oriental insurance company ltd

Organizational Study at Oriental Insurance Company Ltd

1.1 Introduction

Oriental Insurance Company Ltd, a subsidiary company of the General

Insurance Corporation (GIC) of India, started its operation in India on 12th September

1947 at Bombay (now Mumbai) as a public sector company. The company became a

subsidiary of Life Insurance Corporation of India in 1956 and continued to serve as such

till 1973. The main goal of the company was to get involved in the business of general

insurance thus catering to the needs of all kinds of people and are quite famous for their

coverage of products associated with steel and chemical plants, petrochemical and

powerplants.

In 2002, after the Insurance Amendment bill was passed, the company was de- linked

from GIC and all its shares has been transferred to the Central Government. The

company has evolved in great respects over the years and slated to become one of the

leading insurance company of the country. Presently the company has made its presence

felt into the other segments of insurance as well. The company has gone up to

accomplish a premium of Rs. 4077.90 crores (2008-09) from the premium of Rs. 99,946

in 1950.

A good life is a beautiful dream. We love building our house brick by brick, acquire

assets tastefully and aspire to make life comfortable everyday. Business security and

personal safety in the present times concern everyone. Measures are taken to prevent

things going out of hand yet and an element of fear keeps dotting us.

Hard earned assets acquired during life time may be under some threat due to unforeseen

circumstances. An industry or establishment may encounter a situation that may get out

of the hands of human beings. Someone on the road may be insensitive to the

precautions being taken to cross the road. Anything may happen anytime. Can we offset

the uncertainty? Probably not. - But this can be transferred very simply through the

means of taking insurance.

Mount Zion College of Engineering, Kadammanitta


An individual may get insured his property like house and its contents, car etc, against

various perils. Health and Personal Accident Insurance support during hard times. Even

liabilities arising from various situations can also be covered.

A business enterprise can get coverage for its assets against various risks like fire, flood,

earthquake etc., to name a few, at a nominal premium and go on to insure Business

Interruption. Many liabilities arising during course of business are also taken care of.

Likewise industries also find protection through various insurance policies for fire and

allied perils, business interruption and workmen insurance. The transit of the equipment

to the site entails many hazards arising from ocean, rail, air or road. Acts of God or

terrorism may cripple any industry before it starts up or in operation. All can be covered.

Loans advanced by financial institutions may get threatened by operation of unforeseen

events. Many more situations may emerge that one may not have even thought of.

The value of the property (sum insured) which is exposed to the risks should be kept

almost equal to the loss one may sustain considering the present state or market value.

One may also think of taking insurance on replacement (re-instatement) value. The cost

of imperishable may not be taken into account, e.g. land. The basis of fixing sum insured

may vary from property to property or risk to risk but bottom line remains almost same.

Personal accident insurance can be taken for an individual, family or a group. The sum

insured is based on earnings. Health insurance packages are available for individual,

family or group basis.



Oriental Insurance Company Ltd, have a set up of more than 1000 offices. Marketing

staff is also always keen to reach you. Our agents are there to canvas the business. We

can also buy selected insurance products on this Portal as well. In addition the Portal

enables you to view the policies already taken by you and the status of any claim which

may have been reported. What you really need to do is to identify your requirements

where you would need insurance protections and contact Oriental Insurance Company

1.2Objective of the Study

The aim of this study is to know about various functional departments in the

organization.

To make an awareness of the general insurance industry.

To know the roles of managers in various departments.

To understand the different products and their position on the market in

terms circulation and reader ship.

To analyze the present status and future strategy of the company.

To analyze the internal strength and weakness and external threats and

opportunities of the organization.

To integrate practical experience with theoretical concepts.

To analyze the performance of the organization.

1.3 Scope of the study

The organization study will help to attain a first hand experience of over all functioning

of the organization. It provides a chance to interact with the authorities and employees in

the organization. It helps to understand the practical problems faced by the managers for

decision making and other organizational activities.



1.4 Duration of the study

The duration of this study was for a period of 1 month starting from 1-5-2010 to

31-5-2010

1.5 Methodology

Data‘s are collected in primary sources and secondary sources. The primary

sources are collected from detailed with managers and personnel interviews with

employees.

Research methodology provides various steps that can be adopted by the

researchers in studying his research problems. Research is actually search for knowledge.

Methodology Used In Data Collection

The methods used for collecting data in this study are,

1. Primary Data

The primary data are those collected by the investigation himself for the

first time and thus in original in character. The primary data collected through

Personal interview

These are very useful to know about the persons options of the

employees regarding their job problems. The success of this method largely

depends on the proper drafting of questions

Observation

This method implies the collection of information by way of researchers

own observation The study needed to have a personal visit to the different

departments of the company.



Secondary sources

Secondary sources are journals, company profiles, annual reports, company website

www.orientalinsurance.org.in, and technical files. These are the important information

source of the company.

1.6 Limitation

Time is a major constraint.

Detailed collection of information is impossible.

Performance of executives must access properly , otherwise it will effect the

merit rating process.

Since the officials were busy , it was difficult to spare time with them for

detailed discussion

The incomplete feedback of the executives and customer may be lack of

the organization study.

Lack of experience of researcher is a limiting factor of the study.



