand from semi-urban population
• Entry of private players following the deregulation
• Rising demand for retirement provision in the ageing population
• The opening of the pension sector and the establishment of the new pension
• regulator
• Rising per capita incomes among the strong middle class, and spreading affluence
• Growing consumer class and increase in spending & saving capacity
• Public private partnerships infrastructure development
• Dearth of innovative & buyer-friendly insurance products
• Success of Auto insurance sector
Emerging Areas
• Healthcare Insurance & Pension Plans
• Mutual fund linked insurance products
17
• Multiple Distribution Networks .i.e. Bank assurance
The upward growth trend started from 2000 was mainly due to economic policies
adopted by the then Indian government. This year saw initiation of an era of economic
liberalization and globalization in the Indian economy followed by several reforms and
long-term policies that created a perfect roadmap for the success of Indian financial
markets. On the basis of several macroeconomic factors like increase in literacy rate &
per capita income, decrease in death rate and unemployment, better tax rebates,
growing GDP etc., we estimate that the Indian insurance sector will grow by $28.65
billion and reach $76.54 billion by 2011 with a CAGR (compounded annual growth rate)
of 12.44% and a growth of 59.82%.
Valuing the invaluable

Both under insurance and over insurance can often be attributed to the lack of proper
understanding of the exact insurance needs for oneself and the family, and the failure to
spot and cover all liabilities properly and adequately, or being over-conservative in this
regard.
Under Insurance
Under insurance, typically occurs when the existing financial liabilities and insurance
needs are fully taken care of. In the event of the untimely death of the only (or the main
earning) member of the family, his financial liabilities would obviously fall on his
dependents, leaving them in a state of financial distress that could threaten their need
of sustenance.
Over Insurance
Conversely, there are also instances where individuals indulge in life insurance covers
that far exceed in value than what is actually required. This is a classic case of over
insurance, which leads to an unnecessarily higher premium payment, leaving you much
poorer. It results in unnecessary expenditure that could otherwise be wisely invested
elsewhere.
The need for an adequate insurance cover is never static and keeps on varying with
changes in the life stages and important events of an individual. The table below
provides an insight into the various life stages and events when life insurance cover
usually requires a revision.
18
CHAPTER – 2
About Organization
19
About The Organization
About HDFC ERGO

HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC
Limited, India’s premier Housing Finance Institution & ERGO International AG, the primary
insurance entity of Munich Re Group.
HDFC ERGO focuses on providing the “Right Insurance Solution” for all. We
offer our customers complete range of general insurance products ranging from Motor, Health,
Travel, Home and Personal Accident in the retail space and customized products like Property,
Marine and Liability Insurance in the corporate space.
It is our constant endeavor to improvise and cater to every need of the modern day
customer with superior customer support service. This helps us give our customers a seamless
and hassle-free experience.
HDFC ERGO has been expanding its presence across the country and is today present
across 46 cities with 52 branch offices with an employee base of over 650 professionals. The
company has a right balance of distribution channel comprising of Dealerships, Brokers, Retail
and Corporate Agents, Banc assurance and Direct Sales Team.
The Indian Promoter: HDFC Ltd

The Housing Development Finance Corporation (HDFC), a pioneer in housing finance in India, is
known for its strong retail focus and service to the masses. It has turned the concept of housing
finance into a profitable, professionally managed, world- class enterprise. It has assisted over 1.9
million families to own a home through loans over RS. 370 billion (Rs. 37000 Crores) This is
supported by its strong distribution network of over 125 offices across the country serving
customers in over 2400 cities/towns. It also has over 46000 deposit agents, with a deposit base of
over RS. 85 billion (Rs. 8500 Crores) from over 1.2 million depositors.
Over the years, HDFC has grown into a very strong brand, promoting various companies to offer
financial services like banking, mutual funds, life insurance, stock market and real estate related
services
The German Promoter : ERGO Insurance Group

With premium income amounting to €17,7bn, ERGO is one of the major insurance groups in
Europe. Worldwide, ERGO is represented in more than 30 countries and concentrates on Europe
and Asia. In Europe, ERGO is no. 1 in the health and legal expenses insurance segments, and in
its home market of Germany it is among the market leaders. 50,000 people work full-time for the
Group, either as salaried employees or as self-employed sales representatives.
ERGO offers a wide spectrum of different types of insurance and other services, and, as a
reliable and fair partner, intends to be the permanent no. 1 choice for all provision and
insurance needs of its clients. 40 million clients currently place their trust in the services,
expertise and financial strength provided by ERGO and its companies. In Germany, 20
million clients place their faith in the strong brands of D.A.S., DKV, ERV, Hamburg-
Mannheimer, KarstadtQuelle Insurance and Victoria.
ERGO has the right sales channel for every client: Over 21,000 self-employed sales
representatives, staff working in direct sales, as well as insurance brokers and strong
20
cooperation partners - both in Germany and abroad - look after our clients. We maintain a far-
reaching sales partnership with the major European bank UniCredit Group, both in Germany
as well as in Central and Eastern Europe.
ERGO is part of the Munich Re Group, one of the leading risk carriers worldwide. Under its
umbrella, both primary insurer and reinsurer capitalise on opportunities to turn risk into
value. The investments undertaken by the Munich Re Group amount to approximately €
175bn, of which € 108bn are accounted for by ERGO, and are managed by the joint asset
management and fund company MEAG. Munich Re holds a 94.7 % stake in ERGO.
.
ERGO in brief
1. Total premium income of € 17.7 billion in 2008
2. European market leader in private health and legal expenses insurance
3. Investments totalling to over € 100 billion
4. Shareholders' funds amounting to around € 3.7 billion
5. Over 31,000 salaried employees and 21,000 full-time representatives
The HDFC ERGO Difference
• Business strategy aligned to clients' needs and trends in Indian and global economy industry
• Internationally experienced core team, majority with local background
• Fast, decentralised decision making
• Long-term commitment to market and clients
Trust
At HDFC ERGO we realise that you seek an insurer whom you can trust. HDFC Limited is
trusted name for over 32 years in the Indian market and ERGO AG has over 110 years of global
experience in financial services. Together we are committed to provide you with time tested and
trusted financial solutions that provide you all the security you need for your investments.
Claims Philosophy
The HDFC ERGO team follows a service that aims at taking the anxiety out of claims processing.
We pride ourselves on a friendly and open approach. We are focused towards providing you a
hassle free and speedy claims processing.
Our claims philosophy is to :
• Be flexible and settle fast
• Ensure no claim file to be seen by more than 3 people
• Check processes regularly against the global ERGO OPEX (Operational Excellence)
methodology
Sold over 1 million since inception.
Customer Orientation
At HDFC ERGO our guiding principles are customer service and client satisfaction. All our
efforts are directed towards understanding the culture, social environment and individual
insurance requirements - so that we can cater to all your varied needs.
Experienced and Expert Servicing Team
21
We are driven by a team of experienced people who understand Indian risks and are supported by
the necessary international expertise required to analyse and assess them
Superior Technology
• In order to ensure speedy and accurate processing of your needs, we have established
world class technology, with renowned insurance software, which networks all our
offices and intermediaries
• Using the Web, policies can be issued from any office across the country for retail
products
• Unique, user friendly software developed to make the process of issue of policies and
claims settlement simpler (e.g. online insurance of marine policy certificate)
Unique Forms of Risk Cover
• Special PA cover for Amarnath Yatris

