A Research Project Report

On

“Cancellation Control Mechanism for Mid-Term Cancellation”

At

ICICI Lombard General Insurance Co. Ltd.

Bangalore

Submitted To

In partial fulfillment of the course of

“Post Graduate Diploma in
Management”
2009-2011

Under the Supervision of: Submitted By:

Mr. Sushil K. Maurya Arpan Shukla
P.G.D.M. 2009-2011
 Mangalmay Institute of Management Studies
Greater Noida
TO WHOMESOEVER IT MAY CONCERN

This is to certify that this summer project report entitle ’Cancellation Control
Mechanism for Mid-Term Cancellation’ at “ICICI Lombard General Insurance
Company Limited.” Submitted by Mr. Arpan Shukla in partial fulfillment of the
award of the two years “Post Graduate Diploma in Management”Is a bonafide work
carried out by the student at our institute.

This summer project study is his original work and has not been submitted to any other
University / Institute.

Sushil K Maurya Dr. Anupam Narula

(Project Mentor) (Director)

Date:

2
 ACKNOWLEDGEMENT

“Change Is the Law of Life, Challenge Is the Aim of Life” to experience the vast

Growing change of industries and challenges attached to working environment in India,

summer training is the best period to know the integrity of corporate world. On my

knowledge enhancing sojourn for summer internship at “ICICI Lombard General

Insurance Company Limited.” who has given me lot of insight into the intricacies of

marketing profession in such a short stint.

The entire project from the very idea of it to the reality would not have been possible

without the guidance and support of Mr. Amit Arora (Manager ICICI Lombard) and

Mr. Sushil Maurya (Project Mentor MIMS).I am also very thankful to Mrs. Gurmeet

Thind (HRM ICICI Lombard) and Dr. Anupam Narula (Director MIMS) because

without the permission of both of them this training could not be possible.

I express my sincere gratitude to the

“ICICI Lombard General Insurance Co. Ltd.”

From where I have been able to collect data for my project.

Finally I would extend my profound gratitude to all the customers of ICICI Lombard

for patiently filling up the questionnaire without which the study was not possible.

Arpan Shukla

3
 Preface

This P.G.D.M. curriculum has been architecture with the view of enabling the
Students to have an opportunity of bringing their theoretical knowledge to practice.

The concepts reinforce in the classroom would be better exposure if it could be

Actually observe being practiced Complying with this objective the summer training
Is designed to develop the student’s skills in analyzing and interpreting practical
Problems through the application of theoretical concepts and techniques of
Management.

Insurance industry is one of the major growth contributors in Service Sector.

Retention Of the customer is one of the major concerns in this industry. This project
Work is the Snap shot to undermine the various reasons behind the detachment of the
Customer.

This work is done to understand the various factors and contributors towards the
Cancellation of the insurance policies.

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 Contents

Subject Page No.

Certificate of the Organization

Certificate of the Mentor 1

• Acknowledgement 2

• Preface 3

• Company Profile

 ICICI Lombard General Insurance Co. Ltd. 6

 ICICI Bank Ltd. 7

 Lombard Canada Ltd. 8

 Company Overview 9

 Vision & Mission of ICICI Lombard 10

 ICICI Lombard Philosophy 11

 IT Initiatives 12

• Objective and scope of the Research 14

• Research Methodology 16

• Comparison of product & services of ICICI Lombard

With other companies. 18

5
• Comparison of Home Loans Interest Rates of ICICI Bank

With other companies. 43

• Analysis of data & findings of the study 46

• Suggestions and Conclusion 58

• Annexure & Bibliography 60

Company

Profile

6
 Company Profile

ICICI Lombard

General Insurance Company

ICICI Lombard General Insurance Co. Ltd. is a joint venture between ICICI Bank Ltd.
and Fairfax Financial Holdings Ltd. Where ICICI Bank boasts of being India's second
largest bank, Fairfax Financial Holdings of Canada is a leading financial corporate
engaged in general insurance, reinsurance, insurance claims management and investment
management. In August 2001, ICICI Lombard General Insurance Company received
regulatory approvals to instigate general insurance business in India.

In a short span of time, ICICI Lombard rose to become number one private general
insurance company in India. Moreover, it's also the first company to get ISO 9001:2000
certifications in India. ICICI Lombard has been assigned the iAAA rating by ICRA,
indicating the highest claims paying ability. It is the first company to provide digitally
signed documents through an online interface. For its effective solutions and working, it
has got various recognitions like 'General Insurance Company of the Year' (2007), NDTV
Profit Business Leadership Awards 2007, etc. Given here is a comprehensive list of
policies on offer by ICICI Lombard General Insurance Co. Ltd.

ICICI Lombard has the guidance of Lombard, Canada, on domain knowledge, product
innovation, business processes based on cutting-edge technology and international best
practice in the insurance business. The company offers a wide range of retail and
corporate general insurance products for today's challenging business environment.

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 ICICI Bank Limited
ICICI Bank is India's second largest bank with total assets of over Rs. 1 trillion, a
Network of about 540 branches/offices and over 1,000 ATMs. ICICI Bank offers a wide
Range of banking products and financial services to corporate and retail customers
Through a variety of delivery channels.

