INTRODUCTION

The business of insurance is related to the protection of economic value of assets.

Every asset has a value. The asset would have been created through the efforts of
the owner, in the expectation that, either through the income generated there
from or some other output, some of his needs would be met. In the case of a
factory or a cow, the production is sold and income generated. In the case of a
motor car, it provides comfort and convenience in transportation. There is no
direct income. There is a normally expected life time for the asset during which
time it is expected to perform. The owner, aware of this, can so manage his affairs
that by the end of that life time, a substitute is made available to ensure that the
value or income is not lost. However, if the asset gets lost earlier, being destroyed
or made non-functional, through an accident or other unfortunate event, the
owner and those deriving benefits therefore suffer. Insurance is a mechanism that
helps to reduce such adverse consequences. In this chapter an attempt is made to
give organizational structure and functional coverage of the United India
Insurance Company. People facing common risks come together and make their
small contribution (Insurance Premium) to a common field. The following
example explains basic concept of Insurance. In a village, there are four hundred
houses each valued at Rs.20000/-. Every year, on the average, four houses get
burnt, resulting into a total loss of Rs.80000/-. If all the four hundred owners
come 2 together and contribute Rs.200/- each, the common fund would be
Rs.80000/-. This is enough to pay Rs.20000/- to each of the four owners whose
houses got burnt. Thus the risk of four owners is spread over four hundred house-
owners of the village. It is inferred that insurance may be described as a method
of a technique, which provides for collection of small amounts of premium from
many individuals and firms. Out of which, losses suffered by the few are met.

Purpose and Need of Insurance

Assets are insured because they are likely to be destroyed through an accidental
occurrence. Such possible occurrences will create financial loss to the owner. To
compensate the loss insurance protection is needed. The accidental occurrences
are called perils. Fire, floods, breakdowns, lightning; earthquakes are some
examples of perils. The damage that these perils may cause to the asset, is the
risk that the asset is exposed to. Insurance does not protect the asset. It does not
prevent its loss due to the peril. Only economic and financial losses can be
compensated.
 HOW INSURANCE WORKS

People facing common risks come together and make their small contribution
(Insurance Premium) to a common field. The following example explains basic
concept of Insurance. In a village, there are four hundred houses each valued at
Rs.20000/-. Every year, on the average, four houses get burnt, resulting into a
total loss of Rs.80000/-. If all the four hundred owners come together and
contribute Rs.200/- each, the common fund would be Rs.80000/-. This is enough
to pay Rs.20000/- to each of the four owners whose houses got burnt. Thus the
risk of four owners is spread over four hundred house-owners of the village. It is
inferred that insurance may be described as a method of a technique, which
provides for collection of small amounts of premium from many individuals and
firms. Out of which, losses suffered by the few are met.
 INDUSTRY PROFILE

The insurance industry provides protection against financial losses resulting from
a variety of perils. By purchasing insurance policies, individuals and businesses can
receive reimbursement for losses due to car accidents, theft of property, and fire
and storm damage; medical expenses; and loss of income due to disability or
death.

The insurance industry consists mainly of insurance carriers (or insurers) and
insurance agencies and brokerages. In general, insurance carriers are large
companies that provide insurance and assume the risks covered by the policy.
Insurance agencies and brokerages sell insurance policies for the carriers. While
some of these establishments are directly affiliated with a particular insurer and
sell only that carrier‘s policies, many are independent and are thus free to market
the policies of a variety of insurance carriers. In addition to supporting these two
primary components, the insurance industry includes establishments that provide
other insurance-related services, such as claims adjustment or thirdparty
administration of insurance and pension funds.

Insurance carriers assume the risk associated with annuities and insurance
policies and assign premiums to be paid for the policies. In the policy, the carrier
states the length and conditions of the agreement, exactly which losses it will
provide compensation for, and how much will be awarded. The premium charged
for the policy is based primarily on the amount to be awarded in case of 5 loss, as
well as the likelihood that the insurance carrier will actually have to pay. In order
to be able to compensate policyholders for their losses, insurance companies
invest the money they receive in premiums, building up a portfolio of financial
assets and income-producing real estate, which can then be used to pay off any
future claims that may be brought. There are two basic types of insurance
carriers: direct and reinsurance. Direct carriers are responsible for the initial
underwriting of insurance policies and annuities, while reinsurance carriers
assume all or part of the risk associated with the existing insurance policies
originally underwritten by other insurance carriers. Direct insurance carriers offer
a variety of insurance policies.

Life insurance provides financial protection to beneficiaries— usually spouses and