• Film insurance
• Event management cover
• Sports & Entertainment Insurance Package
Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:
• Risk identification: Inspections

• Risk analysis: Portfolio review and gap analysis
• Risk retention
• Risk Transfer: To an insurer as well as reinsurer (as required)
• Creation of need based products
• Ongoing dialogue and proactivity
22
WHAT SAY THE NEWS HEAD LINES?
27.05.2009
An all-inclusive health cover in the works at HDFC ERGO
by Shruti Verma
Financial Chronicle
HDFC ERGO General Insurance is planning to offer a specialized health insurance product that will cover
maternity expenses, dental treatment, contact lenses, glasses, hearing aids, non-allopathic treatment and
domiciliary treatment. In a standard health insurance product, such expenses are not covered and are
treated as exclusions.
HDFC ERGO General Insurance hopes to cover high-value customers with the new product.
The company plans to offer these benefits as riders attached to a health insurance product. The company
has filed rider details with the Insurance Regulatory and Develop-ment Authority (Irda).
The company is working on the premium structure for the cover. “Compared with standard health insurance
products, we propose to offer broader and more responsive coverage designed specifically for high-value
customers. The market would soon get to see our composite health product with no limits. In addition to the
standard health cover, we would provide a host of riders such as hospital cash, expenses for dental and
glasses/hearing aids,” said Ritesh Kumar, managing director, HDFC ERGO General Insurance.
The company has filed for regulatory approval for add-on benefits. Since January 1, 2009, Irda has allowed
general insurance companies to offer tailor-made (add-on) products to its customers and charge them for
the extra benefits offered. Introduction of the riders would be a follow up of the relaxation given by the
insurance regulator.
HDFC ERGO is looking to launch ‘first-of-its-kind’ products to strengthen its position in the market and to
grow despite the economic slowdown. “The insurance industry follows the fortunes of the market.
The slowdown has definitely impacted the insurance industry. Given the low insurance penetration in the
country, there are still opportunities for growth. The company plans to target untapped markets by increasing
reach and adding product lines in all segments. We have filed additional products that would be the first-of-
its-kind in the Indian Insurance market,” said Kumar.
18.03.2009
Insurers will cover you with whistle-blower policies
18 Mar 2009, 0318 hrs IST, Debjoy Sengupta, ET Bureau
KOLKATA : When Anil Mehrotra (name changed), a finance executive with an MNC operating in India, lost
his job for refusing to reimburse a sheaf of false bills forwarded by his managing director, he could not
muster enough courage to draw the attention of the company’s board.
23
He knew that could lead to a protracted legal tussle and he didn’t have the resources to sustain a legal battle
with his erstwhile employer.
For the multitude of unsung heroes-turned-victims like Mehrotra, who remain disillusioned, there may finally
be a reason to rejoice.
Whistle-blower insurance has been making waves in the highest echelons of India Inc in the aftermath of the
Satyam scam. Also known as “retaliation cover” in hardcore insurance circles, it is offered by some general
insurers such as HDFC Ergo and Tata AIG.
The retaliation cover will help a senior executive (independent directors included) to blow the whistle against
wrongdoings by any member of the apex management team and ward off a legal backlash.
“People seldom come to the rescue of an employee who blows the whistle. If anything, he attracts retaliatory
action from the management by way of lawsuits.
A whistle-blower insurance is an add-on cover that comes with the directors & officials policy (D&O policy) of
a company. It shields a director/company official from legal hassles he/she may face for blowing the whistle.
Independent directors-turned-whistle-blowers will also be covered,” says a top HDFC Ergo executive.
Officials at HDFC Ergo are upbeat on the potential of whistle-blower insurance as a redressal tool. Dwelling
on the mechanics of its new cover, HDFC Ergo official notes: “Consider director A of a company, who makes
an allegation against director B, following which Director B sues him.
Once that happens, the whistle-blower cover gets activated and pays for legal expenses of both directors. If
Director B is declared guilty in court, he will have to refund his portion of the expenses paid by the insurer.”
While there have been no specific whistle-blower cover-related claims so far, an HDFC Ergo official asserts
that lately, there has been a surge in the number of queries, especially after the Satyam fraud sent shock
waves across the corporate spectrum. Tata AIG officials declined to comment on either its related product or
this genre of insurance.
However, the moot question is: Are adequate independent safeguards in place to protect those who actually
stand up against the bending of laws when it comes to corporate ethics?
Or is it the moral responsibility of a company board and not a single person to blow the whistle once
irregularities committed by a fellow director or senior management team member get detected? ET spoke to
a stellar cast of company directors and insurance hotshots to get to the core.
Deloitte & Touche Consulting India managing director Roopen Roy does not mince words in his blog that
more attention to issues like tolerance of dissent and protection of whistle-blowing may actually reduce the
incidence of fraud.
“Tick-boxes and checklists often don’t show up the malaise because meek and spineless ‘subordinates’ and
external accomplices are deployed to cover the tracks,” he says.
Corporate heavyweights like Basudeb Sen, a former director on the boards of several companies, remain
sceptical. “A whistle-blower cover can work only in certain circumstances.
24
For instance, if the chairman of a company indulges in illegal activity about which the MD gets a whiff, the
board of directors may not get to know as the matter may not be discussed at the board level. In that event,
the whistle-blower policy can only work if the MD actually blows the whistle,” he points out.
“A whistle-blower insurance cover may also be ineffective if a director gets a hint of transgressions by a
fellow director in the same company and the matter is debated at the board level. It is then for the board to
decide to intervene or not,” he adds.
CHAPTER – 3
Health Insurance & BAGIC
25
Health Insurance & BAGIC
Health insurance like other forms of insurance is a form of collectivism by means of
which people collectively pool their risk, in this case the risk of incurring medical expenses. It is
sometimes used more broadly to include insurance covering disability or long-term nursing or
custodial care needs. It may be provided through a government-sponsored social
insuranceprogram, or from private insurance companies. It may be purchased on a group basis
(e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the
covered groups or individuals pay premiums or taxes to help protect themselves from high or
unexpected healthcare expenses. Similar benefits paying for medical expenses may also be
provided through social welfare programs funded by the government.
By estimating the overall risk of healthcare expenses, a routine finance structure (such as a
monthly premium or annual tax) can be developed, ensuring that money is available to pay for the
healthcare benefits specified in the insurance agreement. The benefit is administered by a central
organization such as a government agency, private business, or not-for-profit entity.
The worst nightmare that anyone can have is the one when a family member is
hospitalized. Today, when everything is uncertain nobody can be sure what will happen. A
seemingly small ailment can turn into major one. And what happens when the earning member of
your family is hospitalized.
But with a policy from HDFC ERGO you and your family can rest assured!
26
Types Of Health Products
 Health Guard
 Hospital Cash
 Critical Illness
 Silver Health Insurance
 E- Opinion
 Personal Guard
 Star Package
1: HEALTH GUARD
Health care cost are high and getting higher. Who will pay your bills if you have a serious
accident or major illness? Most of the times we are unprepared for these difficult times,
emotionally, as well as financially. HDFC ERGO’s Health Guard Policy, protect you and your
family in case you need expensive medical care. It also offers you cashless benefit & medical
reimbursement for hospitalization expenses
• Coverage
1. Cashless Facility at empanelled hosp.

