SGPC’s GNIMS BUSINESS SCHOOL

Matunga (E), Mumbai – 400 019

Summer Internship Project Report

Titled
“Comparative analysis for health insurance product
of HDFC Ergo and Bajaj Allianz.”
In the partial fulfilment of the Degree of

Post Graduate Diploma in Management

(Banking and financial services)
Ms. Kedari Aditi Dilip
[PGDM(B&F), Division-A & Roll No:20]
Trimester IV & Specialization:
BANKING & FINANCIAL SERVICES
Batch: 2021-23
Under the Guidance of
Company Guide
Mr. Chintan Mehta

Faculty Guide
Prof. Samidha Angne
(Project Guide)
Porf.Dr. Shama Shaha
Academic Year 2022-23
 SGPC’s GNIMS BUSINESS SCHOOL
Matunga (E), Mumbai – 400 019

CERTIFICATE
This is to certify that Ms. Aditi Dilip Kedari. a student of Class: PGDM
Banking and finance Semester: 4 bearing Roll No. 20 has successfully
completed the project titled, “COMPARATIVE ANALYSIS FOR HEALTH
INSURANCE PRODUCT OF HDFC ERGO AND BAJAJ ALLIANZ ”, in the partial

fulfilment of the Degree of PGDM.

Place:

Date:

Name of the Project Guide:

Signature of the Project Guide:

Signature Signature

(Dr. Kiran Yadav) (Dr. D.Y.Patil)

Director Group Director

 COMPARATIVE ANALYSIS FOR HEALTH INSURANCE PRODUCT OF HDFC
ERGO AND BAJAJ ALLIANZ.

Acknowledgement

The internship opportunity I had with Himatlal & co. was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship period.

I am using this opportunity to express my deepest gratitude and special thanks to the senior
executive of Himatlal & Co., Mr. Bhavik Mehta and Mr. Chintan Mehta who in spite of
being extraordinarily busy with his duties, took time out to hear , guide and keep me on the
correct path and allowing me to carry out my internship at their esteemed organization.

I express my deepest thanks to prof. Shama shah, project guide allotted by the institute for
helping me in decision & giving necessary advice, guidance and arranging all facilities to
make life easier. I choose this moment to acknowledge his contribution gratefully.

I am also thankful to each and every person involved with me in the project. Their
encouragement and support enabled the project to materialize and contributed it to its
completion.
 TABLE OF CONTENTS

Sr.no Topic Page no.

1 Executive summary
2 Introduction to the topic
3 Industry overview
4 Company overview
5 Project details
6 Data analysis and interpretation
7 Recommendations / findings
8 Key learning
9 Conclusion
10 Bibliography
11 List of abbreviation
12 Annexure
13 Project progress report duly filled and signed
14 Approved project synopsis
15
 EXECUTIVE SUMMARY

This is the internship report based on the two-month long internship program that I had
successfully completed in himatlal & Co. from 02.05.2022 to 02.07.2022 as a requirement of
my PGDM banking and finance program of guru Nanak institute of management studies. As
being completely new to practical, corporate world setting, every hour spent in the company
gave me a taste of the corporate world all of which cannot be explained in words. But
nevertheless, they are all very useful for my career. the small company has no divisions and
all the work is to be mutually divided among the employees with the consent of the owner.

The things that were though by them are as follows:

1. Client acquiring process,

2. Choosing the best insurance company suitable for the clients.
3. How to keep clients motivated as well as how to help clients in getting the legitimate
claims fulfilled
4. Learning the different type of insurance products that a general insurance company
offers, etc.

I have worked in himatlal & Co. and they had given me many opportunities to work in
corporate life. In first week, they give us knowledge about their insurance product. After that
we study there product fully and give many ppt presentation about what we learn. Then they
give us sales target to complete within period of summer internship. In 3rd week they give
information about there daily work and how to maintain customers relationship with
company. In 4th week They provide us their old policy premium document to read it and scan
it in document file. we learn many important thinks from there policy document like how
premium calculate how different policy have different advantages. Then 5th week we
continued with doing same work. In 6th week they teach us to how to create a new policy of
their exciting customers. After that in 7th week they give 400 leads for cold calling. In final
week they provide us various location to visit their corporate offices, hotels, shops to sales
the insurance product.
INTRUDUCTION TO THE TOPIC
 COMPARATIVE ANALYSIS: is the process of comparing items to one another and
distinguishing their similarities and differences. In this project I am comparing two different
insurance company’s health insurance products with their similarities and differences. The
companies are HDFC ergo and Bajaj Allize. These companies are most leading insurance
companies of India. I am going to compare their health insurance product with each other.
And then analysis which companies’ product better for investment.

Insurance is a contract. Here one party the insurance company called insurer undertakes to
indemnify specified losses suffered by the other party called insured for a special
consideration called premium the term of the insurance contract insurance policy. an
insurance policy is a legal contract that binds both policyholder and the insurance company
towards each other. It has all the details of the conditions or circumstances under which either
the insured individual or policy nominee receives insurance benefits from the insurer.

Insurance is a method by which you can protect yourself and your loved ones from facing a
financial crisis. You buy an insurance policy for the same, while the insurance company takes
the risk involved and offer insurance cover at a specific premium.