dependent children—upon the death of the insured. Disability insurance supplies
a preset income to an insured person who is unable to work due to injury or
illness, and health insurance pays the expenses resulting from accidents and
illness. An annuity (a contract or a group of contracts that furnishes a periodic
income at regular intervals for a specified period) provides a steady income
during retirement for the remainder of one‘s life. Property-casualty insurance
protects against loss or damage to property resulting from hazards such as fire,
theft, and natural disasters. Liability insurance shields policyholders from financial
responsibility for injuries to others or for damage to other people‘s property. 6
Most policies, such as automobile and homeowner‘s insurance, combine both
propertycasualty and liability coverage. Companies that underwrite this kind of
insurance are called property-casualty carriers. Some insurance policies cover
groups of people, ranging from a few to thousands of individuals. These policies
usually are issued to employers for the benefit of their employees or to unions,
professional associations, or other membership organizations for the benefit of
their members. Among the most common policies of this nature are group life
and health plans. Insurance carriers also underwrite a variety of specialized types
of insurance, such as real-estate title insurance, employee surety and fidelity
bonding, and medical malpractice insurance. A relatively recent act of congress
allows insurance carriers and other financial institutions, such as banks and
securities firms, to sell one another‘s products. As a result, more insurance
carriers now sell financial products such as securities, mutual funds, and various
retirement plans. This approach is most common in life insurance companies that
already sell annuities; however, property and casualty companies also are
increasingly selling a wider range of financial products. In order to expand into
one another‘s markets, insurance carriers, banks, and securities firms have
engaged in numerous mergers, allowing the merging companies access to each
other's client base and geographical markets. Insurance carriers have discovered
that the internet can be a powerful tool for reaching potential and existing
customers. Most carriers use the internet simply to post company information,
such as sales brochures and product 7 information, financial statements, and a list
of local agents. However, an increasing number of carriers are starting to expand
their web sites to enable customers to access online account and billing
information, and a few carriers even allow claims to be submitted online. Some
carriers also provide insurance quotes.online based on the information submitted
by customers on their Internet sites. In the future, carriers will allow customers to
purchase policies through the Internet without ever speaking to a live agent. In
addition to individual carrier-sponsored Internet sites, several ―lead-generating‖
sites have emerged. These sites allow potential customers to input information
about their insurance policy needs. For a fee, the sites forward customer
information to a number of insurance companies, which review the information
and, if they decide to take on the policy, contact the customer with an offer. This
practice gives consumers the freedom to accept the best rate. The insurance
industry also includes a number of independent organizations that provide a wide
array of insurance-related services to carriers and their clients. One such service is
the processing of claims forms for medical practitioners. Other services include
loss prevention and risk management. Also, insurance companies sometimes hire
independent claims adjusters to investigate accidents and claims for property
damage and to assign a dollar estimate to the claim. 8 Other organizations in the
industry are formed by groups of insurance companies, to perform functions that
would result in a duplication of effort if each company carried them out
individually. For example, insurance companies to provide loss statistics, which
the companies use to set their rates, support service organizations
 GENERAL INSURANCE IN INDIA

A Review The first General Insurance Company namely Triton Insurance Company
Limited was established in Calcutta in 1850. Mainly the British held almost all its
shares. The first insurance company to be set up by Indians for transacting all
classes of general insurance business was Indian Mercantile Insurance Company
Limited in 1907. The British and other foreign insurers had a good share of
insurance business, about 40 per cent at the time of independence. This share
declined progressively thereafter. In 1957, the General Insurance Council, a wing
of the Insurance Association of India, framed a code of conduct for ensuring fair
conduct and sound business practices in general insurance industry. Further, in
order to increase the changes of retention of general insurance business in India,
the insurers started a reinsurance company namely, India Reinsurance
Corporation Limited in 1956, to which they all voluntarily ceded 10 per cent of
their gross direct business. In 1968, the Insurance Act was amended again to
provide for extension of social control over insurers transaction of general
insurance business. There were far-reaching changes leading towards a modern
piece of legislation, which came into force on 1st June 1969. 10 However, before,
they could be effectively implemented, management of non-life insurers was
taken over by the Central Government in 1971 as a prelude to nationalization. The
General Insurance Corporation and its four subsidiaries thus came into being from
1st January, 1973. During this period, an office of the Controller of Insurance was
set up, through its various phases, as an attached office firstly of the Ministry of
Finance of the Government of India. The controller is a statutory authority whose
duties, powers and responsibility as regards supervision and regulation of
insurance business were defined in the insurance Act. The nationalization of life
insurance business and creation of LIC in 1956 was followed by the nationalisation
of general insurance business and formation of GIC and its subsidiaries in 1973.
Adopting of the Insurance Act 1938 was greatly modified by the nationalizing
enactment‘s and Government notifications issued there under. Most of the
regulatory functions were taken away from the controller and vested in LIC and
GIC themselves. By Law, the Controller of Insurance is still the supervisory and
regulatory authority for the insurance industry. The nationalization of general
insurance industry, however, seems to have changed the position. The
Controller‘s Office and an Assistant Controller were made a part of the Insurance
Division of the Ministry of Finance and were made to perform a few residual
functions under the law which in practice is not much of importance. The
Insurance Act did seek to create a strong and powerful supervisory and regulatory
authority 11 in the controller of Insurance. His role and responsibilities are set out
in several sections for this Act. It empowers him to direct, advise, caution,
prohibit, investigate, prosecute, search, seize, fine, amalgamate, authorize,
register and liquidate insurance companies. As already stated, the powers and
position of the controller of insurance have undergone drastic curtailment after
nationalization of the industry. This presumably might have taken place with the
belief that the nationalized industry did not require any supervision and that its
accountability to Government through the insurance division of the Finance
Ministry would be adequate. There are, however, operations which require
professional regulation even in the nationalized insurance sector, particularly in
the areas relating to expenses, customer service, claims settlements, resolution of
disputes, reasonableness of tariff and prevention of restrictive trade practices.
The Committee on Reforms in the insurance sector has suggested that the office
of the Controller of Insurance should have its full statutory powers restored and
segregated from the Ministry of Finance and in due course, the Insurance
Regulatory Authority as a multi-member statutory body should be set up. This
would require amendments to the current laws. The Government has since
established an Insurance Regulatory Authority with its Chairman having the rights
and responsibility of the Controller of Insurance vested in him. The Government is
now contemplating to vest this Authority with statutory powers through
legislation to regulate the functioning of the insurance industry after it is opened
up. 12 The Insurance Sector was opened up to new players in August 2000. The
last three years have witnessed the Indian Insurance Industry playing to catch-up
with international developments overall the regulator. Insurance Regulatory and
Development Authority (IRDA) has been able to script a smooth opening up
process. Profitability in insurance depends on the underwriting and claims
process, the level of expenses including acquisition, administrative and claims
handling costs, and finally investment income. A major issue in the business is the
role of tariff. In most of the major lines of business, the premium rates are
governed by tariff fixed by the Tariff Advisory Committee. The experts have
agreed that competition and tariff do not go together. However, tariffs have
helped the general insurance companies to cross subsidies certain lines of
business. The fire business has been profitable while motor business has faced
substantial losses. The new entrants are also subject to tariffs, but they are more
adept at keeping their exposure low in loss making businesses.
 PRINCIPLES OF GENERAL INSURANCE