Through its specialized subsidiaries and affiliates it offers Services in investment

banking, life and non-life insurance, venture capital, asset Management and information
technology. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai,
Delhi, Kolkata, Vadodara, Mumbai and the National Stock Exchange of India Limited.

Its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE) - the first Indian company and one of the first banks/financial institutions from
Asia to be listed on the NYSE. ICICI Bank is the only Indian company to be rated higher
than the sovereign rating by Moody's.

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to
the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank
offered made an equity offering in the form of ADRs on the New York Stock Exchange
(NYSE), thereby becoming the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the
Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next
fiscal year, the bank made secondary market sales to institutional investors.

With a change in the corporate structure and the budding competition in the Indian
Banking industry, the management of both ICICI and ICICI Bank were of the opinion
that a merger between the two entities would prove to be an essential step. It was in 2001
that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of

8
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following
year, the merger was approved by its shareholders, the High Court of Gujarat at
Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of
India.

Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited. Overseas, its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008,
ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and
profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Lombard Canada Limited

Lombard Canada Limited is responsible for the insurance management services for all of
The Lombard Group's commercial, personal, and specialized insurance companies.
Exceeding $500 million in annual sales, Lombard Canada Limited also provides
Insurance management services for external clients including the Tokyo Marine & Fire
Insurance Company Ltd.

Lombard General Insurance Company of Canada underwrites Commercial lines business

through select brokers across Canada. Lombard General Brokers have access to one of
the industry's most powerful underwriting tools: Business Choice ®, a specialized point
of sale software developed by Lombard Canada. Beyond providing small and medium
sized businesses with the specialized insurance coverage They require, Lombard General
also offers custom marketing services and specialized Coverage’s designed to meet the
needs of businesses across the country.

Lombard Canada Ltd. is responsible for the insurance management services for all of the
Lombard group's commercial, personal, and specialized insurance companies. Lombard
Canada Ltd. also provides insurance management services for external clients including
the Tokio Marine & Nichido Fire Insurance Co., Ltd. Lombard Canada Ltd., and the
member entities of the Lombard companies that it manages, are wholly owned
subsidiaries of Northbridge Financial Corporation.

Lombard General Insurance Company of Canada underwrites commercial lines

business through select brokers across the country. Lombard General brokers have access
to one of the industry's most powerful underwriting tools: Business Choice ®, a
specialized point of sale software developed by Lombard Canada. Beyond providing
small and medium sized businesses with the specialized insurance coverage they require,

9
Lombard General also offers custom marketing services and specialized coverage
designed to meet the needs of businesses across the country.

Lombard Insurance Company is a personal lines underwriting insurance provider

committed to providing Canadians with the most innovative personal lines insurance
solutions. Lombard Insurance was well ahead of the competition when it introduced its
packaged homeowner and automobile product Personal Choice ® - a package that
remains popular today. Lombard Insurance Company strives to stay on top of the
changing needs and lifestyles of its clients, that is why we have recently introduced two
new coverages - "Toys Coverage" for seasonal dwellings, watercraft, motorcycles, and
snowmobiles and Homework ® for the growing home based business sector.

Company Overview

ICICI Lombard General Insurance Company Limited operates as a general insurance

company in India. The company provides health, home, motor, overseas travel, and
Student’s insurance products for individuals; and business, fire, marine, industrial,
corporate, liability, credit, and shop insurance products for businesses. It also offers rural
insurance products, such as tractor and weather. In addition, the company provides claim
services, including health, home, motor, overseas travel, and student’s claims, as well as
online services. It offers its products through a network of branches. The company was
incorporated in 2000.

Why ICICI Lombard:

India 's number one private general insurance company

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

Assigned the iAAA rating by ICRA indicating highest claims paying ability

Simple and fast documentation

Lightning fast claims settlement

Instant online policy issuance

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 Comprehensive product line

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

First company to provide digitally signed documents through an online interface

Achieved financial breakeven in first full year of operations

Achieved underwriting breakeven in second year of operations

Adjudged as the most Customer Responsive Company in the Insurance category at the
Economic Times Avaya Global Connect Customer Responsiveness Award 2006

Awarded the Best Housing Insurance in the Smart Living Awards by 360 degrees, a
Times of India Group subsidiary, in Nov 2006

Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31, 2006

Among the top three General Insurance Companies to be awarded the "General
Insurance Company of the Year" at the 10th Asia Insurance Industry Awards

Adjudged amongst the top three in the Insurance Website of the Year category at the
9th Asia Insurance Industry Awards function held in Singapore during September,
2005

Vision & Mission of ICICI Lombard

Vision:
To be the leading provider of financial services in India and a major global
General insurance company.

Mission:

We will leverage our people, technology, speed and financial capital to:

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  Be the insurance company of first choice for our customers by
delivering high quality, world-class services.

 Expand the frontiers of our business globally.

 Play a proactive role in the full realization of India’s potential.

 Maintain a healthy insurance profile and diversify our earnings

across businesses and geographies.

 Maintain high standards of governance and ethics.