In case of any eventuality, the insured or nominee can file a claim with the insurer. Based on
the evaluation criteria for claims, the insurer reviews the claim application and settles the
claim. The four most common types of Insurances that people buy are

 Life Insurance
 Health Insurance
 Motor Insurance
 Home Insurance

My project topic is all related to health insurance so we will know more about that.
What Is Health Insurance
Health insurance is a contract that requires an insurer to pay some or all of a person's
healthcare costs in exchange for a premium. More specifically, health insurance typically
pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the
insured. Health insurance can reimburse the insured for expenses incurred from illness or
injury, or pay the care provider directly.
It is often included in employer benefit packages as a means of enticing quality employees,
with premiums partially covered by the employer but often also deducted from employee
pay checks. The cost of health insurance premiums is deductible to the payer, and the
benefits received are tax-free.

Health insurance is a type of insurance coverage that pays for medical and surgical expenses
incurred by the insured. Choosing a health insurance plan can be tricky because of plan rules
regarding in- and out-of-network services, deductibles, co-pays, and more. Since 2010, the
Affordable Care Act has prohibited insurance companies from denying coverage to patients
with pre-existing conditions and has allowed children to remain on their parents' insurance
plan until they reach the age of 26. Medicare and the Children's Health Insurance Program
(CHIP) are two public health insurance plans that target older individuals and children,
respectively. Medicare also serves people with certain disabilities.

Health insurance terminologies

 Cashless Claims: 

It refers to health insurance claims filed for a medical treatment availed in the network
hospitals.

 Hospitalisation Expenses:

Any medical condition requiring urgent hospitalisation is covered under standard health
insurance plans. However, claims are only entertained, provided the disease has not been
previously diagnosed when the insurance plan was not availed.

 Pre and post hospitalisation charges:

Pre hospitalisation expenses such as diagnosis expenses, and doctors’ fees etc. can be
covered by a health insurance plan. Expenditures post-release such as medication, routine
check-ups, injections, etc. are also reimbursed by most insurance companies.

 Cover day care

A surgery or medical procedure that used to need a lengthy hospital stay but may now be
finished in under 24 hours is known as a day care operation. As a result, even when the
patient is in the hospital for a little period of time, he or she does not stay there for the
required minimum of 24 hours before filing a claim.
  Bariatric surgery

Until 2019, bariatric surgery was a standard exclusion in mediclaim policies. However, with
technological advancements and new IRDAI guidelines, many insurance companies pay for
bariatric surgery. However, the benefit is only available if it's medically necessary and is not
being used for cosmetic purposes.

 Covers organ donor

This benefit covers the medical and surgical expenses of the organ donor when harvesting a
major organ transplant for the insured. It ensures that expenses of the donor are covered, and
the insured gets the organ that is required in time, and without any unwanted complications!

 Ayurvedic and homeopathic treatment

AYUSH stands for Ayurveda, Yoga, Unani, Siddha and Homeopathy. Under the AYUSH the
person can get cover for any of these treatments which are the alternates of allopathic
sciences. Considering the rise in popularity of alternative treatments, the Insurance
Regulatory and Development Authority of India (IRDAI) directed all general insurance
companies to include AYUSH treatments in their health insurance policies.

 Sum insured reinstatement

Sum Insured Restoration” benefit provides an option to reinstate the entire sum insured, in
case it gets exhausted during a policy year. It works well both to floater policy and individual
health insurance policy. 

 Road Ambulance expenses

It is provided for transportation of the insured person for medical emergencies. The plan also
covers air ambulance charges of up to 10% of the basic sum assured during the entire policy
period.

 Recharge benefit

With a recharge benefit, the sum insured of your health insurance policy is immediately
refurbished even after being utilised completely. For example, if you buy a health insurance
policy with the recharge benefit, which offers you a sum assured of Rs. 2 lakh and you end up
spending that amount in case of a medical emergency, your insurer will again be able to
provide you with a Rs. 2 lakh sum assured if you require further medical attention.
 Critical illness:

the critical illness scheme is competitive because of its well-defined claims criteria, pre-
determined list of critical illnesses, fixed benefits etc. the lump sum benefit offered is more
attractive than other income benefits.

 Cumulative Bonus:

Cumulative bonus is similar to NCB (No Claim Bonus). For every claim free year, the sum
insured increases by a fixed percentage as per policy, but cannot exceed 50 per cent of the
Main Sum Insured and is admissible only if the policy was renewed continuously.

 Grace Period: 

The specified period of 15 days immediately after expiry of the due date of premium
payment. During this period the payment can be made to renew or continue a policy without
loss of continuity benefits such as waiting periods and coverage of Pre-existing diseases.

 Pre-existing disease:

 Pre-existing disease is, any condition, ailment or injury or related condition(s) for which
insured had symptoms, and / or was diagnosed, and / or received medical advice / treatment
within 48 months to prior to the first policy issued by the insurer. 

 Waiting period:

 The period during which certain benefits of the policy will not be available to the insured,
when a new health insurance policy is taken. This is usually a fixed period of time from the
date of commencement of policy, after the completion of which, certain specific benefits of
the policy take effect. For example, the usual waiting period for pre-existing conditions is 4
years.
Type of health insurance

1. Individual Health Insurance

An individual health insurance policy, like its name suggests covers the treatment cost of a
single individual. This cover can be availed for yourself, parents including your spouse and
children. Under this plan, every family member gets an individual sum insured.