When the insured pays the premium, the insurer accepts the risks. The policy
issued by the insurer is the evidence of the contract, which is subject to the
following principles. Utmost Good Faith Insurable Interest Indemnity Subrogation
Contribution Proximate Cause Utmost Good Faith: The parties to an insurance
contract are required to accept good faith. Material information should be
disclosed by the proposed policyholder, to accept the risk and also to fix terms
and conditions of contract. This is the legal duty of the proposed policyholder
under common law. This can be explained by an example. A residence is insured
with an Insurance Company. Suppose, the residence is converted into a shop, the
fact should be informed to the insurance company immediately. If not, the
contract becomes void. Insurable Interest: 14 The owner of property has a right
under law to effect insurance on the property if he is likely to suffer financially
when the property is lost or damaged. This legal right to insure is called Insurable
Interest. Without Insurable Interest, the Contract of Insurance will be void.
Because of this legal requirement of insurable interest, insurance contract is not a
gambling transaction. A ship owner has insurable interest in the ship owned by
him. Cargo owners, both sellers and buyers have insurable interest in the goods
owned by them. Indemnity: The principle of indemnity arises under common law
and requires that an insurance contract should be a contract of indemnity only
and nothing more. The object of the principle is to place the insured after a loss in
the same financial position as far as possible, as he occupied immediately before
the loss. The effect of this principle is to prevent the insured from making a profit
out of his loss or gaining any benefit or advantage. Subrogation: Subrogation may
be defined as the transfer of rights and remedies of the insured to the insurer
who has indemnified the insured in respect of the losses. If the insured has any
rights of action to recover the losses from any third party, who is primarily
responsible for the loss, the insurer, having paid the loss, is entitled to avail him
self of these rights to recover the loss from the third party. The effect is that the
insured doe not receive more than the actual amount of his loss and any recovery
effected from the third party goes to the benefit of the insurer to reduce the 15
amount of his loss. Insured property may be destroyed by fire caused by the
negligence of a third party who is at law responsible to make good the loss. The
insurer having indemnified the insured is entitled to the insured‘s right of
recovery against the third party. Contribution: An insured may have several
insurances on the same subject matter. If he recovers his loss under all these
insurances, he will obviously make a profit out of the loss. This will be an
infringement on the principle of indemnity. A House valued Rs.5,00,000/- is
insured with from companies A, B,C,D separately. When there is a total loss for
the house each company will settle Rs.1,25,000 to the insured. The Rs.1,25,000/-
is called contribution. Proximate Cause: The object of insurance is to provide
indemnity for such losses as are caused by insured perils. If stocks are burnt, then
the cause of loss is fire and hence the claim is payable. If stocks are stolen, the
loss is not payable under the fire policy, as ‗burglary‘ is not a peril covered. Thus
it is important to determine the cause of loss to decide whether the loss is
payable or not.
 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. 17 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.
 COMPANY PROFILE

