A

PROJECT REPORT

ON

“ANALYSIS OF RELIANCE HOME INSURANCE”

SUBMITTED TO

THE UNIVERSITY OF MUMBAI

IN PARTIAL FULLFILLMENT FOR THE AWARD OF THE

DEGREE OF BACHELOR OF COMMERCE (BANKING AND

INSURANCE)

ACADEMIC YEAR 2017-2018

SUBMITTED BY
POOJA NARENDRA SINGH
SEAT NO:

UNDER THE GUIDANCE OF

PROF. HASITKUMAR NAGARIYA

THE SIA COLLEGE OF HIGHER EDUCATION

1
 The SIA College of Higher Education.

P88, MIDC Residential Area Dombivli Gymkhana Road,

Near Balaji Mandir, Dombivli (East).421 203.

Email: [email protected]
________________________________________________________________

CERTIFICATE

This is to certify that, MS.POOJA NARENDRA SINGH. Student of

BCOM (Banking and Insurance VI) 2017-18.

Seat No. Has successfully completed his Project Work on

“ANALYSIS OF RELIANCE HOME INSURANCE.”
Under the guidance of PROF. HASITKUMAR NAGARIYA as per Mumbai
University syllabus.

COURSE CO-ORDINATOR PROJECT GUIDE

EXTERNAL EXAMINER PRINCIPAL

2
 DECLARATION

I hereby declare that this project titled as “ANALYSIS OF

RELIANCE HOME INSURANCE.”
Submitted by me is based on actual work carried out by me under the guidance
& supervision of PROF. HASITKUMAR NAGARIYA.
Any reference to work by any other person or institution or any material
obtained from other sources have been duly citied & reference.
It is in future to state that this work is not submitted anywhere else for any
examination.

THE SIA COLLEGE OF HIGHER EDUCATION

THE S.I.A COLLEGE OF HIGHER EDUCATION

SIGNATURE OF STUDENT

(POOJA .N. SINGH)

3
 ACKNOWLEDGEMENT

This project was a great learning experience & i take this opportunity to
acknowledge will all those gave me their invaluable guidance & inspiration
provided to me during the course of this pray by my guide.

I would like to thank PROF. HASITKUMAR NAGARIYA of banking

& insurance department (The S.I.A College Of Higher Education)

My overriding debt due to our Principal Dr.PADMAJA ARVIND &

Librarian MRS. BHARTI RAO& co-ordinator PROF. HASITKUMAR
NAGARIYA for equipping me with the books, journals, & magazines for this
project.

SIGNATURE

(POOJA .N. SINGH)

(THIRD YEAR BACHELOR OF COMMERECE)

(BANKING & INSURANCE)

4
SR.NO: INDEX PG.NO:

1 INTRODUCTION TO INSURANCE 6-11  

INDUSTRY

2 PROFILE OF THE COMPANY 12-19

3 PRODUCTS OFFERED BY 20-30

RELIANCE HOME INSURANCE

4 RESEARCH AND 31-33

METHODOLOGY
5 REVIEW OF LITERATURE 34-36

6 DATA ANALYSIS AND 37-46

INTREPRETATION

7 CONCLUSION 47-48

8 BIBLIOGRAPHY 49-50

9 ANNEXURE 51-53

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 CHAPTER-1

INTRODUCTION OF INSURANCE INDUSTRY

6
1.1 BACKGROUND OF INSURANCE INDUSTRY

The insurance industry of India consists of 57 insurance companies of which 24

are in life insurance business and 33 are non-life insurers. Among the life
insurers, Life Insurance Corporation (LIC) is the sole public sector company.
Apart from that, among the non-life insurers there are six public sector insurers.
In addition to these, there is sole national re-insurer, namely, General Insurance
Corporation of India (GIC Re). Other stakeholders in Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.

Insurance is over one and one-half centuries old in India. The First general
insurance company, Titan Insurance Company Ltd., was established in 1850.
Life insurance came to India from the U.K. in 1880, with the establishment of
the Oriental Life Assurance in Calcutta. By 1938, the insurance market was
buzzing with 176 companies; both life and non-life in 1956, the Government of
India recognized that malpractice had entered the management of the life
insurance. Consequently, the life insurance industry was nationalized under the
Life Insurance Corporation (LIC) of India.