2.1 Industry Profile

Oriental Insurance Company Ltd, a subsidiary company of the General Insurance

Corporation (GIC) of India, Started its operation in India on 12th September 1947 at

Bombay (now Mumbai) as a public sector company. The company became a subsidiary

of Life Insurance Corporation of India in 1956 and continued to serve as such till

1973.The main goal of the company was to get involved in the business of general

insurance thus catering to the needs of all kinds of people and are quite famous for their

coverage of products associated with steel and chemicalplants. In 2002, after the

Insurance Amendment bill was passed, the company was de- linked from GIC and all its

shares has been transferred to the Central government. The company has evolved in great

respects over the years and slated to become one of the leading insurance company of the

country. Presently the company has made its presence felt into the other segments of

insurance as well. The company has gone up to accomplish a premium of Rs. 4077.90

crores (2008-09) from the premium of Rs. 99,946 in 1950.

Abstract of Oriental Insurance Company Ltd

To keep the focus on customer and serve their insurance requirements.

To offer high quality service being customer friendly.

To invest funds for optimum grant and engage in profitable business.

To optimize the retentivity of Indian business and carry on reinsurance policies and

foreign operations.

To establish Risk Management Technologies and minimize the losses.



Growth of Oriental Insurance Company Ltd

Oriental Insurance Company Ltd. has its head office at New Delhi and 26 regional

offices all over the country. Apart from this the company also has over 900operating

offices and overseas operation, mainly in Kuwait, Dubai and Nepal. The company

presently has around 15,000 technically qualified, effective, committed and highly

trained workforce covering various segments.

The Solvency Margin as of 31st March, 2009 is 1.66 in comparison to the desired

Solvency Margin of 1.5 made compulsory by the Indian Regulatory Body, IRDA.

A pre-tax loss of Rs 82.66 crores& post-tax loss of Rs. 52.66 crores for the year 2008-

09 was recorded after considering the income from the dividend, interest and rent of

Rs 608.23,crores and ProfitonsaleofInvestmentsofRs387.39.

The company recorded the gross premium income in India during the year 2008-09 at

Rs. 3964.26 and abroad at Rs. 113.64 crores in comparison to Rs. 92,07 in the

previous year registering a growth of 4.55%. On the other hand the net premium

income both in domestic and foreign operations recorded a rise of 12.38% from

Rs.2878.67 crores in 2007-.08 to Rs. 3235.10 crores in 2008-09. An overall surplus of

Rs. 15.27 crores was registered in the company's foreign operations.

The company has gone ahead to make itself more technologically updated and IT

friendly and have their very own websites. The implementation of Integrated Non-

Life Insurance Application Software (INLIAS) in their company has ascertained a

better customer service. Furthermore, the company has been credited with the highest

rating by leading Indian Credit Rating Agenciagency, rated the company as B++(Very

Good).



2.2 Company Profile

The Oriental Insurance Company Ltd was incorporated at Bombay on 12th

September 1947. The Company was a wholly owned subsidiary of the Oriental

Government Security Life Assurance Company Ltd and was formed to carry out General

Insurance business. The Company was a subsidiary of Life Insurance Corporation of India

from 1956 to 1973 ( till the General Insurance Business was nationalized in the country).

In 2003 all shares of our company held by the General Insurance Corporation of India has

been transferred to Central Government.

The Company is a pioneer in laying down systems for smooth and orderly conduct of the

business. The strength of the company lies in its highly trained and motivated work force

that covers various disciplines and has vast expertise. Oriental specializes in devising

special covers for large projects like power plants, petrochemical, steel and chemical

plants. The company has developed various types of insurance covers to cater to the needs

of both the urban and rural population of India. The Company has a highly technically

qualified and competent team of professionals to render the best customer service.

Oriental Insurance made a modest beginning with a first year premium of Rs.99,946 in

1950. The goal of the Company was “Service to clients” and achievement thereof was

helped by the strong traditions built up overtime.

ORIENTAL with its head Office at New Delhi has 26 Regional Offices and nearly 900+

operating Offices in various cities of the country. The Company has overseas operations in

Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+

employees. From less than a lakh at inception, the Gross Premium went up to Rs.58 crores

in 1973 and during 2008-09 the figure stood at a mammoth Rs. 4077.90 crores.



Corporate Mission

To contribute to the socio economic objectives of the nation by being a vibrant

and viable organization catering to the growing insurance needs of the community.

Towards this end we will strive for effective management of business operations.

Corporate Objectives

1. To serve better the insurance needs of the entire community, keeping CUSTOMER as

the focus.

2. To strengthen our tradition of being CUSTOMER - FRIENDLY, in order to provide

quality

service.

3. To manage Business profitably, manage funds judiciously and deploy investible funds for

optimum yield.

4. To optimise the retention of Indian business and conduct reinsurance and international

operations in the best interest of the country.

5. To work towards minimisation of losses and develop Risk Management Technologies.

6. To function as a strong and dynamic non-life insurer.

Values:

• Highest priority to customer needs.

• High standards of public conduct.

• Transparency in operations.

Commitment



TO THE CITIZENS WE WILL

• In areas coming within competence of GIC respond to all commercially viable

general insurance requirements of the citizens, not hitherto available within three months

from the date on which such a demand is received.

• In areas covered by tariff, appropriate proposals will be submitted to the Tariff

Advisory Committee with appropriate comments within two months.

• Continue to provide customized insurance products for weaker sections of the

society at affordable price within six months of receipt of a request for a specific type of

cover.

• Establish customer information counters at all regional centers by December, 1997

and computerise these centers by March, 1998. These computerised centers will be

extended to divisional offices in stages by December, 1999.

