INTRODUCTION

Insurance provides financial protection against a loss arising out of

happening of an uncertain event. A person can avail this protection by
paying premium to an insurance company.

A pool is created through contributions made by persons seeking to

protect themselves from common risk. Premium is collected by insurance
companies which also act as trustee to the pool. Any loss to the insured in
case of happening of an uncertain event is paid out of this pool.

Insurance works on the basic principle of risk-sharing. A great

advantage of insurance is that it spreads the risk of a few people over a
large group of people exposed to risk of similar type.

Definition:

Insurance is a contract between two parties whereby one party agrees

to undertake the risk of another in exchange for consideration known as
premium and promises to pay a fixed sum of money to the other party on
happening of an uncertain event (death) or after the expiry of a certain
period in case of life insurance or to indemnify the other party on
happening of an uncertain event in case of general insurance.-Insurance
Act 1938 The party bearing the risk is known as the 'insurer' or 'assurer'
and the party whose risk is covered is known as the 'insured' or 'assured'.
Concept of Insurance

The concept behind insurance is that a group of people exposed to

similar risk come together and make contributions towards formation of a
pool of funds. In case a person actually suffers a loss on account of such
risk, he is compensated out of the same pool of funds. Contribution to the
pool is made by a group of people sharing common risks and collected by
the insurance companies in the form of premiums.

Lets take an example to understand how general insurance actually

works
SUPPOSE :

 Houses in a village = 1000

 Value of 1 House = Rs. 40,000/-

 Houses burning in a year = 5

 Total annual loss due to fire = Rs. 2,00,000/-

 Contribution of each house owner = Rs. 300/-

UNDERLYING ASSUMPTION
All 1000 house owners are exposed to a common risk, i.e. fire

PROCEDURE

All owners contribute Rs. 300/- each as premium to the

pool of funds

Total value of the fund = Rs. 3,00,000 (i.e. 1000 houses *

Rs. 300)

5 houses get burnt during the year

Insurance company pays Rs. 40,000/- out of the pool to all

5 house owners whose house got burnt
EFFECT OF INSURANCE
Risk of 5 house owners is spread over 1000 house owners in the
village, thus reducing the burden on any one of the owners.
UNITED INDIA INSURANCE COMPANY

Solutions that bring back smiles... real fast 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, and Mumbai International Airport
Ltd Tirumala-Tirupati Devasthanam etc. They 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.

INDUSTRIAL PROFILE
 The control on general insurance business started with the
insurance act 1938, setting up the government control. In 1968 it was
amended to add more provisions to and also Add Tariff Advisory
Committee. This Tariff Advisory Committee now fixes the rates terms
and conditions for many branches of general insurance like Fire,
Engineering, Marine, Hull and Workmen compensation insurance.

In 1972, the General Insurance (Business Nationalisation) Act was

passed. It set up GIC and its subsidiaries. 107 private companies were
merged into GIC and its subsidiaries and these companies included both
Indian and foreign companies. General Insurance Corporation was
formed as company under the Companies Act unlike LIC, which was
setup as corporation. The GIC has only one office in Mumbai and is the
holding companies for all the subsidiaries. It formulates general policy
guidelines for general insurance industry and control the investment and
reinsurance policy of the companies.

GIC had four subsidiary companies, namely (with effect from

Dec'2000, these subsidiaries have been de-linked from the parent
company and made as independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited
3. National Insurance Company Limited

4. United India Insurance Company Limited.

In April 1993, the govt setup a high power committee headed by R.

N. Malhotra, former Governor of Reserve Bank of India. The committee
submitted its report to the ministry on 7th January 1994.

On 23rd January 1996, The Insurance Regulatory Authority was set

up by a Government order. N. Rangachari has taken over the function of
the controller of the Insurance also. In that capacity he has the controlling
authority over the General Insurance and Life Insurance business in India.
 In the budget speech of July 1996, the govt formally announced its
plans to open the Insurance Industry and also the intention of bringing an
Insurance Regulatory Authority Bill 1996

Insurance Regulatory and Development Authority Act 1999

An Act to provide for the establishment of an Authority to protect

the interest of the policy holders of insurance policies, to regulate,
promote and ensure orderly growth of the insurance industry and for
matters concerned there with or incidental thereto and further to amend
Insurance Act 1938, and General Insurance Business (Nationalisation)
Act 1972.

On 26th August 1998 the Reddressal of public Grievances Rules

1998 was issued by the Insurance Division, Ministry of Finance by which
the Govt of India setup the Insurance ombudsman scheme for GIC and
LIC. This will handle cases against Industry from the public and would
take over a large part of the consumer forums. The scope limited to
personnel lineses of insurance i.e. Policies taken on individual capacity.
Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is
empowered to redress customer grievances in respect of insurance
contracts on personal lines where the insured amount is less than Rs. 20
lakhs, in accordance with the Ombudsman Scheme.

General Insurance Corporation of India

GIC and its subsidiaries have completed a Gross Premium of Rs.