A l t h o u g h ef f o r t s w er e m a d e t o m a i n t a i n a n o p e n m a r k e t f or t h e
g e n e r a l insurance industry by amending the Insurance Act of 1938 from time
to time, malpractice escalated beyond control. Thus, the general
insurance industry was nationalized in 1972.

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 1.2 ORIGIN OF INSURANCE
 

Whenever there is uncertainty there is risk. We do not have any control over

uncertainties which involves financial losses. The risk may be certain events

like death, pension, retirement or uncertain events like theft, fire, accident, etc.

Insurance is a financial service for collecting the savings of the public and

providing them with risk coverage. It comes under service sector and while

marketing this service due care is taken in quality product and customer

satisfaction. The main function of the Insurance is to provide protection against

the possible chances of generating losses. The insurance sector in India has

come a full circle from being an open competitive market to nationalization and

back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360-degree turn witnessed over a period of almost

two centuries.

8
1.3 INTRODUCTION OF HOME INSURANCE

Home insurance policies protect homeowners against damage and losses that
affect their property and belongings. The exact terms of coverage depend upon
the policy; however, most insurance policies cover perils like hail, thunderstorms,
fire, and theft. Home insurance also includes liability protection in the event that
someone is injured on the homeowner’s property, and many policies also offer
financial assistance if a homeowner must be temporarily displaced because their
home has been damaged.

Home insurance, also commonly called homeowner's insurance (often

abbreviated in the US real estate industry as HOI), is a type of property
insurance that covers a private residence. It is an insurance policy that combines
various personal insurance protections, which can include losses occurring to
one's home, its contents, loss of use (additional living expenses), or loss of other
personal possessions of the homeowner, as well as liability insurance for
accidents that may happen at the home or at the hands of the homeowner within
the policy territory.
Additionally, Homeowner's insurance provides financial protection against
disasters. A standard Home insurance policy insures the home itself along with
the things kept inside.

Is Home Insurance Required?

Home insurance is usually optional, allowing homeowners to choose their
policy to fit their individual needs. However, individuals whose homes are under
a mortgage loan are required by their lenders to obtain adequate coverage for the
dwelling, as the lender has a vested interest in the home and wants assurance that
any damages accrued by the home during disasters will be covered. Exact
requirements vary based on the lender, the home’s geographic location, and the
weather that frequently affects the area surrounding the home.

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 1.4 HISTORY

The first homeowner's policy per in the United States was introduced in

September 1950, but similar policies had already existed in Great Britain and

certain areas of the United States. In the late 1940s, US insurance law  was

reformed and during this process multiple line statutes were written, allowing

homeowner's policies to become legal.

Prior to the 1950s there were separate policies for the various perils that could

affect a home. A homeowner would have had to purchase separate policies

covering fire losses, theft, personal property, and the like. During the 1950s

policy forms were developed allowing the homeowner to purchase all the

insurance they needed on one complete policy. However, these policies varied by

insurance company, and were difficult to comprehend

The need for standardization grew so great that a private company based

in Jersey City, New Jersey, Insurance Services Office, also known as the ISO,

was formed in 1971 to provide risk information and it issued simplified

homeowner's policy forms for reselling to insurance companies. These policies

have been amended over the years.

10
Modern developments have changed the insurance coverage terms, availability,

and pricing. Homeowner's insurance has been relatively unprofitable, due in part

to catastrophes such as hurricanes as well as regulators' reluctance to authorize

price increases. Coverage’s have been reduced instead and companies have

diverged from the former standardized model ISO forms. Water damage due to

burst pipes in particular has been restricted or in some cases entirely

eliminated. Other restrictions included time limits, complex replacement cost

calculations (which may not reflect the true cost to replace), and reductions in

wind damage coverage.

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 CHAPTER-2

PROFILE OF THE COMPANY

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2.1 PROFILE OF THE ORGANISATION

FOUNDER OF RELIANCE INSURANCE COMPANY

Dhirajlal "Dhirubhai" Hirachand Ambani (28 December 1932 – 6 July 2002)

was an Indian business tycoon who founded Reliance Industries in Bombay with

his cousin. He appeared in The Sunday Times top 50 businessmen in

Asia. Ambani took Reliance Industries public in 1977 and by 2002, the combined

fortune of the family was $6 billion. Ambani died on 6 July 2002. In 2016, He

was honored posthumously with the Padma Vibhushan, India's second highest

civilian honor for his contributions in trade and industry.