• Establish ‘May I Help You’ facility to cater to customers information requirements at

the Headquarters of the insurance companies by 15th August, 1997.

• Ensure issuance of 90% of documents within a period of 30 days from 15th August,

1997 and progressively reduce the period to 15 days by August, 1998 and to 7 days by

August, 1999.

• Prepare booklets on standard policy covers setting out essential information and make

such booklets readily available for purchase at suitable places.

• Set up Zonal Advisory Committees at the four metropolitan cities by December, 1997

to interact with customers and get feedback on insurance services.

• Promote customer education in general insurance service by holding workshops in

important regional centers.

• Make available to a customer, on request to the policy issuing office, the status of his

claimand/or claim settlement details within 7 working days.

• Settle all claims within a times schedule envisaged hereunder :-

a) Personal line insurance claims within 30 days on completion of all requirements.

b) Property claims within 60 days on completion of all requirements.



c) Liability claims within 30 days on completion of process of law.

• Endeavour to set up a system of Ombudsman at the four metropolitan cities to

conciliate disputes on personal line insurance claims.

Management

Oriental Insurance is a professionally managed independent Board-run Company.

Illustrious personalities like ShriT.A.Pai ( who later became Cabinet Minister in the Union

Government ), Shri K. R. Puri, who rose to be the Governor of RBI and ShriB.D.Pande

(who later became the Governor of West Bengal) were among our past Chairmen. At

present Dr. R.K.Kaul is Chairman-Cum-Managing Director of our Company. The Board of

Directors of our Company include eminent personalities in various fields.

Goal Setting Flow



Exclusive Features

Immediate policy issuance through online facility.

On line approval for minor claims through cashless network dealers.

Availability of 24x7 call centers.

Lightning fast claims settlement.

Simple and fast documentation.

Tax saving health insurance plans.

Performance Flow


Vision, Mission, Business Goals Strategy Budget

Annual Business plan

Company Objectives

Regional/ Departmental/

Functional Business Plan

Individual Objectives


2.3 Product Profile


Performance

Planning/Objective Setting

Performance

Assessment Annual Review

Performance

Development

Rewards and

Recognition


A few of Oriental Insurance most widely sold and most useful policies are:

PNB - Oriental Royal Mediclaim Policy

Exclusively for Punjab National Bank Customers with Elaborate Coverage & Most

Competitive Cost

Motor Policy

Motor insurance is mandatory for every vehicle. This is one of the reasons why we

take it for granted. The Oriental Insurance Company Ltd, motor insurance policy is

comprehensive vehicle insurance as governed by the Indian motor Tariff.

It covers For:

Loss or Damage to the Vehicle, due to Natural Calamities:

Fire, explosion, self ignition or lighting, earthquake, flood, typhoon, storm etc.

Man-made Calamities:

Burglary, theft, riot, strike, malicious act, accident by external means etc.

Personal Accident Cover:

The motor insurance provides compulsory personal accident cover for individual

owners and optional for passengers.

Third Party Legal Liability



Covers for legal liability due to accidental damage for:-

Any permanent injury/ death of a person

Any damage caused to the property.

Additional Covers

Electrical/ Non-electrical accessories, bi-fuel system etc can be covered.

Motor Policies - Terms & Conditions

1. Two wheeler Package Policy

2. Private Car Package Policy

3. Commercial Vehicle Package Policy

4. Liability Only Policies (Applicable for all types of vehicles) Motor Trade Policy

wordings.

(i) Standard Form for Motor Trade Package Policies

(ii) Motor Trade Internal Risk

5. India Motor Tariff (IMT) Endorsements .

6. OIC Endorsements: New Endorsements for Add-On Covers for Motor Package

Policy.

COMPREHENSIVE HEALTH INSURANCE SCHEME



Under National Common Minimum Programme, Comprehensive Health Insurance

Scheme for one district in each state in 2004-05 has been formulated for implementation

with community participation.

The Salient Features of the Scheme are:

Primary focus of Health Insurance in the Pilot District would be the poorer section of

the society i.e. both BPL and Non-BPL.

The experience gained from the outcome in implementing the scheme in these Pilot

Districts would form the basis for possible expansion and its replication in other districts

in future.

To focus on the health insurance needs of the Population by marketing the entire range

of existing Health Insurance products catering to the needs of all income groups such as

Mediclaim,BhavishyaArogya, Jan Arogya, Universal Health, SwasthyaBima

Policies etc.

All the existing Health Insurance products would be marketed to the population in the

Pilot District in a holistic manner by mobilizing support from different agencies viz.

State Government, Local bodies,Community based organizations, NGOs, Cooperatives

and other organizations involved in Social Sector activities.

The four Public Sector Insurance Companies would market the product by utilizing

the existing marketing channels.

The claims settlement process would be simplified depending upon the availability of

the Third Party Administrators (TPAs) or throughTie-up arrangements with Service

Providers, medical facilities would be provided cash-less, as far as possible



.

Theprogramme will be undertaken, in one District in each State ideally be the one that

have a strong presence of Community Based Organizations and having a reasonable

health infrastructure and delivery mechanism.

Electronic Equipment Insurance Policy

This policy offers financial protection in case your electronic equipment suffers

accidental electrical and machinery breakdown requiring repairs and /or replacement.

This policy covers all types of computers including micro - processors, word -

processors, tele - communication instruments, machine for medical use, films and

television studio equipment, electronic score boards etc.

Covered Risks :

Under this insurance are covered against all kinds of accidental, Electrical and

Mechanical breakdowns due to internal causes ,external causes and operational

deficiencies.