8086 crores as on 31-03-2009. The industry registered an underwriting
loss of 384.20 crores, but it because of its investment income of Rs. 2056
crores, it recorded a net profit after tax of Rs. 1255 arores. The
consolidated result of 2008-2009. The total asset as on 31-03-2009 stood
at 21,563 crores

Private General Insurance Company Includes

S.No. Registration Date of Name of the Company
 Number registration

1 102 23.10.2000 Royal Sundaram Alliance

Insurance Company Limited

2 103 23.10.2000 Reliance General Insurance

Company Limited.

3 106 04.12.2000 IFFCO Tokio General

Insurance Co. Ltd

4 108 22.01.2001 TATA AIG General

Insurance Company Ltd.

5 113 02.05.2001 Bajaj Allianz General

Insurance Company Limited.

6 115 03.08.2001 ICICI Lombard General

InsuranceCompany Limited.

7 131 03-08-2007 Apollo DKV Insurance

Company Limited

8 132 04-09-2007 Future General Insurance

Company Limited

9 134 16-11-2007 Universal Sompo General

Insurance Company Ltd.

10 123 15.07.2002 Cholamandalam General

Insurance Company Ltd.

11 124 27.08.2002 Export Credit Guarantee

Corporation Ltd.

12 125 27.08.2002 HDFC-Chubb General

Insurance Co. Ltd.
13 139 27.06.2008 Bharti Axa General
Insurance Company Ltd.

14 141 15.12.2008 Raheja QBEGeneral

Insurance Co. Ltd

Insurance is a federal subject in India. The primary legislation that deals

with insurance business in India is:

Insurance Act 1938, and Insurance Regulatory & Development

Authority Act 1999.
Three Phases of De-Tariffing India’s general insurance industry has
undergone de-tariffing in three phases:
 1994 -- marine cargo, personal accident, health, banker liability and
aviation
 2005-06 -- marine hull segment
 2007 -- fire, engineering and motor own damage (OD).

However, the de-terrifying did not immediately allow for free pricing.
Instead, insurers were required to follow the “file and use” method,
whereby they were expected to file a charter of proposed rates, which was
then approved by IRDA.

The restrictions on price discounts during the initial periods were

intended to ensure orderly price adjustments. They were removed in
January 2008.

The only segment that remains under a tariff regime is the third party
motor business, although there has been a large upward revision in this
area’s premium rates by regulators in recent times. Moreover,
commercial third party motor business, which has traditional

COMPANY PROFILE
UNITED INDIA INSURANCE CO

United India Insurance co is formed as a subsidiary of General

Insurance Corporation of India. Their quarters is in Chennai. Now they
are the second largest insurer in India and the largest in Rural insurance
and Insurance of major power plants. They have carved a niche for
themselves in this segment because of their deep rooted commitment
combined with experience and expertise over 7 decades. Investment
Information and

Credit Rating Agency of India Limited (ICRA) has awarded them with
‘iAAA’ rating indicating sound financial position and highest claims
paying capacity.

The solvency margin is pegged at 3.32 and the net profit of the
company for 2008-09 showed a healthy Rs. 745.485 crores. With over
1350 offices spanning the length and breadth of the country they have
been at advantage to serve customers better. Besides this their core
strength lies in their human resources. Having a work force of 17000+
people and an army of 2000 officers committed to the service of their
customers, they are in a position to make light of the fact that they issue
more than 1 crore policies in a year and settle more than 8 lac claims
annually.

They have 25 Regional Offices, 1 Regional Cell, 2 Large Corporate

Brokers Unit, 362 Divisional Offices, 684 Branch Offices and 288 Micro
Offices spread around the country. They have 17488 personnel working
with them. There are 4451 officers (Class I) 2013 Development Officers
(Class II) 8508 Staff Senior Assistant and Assistant (Class III),2516 Sub
staff, Drivers, Peons and thousands of agents.

UNITED INDIA IN KERALA

United India’s Kerala Region was formed in the year 1984 and at the time
the Premium was only around 12 crores. In 2008-09, this region
completed a figure of 97 crores. There are 204 officers, 801 staff, 128
development officers and many agents working with them. They have a
wide spread of officers in 16 divisional offices and 49 branch offices.

United India in Kerala has the largest number of corporate clients

with them. FACT Ltd. Hindustan Newsprint Ltd. Cochin Shipyard Ltd.
Appollo Tyres Ltd. BPL, ITI, Instrumentation Ltd. Etc are all their clients

They are the largest insurers of various Kerala Govt Schemes. Last
year they launched the Kambhenu programme which is probably the
largest mass insurance scheme launched the Rural Insurance.

At present they are launching a large core insurance plan to equip

our offices to meet the requirements. The Regional Office has setup a risk
management cell, A grievance cell and a Customer Service Cell for
responding to the demand of the customers. The Customer Service Cell is
set up in all the Divisional offices.

One of their most successful policy which launched in Kerala is

Rashtriya Swasthya Bhima Yogana they insured from 2008 to 2010 more
than ten lakhs people who are in below poverty line and above poverty
line.