Dhirubhai Ambani founded Reliance Industries in 1966.

Ambani returned from Yemen to India and started "Majin" in partnership with

Champaklal Damani, his second cousin, who lived with him in Turkey . Majin

was to import polyester yarn and export spices to Yemen. The first office of the

Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid

Bunder. It was a 350 sq ft (33 m2) room with a telephone, one table and three
13
chairs. Initially, they had two assistants to help them with their business. During

this period, Ambani and his family stayed in a two-bedroom apartment at the Jai

Hind Estate in Bhuleshwar, Mumbai. In 1965, Champaklal Damani and

Dhirubhai Ambani ended their partnership and Ambani started on his own. It is

believed that both had different temperaments and a different take on how to

conduct business. While Damani was a cautious trader and did not believe in

building yarn inventories, Ambani was a known risk-taker and believed in

building inventories to increase profit.

RELIANCE INDUSTRIES AFTER DHIRUBHAI AMBANI'S DEATH

Following his first stroke in 1986, Ambani handed over control of Reliance to his
sons, Mukesh and Anil.
In November 2004, Mukesh Ambani in an interview, admitted to having
differences with his brother Anil over 'ownership issues.' He also said that the
differences "are in the private domain." After the death of Dhirubhai Ambani, the
group was split into Reliance Industries Limited, headed by Mukesh ambani,
and Reliance Anil Dhirubhai Ambani Group (Reliance ADA Group), headed
by Anil Ambani.
As of 2017, the company has more than 250,000 employees and contributes
almost 5% of the Central Government's total annual tax revenue. In 2012,
Reliance Industries was one of the two Indian companies to be ranked among the
top 100 in the Fortune 500 list of the world's largest companies by revenue.

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2.2 VISION, MISSION AND OBJECTIVES:

Vision:

 Be an insurer of world standard.

 Be the most popular insurer for customers in India and abroad.

Mission:

 Focus on customer satisfaction.

 Practice the best international methods of underwriting, customer service,

and claims.

 Innovative product development.

 Expand presence all over India.

 Uphold corporate governance and values.

OBJECTIVES:

The objective is to put an attempt to increase awareness among people

regarding need of the insurance and the benefits of it. The framework

enables business heads to put in place policies and practices in line with

the company’s policy.

15
 2.3 AWARDS AND RECOGNITION

 January 2016- Awarded Padma Vibhushan, the country’s second-highest

civilian award posthumously.
 October 2011-Awarded posthumously the ABLF Global Asian Award at
the Asian Business Leadership Forum Awards.
 November 2000–Conferred Man of the Century award by Chemtech
Foundation and Chemical Engineering World in recognition of his
outstanding contribution to the growth and development of the chemical
industry in India.
 2000, 1998 and 1996– Featured among Power 50-the most powerful
people in Asia by Asiaweek magazine.
 June 1998 – "Dean's Medal" by The Wharton School, University of
Pennsylvania, for setting an outstanding example of leadership. Dhirubhai
Ambani has the rare distinction of being the first Indian to get Wharton
School Dean's Medal
 August 2001 – Economic Times Awards for Corporate Excellence for
Lifetime Achievement.
 Dhirubhai Ambani was named the "Man of 20th Century" by
the Federation of Indian Chambers of Commerce and Industry (FICCI).
 A poll conducted by The Times of India in 2000 voted him "Greatest
Creator of Wealth in the Centuries".

16
Welcome to Reliance General Insurance Your home is where your heart is.
After all, it is the most secure place on earth for you and your loved ones. And
after having invested so much of your life’s effort into building it, wouldn’t you
like to go one step further and preserve it against any unforeseen circumstances?
If your answer is yes, here is how we can help you secure your home in just one
step. Allow us to present, Reliance Home Protect Policy. With this policy, you
can secure all your household contents and valuables against almost every
uncertainty such as fire & allied perils, burglary, mechanical and electrical
breakdown. Added to this, the Reliance Home Protect Policy gives you the option
of four different plans, each designed to offer you valuable benefits and give your
home all the protection it deserves.