2. Family Floater Health Insurance

Under such plans, a single sum insured is available for all individuals under one policy. This
entire sum can be disbursed for treatment of one person respectively, in which case no
subsequent claims are covered in the event of another medical emergency. Senior citizens are
not eligible under family floater plans, as their medical needs tend to be more complicated. 

 3. Senior Citizen Health Insurance

Tailor-made to suit all medical expenses of aged individuals, such plans can only be obtained
by people above the age of 60 years. Comprehensive coverage for different types of illnesses
which might develop due to old age is extended.

4. Group Health Insurance

Companies extend such plans to their employees. Premium is paid by the employer itself and
has provisions which ensure refill of the sum insured. Such group health insurance policies
are cost-effective and are undertaken disbursed as an employee retention tactic.

5. Health Insurance with Maternity Insurance

All pre and postnatal care expenses incurred during pregnancy are covered under maternity
insurance cover. Medical bills of a new-born are included for the first three months as well.
However, such policies come with a waiting period of two years.

6.Critical Illness

As life-threatening diseases are accompanied by extensive medical bills generated for

adequate treatment. A critical illness insurance policy provides coverage against such specific
conditions, providing financial protection for optima treatment and recovery of a
patient.  However, you should remember that the fixed sum insured offered under this cover
can only be availed under the condition of the insured person remaining alive for 30 days
post-diagnosis. 

7. Top-Up Health Insurance

Oftentimes, the treatment costs you estimate while availing a health insurance cover can
increase over time even though your sum insured remains unchanged. Under such
circumstances, you can choose to avail a top-up for your existing cover, instead of purchasing
a separate policy. This top-up policy helps to increase the overall sum insured which you can
use in case of any emergency.

Health Insurance Benefits

1.Tax Benefits

If you avail a health insurance policy, you can avail tax benefits under Section 80D of the
Income Tax Act, 1961.

Eligibility Exemption Limit

For self and family (spouse, dependent children) Up to ₹25,000, For self, family + parents
(below 60 years of age) Up to (₹25,000 + ₹25,000) = ₹50,000, For self and family
(where the eldest member is below 60 years of age) + parents (above 60 years) Up to
(₹25,000 + ₹50,000) = ₹75,000, For self and family (eldest member is above 60 years of age)
+ parents (above 60 years of age) Up to (₹50,000 + ₹50,000) = ₹1,00,000

2. Coverage for medical expenses

You cannot predict when a chronic medical problem may occur to you or your loved ones. If
you have a family floater or individual health policies, your insurer would take care of the
medical bills while you can concentrate on the treatment process instead.

3.Cashless Claim Service

With cashless claim services, you can get treated at some of the best hospitals across India
without paying anything out of your pocket. You just have to get admitted at any one of the
network hospitals with which your insurer has a tie-up.
4.Portability Benefits

Portability of health insurance means you can change your insurance policy from one
insurance company to another, or one plan to another without losing the benefits that you have
accumulated. This is as per the new rules of the IRDAI.

5.Hospitalisation Daily Allowance

A daily hospital cash benefit or daily allowance provides a lump sum amount every day in
case of hospitalization.

6.Lifetime Renewability Benefit

Earlier, many insurers did not provide insurance coverage after a particular age. However,
now, the IRDAI has made guaranteed renewability compulsory for health insurance policies
so, you can get the benefits of the policy throughout your life with a lifetime renewability
option.

HEALTH INSURANCE PREMIUM

Medical insurance premium depends upon various factors:

 The number of members covered a single policy.

 The age of the eldest member
 Sum insured
 Types of features chosen in a plan

HOW TO CHOOSE AN IDEAL HEALTH INSURANCE PLAN?

Health needs vary from person to person and what may be best for one may not suit the other,
to meet your ever-changing requirement you need to be vigilant while selecting your ideal
health plan.

Step 1 : choose your ideal health insurance company

go with a company that offers cashless facility has good customer service, comes with a
decent market share and offers a wide range of health product.

Step 2: evaluate your needs and requirement

Once you need choose your ideal company evaluate your family health needs thoroughly and
decide the type of plan you want to buy.

Step 3: compare coverage and premium

After you have shortlisted a few plans on the basis of your needs and requirement just
compare their benefits with each other. Ideally its recommended to go with a plan that offers
maximum benefits.

HEALTH INSURANCE EXCLUSIONS LIST

Every health insurance plans come with a certain list of illnesses or treatments that are not
covered by them these exclusions may vary from company to company as per IRDAI, some
common diseases or medical conditions that are not covered under health insurance plans

 Pre-existing diseases (PEDs), however, some companies cover PED’S after a waiting
period.
 Eyes and dental care, but some new plans have started covering them
 Suicidal injuries or intentional self-injuries.
 STDs like HIV
 Health issues that arise due to the consumption of alcohol or drugs
 Health issues or injuries caused due to war , nuclear , chemical or biological weapons.

Top 10 Best Health Insurance Companies in India

COMPANY ENLIGHTENMENT

BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD.