2. 10% reduction in claim amt if any other hosp.
3. Pre-hosp=60 days
4. Post-hosp=90 days
5. Ambulance charges=Rs 1000
6. Daycare facility
7. E-opinion rider for SI Rs 5lacs, Rs 7.5lacs, Rs 10lacs
• Age
1. 5-55 yrs
2. 0-5yrs(if any parent)
• Sum Insured
1. 7.5lacs & 10lacs=5-40yrs
2. 50k to 5lacs=40-50yrs
3. 50k to 3lacs=50-55yrs
• Benefits
1. 5%-25% NCB
27
2. Family Disc.=10%
3. Tax saving
4. 2 yrs waiting period for some disease
• Exclusions
1. Pre-existing disease
2. Non-Allopathic treatment
3. 30 days waiting period
2: Hospital Cash
It provides cash benefits for each and every completed day of hospitalization. Day for this
purpose shall be every completed (24 hours) of hospitalization. However, period less than 24
hours shall be considered as a day if it is a period of 12 hours but includes 0300 hours.
Can be taken with Health Guard or Critical Illness
• Coverage
1. Rs 500 to Rs 2500 per day
2. Paid for 30/60 days (irrespective of no. of confinements to hosp.)
3. Family stands insured
4. Benefit is doubled in case of ICU admission
5. Day care facility
• Age
1. 25-60 yrs
2. 3mnths-24yrs(with any parent)
• Sum insured
1. Rs 500, Rs 1000
2. Rs 2000, Rs 2500
• Premium
1. Rs 250-Rs 1600,Rs 300-RS 3k
2. Rs 600-Rs 4800,Rs 800-RS 5.8k
• Benefits
1. Family discount 10%
2. Tax saving
28
• Exclusions
2. Natural perils
4. Maternity expenses.
3: Critical Illness
A Critical Illness plan means you can insure yourself against the risk of serious illness in much
the same way as you insure your car and your house. It will give you the same security of
knowing that a guaranteed cash sum will be paid if the unexpected happens and you are
diagnosed with a critical illness.
The purpose of of a critical illness plan is to let you put aside a small regular amount now, as an
insurance against all this happening. The statistics speak for themselves and if you become a part
of them at least you will be sure that lack of money won't add to your problems.
HDFC ERGO, in its efforts to provide a customer centric solution is offering an insurance policy
to cover to some of these critical illnesses like
• Coverage(10 sections)
1. Cancer
2. Coronary artery bypass surgery
3. First heart attack
4. Kidney failure
5. Major organ transplant
6. Multiple sclerosis
7. Stroke
8. Aorta graft surgery
9. Paralysis
10. Primary pulmonary arterial hypertension
• Age
1. 6-59 yrs
29
2. 1lacs, 3lacs
3. 5lacs, 10lacs
• Premium
1. 2k-3k, .6k-9k
2. 1k-15k, 2k-30k
• Benefits
1. Lump sum amt to plan the treatment accordingly
2. Donor Expenses
• Exclusions
1. Death within 30 days(after diagnosis of critical illness)
2. Maternity expenses
4. War or alike expenses
5. HIV/AIDS infection.
4: Silver Health
Silver Health Plan offers you cashless benefit or medical reimbursement for hospitalization
expenses due to illness or accident and is specifically for people aged between 46-75yrs which
protects you and your spouse in case you need expensive medical care.
• Coverage
1. 3%pre & post hosp. expenses
2. Ambulance charges Rs 1000
3. 3times limit of indemnity if renewed continuously.
4. Medical exp. if proposal is accepted.
• Age
1. 46yr to 75 yrs
2. Age at entry=70yrs
• Sum Insured
1. 50000 to 3lacs
• Premium
1. Rs 1995 to Rs 21006
• Benefits
1. Pre-existing disease covered after 2nd year with 50% coverage of SI
2. Cashless facility
3. NCB of 5% every claim free year
4. Family discount of 5%
5. Tax saving
6. Health checkup after 4 yrs
30
• Exclusions
1. Non-Allopathic Medicine
4. All pre-existing diseases
5. HIV/AIDS infection
5: E-Opinion
HDFC ERGO launches e-opinion rider, which will cover the expenses of 2nd opinion e-
consultation services for serious illness in India. The policy offers unprecedented access to over
7000 physicians employed by the renowned hospitals of the World Care Consortium. This
innovative e-opinion rider gives you an opportunity to obtain best of international expertise at a
fraction of the cost.
This is a RIDER
• Coverage
1. Cancer
2. Heart Attack
3. Coronary Artery Disease
4. Stroke
5. Renal Failure
6. Sudden Blindness
7. Multiple Sclerosis
8. Coma
9. Paralysis
10. Major burns
11. Major organ transplant
12. Neuro-degenerative disease
13. Pathology
14. Disease wanting 2nd opinion
15. Life threatening condition
16. Estimated cost>1lacs
31
• Premium
1. Rs 476 & above (as per head)
• Benefits
1. Consultation with world’s best doctors
2. Opinion in just 7 days.
• Exclusions
3. Any sexually transmitted disease
5. Occupational disease
6. Accidental bodily injury
6: Personal Guard
Life is full of uncertainties and unexpected events. Accidents can happen at home, at work, even
at play.The death or injury of a breadwinner can create serious financial problems for any family.
It is in situation like these, that you need to be prepared. To help you soften the blow Bajaj
Allianz offers the Personal Guard cover. Our Personal Guard Policy offers these additional
benefits.
• Coverage
1. Medical expenses
2. Hospital confinement allowance
3. Children’s Education Bonus
4. Death Benefit
5. PTD
6. PPD
7. TTD
• Age
1. 3months to 65 yrs
• Premium
1. 0.45%o to 2%o
• Benefits
1. Medical exp reimbursed upto 40% of claim amt
2. Rs1k/day for 30 days
3. CEB Rs 5k(1 child) to Rs 10k(2children)
• Exclusions
32
1. Suicide
3. War, civil war
4. Motor rallies
7: Star Package
• Coverage(8 sections)
1. Health Guard
2. Hospital Cash
3. Critical Illness
4. Education Grant
5. Householders Content
6. Personal Guard
7. Traveling Baggage
8. Public Liability
• Benefits
1. All sections have separate discount slabs
2. 4-5 sections-10%disc
3. 6-8 sections-15%disc
4. 2yrs policy-10%
5. 3yrs policy-15%
CHAPTER - 4
Comparative Analysis Health Insurance Products of HDFC
ERGO With Other Insurance Companies
33
Comparative Analysis Health Insurance Products of HDFC ERGO
With Other Insurance Companies
 HDFC ERGO with Tata AIG