 Create value for our customers.

ICICI Lombard Philosophy

As India transforms into a key player in the global economic arena, multiple opportunities
for the insurance & financial services sector have emerged. We, at ICICI
Lombard, seek to partner the country's growth and globalization through the delivery of

12
World-class financial services across all cross-sections of society.

From providing project and working capital finance to the buoyant manufacturing and
infrastructure sectors, meeting the foreign investment and treasury requirements of the
Indian corporate with increasing levels of international engagement, servicing the India
linked needs of the growing Indian Diaspora, being a catalyst to the consumer finance
story to serving the financially under-served segments of the society, our technology
empowered solutions and distribution network have helped us touch millions of lives.

Quality is an integral part of ICICI Lombard's well-defined and dynamic Human

Resource (HR) policy. The company follows a strong value system which is driven by
result orientation, adaptability to change, humility and respect for colleagues and peers.
We believe that investment in human capital is the key source of competitive advantage
and sustained growth.

Our constant endeavor is to create and maintain a performance driven work culture
focusing on employee satisfaction and retention. With attractive compensation packages,
positive and productive work environment and challenging assignments and opportunities
across the world, ICICI Lombard is committed to being the employer of choice wherever
it operates. We not only want to attract and retain the very best of professionals, but also
want them to be partners in progressive growth

Information Technology Initiatives

The IT group at ICICI Lombard is structured for quick response to a dynamic

Market place. The approach has been to Adopt a customer-centric strategy with greater

13
Speed, higher accuracy and with enhanced capacity that is aligned with the
Organization’s goals and objectives.

The following are the milestones in information technology:

Best IT implementation award - ICICI Lombard has been awarded the

Best IT implementation award in the 'Maximum Business Impact' category for its
GIS based Risk Management System initiated on August 2004.

Online Manager - A web-based interface enables our customers and

Intermediaries to independently process insurance transactions through the internet.
ICICI Lombard has sales and service abilities on the corporate website, providing
real time policy issuance for certain products.

Improved speed and accuracy of claims processing using

Talisma - A Customer Relationship Management (CRM) system and Claims
Processing System (CPS) system have been implemented on the Talisma platform.
ICICI Lombard has integrated the contact center for surveyors, dealers, operations,
Internal claim teams into a single interface leading to improved speed and accuracy
of claims processing.

Deployment of Citrix® Meta Frame Presentation Server

for faster customer service, tracking and monitoring of
policy related issues at any time - In order to cater to the diversity of
locations at ICICI Lombard and a high volume of transactions, there was an acute
Need to centralize applications for faster rollouts. The company partnered with
Wipro InfoTech to implement a solution using Citrix Meta Frame Presentation
Server. Now, ICICI Lombard’s insurance employees and agents are now able to
structure all types of the company’s insurance products, independent of time and
Location. The system is designed to generate a policy in less than 10 minutes.

ICICI Lombard signed up for Consigntech "GoDB Platform" for

developing mobile and disconnected POS (point of sale) - ICICI
Lombard signed up for Consigntech "GoDB Platform" a software from Consigntech

14
for developing mobile and disconnected POS (point of sale). This reduces the
transaction cycle time for policy issuance to its customer at the intermediary and
customer premises. As the processing gets distributed, the infrastructure required is
reduced.

ICICI Lombard Launches Path Finder on May 2006 - To

align the organization with the growing pace of economic development and
expansion, ICICI Lombard has incorporated a cutting edge IT application called
‘Path Finder’ as its core policy administration system. It is a state-of-the-art system
that provides an efficient method to quote, issue, manage policies and critical
Insurance functions from the internet as well as the intranet. The system is based on
the top-of-the line hardware infrastructure to ensure its ability to handle the business
Growth.

15
 Objective and
Scope

Of the Research

16
 Objectives of the Research

The objectives of the study are given below:

 The objective is to critically understand as to which region is the maximum

contributor in terms of cancellation and also analyze the reason behind the
cancellation.

 The purpose of the research is to evaluate the impact of the customer and their
opinion carried out in the organization.

 The objective of the study is also feel the pulse of the customer’s views and their
reasons for the policy cancellation.
.

17
 Research

Methodology

18
 Research Methodology

Keeping the objective of the study in mind carries out the research. For the purpose of the
study data was collected from:

1. Primary Source

2. Secondary Source

To collect the primary data, I will use following techniques:-

1. Phone Calls
2. Filling up of questionnaire by the customers.

To collect the secondary data, I will use following techniques:-

1. Internet
2. Database of the company.

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 Comparison of Product

And

Services of ICICI Lombard

with Other Companies

20
 Comparison of product and services

The names of various companies are given below:

• Tata AIG General Insurance Company.

• Reliance General Insurance Company.

• HDFC Ergo General Insurance Company.

• Cholamandalam MS General Insurance Company.

• IFFCO Tokio General Insurance Company.