Bajaj Allianz General Insurance Company Limited is a joint venture between Allianz SE, the
world’s leading insurer, and Bajaj FinServ Limited. The Company received the certificate of
registration from IRDA on 2nd May 2001 to conduct general insurance business in India.
Bajaj Allianz General Insurance, today, is one of the largest private insurers in the industry
with offices in over 1100 towns and cities. The Company has continuously been expanding
its operations to reach out to its customers.
On May 2nd, 2021 They completed 20 years of care. In those two decades long journey we
rose from a humble start-up to an industry leader. We have gained the trust of close to 11
crore customers with the help of over 9000 employees, a robust distribution network of more
than 80,000 agents, almost 9,000 motor dealer partners and over 240 bank partners. We are
also associated with most brokers, web aggregators and major e-commerce platforms. We
have formed meaningful relationships with our partners, customers and employees in the
course of our journey so far. The Company registered strong financial results by posting
revenue of ₹ 13,788 crore in FY 2021-22. The company recorded a net profit of ₹ 1,339
crore. Bajaj Allianz General Insurance also reported a healthy Combined Ratio of 99.6% and
solvency Ratio of 344% for the period.

KEY PERSONES

 SANJIV BAJAJ – chairman, non-executive and non-independent director.

 RITU ARORA – non-executive and non-independent director.

PRODUCT
CYBER SAFE INSURANCE: Buy cyber safe insurance and get covered for cyber risks like
phishing, identity theft, cyber extortion.

HOME INSURANCE: Buy home insurance and secure your home and its contents against
natural calamities, burglary, theft, etc.

HEALTH INSURANCE: We offer best health Insurance and medical insurance plans at
affordable premium rates.

TRAVEL INSURANCE: Buy travel insurance policy online for domestic & International
travel.

Claim Settlement Ratio-

is a ratio of the number of claims paid to customers by the insurance company to the total
claims received by the company. This is expressed as a percentage. The balance claims are
rejected for impersonation, misrepresentation, fraud, or pending decision by the Life
Insurance Companies. As per IRDA, 2021-22 Bajaj Allianz claim settlement ratio is 98.02
% which is considered a high CSR. It means for every 100 claims received, 98 cases are
settled.

HDFC ERGO

HDFC ERGO is a 51:49 joint venture firm between HDFC and ERGO International AG,

one of the insurance entities of the Munich Re Group in Germany operating in the insurance
field under the BFSI sector. The company offers products in the retail, corporate and rural
sectors. The retail sector products are health, motor, travel, home, personal accident, and
cybersecurity policy. Corporate products include liability, marine, and property insurance.
Rural sector caters the farmers with crop insurance and cattle insurance.
HDFC Ltd. And ERGO International AG formed a joint venture firm named HDFC ERGO
General Insurance Company Limited. ERGO became a 49% stakeholder in the Company in
2015. In June 2019, HDFC announced plans to acquire 51.2 per cent stake in Apollo Munich
Health Insurance and later merged it with its general insurance arm, HDFC ERGO.

In 2020, HDFC Ergo Health Insurance( earlier known as Apollo Munich Health Insurance)
 merged with the company after the receipt of final approval from the Insurance Regulatory
[2]

and Development Authority of India (IRDAI) making it the second-largest private insurer in

the accident and health insurance business. With this merger, the company's product suite
expanded to over 50 in this segment.

In May 2021, Housing Development Finance Corporation (HDFC), had entered into a share
purchase agreement for sale of 44,12,000 equity shares of Rs. 10 each, representing 0.62% of
the issued and paid-up share capital of HDFC ERGO, in accordance with the direction of
Reserve Bank of India to reduce its shareholding in the latter to 50% or below, and
subsequent to this HDFC ERGO would cease to be a subsidiary company of HDFC.

Headquarters – Mumbai, Maharashtra , India

Key people – Mr. Ritesh Kumar MD

Products

1. General insurance

2. health insurance

3. vehicle insurance

4. travel insurance

5. home insurance

6. accidental insurance

Claim Settlement Ratio-

the private general insurance companies, HDFC Ergo General Insurance tops the chart with
99.8% claims settled in first 3 months of making the claim. 
INDUSTRY OVERVIEW
The insurance sector is made up of companies that offer risk management in the form of
insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured or
the policyholder, pays a smaller premium to the insurer in exchange for that protection on
that uncertain future occurrence. As an industry, insurance is regarded as a slow-growing,
safe sector for investors. This perception is not as strong as it was in the 1970s and 1980s,
but it is still generally true when compared to other financial sectors.

The insurance industry of India has 57 insurance companies - 24 are in the life insurance
business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation
(LIC) is the sole public sector company. There are six public sector insurers in the non-life
insurance segment. In addition to these, there is a sole national re-insurer, namely General
Insurance Corporation of India (GIC Re). Other stakeholders in the Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third-party administrators
servicing health insurance claims.

History of insurance sector

 The first insurance company in the U.S. dates back to colonial days: the Philadelphia
Contribution ship, co-founded by Ben Franklin in 1752.
 Throughout U.S. history, new types of insurance have evolved as new risks (such as
the automobile) have emerged.
 In the late 19th century, scandals and shady practices rocked the young insurance
industry.
 Under the McCarran-Ferguson Act of 1945, insurance companies became exempt
from most federal regulation and are instead subject to state law.
 In recent years, the internet has had a major impact on how insurance is sold and how
insurance companies evaluate risk.

History of insurance sector in India.