 HDFC ERGO with Star Health Insurance
 HDFC ERGO with National Insurance
 HDFC ERGO with ICICI Lombard
 HDFC ERGO with Reliance General
 HDFC ERGO with Royal Sundaram
 HDFC ERGO with Chola Mandalam
34
HDFC ERGO with Tata AIG
35
Ins Co. HDFC ERGO Tata AIG
S.
No. Particulars
1 Types of policies 1. Health Guard 1. Accident Guard
2. Critical Illness 2. Healthcare policy
3. Hospital Cash 3. Maharaksha
4. Silver Health 4. Secured Future Plan

5. E-Opinion 5.Criticare
6. Star Package 6.Hospital Care
7. Personal Guard
2 Cash less benefit Yes Yes
monthly cash benefit(Rs 10000 to Rs

Rs 500 to Rs 2500/day(In health guard & silver health 35000)for 5 to 20 yrs OR daily benefit of
3 Cash benefit policy rs 1000, RS 5000 & Rs 5000
4 Pre-hospitalisation Amt no limit Not Specified
5 Pre-hospitalisation Period 60 days Not Specified
6 Post-hospitalisation Amt no limit Not Specified
7 Post-hospitalisation Period 90 days Not Specified
8 Age limit 5yrs to 75 yrs & (0-5yrs) 8 yrs to 70 yrs & (6 mnths to 18 yrs)
9 Sum Insured Rs 50000 to Rs10 lacs (varies b/w ages) Not Specified
10 Premium Rs 798 to Rs 12697(varies b/w ages) Rs 1017 to Rs 11593/ Rs 867 to Rs 12061

11 No Claim Bonus 5% to 25% for claimfree yr Not Specified
12 Family Floater Discount 5% - 10%(varies) Not Specified
{50%(spouse) & 25%(children)}of annual rate{in Rs 2798 to Rs 11593(100% for spouse &
13 Family Floater Premium star package} 25% for 4 children)
14 Ambulance charges max upto Rs 1000 Rs 2000 to Rs 4000(as per SI)
15 Disease Waiting Period(Cogenital) 2 yrs Not Specified
16 Health Check-Up Rs 1000 Not Specified

17 Income Tax Reduction sec 80d sec 80d
18 Income Tax Amount Rs 15000 Not Specified
19 Pre-existing Disease covered upto 50% after 1yr of policy not covered
20 E-opinion yes for SI Rs 5lacs, Rs 7.5lacs & Rs 10 lacs Not Specified
21 126 Daycare Facility yes No

22 Critical Illness yes(separate plan with 10 sections) Not Specified
23 Attendants Expenses Rs 500/day(for 10 days),extra premium Not Specified

24 Donor Expenses Rs 1 lac(add-on) Not Specified
no limit
25 Nursing Allowances Not Specified
Double( 7 days) 36
26 ICU Benefits double(5 days)
HDFC ERGO with Star Health Insurance
Ins Co. HDFC ERGO Star Health

S. No. Particulars
1 Types of policies 1. Health Guard 1. Medi-Classic Ins.
2. Critical Illness 2. Family Health Optima Ins.
3. Hospital Cash 3. Accident Care Ins.
4. Silver Health
5. E-Opinion
6. Star Package
7. Personal Guard
2 Cash less benefit Yes yes
Rs 500 to Rs 2500/day(In health guard & silver health

3 Cash benefit policy rs 500 (add-on)
5 Pre-hospitalisation Period 60 days 30 days
6 Post-hospitalisation Amt no limit 7% hosp exp. Or Rs 5000/
7 Post-hospitalisation Period 90 days Not Specified
8 Age limit 5yrs to 75 yrs & (0-5yrs) 5 mnths to 80 yrs

9 Sum Insured Rs 50000 to Rs10 lacs (varies b/w ages) Rs 5000 to Rs 5 lacs
10 Premium Rs 798 to Rs 12697(varies b/w ages) Rs 575 to Rs 30023

11 No Claim Bonus 5% to 25% for claimfree yr 5% to 25%
12 Family Floater Discount 5% - 10%(varies) Not Specified
{50%(spouse) & 25%(children)}of annual rate{in Rs 2348 to rs 3280(for SI 2 lacs to Rs 3
13 Family Floater Premium star package} lacs)
14 Ambulance charges Max upto Rs 1000 Rs 500, Rs 750 or Rs 1500 as per location
37
15 Disease Waiting Period(Cogenital) 2 yrs 1yr & 2 yr
16 Health Check-Up Rs 1000 Not Specified

18 Income Tax Amount Rs 15000 upto Rs 10000 (if paid by cheque)
not in 1st yr but some are covered in 2nd

19 Pre-existing Disease Covered upto 50% after 1yr of policy yr & some in 3rd yr
21 126 Daycare Facility Yes no

22 Critical Illness yes(separate plan with 10 sections) Not Specified
23 Attendants Expenses Rs 500/day(for 10 days),extra premium Rs 400/day(Add-On)

24 Donor Expenses Rs 1 lac(add-on) Not Specified
25 Nursing Allowances no limit Not Specified
26 ICU Benefits Double( 7 days) Not Specified
27 Non-Allopathic Treatment Not Specified yes upto Rs25000/ or 25%of SI

28 Add-On Cover separate plans Yes
29 Maternity Benefit No yes(add-on)
30 Physiotherapy Rs 50000(Add-on), in Star package only Not Specified

31 Accident Death Benefit 125 (PA only) Not Specified
32 Anethetists Fee no limit Not Specified
33 Operation Theatre Charges no limit Not Specified
34 Surgeon's Fees no limit Not Specified

35 Physician Fees no limit not Specified
36 Policy Period 1 year 1 year
37 TPA No No
38 Domiciliary Expenses not covered not covered
39 Additional Discounts Not Specified Not Specified
38
HDFC ERGO with National Insurance
Ins Co. HDFC ERGO National Ins.