Major Exclusions :

Damage due to any cause for which the manufacture and/ or supplier is responsible,

Defects existing at the time of taking insurance known to the insured but not known to

the Insurers, Loss or damage due to interruption caused by the failure of electricity

service or supply.

Group Mediclaim Policy



Mediclaim Insurance is a cover which takes care of medical expenses following

Hospitalisation/Domiciliary Hospitalisation of the Insured in respect of the following

situations: (A) In case of a sudden illness (B) In case of an accident (C) In case of any

surgery which is required in respect of any disease which has arisen during the policy

period. The major benefit for taking a Group Mediclaim policy is that the insured gets a

Group discount, hence the premium per person is lower.

Covered Risks :

This cover is a hospitalisation cover and reimburse the medical expenses incurred in

respect of covered disease /surgery while the insured was admitted in the hospital as an

in patient.The cover also extends to pre- hospitalsation and post- hospitalisation for

periods of 30 days and 60 days respectively.

Major Exclusions :

Any pre-existing disease,any expense incurred during first 30 days of cover except injury

due to accident,all expenses incurred in respect of any treatment relating to pregnancy

and child birth. Treatment for Cataracts,Benign prostatic hypertrophy,Hysterectomy,

Menorrhagia or

Fibromyoma, Hernia,Fitula of anus,Piles, Sinusitis, Asthma,Bronchitis, All Psychiatric

or Psychosomatic disorders are excluded from the scope of the cover.

Householders Insurance Policy



The House holder's Insurance Policy is a comprehensive shelter that protects your house

and the various contents in it against a variety of risks. It is a single policy that takes care

of a number of contingencies. The policy is divided into 10 sections. Sec 1(B) and a

minimum of any 2 other sections are compulsory. Section 1 : Fire and Allied Perils.

Section 2: Burglary. Section 3:All risks. Section 4 : Plate Glass. Section 5 : Breakdown

of domestic appliances. Section 6: T.V. Set. Section 7 : Pedal Cycles. Section 8 :

Baggage Insurance. Section 9: Personal Accident. Section 10: Public Liability.

Covered Risks :

Buildings of class 'A' construction, Plate Glass, Breakdown of domestic

appliances, T.V. Set, Pedal Cycles,Baggage Insurance, Personal Accident,Public

Liability.

Individual Mediclaim Policy

Mediclaim Insurance is a cover which takes care of medical expenses following

Hospitalisation/Domiciliary Hospitalisation of the Insured in respect of the following

situations:

(A) In case of a sudden illness (B) In case of an accident (C) In case of any surgery

which is required in respect of any disease which has arisen during the policy

period.



Covered Risks :

This cover is a hospitalisation cover and reimburse the medical expenses incurred in

respect of covered disease /surgery while the insured was admitted in the hospital as an

in patient.The cover also extends to pre- hospitalsation and post- hospitalisation for

periods of 30 days and 60 days respectively.

Major Exclusions :

Any pre-existing disease,any expense incurred during first 30 days of cover except injury

due to accident,all expenses incurred in respect of any treatment relating to pregnancy

and child birth. Treatment for Cataracts,Benign prostatic hypertrophy,Hysterectomy,

Menorrhagia or Fibromyoma, Hernia,Fitula of anus,Piles, Sinusitis, Asthma,Bronchitis,

All Psychiatric or Psychosomatic disorders are excluded from the scope of the cover.

Kissan Package Insurance

The Kissan Package policy is a comprehensive policy specially designed by Oriental that

seeks to cover losses arising out of a wide variety of risks and perils.It lets a farmer

concentrate on his business, free of many worries.The policy is divided into 15 sections

offering protection to the farmer to his personal effects,householdgoods,livestock,

poultry, personal insurance and mediclaim



Covered Risks :

Residential building against fire and allied perils,stock of from products,TV/VCR, Pedal

cycle, Personal accident,his cottage industry,Cattle and Livestock,agriculturalpumpset,

poultry,baggage while on tours,animal driven cart,honey bee, gun, hospitalisation

expenses for him and his family.

NagrikSuraksha Policy

A novel accidental insurance cover for any citizen of India in the age group of 5 years to

70 years for family package and 18 years to 70 years for individual/group cover.

Individual policies ranging between one year to four years and group policies 12

months. minimum sum RS.one lac-maximum RS.fivelacs with an option of enhancement

of minimum limit of sum insured multiples of RS.25,000/- upto a maximum of

RS.5,00,000/-.

Motor Cycle Package Policy

Any two wheeled vehicle (inclusive of detachable side car) which is used only for

social,domestic and pleasure purposes and insured's own business can be covered under

this policy. The policy does not cover use for Hire or Reward, Organised racing, Speed

testing and carriage of goods (other than samples) in connection with any trade or

business or use for any purpose in connection with MOTOR TRADE. On payment of

extra premium the policy may be extended for Personal Accident cover as well.

Covered Risks :

Fire, Explosion, Lightning, Burglary and Theft, Riot and Strike, Typhoon, Hurricane,

Storm, Tempest, Malicious act, Earthquake, Flood, Terrorist activity,

Landslide/Rockslide. It also covers damages by accidental, external means while in



transit by rail/road, inland water, lift or air in addition to the legal liability required by

law.

Major Exclusions :

Consequential loss, Depreciation, Wear & tear, Mechanical/ electrical breakdown,

failures or breakages, Damage to tyres unless the motor car is damaged at the same time

and any accidental loss or damage suffered while the person driving is under the

influence of intoxicating liquor or drugs.