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. 19 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. 20 ORGANISATIONL STRUCTURE 21
PRODUCT OFFER BY UNITED INDIA INSURANCE PERSONAL POLICIES 1. UNIVERSAL
 HEALTH INSURANCE SCHEME for BPL FAMILIES 2. HOUSE HOLDER POLICY 3.
PERSONAL ACCIDENT POLICY 4. MEDICLAIM POLICY 5. UNI-MEDICARE INSURANCE
COMMERCIAL POLICIES 1. MARINE INSURANCE 2. INDUSTRIAL INSURANCE 3.
3 .MOTOR INSURANCE MISCELLANEOUS INSURANCE a) SOCIAL INSURANCE b)
Bhagyashree Child Welfare Policy c) RajaRajeshwari Mahila Kalyan Yojna Policy d)
Mother Teresa Women & Children Policy e) Jan Arogya Bima Policy f) RURAL
INSURANCE g) Agricultural Pumpset Insurance 22 CUSTOMER SATISFACTION
Customer satisfaction is an issue gaining focus from managers and marketers
within the increasingly competitive service industry. A satisfied customer is a
source of invaluable word-ofmouth recommendations and thus can stimulate
further purchases. Several authors have tried to define customer satisfaction
differently – Homburg, Coschate and Hoyer (2005)20 have defined it as a
comparison of previously held expectations with perceived product or service
performance. Gomez, McLaughlin and Wittink (2004)21 considered it as
consumer ratings of specific attributes. Anton (1996)22 defined customer
satisfaction as a state of mind in which the customer’s needs, wants, and
expectations throughout the product of service life have been met or exceeded,
resulting in future repurchase and loyalty. Giese and Cote (2002)23 defined
consumer satisfaction as: A summary affective response of varying intensity. The
exact type of affective response and the level of intensity likely to be
experienced must be explicitly defined by a researcher depending on the context
of interest. With a time-specific point of determination and limited duration.
The researcher should select the point of determination most relevant for the
research questions and identify the likely duration of the summary response. 23 It
is reasonable to expect that consumers may consciously determine their
 satisfaction response when asked by a researcher; therefore, timing is most
critical to ascertain the most accurate, wellformed response. Directed toward
focal aspects of product acquisition and/or consumption. The researcher should
identify the focus of interest based on the managerial or research question they
face. This may include a broad or narrow range of acquisition or consumption
activities/issues. Understanding consumer satisfaction and the elements that
influence it are fundamental for management of any service organisation trying to
remain competitive. Due to the intangible nature of services any attempt to gain
competitive advantage can easily be replicated by competitors. Also there is a
perceived high risk in choosing a service provider as you cannot evaluate the
service prior to purchase. Therefore it is vital to establish profitable long term
relationships with existing customers by not just satisfying but if possible
delighting at each service encounter. As well as encouraging new customers who
may not be satisfied with their current service provider. In order to achieve this
company must not only understand what satisfaction is, but also how to achieve
and measure it. 24 Many definitions for satisfaction exist Lovelock describes
satisfaction as 'a consumers post - purchase evaluation of the overall service
experience (processes and outcome). It is an affective (emotion) state or feeling
reaction in which the consumers’ needs, desires and expectations during the
course of the experience have been met or exceeded. As per Howard and Seth
customer satisfaction is “The buyer’s cognitive state of being adequately or
inadequately rewarded for the sacrifice he has undergone”. Customer satisfaction
is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as "the number of customers, or percentage of total
 customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals." In a survey of nearly 200 senior
marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses. It is
seen as a key performance indicator within business and is often part of a
Balanced Scorecard. Customer satisfaction and experience are important for
every industry, and certainly insurance is no exception. For insurers customer
satisfaction means not just the use of a policy product that was purchased from
an insurance company for a cost, but also the satisfaction that is obtained when
the claim is settled in full. In 25 this sense, customer satisfaction does not happen
simply by purchasing a policy product, but it occurs when customers get the
expected benefits such as peace of mind during the product cycle and speedy
payment when a claim is filed. Customer experience, on the other hand, is the
positive feelings that a customer has when he or she goes through the entire
cycle, right from purchasing a product to getting paid when a claim is made.
Unfortunately, many insurance companies falter in providing the right customer
experience because they get mired in overseeing claims and settling 27 them. As a
result, customers do not get the right response from agents or they have to wait
too long to get their claims settled. Such situations have a negative impact on
customer experience. And, this translates potentially into lost customers. when
customers are not fully satisfied, they turn to competitors' products, and this
proves to e detrimental for insurance companies. To prevent such situations, it is
important for insurance companies to hasten their claims processing and more
importantly, educate employees on the need for good customer experience. If
agents focus too much on the claims aspect, and exclude other aspects of
policyholder life-cycle troubles can arise. Such intense focus on a single aspect is
also not good for the insurance company because it can leave out policyholders
who are in other stages of insurance 26 life-cycle24 . In short, it is important for
customer representatives of insurance companies to focus on customer
experience and other aspects of the policy's lifecycle. A holistic approach to
improving the entire customer experience and having proper management of the
process is the means to gaining satisfied customers and a competitive edge. “You
pay money and you take your chances”; “Let the buyer (customer) beware,” the
age-old caveat emptor dicta initially akin to products, is still the buzzword in
“Insurance Sector”. If it is general insurance, more so. If the public sector general
insurance companies have to keep their stakes in the business and allow them not
to be swept away by the entry of private players, with more responsive and
convenient attitudes, the only shortcut is ‘quality service’. Insured, if not satisfied,
is bound to test competitors. The new millennium in Insurance Industry has
thrown the biggest challenge of handling ‘Customer Satisfaction’ & in turn
‘Customer Concerns’. Customer Satisfaction in insurance means the use of a
Policy product purchased for a cost, to the ultimate satisfaction of the buyer,
when a claim is paid. The satisfaction is not fully achieved only when a product so
purchased gives its full use, but it also stipulates that the product bought by the
buyer will give him the expected fruit i.e., peace of mind during the product cycle
when it is in use by the customer. 27 The present day customer buys his ultimate
satisfaction, not the product25 . Today’s customer is an active seeker of
ValueEvidence (Certificate, Policy, Prompt Service/ Full value.) He dwells more on
promise of satisfaction made by agents/ brokers/ company 28 advertisements/
assertions by Company/Industry/Regulator/ Legislature. The judgment of
 customer service is mainly on the basis of ‘what was asserted or implied’ about
the policy product. Operational staff delivers this assertion done by marketing
personnel at the beginning by issuing documents promptly, their behavior at the
time the consumer prefers a claim or seeks assurance of his service in any other
manner. Therefore, any lapse on the part of operating office turns proactive
rather than preventive, and it affects the sustainability of relationship between
the insurer and the insured customer. 28 SERVICE QUALITY BY UNITED INDIA
INSURANCE FOR CUSTOMER SATISFACTION Increase in service quality can satisfy
and develop attitudinal loyalty which ultimately retains valued customers. Service
quality is viewed as a form of attitude representing a long run overall evaluation.
Measuring service quality is little bit tedious as compared to measuring product
quality. Several researchers have proved that service quality is positively
correlated with return on investment, market share, net profits, customer loyalty
and customer satisfaction. Therefore, in order to retain their competitive edge,
companies try their best to assure good service quality. Customers compare their
expectations with the service quality and if the perceived service quality is higher
than their expectations, it results in customer delight. If vice versa, it causes
dissatisfaction. The relationship between expectation, perceived service quality
and customers satisfaction have been investigated in a number of researches . An
expectation is minimum requirement of service quality by service providers to the
meet customers wants and needs. According to Parasuraman et al (1985, 1988)
perceived service quality is viewed as the degree and direction of discrepancy
between customers' perceptions and desires. As per American Customer
Satisfaction Index (ACSI) relation between service quality expectation and
perception is complex Customer satisfaction can be obtainable with low quality,
 whenever one’s 29 expectations in a given situation are low and performance is
adequate to the task. Emergency situation fit this scenario well. Similarly,
dissatisfaction with high quality can ensue when some element of the service
delivery is not up to personal expectations. An obtained “Value” of service or
product also one of the most important factors affecting on customers
satisfaction. There are close relationship between service value and customers
satisfaction. Value may be conceptualized as arising from both quality and price
or from what one gets and what one gives. Value increases as quality increases
and as price decreases. Building Relationship of Confidence and Trust When there
is trust customers believe that the marketer is reliable and has integrity and a
customer has confidence that the employee is honest, fair and responsible and his
or her word can be relied on. Nobody expects a long-term relation with a partner
that cannot be trusted. When there is trust in a relationship all parties believe