S. No. Particulars
1 Types of policies 1. Health Guard 1. Parivar Mediclaim Policy
2. Critical Illness 2. NRI Accident Policy
3. Hospital Cash 3. Traffic Accident Policy
4. Silver Health 4.Personal Accident Policy

5. E-Opinion 5. Mediclaim
6. Star Package 6. Critical Illness
7. Personal Guard
Rs 500 to Rs 2500/day(In health guard & silver health

3 Cash benefit policy 1% of SI
6 Post-hospitalisation Amt no limit Not Specified
7 Post-hospitalisation Period 90 days 60 days
8 Age limit 5yrs to 75 yrs & (0-5yrs) 3 mnths to 60 yrs

9 Sum Insured Rs 50000 to Rs10 lacs (varies b/w ages) 2 lacs to 5 lacs
10 Premium Rs 798 to Rs 12697(varies b/w ages) Not Specified

11 No Claim Bonus 5% to 25% for claimfree yr 5%(10 claim free yr)
12 Family Floater Discount 5% - 10%(varies) No
{50%(spouse) & 25%(children)}of annual rate{in
13 Family Floater Premium star package} 3/4 to 1/2 of annual rate
14 Ambulance charges max upto Rs 1000 1% of SI or Rs 1000
39
15 Disease Waiting Period(Cogenital) 2 yrs 2 yrs
16 Health Check-Up Rs 1000 1% of SI

18 Income Tax Amount Rs 15000 Not Specified
19 Pre-existing Disease covered upto 50% after 1yr of policy after 4th year
21 126 Daycare Facility Yes yes (conditions)

22 Critical Illness yes(separate plan with 10 sections) No
23 Attendants Expenses Rs 500/day(for 10 days),extra premium No

24 Donor Expenses Rs 1 lac(add-on) 50% of SI
25 Nursing Allowances no limit 25% of SI
26 ICU Benefits Double( 7 days) 2% of SI or Rs 10000 max
27 Non-Allopathic Treatment Not Specified No

28 Add-On Cover separate plans No
29 Maternity Benefit no No
30 Physiotherapy Rs 50000(Add-on), in Star package only No

32 Anethetists Fee no limit 25% of SI
33 Operation Theatre Charges no limit Not Specified
34 Surgeon's Fees no limit 25% of SI

35 Physician Fees no limit 25% of SI
37 TPA no Yes
40
HDFC ERGO with ICICI Lombard
Ins Co. HDFC ERGO ICICI Lombard

S. No. Particulars
1 Types of policies 1. Health Guard 1. Family Floater Policy
2. Critical Illness 2. Critical Care Policy
3. Hospital Cash 3. 10K Tax Saver health Policy
4. Silver Health 4. Personal Accident Policy

5. E-Opinion
6. Star Package
7. Personal Guard
Rs 500 to Rs 2500/day(In health guard & silver health Rs 10000 for 10 days (in case of
3 Cash benefit policy any bodily injury or illness
4 Pre-hospitalisation Amt no limit not specified
6 Post-hospitalisation Amt no limit not specified
8 Age limit 5yrs to 75 yrs & (0-5yrs) 5 yrs to 60 yrs & 3mnths to 5 yrs
9 Sum Insured Rs 50000 to Rs10 lacs (varies b/w ages) 2 lacs to 3 lacs
10 Premium Rs 798 to Rs 12697(varies b/w ages) Rs 2078 to Rs 18032/32182

11 No Claim Bonus 5% to 25% for claimfree yr not specified
12 Family Floater Discount 5% - 10%(varies) not specified
13 Family Floater Premium star package} Rs 7619 to Rs 32182
14 Ambulance charges max upto Rs 1000 not specified
41
15 Disease Waiting Period(Cogenital) 2 yrs 2 yrs
free(but only for 2yrs family floater
16 Health Check-Up Rs 1000 plan)
18 Income Tax Amount Rs 15000 no limit
19 Pre-existing Disease covered upto 50% after 1yr of policy after 4th yr
20
E-opinion yes for SI Rs 5lacs, Rs 7.5lacs & Rs 10 lacs not covered
21 126 Daycare Facility yes yes(conditions)

22 Critical Illness yes(separate plan with 10 sections) not covered
23 Attendants Expenses Rs 500/day(for 10 days),extra premium not covered

24 Donor Expenses Rs 1 lac(add-on) not specified
25 Nursing Allowances no limit not specified
26 ICU Benefits Double( 7 days) not covered
27 Non-Allopathic Treatment Not Specified not covered

28 Add-On Cover separate plans not covered
29 Maternity Benefit no not covered
30 Physiotherapy Rs 50000(Add-on), in Star package only not covered

31 Accident Death Benefit 125 (PA only) not specified
32 Anethetists Fee no limit not covered
33 Operation Theatre Charges no limit not covered
34 Surgeon's Fees no limit not covered

35 Physician Fees no limit not covered
36 Policy Period 1 year 1 yr & 2 yrs
37 TPA no Yes
38 Domiciliary Expenses not covered Covered
39 Additional Discounts Not Specified Covered
42
HDFC ERGO with Royal Sundaram
Ins Co. Bajaj Allianz Royal Sundaram
S. No. Particulars
1 Types of policies 1. Health Guard 1. Health Shield
2. Critical Illness 2. Personal Accident
3. Hospital Cash
4. Silver Health
5. E-Opinion
6. Star Package
7. Personal Guard
3 Cash benefit Rs 500 to Rs 2500/day(In 1%of S.I. Per day
health guard & silver
health policy
5 Pre-hospitalisation 60 Days 30 Days

Period
6 Post-hospitalisation Amt no limit No limit
7 Post-hospitalisation 90 Days 60 Days

Period
8 Age limit 5yrs to 75 yrs & (0-5yrs) 3mths-70 yrs
9 Sum Insured Rs 50000 to Rs10 lacs rs.50000-10lakhs

(varies b/w ages)
10 Premium Rs 798 to Rs 12697(varies rs.816-31000
b/w ages)
11 No Claim Bonus 5% to 25%for claimfree yr 5-50% inc S.I.
12 FamilyFloater Discount 5% - 10%(varies 5% - 10%(varies)
13 Family FloaterPremium {50%(spouse) & 25% Rs 816 to Rs 2755
(children)}of annual
rate{in star package}
14 Ambulance charges max upto Rs 1000 upto rs.1000
15 Disease Waiting 2 yrs 2 yrs
Period(Cogenital
16 Health Check-Up Rs 1000 upto rs.750 (for 5yrs of
NCB)
18 Income Tax Amount Rs 15000 Rs 15000
19 Pre-existing Disease covered upto 50% after 1yr not in 1st yr but some are
of policy covered in 2nd yr & some
43
in 3rd yr
20 E-opinion yes for SI Rs 5lacs, Rs not covered
7.5lacs & Rs 10 lac
22 Critical Illness Yes(separate plan with 10 not specified

sections
23 Attendants Expenses Rs 500/day(for 10 not covered
days),extra premium
24 Donor Expenses Rs 1 lac(add-on) covered uptoS.I.
25 Nursing Allowances no limit Not Covered
26 ICU Benefits Double( 7 days) 3% S.I./day
27 Non-Allopathic Not Specified not covered