• ICICI Lombard General Insurance Company

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 Tata AIG General Insurance

Services:

Tata AIG General Insurance Company Limited offers a complete range of general
Insurance policies, for motor, home, accident and health, travel, energy, property and
Casualty, marine and liability purposes, as well as several specialized financial lines.
Apart from its wide and varied product basket, the insurance company also ensures quick
And easy claim settlements, which in turn, has helped it in not only retaining the old
Customers (winning their loyalty), but also gaining new ones.

Products:

Home
• Fire Cover
• Pre-Packaged Coverages
• Supreme Cover
• Privilege

“Home sweet Home” – a destination, any individual or a family feels very close to the
Heart. It is an investment of one’s lifetime savings, emotional dreams and aspirations to
realize their ideal home. Home signifies a set of emotions for any individual, be it pride,
Ownership, stability or be it a sense of belonging. It echoes the owners’ sentiments “It´s
my house”.

After all, one´s Home including its contents is the single most important and expensive
asset that we have created for ourselves. We have learnt to value life and health

22
sufficiently to understand the importance of insuring it. But when it comes to applying the
same logic to our home (around which our lives revolve) most of us suffer a blind spot. It
is only when a calamity or catastrophe strikes that we feel helpless.

Home Insurance provides exactly the care one needs at such times – to safeguard against
unforeseen eventualities and to preserve one´s lifestyle and that too at an affordable price.
You can protect your priceless investment for very little money. Assuming you have
possessions worth Rs. 300,000 in your house, you can insure those possessions for as
little as Rs. 3 a day - for Fire, Natural Hazards (Flood, Earthquake etc) and Burglary &
Theft.

TATA AIG´s HomeSecure takes the bother out of insuring your home. No unnecessary
paperwork or awkward questions. Just smooth sailing all the way.

Fire Cover:

This policy covers against fire and some special perils listed below. Its attraction is the
fact that it gives you this cover for surprisingly little money.

What is this for?

This policy covers buildings (RCC construction) and your household contents. Building
value should be equal to present day cost of reconstruction, while contents should be
insured for their market value.

Perils Covered

• Fire
• Lightning
• Explosion / Implosion
• Riot, Strike and malicious damage (RSMD)
• Flood, Storm, inundation
• Aircraft Damage
• Impact Damage by any rail/road vehicle or animal (other than damage by own
vehicle)
• Landslide, rockslide
• Bursting and overflowing of water tanks, apparatus pipes.
• Missile testing operations
• Bush Fire
• Earthquake & Terrorism can be taken as add-on covers by paying extra premium

23
 It is important that you take care to adequately insure your property. In case the actual
value of insured property at the time of loss under Fire Benefit is found to be greater than
the sum insured opted by you, then the claim would stand to be reduced in the same
proportion.

Supreme Cover

This is flexible home insurance product, which can be customized for individual
requirements. You can customize your package by picking and choosing from a basket of
coverage’s to design a product that you feel suits your needs.

Pre-packaged Cover

These are the six pre-packaged covers we have, to satisfy varying home insurance needs.

Privilege

This is unique, innovative product where one can insure one’s most prized possessions as
Part of a privilege offer viz. Your car, home and life.

It is a comprehensive insurance scheme that protects you against the uncertainties of life
By giving you the convenience of protecting your Home Contents and your life against
Accidents while taking Car insurance i.e. 3 in 1 covers under the same roof.

While Car insurance is the default insurance, the client has the option of taking the Home
and/or Personal Accident cover under the same policy.

Product structure:
Sum Insured
Benefits

Fire & Allied Perils (Home Contents) 200,000

Burglary & Theft (on 1st Loss) 200,000
ATM Cash 2,500
Public Liability 100,000

Contents exclude jewelry and valuables

24
Premium:

Rs 1005/- including service tax @ 12.24%.

Also available on offer is a unique spot fulfillment product for Home Contents.

This product is over the counter in nature where the final policy itself is handed over to
the customer across the table at the point of sale. It requires minimum documentation, is
simple to understand and hassle-free for execution.
It is a simple Fire and Burglary product available in 2variants. The benefits under this
product are:

Fire and Allied Perils (incl. earthquake & terrorism) – Home Contents: Sum Insured
options of Rs 3 lacks & Rs 5 lacks respectively.
Burglary &Theft - Home Contents (on1st loss): Sum Insured of Rs 1 lac common to both
variants.

Product structure:
Option 1-3 lacks Option 2-5 lacks
Benefits
Sum insured (Rs) Sum insured (Rs)
Fire & Allied Perils including
300,000 500,000
Earthquake & terrorism - for contents
Burglary & Theft on 1st Loss - for
100,000 100,000
contents
Final Premium incl. Service Tax @
719 853
12.24%

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 Reliance General Insurance

Services:

Reliance General Insurance Company offers a wide range of innovative products to the
Potential customers. Right from health and home insurance to car/motor and travel
insurance, you can get almost all types of individual policies with Reliance, that too at the
best premium rates. Apart from that, the company also caters to corporate and SME
clients, providing end to end insurance solutions. The product basket includes fire,
engineering, liability, marine, travel and other types of insurance, for organizational risk
management.

