A PROJECT on An Analysis of General Insurance Business with Special Reference to United Insurance in Nagpur City A PROJECT SUBMITTED IN PARTIAL

FULFILMENT For THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION IN RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVESITY, NAGPUR SPECIALIZATION IN FINANCE SUBMITTED BY Mr. Amit D. Suke UNDER THE GUIDANCE OF Mr. Ajinkya G. Deshpande

R. S. MUNDLE DHARAMPETH ARTS & COMMERCE COLLEGE, NAGPUR Department of BBA & BCCA 2011- 12

R. S. Mundle Dharampeth Arts & Commerce College, Nagpur

ACKNOWLEDGEMENT
It is my pleasure to complete the project An Analysis of General Insurance Business with Special Reference to United Insurance in Nagpur City for the requirement of BBA III, RTM Nagpur University, Nagpur. I am also very thankful to Mr. Ajinkya G. Deshpande for their kind support and guidance. I am also very thankful to all the teaching and non teaching staff for their kind cooperation and support.

Thanking you Place: - Nagpur Date:-

R. S. Mundle Dharampeth Arts & Commerce College, Nagpur

DECLARATION
I hereby declare that this project titled An Analysis of General Insurance Business with Special Reference to United Insurance in Nagpur City is the work done by me under the guidance of Mr. Ajinkya G. Deshpande, during the academic session 2011- 12. The work presented here is not duplicated from any other source and not submitted earlier for the award of any Degree/ Diploma to any other University.

Amit D. Suke Place: - Nagpur Date:-

R. S. Mundle Dharampeth Arts & Commerce College, Nagpur

CERTIFICATE
This is to certify that this project An Analysis of General Insurance Business with Special Reference to United Insurance in Nagpur City is the work carried out and development by Mr. Amit D. Suke in the partial fulfillment for the award of the Degree of Bachelor of Business Administration during the academic session 2011- 12 submitted to RTM Nagpur University under my guidance and supervision. To the best of my knowledge the matter presented in this project report has not been submitted earlier for any Degree/ Diploma to any other University.

Dr. Sandhya Nair Principal

Mr. Ajinkya G. Deshpande Project Guide

Internal Examiner Date:

External Examiner

INDEX
Sr. No 1. Name Of Chapter Introduction Page No.

2.

Objective , Scope & Importance

3.

History, Management & Analysis

4.

Use of Advance Technology In Exchange Research Methodology

5.

6.

Bibliography

CHAPTER 1

Introductio n

Introduction
The Insurance is the important segment of economy and our day to day life. If we take insurance policy for covering our assets as well as life, then it provide security to our assets and life, and make us free from tension of future accidents and incidents also. Let we see some concept about Insurance What is insurance? We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses. An insurance contract provides risk coverage to the insure. A purchaser of insurance pays a fixed premium in exchange for a promise of compensation in the event of some specified loss. Insurance is bought because it gives peace of mind to the holders. This comfort level is important in personal and business life. Though the primary purpose of insurance is to provide risk coverage, when the contract period extends over a long time, as in the case of life insurance, premium payments comprise of two components one for buying risk coverage and the other towards savings. This bundling together of risk coverage and savings is peculiar to life insurance and is more common in developing countries like India. In the industrially advanced countries, this is not necessarily so and short duration life insurance contracts without a savings component is equally popular. In the developing economies because of the savings component and the long nature of the contract, life insurance has become an important instrument of mobilizing long-term funds. The savings component puts the life insurance in direct competition with other financial institutions and savings instruments. The total investment portfolio of the insurers in India as at the end of March, 2005 was Rs. 4,65,864 crore. The total premium

collected by the insurers both life and non-life in 2004-05 was Rs.1,00,335 crore. The major contribution came from life insurance. The insurance penetration i.e., premium as percentage of GDP was 3.17 per cent in 2004. While this ratio is steadily increasing, it is far below the world average of 8.06 per cent. This shows the vast potential that exists. What are major types of insurance? According to risks, there are many types of insurance but if we think about major types of insurance then only two types comes enforcedly. Those are 1) Life Insurance 2) General Insurance What is general insurance? Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is

undervalued for the purposes of insurance, the insured will have to bear a ratable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- ( 50% of the loss being borne by the insured for underinsuring the property by 50% ). This concept is quite often not understood by most insured.

Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims. Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmens Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes Motor Vehicles Act, The Workmens Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmens

Compensation policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well. There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones. Suitable general Insurance covers are necessary for every family. It is important to protect ones property, which one might have acquired from ones hard earned income. A loss or damage to ones property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are

questions that need to be given some thought. Also organizations or industries that are self-financed should ensure that they are protected by insurance. Most general insurance covers are annual contracts.

However, there are few products that are long-term. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one. Why should one insure? One of the main reasons one should insure is to protect ones belongings and assets against financial loss. When one has earned and accumulated property, protecting it is prudent. The law also requires us to be insured against some liabilities. That is, in case we should cause a loss to another person, that person is entitled to compensation. To ensure that we can afford to pay that compensation, the law requires us to buy liability insurance so that the responsibility of paying the compensation is transferred to an insurance company. Who should buy general insurance? Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. Each one of us can insure our and our dependents health and well being through hospitalization and personal accident policies. To buy a policy the person should be the one who will bear financial losses if they occur. This is called insurable interest. What areas covered by general insurance? These are the common types of general insurance:

Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with

such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money. Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.

Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist.

Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, sometimes bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have an auto insurance while on road in your vehicles. If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level. Whether or not you want or need auto insurance mostly depends on the type of automobile you own. If you have an expensive car

and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.

Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.

Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases

CHAPTER 2 Objectives, Scope & Importance

Objective

Here we must have to know that what are the objectives behind to choose and analyzing this topic. I mention the objectives below to understand what my motto to choose this topic is and I describe it briefly.

The objective of the thesis is:To study the Indian general insurance industry particularly with the Unite India Insurance Company Ltd. segment of general insurance , identify areas of excellence and areas needing improvement; and provide suggestions for such improvement.

1. The aim of this Thesis is to successfully study general insurance sector on a common platform. 2. Analyze their working and performance. 3. Marketing strategies highlight their performance. 4. Evaluating the various challenges faced by them 5. Provide suggestions and recommendations for improvement 6. Scope for Insurance in Nagpur. 7. United Insurance Company Ltd.s business position.

Scope

The insurance industry in our country is on the threshold of a new era of rapid expansion. A more competitive environment is emerging with new participants entering the insurance industry. We need specialists who can work in insurance industry. Risk management has a wide application. It is relevant not only to insurance industry but also to many other organizations in the fields of business and finance. To understand risk, measure it and weigh its consequences are an integral part of management. Financial institutions in the management of the funds placed with them have to reckon with market risk, credit risk, counter party risk and liquidity risk. To mitigate the impact of various risks is the essence of risk management. The United India Insurance Company Ltd. Have a lot of scope in market in near future because people are awaking about insurance for their lives as well as assets. In Nagpur city the scope is wide due to improvement in life standard of people and increasing interest of Nagpurians in insurance policies.

Importance

General Insurance covers are necessary for every family. It is important to protect ones property, which one might have acquired from ones hard earned income. A loss or damage to ones property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes. Cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given som e thought. Also organizat ions or industries tha t are sel ffina nced should ensure that they are protected by insurance. Most general insurance covers are annual contracts. However, there are few products that are long-term In the United States the insurance industry provides several types insurance coverage. Life insurance is available for wide range financial needs along with general insurance that covers losses for property & casualties. Assessing your family or individual

needs both personal & financial will help you determine what kind insurance you should consider.

Health insurance covers hospitalization illness accidental injury & sometimes even well-checkups. Often health insurance some type is offered employee benefits packages on the job. If none is offered where you work or you are self-employed investigate other health care options through local or on-line insurance agency. No one expects to become critically ill or injured but happens. Medical costs can be enormous & health insurance is an important resource to have.

Life insurance has range possible uses as well. It can be arranged to cover person?s final expenses like left over debt & funeral arrangements. It can also be used as source income support for the family the one who has died. This kind coverage becomes somewhat less necessary as people age & become more financially stable but is an invaluable resource for young families who could face hardship at the loss main source income.