Office Umbrella Policy

The Office Umbrella Policy is a comprehensive insurance policy, specially designed by

'ORIENTAL' that seeks to provide protection to the Office against different kinds of

risks and perils. By opting for this single policy, the office owner covers the risks his

business is likely to encounter while concentrating on his business activity. This policy is

suitable for large offices owned by big companies as well as small and medium sized

offices like Travel Agencies, Professionals like Chartered Accountants, Consultants,

Architects, Interior Decorators, Engineersor any other service provider. These offices

could be the Corporate Offices or Zonal Offices or Area Offices or any other operating

office. In addition the policy has special provisions for covering Medical Establishments,

including Doctor's Clinics.

Covered Risks :

Section 1:- Buildings inclusive of : Landlord's Fixture and Fittings, Boundary Wall and

fences belonging to Insured's or for which he is responsible. Section 2A:-Contents

contained in the office. Section 2B:-Tenant's legal liability. Section 3:-Money Insurance.

Section 4:-Fixed glass and sanitary fittings. Section 5:-Fidelity Guarantee. Section 6:-

Electronic Equipment Insurance. Section 7:- Alternate Accomodation. Section 8:-

Personal accident. Section 9:- Breakdown of office appliances. Section 10:- Baggage.

Section 11:- Liability Insurance. Section 12 :- Business Interruption.



Overseas Mediclaim Business and Holiday

This policy provides indemnity for expenses incurred for medical treatment for illness,

disease contracted or injury sustained during overseas travel and which is primarily in

the nature of an emergency and which is necessary to be undertaken immediately.

Eligibility - 1) Indian Residents undertaking bonafide trips abroad for: a) business and

offical purposes b) holiday purpose 2) Foreign Nationals working in India. This

insurance is valid from the first day of insurance and expires on the last day of the

number of days specified in the policy or on return to India, whichever is earlier. In case

of a frequent traveller abroad, there is a special policy which covers all the trips

undertaken during the period of 12 months.

Covered Risks :

Since the cover is available as per plans, the expenses would be reimbursed up to limits

prescribed under the plan opted for.

Overseas Mediclaim Employment and Study

This policy provides indemnity for expenses incurred for medical treatment for illness,

disease contracted or injury sustained during overseas travel and which is primarily in

the nature of an emergency and which is necessary to be undertaken immediately. The

minimum period of cover is 2 months and maximium is 12 months. If necessary, the

policy can be renewed. The sum insured is US$ 75,000.The premium has to be paid in

US dollars irrespective of the country of visit.



Covered Risks :

The policy consists of 2 sections covering different risks. Since the cover is available as

per plans, the expenses would be reimbursed up to limits prescribed under the plan opted

for.

Major Exclusions :

This policy cannot be issued for less than 2 months. Any claims for dental treatment

except as a result of injury; Pregnancy including miscarriage and child birth.

Personal Accident – Individual

We all in our day to day life are exposed to the risks of accidents. Despite all possible

precautions accidents do occur. This may result into disablement or loss of limbs or

sometimes even death. To cater to this need insurers has devised an insurance cover,

known as Personal Accident Insurance. This policy provides compensation in the event

of insured sustaining injuries, solely and directly from an accident caused by violence,

visible and external means, resulting into death or disablement be it temporary or

permanent. There are some additional benefits without paying additional premium.

Cumulative Bonus, Children Education Fund, Reimbursement of expenses for the

carriage of the dead body. There is a discount for family package cover.

Covered Risks :

This policy provides compensation in the event of insured sustaining injuries, solely and

directly from an accident.



Major Exclusions :

Intentional self injury, suicide or attempted suicide, Death or disablement resulting from

child birth and pregnancy; Accident while the insured is under the influence of

intoxicating liquor or drugs; War and allied perils.

Private Car Package Policy

A Private Car is defined as any transport vehicle /car /omnibus whose unladen weight

does not exceed 7,500 kgms and is used only for social, domestic and pleasure purpose

and insured's own business. The policy does not cover use for Hire or Reward, Organised

racing, Speed testing and carriage of goods (other than samples) in connection with any

trade or business or use for any purpose in connection with MOTOR TRADE. On

payment of extra premium the policy may be extended for Personal Accident cover as

well.

Covered Risks :

Fire, Explosion, Lightning, Burglary and Theft, Riot and Strike, Typhoon, Hurricane,

Storm, Tempest, Malicious act, Earthquake, Flood, Terrorist activity,

Landslide/Rockslide. It also covers damages by accidental, external means while in

transit by rail/road, inland water, lift or air in addition to the legal liability required by

law

Major Exclusions :

Consequential loss, Depreciation, Wear & tear, Mechanical/ electrical breakdown,

failures or breakages, Damage to tyres unless the motor car is damaged at the same time

and any accidental loss or damage suffered while the person driving is under the

influence of intoxicating liquor or drugs.



Shopkeeper's Insurance Policy

The Shopkeepers Insurance Policy is a comprehensive, specially designed policy that

seeks to cover the losses arising out of a wide variety of risks and perils.It lets the

shopkeeper concentrate on running his business, free of many worries. The policy is

divided into 11 convenient sections. Only Sec I(B), II and minimum of two other

Sections are compulsory.

Covered Risks :

The contents in the shop against burglary and housebreaking, Money in transit,Pedal

Cycle, Plate glass, Neon and Glow Sign, Baggage, Personal Accident, Fidelity

Guarantee, Liability, Business Interruption.