that none will act opportunistically15 . Timely issue of insurance policy
documents, timely issue of premium requisitions and receipts, prompt action for
claims, better problem solving approach will increase customers’ confidence and
trust. 30 VISION: To become the most preferred insurer in India, with global
footprint and recognition. To become a trusted brand admired by all
stakeholders. To become the best-in-class customer service provider
leveraging technology and multiple channels. To become the provider of a
broad range of innovative products to meet the needs of all customer segments.
To be a great place to work, with highly motivated and empowered employees.
To be recognized for its contribution to the Society. COMMITMENTS: We shall
Act courteously, fairly and reasonably in all our dealings with the customers.
Make sure all our Policy documents and claim procedures are clear and
complete information is given about our Products and Services. Deal quickly with
the grievances of the customers and resolve them through nominated
"Customer Care Officers" in all operating offices. RO Nodal Customer Care Officers
List. Respond to all commercially viable general insurance needs of the citizens
to provide new covers and promote insurance inclusion. 31 Continue to provide
customized insurance products for the rural and particularly for the weaker
sections of the Society at affordable price. Continue to develop a professional
workforce for execution of roles assigned to them. Have a regular consultative
process with all our stakeholders and set up monitoring mechanism for delivery
of promised services to our customers. STANDARDS FOR ACCESS TO CITIZENS: We
shall Host on our Website www.uiic.co.in all relevant information relating to
working hours, documents required for issuance of policies and claims settlement.
Make available literature on products and services at all our offices. Reach out
through electronic and print media, intermediaries and other active
communication channels available. Enhance the access of citizens through Call
Centre and Portal. Earmark the time between 3.00PM to 5.00PM of every
Wednesday (next working day, in case Wednesday happens to be holiday) for
personal interaction of customers with Officer-incharge of the Branch /
Divisional / Regional office for resolving of grievance. STANDARDS FOR
SERVICING: We shall 32 Strive to carry out the timelines as prescribed by the
Regulator in respect of Policy holder’s servicing. Be clear and transparent in
seeking fulfillment of requirements for settling a claim or any other services to
the customer. STANDARDS OF FAIRNESS AND OPENNESS: We shall Invite
feedback from customers on services availed to suggest improvements. Review
the standards of services offered, annually with a view to improve the
 benchmarks. 33 BENCHMARKS FOR SERVICING: Decision on acceptance of
Proposal for Motor, Individual Health, Personal Accident and Other Personal
lines of Insurance – within 3 days of submission. Fire, Marine, Engineering and
other commercial lines of Insurance – within 7 days of submission. Issuance of
policies within 7 days of acceptance of premium. Issuance of Renewal Notice 15
days before expiry of policy. Appoint Surveyor/Investigator within 48 hours of
intimation of claim Decide claims on Personal Line and Retail Insurances within
15 days and on Commercial Line Insurances within 30 days of receipt of required
documents/clarifications. Provide Claim status to the customers within 3 days of
receipt of request by the policy issuing office. Make payment of claim within 3
days of receipt of discharge voucher Inform the customer within 30 days of
receipt of required documents if the claim is not admissible. Register grievances
on the same day / monitor the grievances registered on Integrated Grievance
Management System (IGMS) through the Company’s Grievance Redressal System
(UGMS) UGMS portal. Provide acknowledgement within 3 days of receipt.
Resolve the grievances within 15 days of receipt. 34 Online Insurance Products
Customer can avail online policies in electronic format through our customer
portal in our Website (www.uiic.co.in). Policies which can be purchased online are
Motor (2- wheeler & Private Car) /Health/ Personal Accident/ Overseas
Mediclaim/ Householder/ Shopkeeper/ Pravasi Bhartiya Bima Yojana. Policies
which can be renewed online are Motor (2- wheeler & Private Car)/ Health/
Personal Accident/ Householder/ Shopkeeper. E-Insurance Account Customers
can also open an e-Insurance account with any of the registered Insurance
Repositories licensed by IRDA and maintain all their insurance policies in soft copy
form with the Repository. Customer can have changes or endorsements carried
 out in their policies in soft form. UIIC have given a provision to incorporate their
e-Insurance account number in the e-proposal form. Customer can avail the
advantages of easy maintenance and transparency of having insurance policies in
electronic form. 35 Digital Payment Our Company has launched an initiative for
incentivising digital payment of premium for buying a new general insurance
policy 10% Discount in Premium (max upto Rs.2000/-) per Policy Make online
Digital Payment through our website Scheme available to Individual Customers
only Scheme applicable on New Policy only Scheme applicable on Policies like :
Individual Health, Family Medicare, Motor Package, Householders, Overseas
Mediclaim etc. 36 FUNCTIONS OF INSURANCE Insurers provided insurance
policies, which are legally binding contracts for which the policy-holder pays
insurance premium. Under an insurance contract, insurance companies promise
to pay specified sum contingent on occurrence of future events. Based upon this,
the function of insurance may be discussed as follows. Certainty: Insurance
provides certainty of payment for the risk of loss. There risk will occur or not,
when will occur, how much loss will be there? In other words, there are
uncertainty of happening of time and amount of loss. Insurance remove all these
uncertainties and the assured is given certainty of payment of loss. The insurer
charges premium for providing the said certainty. Protection: The main function
of the insurance is to provide protection against the probable chances of loss. The
insurance gurantees the payment of loss and thus protects the assured from
suffering. The insurance cannot check the happening of the event but can
compensate for losses arising at the happening of risk event. Risk Sharing: When
risk takes place, the loss is shared by all the persons who are exposed to the risk.
The share is obtained from each and every insured in the shape of premium
 without which the insurer does not guarantee protection. 37 Prevention of loss:
The insurance companies assist financially the health organization, fire brigade,
educational institutions and other organizations, which are engaged in preventing
the loss of the masses from death or damage. The insurance joins hands with
these institutions in preventing the loss of the society because the reduction in
loss causes lesser payment to the assured and so more saving is possible which
will assist in reducing the premium. Lesser premium invites more business and
more business causes lesser share to the assured. The reduced premium will
stimulate more business and more protection to the masses. On the basis of the
discussion made above, it can be concluded that the primary function of
insurance is the creation of the counter balance for risk, which is security.
Insurance does not eliminate or decrease the uncertainty for the individual as to
whether or not the event will occur, nor does it alter the possibility of occurrence,
but it does reduce the extent of financial loss connected with the event. From the
individual‘s point of view, the purchase of an adequate amount of insurance on a
house reduces the financial loss in the event of the house catching fire. 38
CUSTOMER‟S SATISFACTION RELATING TO THE VARIOUS FACTROS : Satisfaction
of the Customers relating to the various factors influencing in United India
Insurance Company Limited, Dindigul is abstract and qualitative. It cannot be
measured directly. It can be measured only indirectly through their opinions or
response to various factors in the United India Insurance Company Limited,
Dindigul. A scale by name ‗Customer‘s Satisfaction Scale‘ has been constructed to
measure the level of satisfaction of each customers-respondent. This scale
contains 27 items relating to various factors in the United India Insurance
Company Limited, Dindigul. The responses of the sample respondents to the 27
 items have been recorded. The average satisfaction score of the sample
respondents is 65.55 out of the maximum of 135. The respondents have been
grouped into three categories namely (i) Low satisfaction (ii) Medium satisfaction
and (iii) High satisfaction. This classification is done according to ―Mean + SD‖
criterion. Customer‘s scoring up to 46 are treated as low satisfaction, customers
with total scores between 47 and 84 come under the medium level satisfaction
category and customers scoring above 84 are considered highly satisfied. 39
UTILISATION AND SATISFACTION A customers' utilisation means the
proportionate number of policies taken by him in the United India Insurance
Company Limited against the total number of general insurance policies taken by
him. On the basis of utilization indices the sample customers are classified as
those with low (0-40), medium (41 -80) and high (above 80). The highly utilized
customers are expected to be more satisfied than the low utilisers. To study
whether the customers' utilization influences satisfaction, it is surmised that
utilisation influences the level of customers satisfaction i.e., the higher the level of
utilisation, the more the level of satisfaction. The average satisfaction score of
different utilisation of sample customers varies from 62.47 to 73.24. There are 43
Low utilisation respondents with their satisfaction scores ranging from 39 to 110.
Their average satisfaction score is 62.47. Of the 43 respondents, 18 respondents
(41.86%) have their satisfaction scores above average and 25 respondents
(58.14%) have their satisfaction scores below average. There are 169
mediumutilisation respondents. Their satisfaction scores range from 41 to 112.
Their average satisfaction score is 64.60. Of the 169 respondents, 81 respondents
(47.93%) have their satisfaction scores above average and 88 respondents
(52.07%) have their satisfaction scores below average. 40 EDUCATION AND
 SATISFACTION Education of customers is taken into consideration, to assess
whether their educational qualification influences satisfaction. The hypothesis
formulated is ‗Education influences the level of customers satisfaction‘. The