Indian insurance dates back to the days of ancient India legislation. It was then designed to
pool national resources in order to deal with the occurrence of calamities such as fires, floods,
famines and epidemics. The first traces of insurance were found in the form of maritime loans
and carrier contracts.
Modern insurance is a legacy of the British occupation, with the industrial revolution in the
West and mainly in England boosting trade and shipping during the 17 th century. These
factors had largely contributed to the rise of the insurance industry in India, a large country
producer of raw materials needed by England.

The life business began in 1818 in Calcutta with the establishment of Oriental Life Insurance
Company. The first non-life insurance company was not set up until 32 years later. Its name
was Triton Insurance, a company founded by some British in Calcutta.

For over a century, the market had been dominated by representation offices and branches of
foreign, mostly, British, insurers. Among these entities are Albert Life Assurance, Royal
Insurance and Liverpool & London Globe Insurance, companies which had prospered
considerably in India, prompting strong competition with other market players.

The marginalization of local companies pushed the Indian government to nationalize life
insurance activities in 1956. For its part, non-life insurance was not nationalized until 1972.

Life Insurance Corporation (LIC) was established in 1956, taking over the portfolio of 245
national and foreign companies. LIC had tapped into life operations monopoly from 1956 to
the late 1990s and the opening of the insurance sector to private investors.

In the non-life insurance, the portfolios of the 107 companies present on the market in 1972
were pooled up into four large national companies whose head offices are based in the four
corners of the country:

 National Insurance Company (Calcutta),

 New India Insurance Company (Mumbai),

 Oriental Insurance Company (Delhi),

 United India Insurance Company (Madras).

These four national companies are overseen by General Insurance Corporation (GIC) whose
head office is in Bombay. GIC, created in 1972, intervened on the market as a national
reinsurer and shareholder of the four direct companies.

The government will not reopen the doors of the Indian insurance market to the private sector
until the early 2000s. The entry into activity in 1999 of the Insurance Regulatory and
Development Authority (IRDAI) marked the end of State monopoly and the opening of the
market to private and foreign investment.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORTY INDIA

The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory

body under the jurisdiction of Ministry of Finance , Government of India and is tasked
with regulating and licensing the insurance and re-insurance industries in India. It was
constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of
Parliament passed by the Government of India. The agency's headquarters are
in Hyderabad, Telangana, where it moved from Delhi in 2001.

IRDAI is a 10-member body including the chairman, five full-time and four part-time
members appointed by the government of India.

History of Insurance IRDAI

in India Insurance in India dates back to the 19th Century with the establishment of Oriental
Life Insurance Company in Kolkata in 1818. The Indian Life Insurance Assurance
Companies Act of 1912 was the first law that regulated life insurance in the country. Life
Insurance Corporation was established in the year 1956 with the nationalisation of the life
insurance sector. The LIC absorbed then currently functioning 154 Indian and 16 non-Indian
insurers and 75 provident societies. LIC enjoyed a complete monopoly till the late 1990s
when the insurance sector was opened to the private sector general insurance in India, on the
other hand, began during the Industrial Revolution with the establishment of Triton Insurance
Company in Kolkata in 1850. In the year 1907, the Indian Mercantile Insurance was formed.
It was the first company to underwrite all the classes of general insurance. In 1957, a wing of
Insurance Association of India – General Insurance Council – was established to frame the
code of conduct and regulate the means of fair business practices. The General Insurance
Business (Nationalisation) Act was passed in 1972 and the insurance industry was
nationalised on January 1st 1973. A hundred and seven insurers were amalgamated and
formed a group of four insurance companies – National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance Company.
The General Insurance Corporation of India (GIC Re) was established in 1971 and was
effective on January 1st 1973. By the year 1991, the Government of India began to plan the
economic reforms in the insurance sector. For the purpose, a committee was formed in 1993
for the reforms in the insurance sector. The committee was headed by Shri R. N. Malhotra
(Retired Governor of the Reserve Bank of India). The Malhotra Committee recommended
some major reforms in the insurance sector such as allowing private sector companies to
promote insurance in the country, allowing foreign promoters in the domestic insurance
Market and formation of an independent regulatory body answerable to Parliament and the
Government. An interim body called Insurance Regulatory Authority was set up in 1996. In
the year 1999 Insurance Regulatory and Development Authority (IRDA) Act was passed and
on April 19th 2000, Insurance Regulatory and Development Authority (IRDA) of India
received autonomous status.

Structure of IRDAI

is a ten-member body that consists of:

One Chairman (for five years and maximum age of 60 years) Five whole-time members (for
five years and maximum age of 62 years) Four part-time members (not more than five years)
The chairman and the members of IRDA are appointed by the Government of India.

Current Chairman of IRDA is Mr Subhash Chandra Khuntia.

Objectives of IRDAI

 To promote the interests and rights of the policyholders.

 To promote and monitor the growth of the insurance industry.
 To prevent frauds and misspelling of insurance product and ensure speedy settlement
of genuine claims To bring transparency and proper code of conduct in financial
markets dealing with insurance.

Functions and Duties of IRDA:

According to Section 14 of IRDA Act of 1999, the agency has the following functions and
duties:

 Issuing the registration certificates to insurance companies and regulate them

 Protect the interests of the policyholders
 Provide licences to insurance intermediaries like agents and brokers after stating the
required qualifications and set guidelines for their code of conduct
 Promote and regulate professional organisations related to insurance to enhance the
development of the sector
 Regulate and supervise the premium rates and terms of the insurance policies
 Specify the conditions and manners by which the insurance companies have to present
their financial reports
  Regulate the investment of the policyholders’ funds by the insurance companies.
 Ensure the maintenance of the solvency margin i.e. the ability of an insurance
company to pay out claims.