Products:

Home Insurance

• Reliance Home Protect

• Householder's Package

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Reliance Home Protect

Policy Details

Plan Name Reliance Home Protect

Building No

Contents Yes

Baggage No

MBD (machinery breakdown) Yes

EEI (electronic equipment insurance) Yes

Personal accident Yes

Personal liability No

Pet Dog No

Burglary (content) Yes

Fire, Lightning, Explosion/implosion Yes

Earth quake Yes

Storm, Cyclone, Typhoon, Tempest Yes

Tornado, Flood and Inundation Yes

Impact damage No

Subsidence and landslide including Rockslide Yes

Missile testing operations No

Leakage from Automatic Sprinkler Installations No

Bush fire Yes

27
Terrorist activities Yes/Optional

War No

Optional Coverage Terrorism at the option

of the insured

Householders Package

Policy Details

Plan Name Householders Package

Building No

Contents Yes

Baggage Yes

MBD (machinery breakdown) Yes

EEI (electronic equipment insurance) Yes

Personal accident Yes

Personal liability Yes

Pet Dog No

Burglary (content) Yes

Fire, Lightning, Explosion/implosion Yes

Earth quake Yes

Storm,Cyclone,Typhoon,Tempest Yes

Tornado, Flood and Inundation Yes

Impact damage Yes

28
Subsidence and landslide including Rock slide Yes

Missile testing operations Yes

Leakage from Automatic Sprinkler Installations Yes

Bush fire Yes

Terrorist activities Yes

War No

HDFC Ergo General Insurance Company

Product and Services:

As HDFC Ergo aims to provide apt insurance solutions to all its customers, it keeps on
Constantly customizing its product and services to meet the requirements of every
Customer in the market. It also believes in providing a smooth hassle free service to all
Its customers. To help its customers 24x7, it has also developed a superior customer
Support service.

Home Insurance Services:

29
House holder Insurance

Policy Details

Plan Name Householder Insurance

Building Yes

Contents Yes

EEI (electronic equipment insurance) Yes

Fire, Lightning, Explosion/implosion Yes

Earth quake Yes

Storm, Cyclone, Typhoon, Tempest Yes

Tornado, Flood and Inundation Yes

Impact damage Yes

Subsidence and landslide including Rock slide Yes

Missile testing operations Yes

Leakage from Automatic Sprinkler Installations Yes

Bush fire Yes

Terrorist activities No

War No

30
Optional Coverage You can also cover

Electronic, Equipments,

Furni
ture Furnishings,

Jewel
lery, Clothes etc.

31
 Cholamandalam MS General Insurance

Product and Services:

Cholamandalam MS General Insurance is involved in the non-life or general insurance

Sector. With its efficient schemes and policies of consumer focus, the company is aimed
To become one of the largest players of insurance sector in India. Cholamandalam MS
General Insurance offers a varied list of services in accordance with the popular
Requirements in the insurance sector. Here is the comprehensive list of product, policies
And services of the company-

Home Insurance:

Householder Insurance

Policy Details

Plan Name Householder Insurance

Building Yes

Contents Yes

Baggage Yes

MBD (machinery breakdown) Yes

EEI (electronic equipment insurance) Yes

Personal accident Yes

Personal liability Yes

Pet Dog No

Burglary (content) Yes

Fire, Lightning, Explosion/implosion Yes

Earth quake Yes

Storm, Cyclone, Typhoon, Tempest Yes

32
Tornado, Flood and Inundation Yes

Impact damage Yes

Subsidence and landslide including Rock slide Yes

Missile testing operations Yes

Leakage from Automatic Sprinkler Installations Yes

Bush fire Yes

Terrorist activities No

War No

33
 IFFCO Tokio General Insurance

Products & Services:

Home Loan:

Householder Insurance

Policy Details
Plan Name Householder Insurance

Building Yes

Contents Yes

Baggage Yes

MBD (machinery breakdown) Yes

EEI (electronic equipment insurance) Yes

Personal accident Yes

Personal liability Yes

Burglary (content) Yes

Fire, Lightning, Explosion/implosion Yes

34
Earth quake Yes

Storm, Cyclone, Typhoon, Tempest Yes

Subsidence and landslide including Rock slide Yes

Optional Coverage:

1. Professional fees of architects, surveyors etc. for superintendence of building

during reinstatement following a loss.

2. Debris removal cost.

3. Escalation of Sum Insured throughout the year to guard against inflation

4. Loss of rent as landlord and additional expenses on rent whether you are a

landlord or Tenant.

Bonus/Discounts:

Available if more than 6 options provided in the policy are opted.

35
 ICICI Lombard General Insurance

Products and Services:

Home Loan:
Home Safe +

Heart is where the home is and so, it is among our most prized possessions. But with the

many uncertainties that we are faced in life, we would want to secure it by preparing for

the unexpected. We at ICICI Lombard General Insurance Co. Ltd understand these

apprehensions and hence, present to you Home Safe+ to relieve you of the insecurities

that your Home Loan responsibility may be causing you.