Treatment
29 Maternity Benefit no Not Specified
30 Physiotherapy Rs 50000(Add-on), in Star not covered

package only
32 Anethetists Fee no limit no limit
33 Operation Theatre no limit Covered

Charges
34 Surgeon's Fees no limit Covered
35 Physician Fees no limit Covered

37 TPA No Not Specified
44
HDFC ERGO with Chola Mandalam
Ins Co. HDFC ERGO Chola Mandalam
S. No. Particulars
1. Health
1 Types of policies 1. Health Guard Insurance(ind.)
2. Critical Illness 2. Family health plan

3. Accident protection
3. Hospital Cash plan
4. Silver Health
5. E-Opinion
6. Star Package
7. Personal Guard
Rs 500 to Rs 2500/day(In health guard & silver health rs.200-500 for 7-14
3 Cash benefit policy days respectively
6 Post-hospitalisation Amt no limit not specified

9 Sum Insured Rs 50000 to Rs10 lacs (varies b/w ages) rs.50000-10lakhs
10 Premium Rs 798 to Rs 12697(varies b/w ages) rs.800-20470

12 Family Floater Discount 5% - 10%(varies) 10%
13 Family Floater Premium star package} Rs 4415 to Rs 15050
14 Ambulance charges max upto Rs 1000 upto rs.1000
15 Disease Waiting Period(Cogenital) 2 yrs not specified
45
covered (limit not
16 Health Check-Up Rs 1000 specified)
18 Income Tax Amount Rs 15000 RS 15000
19 Pre-existing Disease covered upto 50% after 1yr of policy after 4th year
20 E-opinion yes for SI Rs 5lacs, Rs 7.5lacs & Rs 10 lacs not covered
21 126 Daycare Facility Yes covered (147surgeries)

22 Critical Illness yes(separate plan with 10 sections) Covered
23 Attendants Expenses Rs 500/day(for 10 days),extra premium not specified

rs.200-300 for 7-10
25 Nursing Allowances no limit days
26 ICU Benefits Double( 7 days) limit not specified
27 Non-Allopathic Treatment Not Specified not specified

30 Physiotherapy Rs 50000(Add-on), in Star package only not covered

32 Anethetists Fee no limit Covered
33 Operation Theatre Charges no limit Covered

37 TPA no not specified

5%(for people not
39 Additional Discounts Not Specified living in metro)
46
HDFC ERGO with Reliance General
S. No. Particulars HDFC ERGO Reliance
1 Types of policies 1. Health Guard 1. Standard
2. Critical Illness 2. Silver
3. Hospital Cash 3. Gold
4. Silver Health
5. E-Opinion
6. Star Package
7. Personal Guard
Rs 500 to Rs 2500/day(In
health guard & silver Minor-rs.250(7days),
3 Cash benefit health policy Critical rs.250(14days)
Pre-hospitalisation
5 Period 60 days 30-60 days
6 Post-hospitalisation Amt no limit no limit
Post-hospitalisation
7 Period 90 days 60-90 days
Rs 50000 to Rs10 lacs
9 Sum Insured (varies b/w ages) rs.1lakhs-5lakhs
Rs 798 to Rs 12697(varies
10 Premium b/w ages) rs.900-15886
12 Family Floater Discount 5% - 10%(varies) 10%
{50%(spouse) & 25%
(children)}of annual
13 Family Floater Premium rate{in star package} RS 1248 to RS 3996
rs.500 STD, rs.750 Silver,
14 Ambulance charges max upto Rs 1000 rs.1000 Gold
Disease Waiting
15 Period(Cogenital) 2 yrs 2 yrs
16 Health Check-Up Rs 1000 1% S.I. (for 4 yrs of NCB)
18 Income Tax Amount Rs 15000 RS 15000
Covered upto 50% after
19 Pre-existing Disease 1yr of policy after 4th year
yes for SI Rs 5lacs, Rs
20 E-opinion 7.5lacs & Rs 10 lacs covered(coditions)
yes(separate plan with 10
22 Critical Illness sections) covered(conditions)
Rs 500/day(for 10
23 Attendants Expenses days),extra premium rs.200-300 for 5 days
47
25 Nursing Allowances no limit rs.200-300 for 5-10days
26 ICU Benefits Double( 7 days) Double
Non-Allopathic
27 Treatment Not Specified covered(limit not specified)
Rs 50000(Add-on), in Star
30 Physiotherapy package only Actual Expenses
32 Anethetists Fee no limit no limit
Operation Theatre
33 Charges no limit Covered
36 Policy Period 1 year 1 yr & 2 yrs
37 TPA no yes
38 Domiciliary Expenses not covered covered upto 10% S.I.
48
CHAPTER – 5
Market Survey
49
Market Survey
Shopkeeper’s Insurance
SHOPKEEPERS PACKAGE: HDFC ERGO shopkeeper’s package protects your shops against
all risks
Unique Features
• Comprehensive package by a single policy.
• Uniform rate for money insurance
• Single proposal form
• Coverage for business interruption
• Covers for damage to data media, software and cost of recovery of lost data
Advantages
• Single Proposal form

• Complete coverage at lower premium
• Simple documentation
• Covers for unanticipated loss
• All needs of the client get addressed in a single policy
Benefits
• All the insurance requirements are addressed by a single policy

• Saving on costs
• Less time spent in fulfilling procedural requirement
• Smooth functioning of the business
• One stop shop / solution for the clients business related need
50
CHAPTER - 6
Questionnaire
51
Questionnaire
Graphical Presentation of Survey
We have presented below the findings and analysis of the questionnaire addressed to the
respondents to gauge the attitude and perception of the people towards insurance. I conducted this
survey in Jaipur’s market areas like M I Road, Vaishali Nagar, Malviya Nagar & Bani Park.This
survey included 120 shops in all and the response of over all survey is shown in graphs below.
1. Your age ? (“√” one box)

[1] < 30 years
[2] 30–39years
[3] 40–49years
[4] 50 and over years
2. Do you know about general insurance?
Options Number Percentage

Yes 114 95%
No 6 5%
120
100
80
60 Series1
40
20
0
yes no
52
3. The question was asked to the respondents to know how many of the respondents
had a Shop insurance policy.?
Options Number Percentage

Yes 78 65%
No 42 35%
90
80
70
60
50
Series1
40
30
20
10
0
yes no
53
From the survey it was found out that 65% of the respondents had a life insurance policy whereas
35% of the respondents didn’t had a Shopinsurance policy
4. With which company?
Company Number Percentage

HDFC ERGO 5 4.16%
Oriental Ins. 26 21.67%
National Ins 67 55.83%
Others 22 18.33%
80
70
60
50
40 Series1
30
20
10
0
bajaj oriental national others
54
The finding which came out from the survey was that 55.83% of the respondents who have a
insurance cover bought life insurance from National Insurance Company Ltd. National Insurance
Company is the most preferred brand in the insurance industry because it is the only government
company which offers insurance. People prefer to buy insurance from National Insurance
Company
because of the security being one of the prime factors. In the figure we can also see that
nowadays people mindset have changed towards insurance and are opting for private company
for insurance cover or policy.
5. From whose suggestion have the respondents taken a policy?