Types of Insurance

There are two broad types of insurance:

 Life Insurance
 General Insurance

What is Life Insurance

Life insurance is a contract that offers financial compensation in case of death or disability.
Some life insurance policies even offer financial compensation after retirement or a certain
period of time. Life insurance, thus, helps you secure your family’s financial security even in
your absence. You either make a lump-sum payment while purchasing a life insurance policy
or make periodic payments to the insurer. These are known as premiums. In exchange, your
insurer promises to pay an assured sum to your family in the event of death, disability or at a
set time.

Type of life insurance

Term Insurance-

It is the most basic type of insurance. -It covers you for a specific period. -Your family gets a
lump-sum amount in the case of your death. -If, however, you survive the term, no money
will be paid to you or your family.

Money-back Policy-

A certain percentage of the sum assured will be paid to you periodically throughout the term
as survival benefit. -After the expiry of the term, you get the balance amount as maturity
proceeds. -Your family gets the entire sum assured in case of death during the policy period.
This is regardless of the survival benefit payments made.

Unit-linked Insurance Plans (ULIPs)-

Such products double up as investment tools. -A part of your premium goes towards your
insurance cover. -The remaining amount is invested in Debt and Equity. -A lump-sum
amount will be paid to your family in the event of your death.

Pension Plans-

This helps build your retirement fund. -You can get a regular pension amount after
retirement. -In the case of your death, your family can claim the sum assured.

What is General Insurance?

A general insurance is a contract that offers financial compensation on any loss other than
death. It insures everything apart from life. A general insurance compensates you for
financial loss due to liabilities related to your house, car, bike, health, travel, etc. The
insurance company promises to pay you a sum assured to cover damages to your vehicle,
medical treatments to cure health problems, losses due to theft or fire, or even financial
problems during travel.

Types of General Insurance

Health Insurance

This type of general insurance covers the cost of medical care. It pays for or reimburses the
amount you pay towards the treatment of any injury or illness.

Motor Insurance

Motor insurance is for your car or bike what health insurance is for your health. It is a general
insurance cover that offers financial protection to your vehicles from loss due to accidents,
damage, theft, fire or natural calamities You can also get motor insurance for your
commercial vehicles. In India, you cannot drive or ride without motor insurance.

 Third Party Insurance –

Compensates for the damages caused to another individual, their vehicle or a third-party
property.

 Comprehensive Car Insurance

Covers all kinds of damages and liabilities caused to you or a third party. It includes damages
caused by accidents, sabotage, theft, fire, natural calamities, etc.

Travel insurance

A travel insurance compensates you or pays for any financial liabilities arising out of medical
and non-medical emergencies during your travel abroad or within the country.

Home Insurance

Home insurance is a cover that pays or compensates you for damage to your home due to
natural calamities, man-made disasters or other threats.It covers liabilities due to fire,
burglary, theft, flood, earthquakes, and sabotage. It not only offers financial protection to
your home, but also takes care of the valuables inside the property.

Fire Insurance

Fire insurance pays or compensates for the damages caused to your property or goods due to
fire. It covers the replacement, reconstruction or repair expenses of the insured property as
well as the surrounding structures. It also covers the damages caused to a third-party property
due to fire. In addition to these, it takes care of the expenses of those whose livelihood has
been affected due to fire.

Insurance Premium Calculation Method

Calculating Formula

 Insurance premium per month = Monthly insured amount x Insurance Premium Rate.
 Insured person's self-paid premium per month= Monthly insured amount x Insurance
Premium Rate x Insured person's self-paid ratio
 Insurance premium paid by the governments per month = Monthly insured amount x
Insurance premium rate – Insured person's self-paid premium
Market share
OVERVIEW OF THE COMPANY
 Himatlal & Co.
Best Insurance Agency in India

As I have worked in himatlal and co.

Himatlal & Co. was started in the year 1944 and over the past 75 years, focusing on
customers and valuing people have helped Himatlal & Co. become one of the largest
insurance services providers in India. Their products are Health, Motor, Marine, Fire,
Commercial, Hotel, Co-operative Societies, Pet and more. Under the guidance and leadership
of Mr Chintan Mehta and Mr Parag Mehta the company has assisted and guided clients with
unique solutions. They specialize in Claim settlement and the team consist of highly qualified
employees which has matched each and every client’s needs and satisfied them with available
insurance solutions. They mostly have a huge business with Bajaj Allianz General Insurance
Company Ltd at Prabhadevi branch code 1901.

History:

it was established in 1960 by 4 sons of himatlal Mehta. After 30 years they all got separated
and started their own different business in the same industry so now they are having
competition with I the family it become very difficult to handle such kind of competition.
They mostly have a huge business with Bajaj Allianz general insurance company ltd
Prabhadevi branch code.

Address:

6/A, Mani Niwas Senapati Bapat Marg Matunga West Opp. Matunga, Rd. West Railway
Station, Mumbai, Maharashtra 400016 India

Nature of business:

They mostly deal in general insurance product. Hence the nature of business of the business
is insurance services.
Business volume:

The turnover of to this organization is 5 cr. Volume is very low because company lost many
big clients while splitting up with their partners.