36
Home Safe + Product covers the sum insured subject to maximum liability as specified

under each cover, for maximum 5 year period on account of any of the following:

The product comprises of two covers:

Cover A:

1. Diagnosis of major medical illness* and procedures.

a. Cancer

b. Coronary Artery By Pass Surgery

c. Myocardial Infarction (Heart Attack)

d. Kidney Failure (End Stage Renal Failure)

e. Major Organ Transplant

f. Stroke

g. Paralysis

h. Heart Valve Replacement Surgery

i. Multiple Sclerosis

2. (i) Death of insured person on account of an accident.

(ii) Permanent Total Disablement (PTD) on account of an Accident.

3. Loss of employment on account of retrenchment or layoffs on account of:

a. Employer rules and regulations (Ex. Closure of a division or a department on

account of poor financial health); or

b. Action of any public authority leading to closure of the employer firm; or

37
 c. Termination from employment due to illness.

(For salaried employees only & Maximum Liability of the company- 3 EMI’s)

Cover B :

Fire & Special Perils

Covers losses to the structure of the house and the content due to any natural and man-

made calamities.

The calamities covered are fire, earthquake, lightning, flood, explosion/implosion,

resultant damage from explosion of gas cylinder, spread of fire due to electric short

circuit, riot, strike, malicious damage, aircraft/impact damage, storm, cyclone, flood,

testing operation, leakage from automatic sprinklers, etc.

Burglary:

• Loss of contents due to burglary or attempted bur glary.

• Loss of jewellery, gold ornaments, silvers articles & precious stones kept under

lock and key.

Sum insured:

• Coverage is based on sum opted for the respective covers at the time of availing of

the policies.

38
 • The EMI payment will be aggregated and a cap of 3 EMI’s for loss Employment

will apply.

Home Safe + Product Coverage:

Cover A:

• In the unfortunate event of your death or Permanent Total Disablement on account

of an Accident, resulting in your inability to remain gainfully employed, the sum

insured opted for at the time of the policy is paid off.

• In case you contact any of the major medical illness & procedures covered under

this Policy, then ICICI Lombard will pay the sum insured at time of availing of

the policy.

• If you lose your job on account of causes listed in the Policy then ICICI Lombard

will pay the EMI due on the loan till you can find an alternative job (subject to a

maximum of 3 EMI’s).

Covers B:

• The structure of your home is covered on a ‘Reinstatement Value’ basis, which is

the cost of rebuilding your home with a similar new construction.

• It does not cover the market value of your home, as the value of the land is

included in market value and cannot be insured because it is indestructible.

• The contents are covered on a ‘Market Value’ basis. i.e. the cost of buying a

similar new item, after deducting appropriate depreciation on the basis of the age.

39
 This includes appliances, furniture, personal effects, utensils & miscellaneous

items.

Features of Home Safe + Product:

• For being a valued ICICI Bank customer, ICICI Lombard has arrived at special

rates for you for this policy.

• Simple health declaration required. No medical check-up required.

• Easy claim settlement with minimal documentation multiple applicants of the loan

can be covered under the policy.

Premium Payable:

The premium for Home Safe + Product depend on the applicant’s age, loan amount,

loan tenure, sum insured and applicant’s occupation & is payable in accordance with

arrangements with ICICI Bank.

Home Safe + Product Exclusions:

• Any major medical illness & procedures existing before the commencement of the

policy or discovered within 90 days of the inception of the policy.

• Any unemployment occurring within 90 days of the inception of the policy.

• Mental disorder & insanity.

• Intentional self-injury or suicide or attempted suicide.

40
 • Use/misuse of liquor/drugs

• Venereal diseases, AIDS

• Pregnancy & childbirth

• Any congenital illness or condition

• War, terrorism acts

• Nuclear weapons induced acts

• Structure cover for commercial loan is valid for one year only(applicable for

resident Indians)

• Mounting into, dismounting from or travelling in any balloon or aircraft other than

as a fare paying passenger in any scheduled airline any where in the world

• Willful destruction of property

• Loss, damages & destruction caused by war perils, wear & tear, atmospheric

conditions, etc

• Losses if your house has been unoccupied for more than 30 days

• Cash, bullion, paintings, works of art & antiques

Eligibility Conditions:

Home Safe + Product will be offered to the ICICI Bank Home Loan customers who

Meet the following criteria:

41
 • Age criteria at entry: Minimum 20 years, Maximum 50 years

• Minimum loan tenure: 36 months

• You should not have suffered from any of the major medical illness & procedures

covered under this Product. (if any of them are pre-existing as indicated in the

Proposal Form, they will be excluded from the cover as available to you).

• Satisfactory completion of health declaration form

• Self-employed person will not be eligible to be covered for loss of employment

• ICICI Bank loan is also available without this policy.

Coverage Period:

The cover under the product commences right from the first disbursal of the loan or the

premium cheque date whichever is later (subject to receipt of satisfactory health

declaration & realization of premium cheque)

The cover ends if any of the following occurs:

• Expiry of the policy period

• In case of payment of Death/Disability & major medical illness & procedures

claim;

• In case of maximum payment (in aggregate) of 3 EMI’s for unemployment then

this benefit will not be available to you. The Death, Disability, major medical

illness & procedures Cover will be still valid

42
 • When the Insured Person attains the age of 55.