General insurance offers protection from financial loss due to fire various types natural or man-made damage theft vandalism & variety other causes as defined on the individual s policy. Automobile insurance homeowner & renter insurance liability & business insurance are all different types general or property

insurance. The important goal property insurance is to cover your financial losses so that recovery and/or rebuilding is possible.

Coverage for your car is something most people are familiar with. It protects you the case loss or damage as well as injury cost due to being hit an accident. This is relevant especially when the other party isn?t insured. Car policies can also help protect the other party when you are considered to be responsible for the accident. Mortgage & renter?s coverage helps protect your personal items so that they can be replaced if need be. It also can provide liability coverage for accidental harm to someone else?s property or to another person.

There are wide variety general or property insurance policies available to cover just about any contingency. People who have loans on their cars or homes are required by lenders to have protection coverage. People near the coast may need hurricane insurance & homeowners flood-prone areas need flood insurance. There is policy for just about every need.

Insurance to protect the policy holder & their family?s financial well-being is extremely important. It is highly recommended that each person research & find out what insurance options are available & make choices that will offer the best protection for them & their families.

CHAPTER 3 History, Management & Analysis

History
History of insurance in India: In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19 th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. History of General insurance: The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence

business on January 1sst 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23

life insurance companies operating in the country. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the countrys GDP. A welldeveloped and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

Management
As in the case of all financial institutions, insurance is an activity that needs to be regulated. This is so because the smooth functioning of business depends on the trust and confidence reposed by the customers in the solvency of the financial institutions. Insurance products are of little value to customers, if they cannot trust the company to keep its promise. The regulatory framework in relation to the insurance companies seeks to take care of three major concerns (a) protection of consumers interest, (b) to ensure the financial soundness of the insurance industry, and (c) to help the healthy growth of the insurance market. So long as insurance remained the monopoly of the Government, the need for an independent regulatory authority was not felt. However, with the acceptance of the idea that there can be private insurance entities, the need for a regulatory authority becomes paramount. With the passing of the Insurance Development and Regulatory Act in 2000, the insurance regulatory authority has become a statutory authority (IRDA). Protecting consumer interest involves proper disclosure, keeping prices affordable, some mandatory products and standardization. Most importantly, it has to make sure that consumers get paid by insurers.

From the consumers point of view, the most important function of the regulatory authority will be to ensure quick settlement of claims without unnecessary litigation. With respect to solvency and financial health, regulations will have to be introduced to ensure that insurance companies follow appropriate prudential norms such as solvency margins. Large funds are under the custody of the insurers and they get invested to produce additional returns. The management of these funds is important to the insurer, the insured and the economy. Entry into the insurance industry must also be regulated with suitable capital adequacy norms. The third role should be one of development. The insurance industry in India has a large potential and the framework of regulation must enable the industry to tap this vast potential. IRDA over the last decade has brought into force a number of regulations which are well conceived. They have received wide spread appreciation. The recent decision of IRDA to move to a free tariff regime for several general insurance products is welcome. The prescription of tariff is contrary to market principles and insurance products need to be priced based on market forces. The reform of the insurance sector is part of the overall economic reform process that is underway. The basic philosophy underlying the new economic policy is to improve the productivity and efficiency of the system. This is sought to be achieved partly by creating a more competitive environment. The growth of the real economy depends upon the efficiency of the financial sector. A greater element of competition is being injected into the financial system as well. All regulators need to keep in mind that there is a fine distinction between regulations and controls. Regulations lay down norms while controls have a propensity to micromanage institutions. Regulators must take care to ensure that regulations do not slide into controls. The insurance industry in our country underwent a big change in 2000 when private participants were allowed into the

industry along with a streamlined regulatory and supervisory regime. There are at present 14 private life insurance companies along with LIC and 12 entities in non-life sector. There is evidence to show that competition has done good to insurance industry. The rate of growth of the industry in the post liberalization period has been faster. It has also developed in terms of product innovation and the use of alternative distribution channels.