sample customers are classified according to their level of education namely,
Primary level, Secondary level and College level. MARITAL STATUS AND
SATISFACTION Marriage burdens men and women with more responsibilities.
Married customers are supposed to bear higher responsibility and be more
committed to their family and society. Therefore a referential analysis of marital
status is appropriate here. The sample customers are considered in terms of
married and unmarried An attempt is made to find whether the level of
satisfaction varies due to the marital status of the respondents. It is surmised that
‗marital status influences the level of customers satisfaction‘ i.e. married
customers derive more satisfaction than their counterparts. NATURE OF POLICY
AND SATISFACTION Nature of Policy taken by the customers in insurance
company is taken into consideration to assess whether their nature of policy
influences satisfaction. The hypothesis formulated is ‗nature of policy influences
the level of customers satisfaction‘. The sample 41 respondents are grouped on
the basis of their Nature of Policy into three groups namely Fire, Motor and
Miscellaneous. AGE AND SATISFACTION: Age and satisfaction are inter-related.
Aged customers are expected to possess better knowledge in the field of
insurance. The aged respondents are more aware of the function of insurance
companies than the younger customers and the levels of satisfaction are likely to
vary. The hypothesis formulated is ‗age influences the level of customer‘s
satisfaction‘. The sample respondents were grouped into three age groups. The
sample customers in the age group up to 25 years have been classified as young,
those between 26 and 50 years as middle-aged and those above 50 years as old.
Table 6.20 reveals the relationship between age and satisfaction. INCOME AND
SATISFACTION The income of the sample customers has been taken into account
for the study. It is expected that the higher the income level of the customers is,
the more the satisfactions. To find this, it is surmised that ‗income influences the
level of customers satisfaction‘ i.e., the higher the income is, the more would be
the satisfaction. For this, the sample respondents are split into three groups on
the basis of their monthly income namely those upto Rs.10,000 (low), those with
Rs.10,001 to Rs.20,000 (Middle) and above Rs.20,000 (High). 42 The average
satisfaction score of different groups of respondents varies from 64.47 to 67.23.
There are 47 respondents of low income group and their satisfaction score is
67.23. It varies from 39 to 114. 22 respondents (48.89%) of low income have their
satisfaction scores above average. 43 SUMMARY, SUGGESTIONS AND
CONCLUSION In this chapter an attempt has been made to briefly summarize the
thesis and to give concrete suggestions on the basis of the findings of the study.
Insurance plays a vital role in the modern society. Life insurance assures to
replace income lost to a family if the policy holder met with an untoward incident.
Health insurance like medi- claim reimburses the medical expenses which are met
by the policy holder. Fire insurance pays all or part of the loss if the insured
propety is destroyed by fire. Motor vehicle insurance compensates the cost of
damages resulting from accident. Now-a-day, people can also avail insurance to
cover unusual types of financial losses. Dancers have insured their legs against
injury. Motion picture producers have even insured the lives of animals starring in
their films. The desire for security is sought to be safe by taking all the
precautions possible to avoid or prevent the consequence of risk. Insurance is a
mechanism that helps to reduce such adverse consequences. The main object of
general insurance is to protect the economic value of assets. Every asset has a
value. The asset would have been created through the continuous efforts of the
owner, in the expectation that, either through the income generated therefrom
or some other output, some of his basic financial needs would be met. There is a
normal economic expected life time for the asset. If the asset gets lost earlier,
being destroyed or made non- 44 functional, through an accident or other
unfortunate event, the owner and those deriving benefits and income therefrom
suffer. The insurance plays a vital role to overcome these difficulties and to
protect the economic value of assets. This venture of insurance can be achieved
by a well-organized sector like the United India Insurance The development of this
sector does not merely depend upon by simply introducing the various types of
products in the market but also depends upon the well-organised marketing
system. There are many issues, which are considered relevant for better
marketing and organization facing this sector. There is also a general feeling that
the services of general insurance are not up to the expectation and satisfaction of
policyholders and public. Therefore, an attempt is made to study the
organizational structure, to evaluate the operational efficiency of General
Insurance and to identify the factors influencing satisfaction of employees and
policyholders. The insurance industry provides protection against financial losses
resulting from a variety of perils. By purchasing insurance policies, individuals and
businesses can receive reimbursement for losses due to car accidents, theft of
property, and fire and storm damage; medical expenses and loss of income due to
disability or death. In general, insurance carriers are large companies that provide
insurance and assume the risks covered by the policy. Insurance agencies and
 brokerages sell insurance policies for the carriers. Insurance carriers have
discovered that the Internet can be a powerful tool for reaching potential and
existing customers. 45 Carriers also provide insurance quotes online based on the
information submitted by customers on their Internet sites. In the future, carriers
will allow customers to purchase policies through the Internet without ever
speaking to a live agent. In addition to individual carrier-sponsored Internet sites,
several ―lead-generating‖ sites have emerged. These sites allow potential
customers to input information about their insurance policy needs. For a fee, the
sites forward customer information to a number of insurance companieswhich
review the information and, if they decide to take on the policy, contact the
customer with an offer. This practice gives consumers the freedom to accept the
best rate. The Registered Head Office of the United India Insurance Company
Limited is located at 24, Whites Road, Chennai – 600 014. It has 24 Regional
Offices located in important centers in India for effective co-ordination,
supervision and control of 359 divisional offices and 1056 branch offices. The
paid-up capital of the company is Rs.150 crores. The accumulated general reserve
is Rs.3096 crores. The total asset of the company is Rs.8283 crores. The total
number of employees on their roll is 17781. ‗Service, the Gateway to Growth‘ is
the motto of the company. The primary function of divisional offices relate to
development of business and administration including supervision of branches.
Their development function included appointment of inspectors and agents,
marketing, planning and procurement of business. The administrative function
involves 46 issue of policies, settlement of claims, maintenance of accounts and
general administration. Insurance companies bear risk in return for a fee called
premium. Thus, insurance companies are risk bearers. They accept to underwrite
 the risk in return for an insurance premium. Insurance may be defined as a co-
operative mechanism to spread the loss caused by a particular risk over a number
of persons who are exposed to it and who agree to ensure themselves against
that risk. It is a commonly acknowledged phenomenon that there are certain risks
in every sphere of life. For property there are fire risks; for shipment of goods,
there are perils of sea; for human life there are risks of death or disability and so
on. The chances of occurrence of the events causing losses are quite uncertain
because these may or may not take place. Therefore, with this view in mind,
people facing common risks come together and make their small contributions to
the common fund. While it may not be possible to tell in advance which person
will suffer the losses, it is possible to work out how many persons on an average
out of the group may suffer losses. When risk occurs, the loss is made good out of
the common fund. In this way, each and every one shares the risk. The insurance
is a social apparatus to accumulate funds to meet the uncertain losses arising
through a certain hazard to a person insured for such 47 hazard. In this way the
general insurance companies offer various products to fulfil the needs of public.
The various products and their features offered by the general insurance
companies are described. 48 RESEARCH METHODOLOGY Research Methodology is
a way to systematically solve the reach problem. It may be understood as a
science of studying how research is done scientifically. Research means a search
for knowledge or gain some new knowledge and methodology can properly refer
to the theoretical analysis of the methods appropriate to a field of study or to the
body of methods and principles particular to a branch of knowledge. A Research
methodology has a specified framework for collecting the data in an effective
manner. Research methodology means "defining a problem, defining the research
objectives, developing the research plan, collecting the information, analyzing the
information and presentation of findings." Such framework is called "Research
Design". The research process that was followed by me consisting following steps;
A) Defining the problem B) Developing the research plan C) Collection of Data D)
Analysis and Interpretation of Data 47 E) Presentation of findings 49 A) Defining
the problem and research objectives My research problem is to know the Buying
process of procpactive Activa buyers. B) Developing the Research Plan The
development of research plan has following steps: 1. Data source 2. Research
approach 3. Type of Research Design 4. Research instrument 5. Sampling plan i)
Papulation size ii) Sample size iii)Contact methods 50 The professional objectives
which are being covered under this project are as following- • To know about
demographic factors affecting Product of United India Insurance. • To analyze the
role of advertisement for United India Insurance Companies. • To know the
perception and conception of customers towards Insurance products and
specially focused for United India Insurance product.