Premium Refunds:

Under cover A, in case of full pre-payment of the loan, short term Refunds will be

applicable on the policy. For Part-Prepayment of the loan, no premium refunds are

applicable.

Conformation of cover

On receipt of satisfactory health declaration & premium, ICICI Lombard General

Insurance Co. Ltd will send the insurance policies to you.

Claim process for Home Safe + Product:

• In case of claim, please follow the procedure given below:

• ICICI Lombard General Insurance Co. Ltd. to be informed giving the details of

the policies cover as may be issued to you.

• Submit documents to ICICI Lombard General Insurance Co. Ltd.

• Claim will be settled by ICICI Lombard General Insurance Co. Ltd. within 21days

of receipt of all completed documents such as death certificate, doctor’s

certificate, employer’s certificate, FIR, police report etc.

43
Products which are given by ICICI Lombard and other companies:

Products ICICI TATA Reliance HDFC Iffco

Lombard AIG Life General Ergo Tokio

44
Health

Insuranc Yes Yes Yes Yes Yes

Home

Insuranc Yes Yes Yes Yes Yes

Motor

Insuranc Yes Yes Yes Yes Yes

Travel

Insuranc Yes Yes Yes Yes Yes

Student

Medical Yes No No No No

Insuranc

45
Business

Insurance Yes Yes Yes Yes Yes

Rural

Insurance Yes Yes Yes Yes Yes

NRI

Services Yes No No No No

46
Comparison Of Home

Loan Interest Rate

Of ICICI Bank

With Other Companies

47
 Home Loans Interest Rates of Various

Companies Comparative Chart*

Bank Name Floating Processing Fee Prepayment

Interest Rate Charge
0.50% of loan
Allahabad Bank 10.00 % amount, Maximum N.A.
Rs. 10,000/-
1% of the loan 1% (For Fixed
Axis Bank 8.75 % amount + applicable scheme ), NIL( For
taxes Floating)
Part pre-payment
with Zero pre-
payment charges
Barclays Bank 9.25 % 0.5 % subject to maximum
25% of the principal
outstanding amount
else 2% prepayment
charges have to pay
For loans upto
Rs.30 lacs One time
@ 0.55% of loan
amount min. Rs.
3000/- and max.
Rs.10000/-
Bank of India 9.25% For Loan over Rs.30 N.A
Lacs upto Rs.50
lacks – One time
flat Rs.15,000/-
For Loan over Rs.50
Lacs up to Rs.1.00
crore – One time
flat Rs.20,000/-

48
 Citibank 9.75%(For 20 N.A N.A
years)
Rs. 10,000/- or If 25% of
8.25% (Up to Mar 0.5% of loan outstanding amount
31,2011),9.25% amount(whichever is paid every year
HDFC Ltd (from Apr 1,2011 - is lesser) + Service till 3 years - No
Mar 31,2012), Then Tax Penalty , otherwise
9% 2% of outstanding
amount
Rs.10,000/- above 1
crore If Full
ICICI Bank 8.75% 0.50% of loan Payment - 2% of
Home Loan amount up to 1 outstanding amount
crore If Part Payment -
No Penalty
8.9%(Fixed rate for 2% of outstanding
LIC Housing 3 years) Floating 1% of loan amount Payment
8.75%
No Charges if 20%
0.75%( from 10 lac of the outstanding
Punjab National 9.75% - 15 lac ) , 0.5% amount pay in a
Bank ( above 15 lac) single year after
that 2%
8% (1st yr), 0.50% of loan
State Bank of 9%(2nd and 3rd amount with a cap
India yr),10%(after 3 of Rs.10,000 + N.A
years) service tax
8.25% to 8.75% 2% of outstanding
Standard (basis on the 0.25%-0.50% 0f Payment
Chartered profile) loan amount
Before 5 years
DHFL 8.50% 0%( below 10 lacs), -2%,For Balance
1%(above 10 lacs) Transfer -3%

*Interest rate on 20 July 2010

49
Analysis of Data

50
 Analysis of Data And Findings Of The Study

Q.1 Reason for cancellation of policy……

a. Foreclose
b. Mis-selling
c. Not interested
d. Others

Ans. The main reason of the cancellation which is find out by the Survey is foreclosure
Of loan. The percentage of Loan foreclosure is very higher than the other
reasons.

Reasons

5%
5%

10% Loan Foreclosuer

Not interested
Mis-selling
Others
80%

51
Q.2 You have foreclosed your loan,
a. From own funds
b. Balance Transfer
c. Any other reason, please specify……

Ans. Mainly the customers foreclosed our loan. The customers paid all the amount from
His own fund or transfer the Balance in any other company. But the percentage of
The Paid all the amount from his own fund is higher than balance Transfer.

foreclose

1%

29%

fromown fund
balance transfer
70%
others

52
Q. 3 Did anyone get in touch with you from ICICI Lombard?
a. Yes
b. No

Ans. No, Mostly customers did not get any phone call from ICICI Lombard. Approx
80% Customers did not get any phone call from ICICI Lombard.