Analysis
Insurance and Growth
Insurance and economic growth mutually influence each other. As the economy grows, the living standards of people increase. As a consequence, the demand for life insurance increases. As the assets of people and of business enterprises increase in the growth process, the demand for general insurance also increases. In fact, as the economy widens the demand for new types of insurance products emerges. Insurance is no longer confined to product markets; they also cover service industries. It is equally true that growth itself is facilitated by insurance. A well-developed insurance sector promotes economic growth by encouraging risk-taking. Risk is inherent in all economic activities. Without some kind of cover against risk, some of these activities will not be carried out at all. Also insurance and more particularly life insurance is a mobilizer of long term savings and life insurance companies are thus able to support infrastructure projects which require long term funds. There is thus a mutually beneficial interaction between insurance and economic growth. The low income levels of the vast majority of population has been one of the factors inhibiting a faster growth of insurance in India. To some extent this is also compounded by certain attitudes to life. The economy has moved on to a higher growth path. The average rate of growth of the

economy in the last three years was 8.1 per cent. This strong growth will bring about significant changes in the insurance industry. At this point, it is important to note that not all activities can be insured. If that were possible, it would completely negate entrepreneurship. Professor Frank Knight in his celebrated book Risk Uncertainty and Profit emphasised that profit is a consequence of uncertainty. He made a distinction between quantifiable risk and nonquantifiable risk. According to him, it is non-quantifiable risk that leads to profit. He wrote It is a world of change in which we live, and a world of uncertainty. We live only by knowing something about the future; while the problems of life, or of conduct at least, arise from the fact that we know so little. This is as true of business as of other spheres of activity. The real management challenges are uninsurable risks. In the case of insurable risks, risk is avoided at a cost.

Insurance Scope in India: Insurance is a nice-looking option for investment but most people are not aware of its advantages as an investment option. Remember that foremost and first, insurance is about risk cover and protection. By buying life insurance, you buy peace of mind. Insurance also serves as an excellent tax saving mechanism. The Government of India has provided tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. The insurance sector has opened up for private insurance companies with the enactment of IRDA Act, 1999. A large number of companies are competing under both general and life Insurance. The FDI cap/equity in this sector is 26% and the proposals have to be cleared by Insurance Regulatory and Development Authority (IRDA) established to protect the interest of holder of Insurance policy and act as a regulator and facilitator in the industry. Some of the major players in this sector are LIC, Max New York Life Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance, Birla Sun Life Insurance, etc. Various types of instruments and policies are coming up in

the market to attract more clients. Most of the population of India is not insured, hence there is a lot of scope in this sector and a number of companies are planning to enter the sector.

Assessment of Risks An important function of an insurer is to assess the average level of risk borne while offering a product. This assessment depends upon a variety of factors and actuarial calculations become necessary. This is a highly technical area involving theories of probability. The premium charged by an insurer is based on the calculated average risk. Obviously this premium will be high for people who perceive themselves to be in a low risk category. However, for insurance as an activity to succeed, the population to which a product is offered must consist of categories with different degrees of risk. That is why the larger the coverage, the lower the average risk and lower the premium. Diversification is the way to reduce the average risk.

Terminologies used in general insurance

Proposer-Insured-Insurer Risk- Peril Proposal form Sum Insured Premium ( Consideration) Excess ( Deductible) Indemnity Cover note Policy document Endorsement-for effecting changes in the policy Warranties/ Clauses

 Conditions Underwriting Renewal Hazard

Conclusion The insurance sector has a vast potential not only because incomes are increasing and assets are expanding but also because the volatility in the system is increasing. In a sense, we are living in a more risky world. Trade is becoming increasingly global. Technologies are changing and getting replaced at a faster rate. In this more uncertain world, for which enough evidence is available in the recent period, insurance will have an important role to play in reducing the risk burden individuals and businesses have to bear. In the emerging scenario, the insurance industry must pay attention to (a) product innovation, (b) appropriate pricing, and (c) speedy settlement of claims. The approach to insurance must be in tune with the changing times. The mission of the insurance sector in India should be to extend the insurance coverage over a larger section of the population and a wider segment of activities. The three guiding principles of the industry must be to charge premium no higher than what is warranted by strict actuarial considerations, to invest the funds for obtaining maximum yield for the policy holders consistent with the safety of capital and to render efficient and prompt service to policy holders. With imaginative corporate planning and an abiding commitment to improved service, the mission of widening the spread of insurance can be achieved. As I said at the beginning, you who are graduating today have an important role in fulfilling this mission.