SUGGESTIONS
On the basis of the information obtained from the employees and policyholders,
the researcher feels that it is his duty to offer some salutary suggestions for
enhancing better customer service and more efficient functioning of the United
India Insurance Company Ltd. As policyholder‘s awareness has been found to
influence their level of satisfaction, the insurance company should come forward
to present advertisement in regional languages. It will create awareness in the
minds of the public at large. It was also felt that the pamphlets containing the
details of the schemes be further improved with more information, and the
policies and other details may be printed and given in vernacular to serve the
purpose of the people not knowing English. Customers meet may be arranged
atleast twice a year to receive grievances of the customers and to meet their
expectations at divisional level. Liberalization will result in better customer service
and will help improve the variety and price of insurance products. Efficient
marketing strategies should be developed to reach the unreached. Operations
such as pricing, risk management, marketing and plans and decisions must be
made more prudent and open to every lowly. It is true that the management
policy that the customer is always right has to be upheld without any doubt. But
there is need of a public awareness of the special difficulties faced by the
employees because they have to meet declines and might be working in an 52
atmosphere of tension and turbulence. Let the customer do his best to make a
large allowance for some lapses of the employees whom they meet for various
reasons on occasions. The insurance company should try to develop business in
the new products of miscellaneous insurance. It can be achieved by way of
providing proper training to the field officers and agents. The study suggests that
the United India Insurance Company should take necessary precautionary
measures at the time of scrutinizing the proposals and processing the claims to
reduce the amount of bogus claim. The company should take necessary steps to
settle the claim in time. It will bring mental satisfaction to the policyholders. The
business hours of the office could be extended upto 5 p.m. in stead of 4 p.m. It is
necessary to simplify the claim procedure. This will create a confidence in the
minds of policyholders. The development officers and managers should pay
frequent visits to the business premises which are insured, to verify the
precautionary measures taken by the business people to prevent and avoid the
perils. In turn, the accidents and claims may be considerably reduced. The present
study enforces the revision of fire and motor insurance premium for the survival
of the insurance company. It is also suggested that the terms and conditions of
policy and its claims should be redrafted. It is found that the unclaimed bonus is
available only for motor insurance. The present study suggests that the unclaimed
bonus may be extended to all types of insurances. 53 This will reduce the
unnecessary claims. It is suggested that the general insurance companies have to
take steps for improving the job satisfaction of the employees, which will be
beneficial for the managements, employees and policyholders. The job
satisfaction among the employees can be improved by way of providing adequate
monitory and non-monitory benefits. It is also suggested that the general
insurance companies have to chalk out various social welfare schemes for their
employees like arranging the health checkup , establishing tie-ups with the
medical and educational institution for the benefit of the employees and their
family members. It will help them to enrich their social life even outside the
working hours and working place. The trade unions have to develop and
implement the program that strive the changes in the social and economic life of
the employees. The trade unions themselves have to organize schemes to
improve health and hygiene of the employees and interpersonal relationship
between the employees. Special session have to be organized for the union
leaders to influence the social as well as the economic life of the members of the
trade unions due to which the employees will get chances to improve in their
social life also. It has been suggested that to increase the efficiency of the
employees and create an interest in the work, suitable promotional opportunities
have to be given to the employees. The seniority 54 along with efficiency may he
considered for the promotion of the employees for higher positions in the
organisation. In addition to this, whenever new methods arc introduced, the
employees may be given suitable training to cope with the changes. To encourage
the employees to undergo the training, incentives may also be offered to them.
The opportunity for promotion and training given to the employees for improving
their efficiency will increase the level of satisfaction..
 CONCLUSION