It was asked to gain an insight from the respondents that on whose suggestion did they
opt for a life insurance cover or policy.
Family Friends Agents Others

50% 25% 23% 12%
55
After the survey it was found that most of the respondents took policy or shop insurance cover
from the suggestions of their friends or family.And only 23 respondents took policy on the
recommendation of the agents.Other sources like banks, corporate tie-ups and etc. plays a minute
role in reaching out people for insurance policies.
6. What is the insurance coverage?
Coverage Number Percentage

Fire 120 100%
Motor 120 100%
Burglary 87 72.5%
Others 33 27.5%
Number
140
120
100
80
Number
60
40
20
0
Fire Motor Burglary Others
56
7. Given an option will you change your insurance company?
Option Number Percentage

Yes 35 29.16%
No 85 70.83%
Number
90
80
70
60
50
Number
40
30
20
10
0
Yes No
8. Why would you change your insurer?

Better Services 33 27.5%
More Options 51 42.5%
Better claim handling 24 20%
Others 12 10%
Number
60
50
40
30 Number
20
10
0
Better Services More Options Better claim handling Others
57
9. Are you aware about following insurances?
Types of Cover Number Percentage

Fire 120 120%
Burglary 112 112%
Theft 116 96.67%
Workmen’s Compensation 65 54.16%
Public Liability 98 81.76%
Glass Plate 23 19.16%
Office 78 65%
Neon sign 12 10%
Number
140
120
100
80
Number
60
40
20
0
Burglary
Public Liability
Theft
Fire
Office
Neon sign
Compensation
Glass Plate
Workmen’s
10. Why do you think insurance must be done?

Safety 111 111%
Tax Rebate 51 42.5%
Compulsary by law 89 74.16%
Market Trend 33 27.5%
58
Number
120
100
80
60 Number
40
20
0
Safety Tax Rebate Compulsary by law Market Trend
11. What do you expect from insurance company ?

-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
--
Results
After the survey it was found that still major portion of customers go for public insurance
companies, but with the entry of more and more private companies the scenario is changing
rapidly, people with a need of more and better returns are opting for private companies, and this
can be justified by the increasing market share of private companies in the Indian insurance
sector.
There are various ways in which private companies are found much more lucrative than
public companies and the facts which support this statement are as follows:-
1. Versatility of products.
2. Efficient fund managers.
3. Better customer services.
4. More returns.
5. Regular follow up.
6. Quicker settlement
Suggestions and recommendation
 People are not aware of the Fire insurance. Most of them know only one company which
provides fire insurance i.e Oriential. . So awareness campaign should be run so that
people are aware of different life insurance companies in India.
59
 People should be educated about the different types of products or plans offered by the
General insurance companies. Most of them don’t know much of the different types of
plan or products.
 It was felt that most of the people took life for tax savings or just to cover up their life,
not as an investment avenue. General Insurance companies need to advertise in such a
manner that people start investing in General insurance like the way they invest in the
stock market
 Now at the time of global turmoil insurance company had to hold on to the
Policy holders trust which might lead the company to the path of success
 Insurance companies should try to adopt different strategies to market their products or
plan. Companies should not primarily focus on the agents for their business.
Conclusion
Insurance is one sector that witnessed continuous growth owing to the reforms in 2000.The
insurance sector is likely to attain a size of Rs. 2,00,000 crore ($51.2billion) in 2009-10. In life
insurance, the business grew by 23.3% to Rs. 93,000 crore in 2008-09
A well-functioning insurance market plays an important role in economic development
and financial stability of developing economies such as India’s. First, it inculcates and
encourages the habit of saving. Second, it provides a safety net to rural and urban
enterprise and productive individuals.
The General insurance market in India is on a growth path. In spite of this, the country
lags far behind the others in awareness about General insurance. The challenge is to spread
awareness about General insurance and it true benefits. The industry has to convince people to
park their hard earned money in long-term insurance and not just look at it as a tax saving
instrument
Limitations
• Useful Financial insights are not easily available.
• Due to time constraint sufficient research on all the investment tools is difficult.
• The survey sample is not very large for analysis
• Properly convincing people to invest in insurance products is challenging.
• Due to recession there is liquidity crunch in the market.
• There might have been tendencies among the respondents to amplify or filtertheir
responses under the testing conditions
• The research is confined to Kolkata and does not necessarily shows a pattern applicable
to other parts of the country.
60
Attachments.
Questionnaire
1) Name:
2) Sex :
3) Age :
4) Occupation :
5) Income :
6) Marital status :
7) No. of family members :
8) Mobile no. :
9) Are you insured (yes/no):
61
10) If yes , then with life/ non-life/both
11) In which company ________________
12) How you rank your insurance company ?
|----------------|-----------------------|------------------|-----------------------|
excellent very good good fair bad
13) Who suggested you to take the Insurance Policy?
Friends Family Agents

Others, please specify___________
14) In which of the insurance plan have you invested the money?
Health Plan Others please specify_______________________________
15) Rank the insurance co. according to your preference:

o Oriential ------------
o National ------------
o Reliance ------------
o Bajaj Allianz ------------
o ICICI Lombard ------------
o HDFC ERGO ------------
o Royal Sundaram ------------
o Chola Mandalam ------------
16) Where do government insurance co. need to improve ? [ ]
a) Service
b) Return
c) Information
d) Varity
e) Easy claim
17) Reason behind the preference of your insurance company?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
________
62
Chapter-7
63
Research Methodolgy
RESEARCH METHODOLOGY
Sources
The success of any Insurance company depends on how well they are able to align with
the objectives and needs of individual customers, and is able to provide proper
solutions to them. To know how a company is performing and whether they have any
cutting edge advantage over competitors, an intensive study of the market is absolutely
necessary.
In order to understand the performance of different companies in the market, we did two
types of surveys, primary survey and secondary survey.
Primary survey
Primary survey included:-
• Visiting websites and fixing appointments with their agents.
• Creation of database of prospective clients from different sources calling them up to fix
appointment and then visiting them.
• Prepare a questionnaire for the market survey .
• Meeting different people to know their views,perception and preference of different
insurance companies.
64
Secondary survey
Secondary survey included of consulting books, magazines, journals, internet and also
taking reference from:-
library.
I internet.
HDFC ERGO fin polis.
Methodology
We would go in for a qualitative research as our objective is to judge the perception and
preference of different insurance products. The research would be done from primary
data.
Sample Design
Target population: The target population for the research would be people who are
in the age group beyond 40 and age group between 25 to 40.We targeted this group of
population because these populations are the potential customers of insurance.
Sampling Frame : The research would be conducted in Jaipur. The survey has
been conducted among the potential customers of HDFC ERGO from different sectors as HDFC
ERGO deals in many sectors of business.
Sampling Technique : The sampling technique that is adopted is the simple