List of major General Insurance Companies:Like a United India Insurance Co. Ltd., there are some major general insurance companies in all over India. Now we will view name of the Insurance companies, they are listed below.
S.NO NAME OF THE COMPANY NAME OF THE PRINCIPAL OFFICER

NAME OF THE APPOINTED ACTUARY Ms. Asha J. Joshi

TELEPHONE NO./FAX No./EMAIL & WEB ADDRESS

1.

Bajaj Allianz General Insurance Co. Mr. Hemant Kaul Ltd.

GE Plaza, Airport Road,

Tel : 020-6602 6666 Fax: 020-6602 6667

Yerawada, Pune411 006.

2.

ICICI Lombard General Insurance Mr. Bhargav Dasgupta Co. Ltd. ICICI Lombard House, 414, Veer Savarkar Marg, Near Siddhi Vinayak Temple, Prabhadevi Mumbai - 400025 IFFCO Tokio General Insurance Co. Ltd. 4 and 5th Floors, IFFCO Tower, Plot No.3, Sector 29, GURGAON-122001 (Haryana)

Mr. Liyaquat Khan

Tel : 02261961100 Fax: 02261961110

Mr.S. Narayanan

3.

Mr. K.K. Wadhwa

Tel : 01242850100 Fax: 01242577923-2577924

4.

National Insurance Co.Ltd. 3, Middleton Street, P.B. No. 9229, KOLKATA 700 071.

Mr. N. S. R. Chandraprasad

Mr. Bhudeb Chatterjee

Tel : 03322831705 to 9 Fax : 03322831712 Tel: 022-22674617 - 22, Fax: 02222652811 Email: cmd. nia@newindia.co.in Web-site: www.newindia.co.in

5.

The New India Assurance Co. Ltd. Mr. A.R.Sekar (officiating)Mr.A.R.Prabhu New India Assurance Bldg. 87, M.G. Road, Fort, Mumbai 400 001.

6.

The Oriental Insurance Co. Ltd. A-25/27, Asaf Ali Road New Delhi 110 002.

Mr. Ravinder Kumar Kaul Mr. Yash Paul Sabharwal

7.

Reliance General Insurance Co. Ltd. 570, Naigaum Cross Road , Next to Royal Industrial Estate, Wadala(West), MUMBAI 400 031

Mr. Rakesh Jain

Mr.Gopalakrishna Pai

Tel :01123279221-25 Direct:23265024 Fax: 23287192,2328719 3, 23283971 Tel.No.02230479602 Board no:02230479600 Fax. No.022330479650 Tel: 044-42227373 Fax: 04428517376 Email:ajay.bimbhet

8.

Royal Sundaram Alliance Mr. Ajay Singh Bimbhet Insurance Co. Ltd "Sundaram Towers" 45-46, Whites Road, Royapetah CHENNAI-600 014.

Ms. Tania Chakrabarti

@royalsundaram. in
Web-site: www.royalsundaram .in 9. Tata AIG General Insurance Co. Mr. Gaurav D. Garg Ltd. 9th Floor, Piramal Towers, Peninsula Corporate Park, G K Marg, Lower Parel, Mumbai - 400 013, India Mr.Saket Singhal
Tel No: +91-2266699697 Fax No: +91-2266546464 Email id:

Gaurav.gargd@ta ta-aig.com
Website:

www.tataaiginsur ance.in
10. United India Insurance Co. Ltd.
24, Whites Road Mr. G. Srinivasan Mr.S.Krishnan

CHENNAI 600 014.

Tel : 04428520161 Fax : 04428523825 Tel : 04442166000 Fax : 04442166001

11.

Cholamandalam MS General Mr. S. S. Gopalarathnam Mr. O. Lakshminarayana Insurance Co. Ltd. "Dare House" 2nd Floor, New No.2 (Old No. 234) N.S.C. Bose Road, Chennai - 600 001

12.

HDFC ERGO General Insurance Mr. Ritesh Kumar Co. Ltd. 6th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400 059.

Mr. Narayanan Laksmanan

Tel : 022-6638 3600 Fax : 022-6638 3699

13.