The present study has made an attempt to study the factors influencing the level
of satisfaction of the employees and customers of the United India Insurance
Company Limited. Though the employees of this industry are engaged in
providing protection against financial loss in a great variety of situations, there is a
general feeling among the employees that they have not been properly and
adequately recognized. And to create a cordial atmosphere and smooth
relationship between the insurance company and the customers, it is essential to
satisfy the need of the latter. The researcher strongly believes that if all the
suggestions are carried out, the insurance company may become an instrument
of development for the economic welfare of the country.
 FINDINGS

Maximum of the insurance is purchased by the middle age group. Insurance is

mostly preferred by the job holders. Maximum insurance holders fall under the
average annual income ranging between 1- 3 lakhs. Insurance is usually
preferred by small families Mostly people prefer insurance to cover their risk
factor. UNITED INDIA INSURANCEinsurance company has a good. market
value*** Insurance holders under UNITED INDIA INSURANCE prefer protection
gain plan above all the other plans offered to them. The services provided by
UNITED INDIA INSURANCE. are satisfactory.** Television media is one of the
major source that provides information regarding different plans of UNITED
INDIA INSURANCE.

BIBLIOGRAPHY

Website: https://uiic.co.in/ www.google.com www.wikipedia.org Other Sources

Insurance Administration 2nd Edition by Jane Light cap Brown, PH.D. Film & ETC.
Principles and Practices of Insurance By Dr. P Periasamy. Marketing Research
3rd Edition By Beri G C. Life and Health Insurance By Black Skipper Marketing
Management 12 Edition By Philip Kotler and Kevin Lane Keller.