random sampling wherein every element in the target population has an equal
chance or probability of getting selected in the sample. That means every unit of
the population who is more is in the above mentioned age group, have an equal
chance of getting selected
Sample Size: I did a survey among 120 people by taking two categories in
consideration of 50 each; that is
1.) Age group beyond 40
2) Age group between 25 to 40
Data Collection : The research would be conducted from the source of primary
data collection. Secondary data would help us in knowing the trends prevailing in
the insurance market and would help us in analyzing and interpretation of the
primary data.
65
66
CHAPTER – 8
Other Works
OTHER WORKS
Policy Issuance & Renewal
My job profile also included issuance of the policies as well as renewals of the policies.
I also renewed the policies of motor, health, marine and travel. Renewing of the policies is a very
important issue for all the companies because getting a customer might be easy but retaining the
customers is not always easy. So in order to keep good rapport with the customers and name in
the market, the company tries to meet the need and demand of the customers.
Agency Issuance & Renewal
Agents and brokers are the life line of an insurance company. Almost 60% of the revenue of the
company is generated by agents.
I recruited agents which involved process of filling up the forms and checking and rechecking of
documents.
All the agencies lapse after every 12 months. I even renewed some of the agencies so that the
companies work is not disrupted.
Underwriting Practices
67
Underwriting department is one without which an insurance company can not work.in order to
get some idea about the underwriting practices of the company I also worked under an
underwriter for 1 week.
It helped me in getting the clearer picture of the policies and their premium rates.
Sales
My three weeks of training involved selling of health insurance products. The methodology
adopted was visits to customers place, tele-calling, meeting the customers who directly come to
the company for health policies and also meeting the shopkeepers and making them aware about
the policies and various plans available with Bajaj. So that they get motivated to buy the policy.
RECOMMENDATIONS
The rapid increase in competition and the never ending launches of new products and services
describe the insurance sector of today.
This transformation has been to attract a share of the financial market and to increase it over time,
the companies are coming out with strategies that are novel in nature. Tailor made schemes for
niche segments of the society are an attempt in this direction.
However this is not the end of road. They should strive for introducing new products and services
and at the same time updating the old ones.
Giving recommendation to a company like Bajaj Allianz General Insurance Co. Ltd. is like
showing diya to a sun. Still, I would like to recommend Bajaj Allianz General Insurance Co. Ltd.
that should consider improvising on its performance.
• Problem posed by bouncing of cheques (difficulty in cheque clearance).

• Stringent terms and condition of insurance policies.
• Insurance is product of solicitation.
• Unavailability of Bajaj Allianz General Insurance Co. branches in small cities, towns and
rural area.
• High amount of base premium.
• Fear of policy lapse on not paying premium on right time.
68
• Lack of faith amongst low income group customers.
• Lack of advertising of general insurance products.
• Family floater is not available in all health policies. It is available only in STAR
PACKAGE policy. This posed a lot of problem while selling Health Policies to the
customer.
• While working with Bajaj Allianz, I observed that there was no proper method of
following up.
• Products are not as flexible as it demands, especially after detariffying.
• Commission has to be increased.
• More technical support required.
• At times delay in services.
Entry of global and national players in to life insurance sector poses danger of greater
competition and realignment of life insurance market.
Bibliography
• The monthly fact sheet available from the company for studying the features of products.
• Online information from the various websites namely:-
• STEPHEN ROBINS “ORGANIZATIONAL BEHAVIOUR”
• HAWKINS “MARKETING RESEARCH”
• CUSTOMER BEHAVIOUR
• HDFC ERGO’S PRODUCT MODULE
• WWW.HDFCERGO.COM
• WWW.BIMAONLINE.COM
• WWW.GOOGLE.COM
69
• WWW.WIKIPEDIA.COM
• WWW.TATAAIG.COM
• WWW.ICICILOMBARD.COM
• WWW.ROYALSUNDARAM.COM
• WWW.CHOLAMANDALAM.COM
• WWW.STARHEALTH.COM
• WWW.IRDAINDIA.ORG
70

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Project Study Report

HDFC ERGO GENERAL INS. CO. LTD

Comparative Analysis Of HDFC ERGO’s Health Insurance Products

(In partial fulfillment of Bachelor of Business Administration)

APEX INSTITUTE OF MANAGEMENT & SCIENCE

( Affiliated to university of Raj. Approved by AICTE,Govt.of India )

This project entitled:

July17, 2009 Sudhir Kaushik

I am obliged to Mr. C.P. Kaushik for cooperation during the Internship. My

July 17, 2007 Sudhir Kaushik

This project report is prepared in partial fulfillment of Bachelor of Business

July 17, 2007 Mr. Abhishek Tripathi

About the project

Purpose of the project

• · Making comparative analysis between:-

1.3: Scope of the project

About Insurance Industry

History of Insurance in India

General Insurance Business (Nationalization) Act, 1972

Insurance Regulatory and Development Authority

The Insurance Regulatory and Development Authority (IRDA) is a national agency of

Power, Duties and Functions Of the authority

Different Insurance Companies

The various life insurers entered India:-

1. Life Insurance Corporation of India

Life Insurers in Private Sector

2. MetLife India Life Insurance

4. Bajaj Allianz Life Insurance

5. Max New York Life Insurance

6. Sahara Life Insurance

7. TATA AIG Life Insurance

8. HDFC Standard Life

10. SBI Life Insurance [1]

11. Kotak Life Insurance

12. Aviva Life Insurance

14. ING Vysya Life Insurance

15. Shriram Life Insurance

16. Bharti AXA Life Insurance Co Ltd

17. Future Generali Life Insurance Co Ltd

18. IDBI Fortis Life Insurance

19. AEGON Religare Life Insurance

20. DLF Pramerica Life Insurance

21. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

1. The Oriental Insurance Company Limited

Non-Life Insurers in Private Sector

• Low market penetration.

India: The Next Insurance Giant

Indian Insurance Market

Major Driving Factors

Valuing the invaluable

About HDFC ERGO

The Indian Promoter: HDFC Ltd

The German Promoter : ERGO Insurance Group

The HDFC ERGO Difference

Experienced and Expert Servicing Team

Unique Forms of Risk Cover

• Special PA cover for Amarnath Yatris

Risk Management- Our Expertise

• Risk identification: Inspections

18 Mar 2009, 0318 hrs IST, Debjoy Sengupta, ET Bureau

 Silver Health Insurance

1. Cashless Facility at empanelled hosp.