SwasthyaBima Policy

Salient Features:

Section I: Hospitalization

Reimbursement of Hospitalization expenses upto Rs.10000/- to an individual – member

Transportation:

Reimbursement of the cost of transportation of Insured to hospital upto Rs.250/- during

policy period (Subject to admissibility of claims)

Meals:

Reimbursement of the cost of meal for the insured patient not exceeding Rs.50/- per day

of hospitalization and not exceeding Rs.500/- during policy period (subject to

admissibility of claims)



Section II Personal Accident

Personal Accident Insurance:

Coverage against death and permanent total disability of the insured (as named in the

schedule) due to accident for Rs.10000/-

Premium:

For Individual * Rs.120/-

Service Tax * As applicable

TPA Charges * As applicable

Scheme to be implemented for

Self Help Groups (SHGs) and Credit Linked groups

Claims Settlement:

Settlement of claims directly by Insurers or through TPAs for Section I only.

Main Exclusions:

1. All Pre-existing Diseases.

2. All diseases contracted during the first 30 days from the commencement date of the

policy provided that in the opinion of the panel doctor/s the insured person could not

have known about the existence of disease or its symptoms at the time of making the

proposal and had not taken any consultation, treatment for the disease prior to taking the

insurance.

3. Some of the diseases such as Cataract, Benign Prostatic Hypertrophy, Hysterectomy,

Hernia, Hydrocele, Fistula in anus, Sinusitis, Congenital Internal disease are not covered

in the first year of the policy.



4. Corrective, cosmetic or aesthetic, dental surgery or treatment.

5. Cost of spectacles, contact lens and hearing aids.

6. Vaccination, inoculation, change of life or cosmetic treatment or surgery, HIV,AIDS,

Sterility, Venereal Disease, Intentional Self Injury, use of intoxicatingDrugs/Alcohol.

7. Primarily diagnostic expenses not related to sickness/injury.

8. Treatment for pregnancy, Childbirth, Miscarriage, Abortion etc.

Age Limitation:

15 years to 65 years.

Hospital: All government hospitals where facility for treatment as inpatient is available.



Sweet Home Insurance Policy

On August 14 2003 Oriental Insurance launched a policy with a view to cater to the

requirements of the middle-income group of the society on First Loss Basis. This policy

has been named as "SWEET HOME INSURANCE ".

This policy is a miniature form of the existing Householders´ Package Policy and has

three distinct plans and each plans has five sections, with Section II and I on `first loss

basis´. The insured has been offered the option of not covering section I , which covers

building against Fire and Allied perils including Earthquake. The rest of the four

sections are compulsory and they cover contents against Fire & Allied perils and

burglary, electrical and electronic gadgets against electrical/mechanical breakdown and

Personal Accident cover on floater basis amongst insured and his/her spouse.

The star attraction of the policy is that the insured is not to file the details of the contents

with the company except for the items for which coverage is sought under

electrical/mechanical breakdown section.

This policy is available to any person, including property owned by foreign nationals,

provided the property proposed for insurance is situated withinThe Indian territory. As

regards the settlement of the claim , if any, the same shall be in Indian currency only.



HIGHLIGHTS OF THE POLICY

SECTION – I – BUILDING

This section covers building against Fire & Allied perils including earthquake. It is not

necessary that theproposer need be the owner to seek insurance coverage for the said

building. Persons under lease/tenancy agreement can also seek coverage of the building

under this section. Insured has the option to choose amongst Rs.4, 6 & 8 lakhs under

Plan A , B, & C respectively.

SECTION – II – CONTENTS (EXCLUDING JEWELLERY) AGAINST FIRE &

ALLIED PERILS INCLUDING EARTHQUAKE ON FIRST LOSS BASIS.

This section covers contents , which are kept and installed in the premises, as mentioned

in the schedule , against fire and allied perils. The insured need not furnish a detailed list

of the items for which insurance cover is sought. The maximum value of the individual

item shall not exceed 10% of the sum selected under plan A, B & C. The maximum

liability of the company in this section is Rs.1,2, and 3 lakhs under Plan A, B & C

respectively.

SECTION – III – CONTENTS(EXCLUDING JEWELLERY) AGSINST

BURGLARY & HOUSEBREAKING

The sum insured and the limits of liability of the company this are same as section II.

Under this section also the insured need not furnish the details of the items for which

insurance is sought.

SECTION – IV ELECTRICAL/MECHANICAL BREAKDOWN OF GADGETS.

Unlike section II & III the insured furnishes the details the electrical/electronic gadgets

for which coverage is sought under this section. The details of such gadgets are called

for in the single page proposal form itself. The limits of liability of the company under

this sections is Rs.30000, Rs.50000 and Rs.70000 respectively. The value of the gadgets

proposed for insurance under t his sections is part of the sum insured under section II &

II.



SECTION – V PERSONAL ACCIDENT COVER FOR INSURED AND SPOUSE

The policy offers coverage against accidental death, loss of limb(s) and permanent total

disablement to the insured and his/her spouse on floater basis. Age limit under the

section is 18-70 years . If either of them is above 70 years of age, the other would be

insured under this.