Main offices:

Main offices of the company are located in Dadar tt , Prabhadevi , churchgate, and matunga
west. But office located in matunga west as the head office of the company.

Total staff strength:

The total number of staff being employed by this corporate agent is 30 and along with this
staff the company has approximately 15 agents appointed under it.

Products that it deals in:

1. Property Insurance.

2. Householder.

3. Shopkeeper.

4. Corporate Insurance.

5. Marine Insurance.

6. Motor Insurance.

7. Travel Insurance.

Competitors:

1. Beacon Insurance Brokers Pvt Ltd

2. Mankad & Associates Insurance Broking Private Limited.
3. Icare Insurance Broking services Pvt Ltd
4. Global-India Insurance Brokers
5. Peraj Insurance Brokers Private Limited
6. Athena Insurance & Reinsurance Brokers Pvt Ltd
7. Vibhuti insurance brokers pvt.ltd
PROJECT DETAILS
OBJECTIVES OF THE PROJECT

 To better understanding the issue and strategies both the company.

 Help to know which company is better to make investment for investors.
 To understand which company, have better market position.

LIMITATIONS OF THE PROJECT

 There is some information which are confidential in nature than cannot be

availed for the purpose of study.
 The finding and results are limited to Mumbai only which might not have
reflected their picture of entire Indian market.

METHODOLOGY TO BE USED

SOURCES OF DATA

Firstly, prepared questionnaire and then conduct the survey and collect the
primary data and responses and also use company’s web site and brochure for
collecting the secondary data.
 Sources of primary data: Google form.
 Sources of secondary data: company’s website and various other.
 websites, and company’s product brochure.
DATA INTERNSHIP AND ANALYSIS
In this project I am going to compare the two one of the most leading companies of insurance
industry. Bajaj Allianz and HDFC Ergo. I am going to do compression between 6 health
insurance product of Bajaj Allianz and HDFC ergo.

PRODUCT NO 1.

Bajaj Allianz health guard.

Health Guard Policy provides you with a comprehensive range of benefits, ensuring you are
covered for the larger expenses related to Illness/surgery. Bajaj Allianz’s Health Guard is
designed to suit all your health care needs. It takes care of the medical treatment expenses
incurred during hospitalization resulting from serious illness or accident. This cover has
comprehensive benefits with affordable price suitable to your needs.

HDFC ergo optima secure.

When it comes to safeguarding the health of your family, choosing the right health insurance
plan is of utmost importance. With Optima Restore, you not only get the benefit of cashless
treatment at our network hospitals, but also get other great features to meet all your
healthcare needs.

PLANS

Bajaj Allianz health guard.

There are three plans under this plan

 Silver plan – Rs. 1.5 / 2 lakhs

 Gold plan – Rs. 3 / 50 lakhs
 Platinum plan – Rs. 5 / 1 cr.

HDFC ergo optima secure.

In this plan there are no such a plan. But different sun insured options are available.

3/ 5/ 10/ 15/20/25/50 lakhs, and 1 cr.

POLICY TERM

Bajaj Allianz health guard.

Policy can be taken for 1 year / 2 year / 3 years.

Individual as well as floater.

HDFC ergo optima secure.

Policy can be taken for 1 year / 2 year / 3 years.

Individual as well as floater.

ENTRY AGE

Bajaj Allianz health guard.

 Proposer /Spouse /Parents/Sister/ Brother/Parents-in-law/ Aunt/ Uncle 18 yrs. to 65

years
 Dependent Children/Grandchildren: 3 months – 30 yrs.

HDFC ergo optima secure.

 This policy covers persons in the age group 18 days to 65 years.

 The minimum entry age children between 91 days to 5 years.

FEATURES

Bajaj Allianz health guard.

 In-patient Hospitalization  Daily Cash Benefit for

 60 and 90 days pre and post accompanying an insured child,
hospitalisation  Maternity Expenses for Normal
 Road Ambulance Delivery (Including New Born
 Organ Donor Expenses Baby Cover),

 Bariatric Surgery Cover  Maternity Expenses for Caesarean

 Ayurvedic & Homeopathic Delivery (Including New Born

Expenses Baby Cover),

 Convalescence Benefit  Preventive Health Check Up,

Recharge Benefit.
  Domiciliary hospitalisation
 Organ donor expenses

HDFC ergo optima secure.  Emergency air ambulance

 60 and 180 days pre and post

hospitalisation
 Home healthcare
 Daily cash for a shared room
 Preventive health check-up
 E-opinion on 51 critical illnesses
 Hospitalisation expenses
 AYUSH treatment

BENEFIT / USP

Bajaj Allianz health guard. HDFC ergo optima secure

 Sum insured reinstatement benefit  Secure benefit- 2X coverage from

 Ayurvedic / homeopathic 1 day
expenses.  Plus benefits- 100% increase after
 Tax benefits 2 year.
 Convalescences benefit  Restore benefits- 100% Restore.
 Maternity and new born baby  Tax benefit
cover.

WAITING PERIOD

Bajaj Allianz health guard.

Waiting period 36 months for any pre-existing disease. And 30 days for 1st policy
commencement.

HDFC ergo optima secure

30 days initial waiting period for hospitalization other than accidental injuries. 24 months
waiting period on specific illnesses and surgical procedures. 36 months waiting period on
pre-existing diseases.