Export Credit Guarantee Corporation of India Ltd. 10th Floor, Express Towers, Nariman Point, Mumbai 400021

Sri A.V. Muralidharan

Tel :02256590512-515 Fax : 02256590517 022-56590530

14.

Agriculture Insurance Co. of India Ltd. 13th Floor, 14 K.G. Marg,

Connaught Place, New Delhi - 110001

Mr. M.A.Kharat (Officiating )

15.

Star Health and Allied Insurance Company Limited

No.1, New Tank Street, Vlluvarkottam High Road,

Mr. V. Jagannathan

Nungambakkam, Chennai - 600 034

Mr. S. Chidambaram Tel :01146869800, Fax : 01146869815 Email: aicho@aicofindia.co m Web-site: www.aicofindia.com Mr. N Srinivasan Tel :04428260053, Fax :04428260062

16.

Apollo Munich Health Insurance Company Limited

Building No. 10B,

Mr. Antony Jacob

Mr. Herbert Meister

Tel No: +91-1244584100

10th Floor DLF Cybercity Gurgaon 122001

Haryana, India

17.

Mr. K. G. Krishnamoorthy Future Generali India Insurance Company Limited 001, Trade Plaza, Ground Floor, 414, Veer Sarvarkar Marg, Prabhadevi, Mumbai 400 025

Mr. Biresh Giri

Telephone No.: +91-22-4097-6666 Fax No.: +91-2240976868

18

Universal Sompo General Insurance Co. Ltd. 310-311, Trade Centre, Opp. MTNL Building, Bandra Kurla Complex, Bandra(E) Mumbai-400 051.

Mr. Takashi Ebihara

Mr. Prem Chand

Gupta

Tele. No.- 0224028 7777 Fax No.-022-4028 7781

19

Mr. J.S.gujral Shriram General Insurance Company Limited, E-8, EPIP, RIICO Industrial Area, Sitapura, Jaipur-302022

Mr. P A Balasubramanian

Tele. No.- 01413928400, 898, 900, 902

(Rajasthan) Fax No.-01412770693,692 Phone no:08040260100 Fax. No 08040260101 www.bhartiaxagi.co.in 4231 3888 Fax No. 022- 4231 3777

20

Bharti AXA General Insurance Company Limited First Floor, The Ferns Icon Survey No.28, Next to Akme Ballet

Dr. Amarnath Ananthanarayanan

Mr M Venkatesan

21

Doddanekundi, Off Outer Ring Road Bangalore 560 037 Raheja QBE General Insurance Mr. Praveen Gupta Company Limited,

Mr. A P Peethambaran Phone No. 022-

22

"Windsor House", 5th Floor, CST Road, Kalina, Santa Cruz East, Mumbai-400098 SBI General Insurance Company Mr. Rammohan Rao Limited Belle MD & CEO The IL & FS Financial Centre 7th Floor, Plot C 22, G Block,
Bandra Kurla Complex, Bandra East,

Ms. Sharon DCosta

Tel. 02230698922/55/01

Fax: 02230698958/68

23

Mumbai 400 051 Max Bupa Health Insurance Company Ltd. Max Bupa Health Insurance Co. Ltd., Corporate Address 2nd Floor, Salcon Rasvilas, D-1 District Centre, Saket,
New Delhi 110 017.

Dr. Damien Marmion

Dr. K. Sriram

Tel: .01130902000/30902120 Fax: 011-30902010

24

L&T General Insurance Company Limited

601-602, Trade Centre Bandra Kurla Complex Bandra (East) Mumbai 400051.

Mr. Joydeep Kumar Roy Mr. Arpan N. Thanawala

Tel: +91-2261230000 Fax: +91-2261230145

This is the list of some major insurance companies in all over India. But there are so many companies in the world which is big than this listed companies.

Information of

United India Insurance Company Ltd.