Chairman-Cum-Managing Director

Directors

Company Secretary

Chief Manager (Personnel)

Chief Manager (Claims)

Chief Manager (Finance)

Chief Manager

(Operations)

Chief Manager (Marketing)

General Managers

Deputy Manager

Manager (Administration)

Officer (Administration)

Assistants

Deputy Manger

Associates

Deputy Manager (Finance/Audit)

Accounts Officer

Accounts Officer

Assistants Assistant (Audit)

Manager

Associates

Deputy Manager

Regional Manager

Administrative.

Officer

Assistant


2.4 Organizational structure



3.1 Personnel and Administration Department

The Personnel and Administration Department is an important Department of the

organization being the one which is in close contact with both the management as well as

the employees. The Personnel Department is headed by the Personnel Manager and is

assisted by the Deputy Manager.


Chief Manager (Personnel)

Deputy Manager

Manager (Administration)

Officer (Administration)

Assistants


Functions

Recruitment

Recruitment is the process of searching for prospective candidates and

stimulating them to apply for the jobs in the organization.

Recruitment can be defined as the process of finding and attracting capable

applicants for employment. The process begins when new recruits are sought and end

when their applicants from which new employees are selected.

Advertisement

The employers kept their requisition published in the newspaper .The

prospective candidates go through the advertisement and sent in their applications.

Recruitment through this source is the most economical as the candidates take the

candidates take the initiative to sent in applications.

Training and development

Training and development refer to the imparting of specific skills, abilities and

knowledge to be employee .Training and development can be defined an employee’s

attitude or increasing his or her skills and knowledge. The need for training and

development is determined by the employee’s performance deficiency , computed as

Training and development need=Standard performance=actual performance.

On the job training

Under this method the trainee is given training in real raining is

organized .The working condition under the supervision of a qualified trainer .OJT

is the most effective method as the trainee learns by experience making him or her

highly competent.



The trainee is highly motivated to learn since he or she is aware of the fact that

his or her success on the job depends on the training received.

Off the job training

This method of training is given in a separate room where they make use of

lecture, demonstrations and audio visual equipments. These can be used to provide a

wide range of realistic example of job conditions and situations in the condensed period

of time. Further, the quality of the presentation can be controlled and will remain equal

for all training groups.

Apprenticeship Training

Young persons desire to learn art, craft and other technical jobs are trained

under this method .The training is usually arranged for longer periods from 2-5 years.

The trainee is paid nominal wages known as stipend during the period of training. No

apprentice is allowed to do over time except with the approval of the apprentice advisor.

This Trainee is paid nominal wages known as stipend during the period of training

Performance Appraisal

Performance appraisal may be understood as an individual’s performance in a

systematic way. The performance may be measured against such factors as job

knowledge, quality and quantity of output, initiative, leadership abilities, supervision,

dependability, co-operation, judgment , versatility, health, and the le defined as the like.

Performance appraisal can be defined as the systematic evaluation of the individual with

respect to his or her performance on the job and his or her potential for development.

Performance appraisal is a method of evaluating and appraising the performance of a

person in a particular job .This helps to bring about the areas of efficiency and deficiency

in a person. In other words it helps to identify the strengths and weakness of a person.

Checklist method.



Under this method a set of questions are given with yes or no boxes on the side.

The rate has to ticket the appropriate box, which he thinks is correct. The checklist

contains a series of questions to access the performance of employee.

Rating method

Under this method certain grades are set like ‘A grade’ stands for outstanding, ’B grade

for very good’, , ‘C grade for good’, ‘D grade for satisfactory’, ‘G grade for

unsatisfactory’. Secondly certain traits are set like job knowledge, initiative,

communication skill, leadership quality, self discipline etc. On the basis of the following

traits the rates will give grades.

Free Essay method

Under this method the rate will assess and give a brief description about him to the

personnel department. The rates have to file a report about the employee based on his

assessment. The report should reveal the performance of the employee, The areas to be

covered are production capacity, leadership qualities dependability, discipline, etc.

Monetary Benefits

Basic salary

Dearness Allowance

Employer’s contribution to prevent Fund.

Employer’s contribution to E.S.I scheme.

Production bonus.

Profit bonus.

Old Age Pension.

Retirement gratuity

Fringe Benefits



Subsidized food

Subsidized housing

Subsidizing education

Holiday Pay

Recreational Facility

Concessional Medical Facility

Educational of children of workers

The total of these benefits given to the workers are sufficient to attract and retain the

labor force in the organization.

Time Keeping

This is concerned with the recording of time of arrival and departure of each

worker employed in the organization for the purpose of attendance ensuring discipline

and wage calculations

Methods of time keeping

This company uses two systems of recording attendances:

Attendance register method

Punching system

Labor Turn Over

It means the rate of change in the labor force due to leaving of some

workers and joining of some others in their place. This rate of change is calculated as a

percentage on the average labor force during a period high percentage of labor turn over

denotes that labor is not stable. A high turnover is not desirable .

Personal causes.



Domestic Troubles.

Retirement due to old age.

Accident making workers.

Dislike for the job or place.

Death

Avoidable causes

Low wages and allowances.

Unsatisfactory working condition.

Job dissatisfaction.

Long hours of work.

Lack of promotion opportunities

Lack of proper training facilities.

Unavoidable causes

Workers may be discharged due to insubordination and inefficiency.

Workers may be discharged due to short age of work.

I got kind and hearty co-operation from the personnel department .I also got best

and true knowledge about the various functioning of personnel department.

3.2 Claims Department



The Claims department is headed by the Claims manager; there is the Deputy Manager

and their associates to assist him

The claims department is responsible for the claim settlements arising from the

customers. In case of a motor claim the department gets information directly from the

customer or from the 24x7 cal centers.