BASIC FACTS OF THE COMPANY

Name : UNITED INDIA INSURANCE

COMPANY LIMITED

Address :

Activity : General Insurance

Sr.Branch Manager :

Administrative Officer :

Regd. & Head Office : 24, Whites Road, Chennai – 600014

Net income : 520 Crore INR

Total employees : 21000

Web site : www.uiic.in

Board of Directors
Chairman-cum-Managing Director : G. Srinivasan

Director & General Manager : Milind Kharat

General Manager : V. Harshavardhan

General Manager : P C James

General Manager & Financial Advisor : S K Gosh

General Manager : K Sanath Kumar

General Manager : P J Joseph

Table 2. Premium Analysis (Rs. in crores)

Year Gross Net

2002-03 2969.63 2092.43

2003-04 3063.47 2151.36
2004-05 2944.46 2172.66
2005-06 3154.78 2225.85
2006-07 3498.77 2529.53
2007-08 3739.56 2880.65
2008-09 4277.77 3510.41

*Source- Annual Reports

By analyzing the premium from 2002 to 2009 it is clear how much it

stable UIIC as well as insurance industry

Table 3. Profite Analysis (Rs. in crores)

Year Befour tax After tax

2002-03 214.16 170.99

2003-04 393.39 380.44
2004-05 318.30 307.71
2005-06 452.74 425.23
2006-07 520.34 528.86
2007-08 658.13 631.62
2008-09 502.91 476.05
*Source- Annual Reports

Profit analysis showing a satisfactory positive growth from 2002 to 2009

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

CORPORATE VISION
 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

Their Banc assurance tie-ups

 Andhra Bank
 State Bank of Hyderabad

 Indian Bank

 Canara Bank

 Syndicate Bank
 State Bank of Travancore

 State Bank of Indore

 State Bank of Patiala
 Bank of Maharashtra
  Bank of Rajasthan
 Federal bank

Their Corporate Clients

Oil and Petro-Chemical Majors

➢ Oil and Natural Gas Corporation Ltd.

➢ Indian Oil Corporation

➢ Hindustan Petroleum Corporation Ltd.

➢ Haldia Petrochemicals Ltd

➢ Gujarat State Fertilizer Corporation

➢ Gujarat Narmada Valley Fertilizer Corporation.

Power and Energy Sector

➢ Nuclear Power Corporation Kaiga, Kudankulam

➢ Karnataka State Electricity Board, Bellary

➢ Punjab State Electricity Board

➢ Tiesta Uraj Ltd

➢ Chattisgarh State Electricity Board

➢ National Hydro Power Corporation

➢ National Thermal Power Corporation

➢ BHEL Power Projects: Chandrapura, Bakreshwar, Jaindal Super

Power Plant Raigarh, Sudan, Dadri

➢ GVK Industries

➢ Tata Power
➢ Neyveli Lignite Corporation

➢ Damodar Valley Corporation

➢ Tanir Bavi Power Company Pvt. Ltd

➢ Tehri Hydro Development Corporation

➢ Subansiri Lower Hydro Electric Project

➢ Torrent Power

➢ SEPCO

➢ IOC Panipat Naphtha Cracker Project

➢ IOC Haldia Hydro Cracker Project

➢ Tata Projects Ltd

Aviation

➢ National carriers: NACIL (Air India)

➢ Private carrier: King Fisher / Air Deccan
➢ Indian Space Satellites Programme

Infrastructure Sector
➢ Larsen and Toubro
➢ GMR Group
➢ Maytas Infrastructure

Pharma Major
➢Dr. Reddy’s Laboratories

Hotels
➢ Oberoi
➢ Hyatt Regency
➢ Park Sheraton

Manufacturing
➢ Ballarpur Industries
➢ MICO
➢ ITC
➢ FACT
➢ Nirma
➢ Asian Paints
➢ Oswal Group
➢ Balco Industries
➢ Hindalco Industries
➢ India Cements
➢ Vedanta Group
➢ Tata Motors
➢ TVS Group

OBJECTIVES AND METHODOLOGY

RESEARCH PROBLEM
To study the product portfolio of UNITED INDIA INSURANCE
COMPANY LIMITED.
1. Methodology of data collection:-
To conduct the studies different methodologies have been adopted. Both
Primary and secondary data are used. Primary data were collected by
conducting personal interviews with the departmental heads, casual talks
with workers and secondary data were collected from the organization
manuals

Primary sources
Direct interview with the departmental heads , detailed interview with the
divisional heads and by interaction with workers and customers of the
company . The data is also collected by observing the functions of the
organization.

Secondary sources
The secondary sources of data are:
1. Organization documents.
2. Departmental manuals.
3. Annual reports
4. Periodicals, books etc. published by the company.

5. Proposals Forums.

1. Methodology of data analysis:-

The data collected were edited, coded and processed. The
information is presented through tables, graphs etc.

SCOPE OF THE STUDY

This study is restricted to the analysis Product portfolio of United India

Insurance Co Ltd. For the purpose of the study the data relating various
products benefits premium risk covered are used.

LIMITATION OF THE STUDY

1. In the given short time it is very difficult to cover all area aspect of the
firm.
2. Only product portfolio is analyzed in the study. The firm’s overall
performance cannot be evaluated in the study.
3. Company keeping some data confidential due to competition.