Company Profile

About United India Insurance Company United India Insurance Company Limited was incorporated as a Company on 18th February 1938. General Insurance Business in India was nationalized in 1972. 12 Indian Insurance Companies, 4 Cooperative Insurance Societies and Indian operations of 5 Foreign Insurers, besides General Insurance operations of southern region of Life Insurance Corporation of India were merged with United India Insurance Company Limited. After Nationalization United India has grown by leaps and bounds and has 18300 work force spread across 1340 offices providing insurance cover to more than 1 Crore policy holders. The Company has variety of insurance products to provide insurance cover from bullock carts to satellites. United India has been in the forefront of designing and implementing complex covers to large customers, as in cases of ONGC Ltd , GMR- Hyderabad International Airport Ltd, Mumbai International Airport Ltd Tirumala-Tirupati Devasthanam etc. We have been also the pioneer in taking Insurance to rural masses with large level implementation of Universal Health Insurance Programme of Government of India & Vijaya Raji Janani Kalyan Yojana ( covering 45 lakhs women in the state of Madhya Pradesh) , Tsunami Jan Bima Yojana (in 4 states covering 4.59 lakhs of families) , National Livestock Insurance and many such schemes.

We have also made our presence in more than 200 tier II & III towns and villages through our innovative Micro Offices. Company vision We United India will be The most preferred insurer in India with global footprint & recognition. Trusted brand admired by all stakeholders The best-in-class customer service provider leveraging technology & multiple channels The provider of a broad range of innovative products to meet the needs of all customer segments Great place to work with highly motivated and empowered employees Recognized for its contribution to the society Corporate Mission Introducing Ourselves UI is a leading General Insurance Company. More than three decades of experience in Non-life Insurance business. Formed by the merger of 22 companies, consequent to nationalisation of General Insurance. Head Quarters at Chennai. Corporate Mission To provide Insurance protection to all. To ensure customer satisfaction To function on sound business principles.

 To help minimize national waste and to help develop the Indian economy. Company business in Nagpur: United India Insurance Company Ltd. Having too much scope in Nagpur city. Nagpur is a growing city, it population around 60 lakh thats why company have a wide scope to improve its business I Nagpur. People of Nagpur are progressive minded and for security in life people want insurance for their live as well as assets. Nagpurians having ability to take insurance for their assets because improving standard of life. This city facing drastic change in life style due to that they want life insurance and general insurance for their assets to secure them.

Performance Chart of United India Insurance Co. Ltd.

Annual Report 2010-11

The Directors have pleasure in presenting the Seventy Third Annual Report of the Company.

Awards achieve by United India Insurance Co. Ltd.

United India Insurance Company has been selected as one among the top three General Insurance companies in Asia by Asia Insurance Review at the 14th Asia Insurance Industry Awards 2010 held in Bali Indonesia

CHAPTER 4 Using Of Advance Technology in Insurance Sector

Use of Advance Technology in Exchange

We know that this new world is of computer and advance technology. Advance technology is also used in stock exchange. Advantages: a) Fast Transaction b) Easiness in transaction
c) Quick payment of premiums.

d) Easy and fast payment e) Availability in bilingual formats. f) Less paper work g) Payment from home.

CHAPTER 5 Research Methodology

Research Methodology
A research design is the arrangement of conditions for collection and analysis data in a Manner to combine relevance to the researcher purpose with economy in procedure It constitutes the blueprint for the collection, measurement and analysis of data. As such design includes an outline of what the researcher will do form writing the Hypothesis and its operational implications to the final analysis of data. As such the design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data. More explicit, the decisions happen to be in respect of: What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can the data found? What periods of time will the study include? What will be the sample design? How will the data be analyzed? In what style will the report be prepared? What techniques of data collection will be used? The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire knowledge. To know information about stock exchange, its transactions, fundamental base, people & personnel related to it, controlling body, trading type, how it affect & effect by and to the economy.

The research and the study are based on both the primary and the secondary data.

Books websites Magazines Broachers

CHAPTER 6 Bibliography

Bibliography
Indian Insurance: The Way Forward- G Srinivasan, India: The Next Insurance Giant by PRwire Pvt. Ltd. www.tourindia.com-Insurance in India www.moody.comIndian General insurance outlook www.IRDA,comannual report 2010-11 www.automobileindia.com- Auto Insurance Companies www.auto.webindia123.com-autoinsuranceindia www.generalinsuranceindia.com www.siam.com- auto policy govt of India www.reliancegeral.co.in www.UIIC.in