The department authenticates the policy details and issues a claim number, and then

assigns the surveyor for valuation of the vehicle. After repair of the vehicle, it will be re

inspected and delivered to the customer.

In case of reimbursement process, the customer will have to submit documents to

Oriental Insurance Company and they will make the payment within 5 days of

completion of documentation.

3.3 Finance Department


Chief Manger (claims)

Deputy Manger

Associates


The Finance Department is headed by the chief Finance Manager and there is Deputy

Manager and Audit Manager to assist him.

Functions


Chief Manger (Finance)

Deputy Manager (Finance)

Manager (Audit)

Assistant (Audit)

Accounts Officer

Accounts Officer

Assistants Assistants


Preparation of reports which means the summarized from of management on the

monthly performance.

Finalization of accounts; like the preparation of profit and loss accounts, schedules

and notes on accounts.

Preparation of budges, which means managing the funds of the department.

Treasury management which refers to the management of the available funds in a

suitable and convenient manner.

Calculation and preparation of income tax & service tax.

Operation control means controlling the daily operations and transaction in the

department and controls them.

Calculation of depreciation.

Preparation and disbursement of salary.

Internal and external audit.

3.4 Operations Department




Chief Manager (Operation)

Deputy Manager (Operation)

Manager (Branch Operation)

Associates Associates


The operation department is headed by the Operations Manager and is assisted by

the Deputy Manager. There is a Branch Operations Manager and his associates to assist

him.

The main functions of the Operations Department may be divided into three

Primary, Secondary & Tertiary Functions

The primary functions involves the acceptance of documents submitted from the

marketing department

The secondary functions involves the detailed analysis and verification of the

documents

The tertiary functions include the punching and issuance of policy documents to

the clients after verifying it.



3.5 Marketing Department

Marketing is the term used to refer to the orientation of an organization which has

established a separate department to look after its marketing activities.

Functions

Sales

Sales are a crucial function of the marketing department.

Planning

Planning is the act of formulating a program for a definite course of action.


Chief Manager (Marketing)

Regional Manager (Marketing)

Admin. Officer (Marketing)

Agent Assistant


Marketing Research

Marketing research analyses a given marketing opportunity or problem,

defines the research and the data collection methods required to deal with a problem.

Customer Relations

Customer relations involves the conscious aim to develop and manage long term and or

trusting relationship with customers and other parties in the marketing department.

Competitors

The New India Assurance Company Ltd.

United India Insurance Company Ltd.

Reliance General Insurance Company Ltd.

Bajaj Allianz General Insurance Company Ltd.

4.1. SWOT analysis



Strength

India’s number one Government general insurance company.

Brand image of the company is good.

The qualitative service of the company is very high.

Simple and fast documentation.

Lightning fast claims settlement.

Achieved financial break even in first full year of the operation

Good reputation of the company especially through its corporate social

responsibilities

Follows high ethical standards.

Maximum utilization of the production capacity is another strength of the

company.

Weakness

Absence of new technique to compete with new trends in marketing.

There is no smooth and fast decision making.

Lack of co-ordination between department.

Business space

Lack of effective promotional activities

Lack of professionalism in same areas.



Opportunities

Increasing employment opportunities.

Company provides economic growth

More sales realization in national market.

Mass customization.

Active promotion of training and development.

Continuous improvement process.

Threats

Increasing competition in national scenario.

Harmful for the future of private companies.

5.1 Findings



Oriental Insurance Company Ltd, achieved financial break even in first full year

of operation.

There is a good relation exist between the employees and management.

There is the absence of new techniques in marketing.

There is lack of co-ordination between departments.

Employees wish to acquire skills through continuous training.

Oriental Insurance Company Ltd,provides good welfare facilities.

Due to very good traditional back ground and experience of the company

has reputed stand among the public.

Company website is an effective tool to provide information about the

product and service

Heavy growing completion from the other company is effecting marketing.

5.2 Suggestions



The company shall pay attention to improve the co-ordination between

departments.

In the case motor insurance, it would be better if the company is having more

automobile showroom tie-ups as it may increase the sales.

The company shall introduce new techniques to compete with new trends in

marketing.

There might be more co-ordination between departments.

The decision making process might be faster.

The attract and maintain top quality workers company has to develop to

attract compensation package.

Conclusion



The visit to Oriental Insurance Company Ltd, Cochin helped me in getting a clear

view of the current problem in hand. The various business activities which are

covered in our curriculum are portrayed in the company. This gave me an

opportunity to examine the different departments and its functions. The

prolonged interaction with the staff, clients and the group leaders enabled me to

develop my communication skills and negotiating skills which was a positive

development in my career. I had an opportunity to interact and create a good

rapport with the entire team, which helped me with the completion of the project.

This study enabled me to get an in-depth knowledge about the insurance industry.

BIBLIOGRAPHY

BOOK RESOURCES



Kothari CR, Research Methodology, New Age International Pvt Ltd Publishers, Second Edition.

Pandey IM, Financial Management, Vikas Publishing House Pvt Ltd, Ninth Edition.

Aswathappa K, Human Resource Management, Tata McGraw-Hill Publication Company Ltd, Fourth Edition.

Ramaswamy T, Principles of Management, Himalaya Publication House, Seventh Edition.

JOURNAL

Product Profile

WEBSITE

www.orientalinsurance.org.in


http://www.orientalinsurance.org.in/

oriental insurance company ltd

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