PRODUCT NO 2

Bajaj Allianz Critical Illness Plan-

There was a time when life cover was enough, your main fear was probably of dying
prematurely and leaving your family to cope without a breadwinner. However due to the
advancement in medical technology Many life-threatening illnesses such as heart attack,
cancer can now be cure.

Critical Illness Insurance: HDFC Ergo

These critical illnesses require expensive treatments, which can put financial burden on a
person, so it is necessary that these expenses are often covered. And to help you ease your
financial pressure, it is essential to get a Critical illness Insurance cover along with the best
health insurance policy. 

ENTRY AGE AND POLICY PERIOD

Bajaj Allianz Critical Illness Plan-

 Entry age for Adult is 18years – 65years.

 Entry age for dependent Children is 6 years - 21 years.
 POLICY PERIOD – 1/2/3 years

Critical Illness Insurance platinum: HDFC Ergo

 Individuals who are in the age group of 5 to 65 years are only eligible to avail this
critical illness plan.
 POLICY PERIOD – 1/2/3 years

SUM INSURED OPTION:

Bajaj Allianz Critical Illness Plan-

 Sum Insured options of 100000/- to 5000000/- for age group 6 years to 60 years.
 Sum Insured options of 100000/- to 500000/- for age group 61 years to 65 years.
Critical Illness Insurance platinum: HDFC Ergo-

 Sum Insured available from 100,000 to 50,00,000.

CRITICAL ILLNESSES COVERED UNDER THE POLICY

Bajaj Allianz Critical Illness Plan-

 First Heart Attack (Myocardial  Major Organ Transplantation

Infarction)  Multiple Sclerosis with Persisting
 Open Chest CABG (Coronary Symptoms
Artery Disease Requiring Surgery)  Surgery of Aorta
 Stroke Resulting in Permanent  Primary Pulmonary Arterial
Symptoms Hypertension
 Cancer of Specified Severity  Permanent Paralysis of Limbs
 Kidney Failure Requiring Regular
Dialysis

Critical Illness Insurance platinum: HDFC Ergo-

 Myocardial Infarction (First Heart  Stroke Resulting in Permanent

Attack- Of Specified Severity) Symptoms
 Primary (Idiopathic) Pulmonary  Cancer of specified severity
Hypertension  Kidney Failure Requiring Regular
 Benign Brain Tumour Dialysis
 Parkinson’s Disease  Major Organ Transplantation
 Alzheimer’s Disease  Multiple Sclerosis With Persisting
 End Stage Liver Failure Symptoms
 Open Heart Replacement or Repair  Permanent Paralysis Of Limbs
of Heart Valves  Surgery of Aorta
 Open Chest CABG

BENEFITS/ USP
 Secure benefit- 2X coverage from 1 day
 Plus benefits- 100% increase after 2 year.
 Restore benefits- 100% Restore.
 Tax benefit
I am going to do compression between 6 health insurance product of Bajaj Allianz and hdfc
ergo. In that i am going to compare each type of health insurance product with both of the
company.

Product no 1.

Bajaj Allianz health guard.

HDFC ergo optima secure.

Bajaj Allianz health guard. HDFC ergo optima secure.

Silver Plan = In-patient Hospitalization +  Comprehensive range of Sum
Insured from 3 Lac to 50 Lac
Road Ambulance + Organ Donor Expenses
 Coverage for hospitalization, pre and
+ Bariatric Surgery Cover, Convalescence post hospitalization, day care
Benefit, Daily Cash Benefit for expenses and more
accompanying an insured child, Preventive  Restore Benefit automatically adds
100% sum insured on complete or
Health Check Up. partial utilization of your Sum
Gold Plan= In-patient Hospitalization + Insured

Road Ambulance + Organ Donor Expenses  Multiplier benefit doubles your sum
insured in 2 claim free years
+ Bariatric Surgery Cover + Ayurvedic &
 Preventive Health check-up benefit
Homeopathic Expenses, Convalescence offered at renewal irrespective of
claim status
Benefit, Daily Cash Benefit for
 We encourage you to stay fit and
accompanying an insured child , Maternity with Stay Active benefit, simply
Expenses for Normal Delivery (Including walk your way to good health and
earn up to 8% discount on your
New Born Baby Cover), Maternity renewal premium.
Expenses for Caesarean Delivery (Including  No sub-limit on room rent: With
New Born Baby Cover), Preventive Health Optima Restore you can get the
room you like and the treatment you
Check Up. deserve without a hassle
Platinum Plan=In-patient Hospitalization +  Policy term option of 1 and 2 year,
Road Ambulance + Organ Donor Expenses and is available for both individuals
and family
+ Bariatric Surgery Cover + Ayurvedic &
 Family Discount of 10% if 2 or more
Homeopathic Expenses, Convalescence family members are covered under
Optima Restore Individual Sum
Benefit, Daily Cash Benefit for
Insured Plan, and an additional 7.5%
accompanying an insured child, Maternity discount is offered on the premium
if you choose a 2-year policy
Expenses for Normal Delivery (Including
 Cashless treatment at network
New Born Baby Cover), Maternity hospitals
Expenses for Caesarean Delivery (Including  Life-long renewability, subject to
New Born Baby Cover), Preventive Health regular receipt of premiums by
Check Up, Recharge Benefit.