20%

did not get call

get the phone call

80%

53
Q.4 If yes, then the procedure & refund process was explained
a. Yes
b. No

Ans. Yes, the procedure & refund process was explained to those Customers who get
the Phone call from ICICI Lombard. The percentage of the customers who get the
phone call & explained by the employee is approx 96%.

processwasexplainedor not

4%

processwas explained
not explained

96%

54
Q.5 If the procedure & refund process was explained, then has the refund been

Received………

Ans. Most of the customers who get the phone call from ICICI Lombard & refund

Process was explained to him, have received his refund amount. The percentage

Is 95%, who received his amount.

Refundbeen received or not

5%

refund been received

not received till now

95%

55
Q.6 Given an opportunity would you like to have relationship with us in future?

Ans. Most of the customers would like to have relationship with ICICI Lombard in
Future. The percentage is 90%.

Customerinterestedin futurerealationor
not

10%

interested in future realation

not interested in future

90% reaalation

56
 Findings of the study

While conducting the study over this topic certain things are finds:

 I found the 4 major contributor regions in term of cancellation. These regions

are given below

• Mumbai

• Pune

• New Delhi &

• Bangalore

These 4 regions collect over 50% cancellation in the respective Zones (these zones are

West, North & South). Here I am giving my study on these 3 zones with pie charts -

57
1. West Zone :

In west zone Mumbai & Pune collect the highest number of cancellation.

These two regions collect approx 85% of cancellation.

The similarity in both regions is, most of the customers foreclosed the loan

and paid the entire amount through his own funds. In west zone other regions

are Ahmadabad, Rajkot, Nagpur, Jaipur, Surat etc.

WestZone

10%

10%

Mumbai
45%
Pune
Ahmedabad
Others

35%

58
2. North Zone:

New Delhi is the maximum contributor region in the north Zone. Only New Delhi

Collect approx 45% of cancellation. In this region again the highest reason of

Cancellation is Loan Foreclosure and customer paid all the amount from his own

Fund. Other reasons of north zone are Ghaziabad, Kanpur, Chandigarh, Amritsar,

Lucknow etc.

NorthZone

20%

45%
New Delhi
15%
Ghaziabad
Chandigarh
Others
20%

59
3. South Zone:

Chennai, Hyderabad, Vishakapatnam, Madurai, Sucenderabad etc are the

Various regions of the south zone.

In All these regions, Bangalore is the major contributor region in term of

Cancellation. It collects 60% of cancellation.

In Bangalore region most of the customers Foreclose our loan and paid all the

Amount from his own fund.

60
 South Zone

15%
5%
Bangalore
Hyderabad
Chennai
20% 60% Others

Maximum contributor Regions of

Cancellation

61
 Maximum
Zone Region State Reason of
Cancellation

In Mumbai region
the maximum
West Mumbai Maharashtra reason of
cancellation is Lone
Foreclosure

The maximum
West Pune Maharashtra reason of
cancellation is Lone
Foreclosure

In various reasons
North New Delhi New Delhi the maximum
reason is Lone
Foreclosure

Again the
South Bangalore Karnataka maximum reason is
Lone Foreclosure

62
 Suggestions
&
Conclusion

Suggestions & Conclusion

After the thorough study of the process; The following suggestions can be implemented:

63
  If the tenure of the product can be increased then it might help to bring down
The retention level by 25-30%.

 Rather than offering customized product to customer, If customer can be

Given an option to choose the coverage and accordingly rates can also be
Decided

 There should be proper tracking mechanism to handle cancellations, As

Observed most of the time customers have not been contacted by various
Teams.

 There is potential to pitch Home insurance to all the cancelled policies as even
Foreclosed loan has the requirement for the same.

As I learned many things from this industrial exposure. This customers study conducted
at ICICI Lombard, has given a view of the working of an organization. It also helped
me to understand the customer and their views.

Insurance industry is one of the major growth contributors in Service Sector. Retention
Of the customer is one of the major concerns in this industry. In this project study I found
mostly the customers have foreclosed our loan. They paid the entire amount from his own
fund because they want to close our loan for saving our money which is given by him on
interest rate. The servicing of the ICICI Lombard is very good and mostly customers
satisfied with ICICI Lombard.

64
 Annexure

Questionnaire

Q.1 You have cancelled your policy?

65
Q.2 Reason for cancellation……
a. Foreclose
b. Mis-selling
c. Not interested
d. Others

Q.3 You have foreclosed your loan,

a. From own funds
b. Balance Transfer
c. Any other reason, please specify……

Q.4 Did anyone get in touch with you from ICICI Lombard?
a. Yes
b. No

Q.5 If yes, then the procedure & refund process was explained
a. Yes
b. No

Q.6 If yes, then has the refund been received………

Q.7 Are you having any other loan……..

a. Home Lone
b. Health Insurance

Q.8 Given an opportunity would you like to have relationship with us in future?

66
Bibliography

BIBLIOGRAPHY

67
 www.icicilombard.com

 www.tata-aiggeneral.com

 www.hdfcergo.com

 www.cholamandalam-ms.com

 www.google.com

 www.reliancegeneral.com

 www.iffco-tokio.com

 Times Of India (News Paper)

68