The popularity and undisputed leadership of Reliance General, in the field of

insurance companies, is no hidden fact. The company boasts of a strong customer
base, and a widespread network of 139 offices and more than 12,000
intermediaries across the country. To enhance the convenience of customers,
Reliance General Insurance also provides online and tele calling assistance. The
company provides insurance solutions for motor, travel, home, health, etc.
From buying a house to building a home out, be it decorating it with tiny objects
over the years or planning its architecture and interiors, every step is an
experience to cherish. A perfect balance between financial investment and
emotional involvement is required to attain the dream of building and protecting
your house. As your dream home is one of your most valuable assets, it deserves
the best possible protection and care from various dangers, threats and unforeseen
circumstances. It is really important to choose a comprehensive home insurance
policy for this purpose. Reliance Householder’s Package Policy offers an all-
encompassing protection shield to your house.

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2.4 IMPORTANCE OF HOME INSURANCE

Insurance companies provide different plans under house insurance such as

landlords’ insurance, tenants’ insurance, content insurance, buildings insurance,
etc. A standard house insurance plan also covers for loss and damage caused to
your property due to a fire accident, theft, allied perils, and burglary. Some house
insurance policies charge and an additional premium for coverage caused due to
natural calamities like earthquakes or floods. The primary reasons for having a
house insurance policy have been listed below.

Protection against liabilities – House insurance policies provide liability

coverage which covers you against personal injuries, property damage to guests
and other third parties which they might have incurred while residing in the
insured house. There could also be loss and damage caused to third parties for
which you or your family members (residing in the insured house) may be legally
responsible. This coverage is extremely important as it provides protection to you
and your house from any possible legal problems.

Provides coverage against natural and man-made calamities – A

comprehensive home insurance policy covers your house against losses and
damages caused due to natural calamities, such as earthquakes, floods, lightning,
storms, typhoons, etc. The policy also covers your house from man-made hazards
and anti-social activities, alike. These are acts such as vandalism, thefts, strikes,
riots, other activities caused out of malicious intent, etc. It also enables you to
financially recover from the loss and rebuild your home.

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Coverage of temporary living expenses - Say your insured house has
undergone some damage and is uninhabitable until you rebuild/renovate it.
During the rebuilding/ renovation process, if you rent out another house and
apartment to stay there until your own house gets back to a liable condition, the
insurance company will cover your expenses incurred for paying rent. The upper
cap for this amount is set according to the policy wordings provided by the
insurer.

Coverage for the loss/damage to your valuable assets and precious personal
belongings – Apart from covering the structure of your house, house insurance
companies also offer policies to provide coverage against loss/ damage of
articles/contents kept inside the insured house. These include various valuable,
expensive, and important belongings. These include documents, personal
belongings including jewellery, clothing, appliances, furniture, and much more.

Makes it easier to avail a house loan from banks – Some banks give

preference to those customers (for sanctioning a home loan to them) who have
the home insured. For certain financiers, home insurance is, in fact, one of the
major eligibility criteria for availing a home loan.

So put your foresight to good use and be prudent. Insure your home against every
kind of natural and man-made calamities today to assure yourself and your family
of a secured future.

19
 CHAPTER-3

PRODUCTS OFFERED BY RELIANCE HOME INSURANCE

20
 3.1
Features and Benefits of Reliance Home Insurance

 The policy provides protection, to your house, against natural calamities

like fire, earthquake, storms, etc. and also against anti-social activities
like theft, burglary, terrorism, etc.
 This home insurance policy provides coverage for the structure of your
house, and also the contents inside your house.
 Customers can avail this insurance policy for rented houses as well as for
their own house (ownership)
 Easy and smooth documentation process with minimal paperwork
 Fast and hassle-free settlement of insurance claims
 Reliance Home Insurance gives the freedom to customers in choosing the
type of home insurance cover they want. Flexibility is offered in terms
of –
o Choosing the items to be covered
o Choosing the coverage amount
o Choosing to reinstate the value of a precious item
o Policy can be bought and renewed easily, online.

3.2 What is Covered Under This Policy

Reliance Home Insurance has been innovatively designed to suit the varied
needs of company’s wide customer base. Four primarily comprehensive
categories have been crafted out, across which the insurance coverage spreads.

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 1. Personal Accident Coverage
This cover entitles policyholders to receive financial compensation in case of
permanent total disability or accidental death caused due to an accident. The
primary policy holder can cover himself/ herself and his family members aged
between 5 to 70 years.

The basic structure of the package offered the policyholder and his family is a
follows -
 For a non-earning spouse the sum insured will be half of that of the earning
spouse or Rs. 1 lakh, whichever is lesser.
 Maximum Sum Insured for the primary policy holder and his/her spouse, if
both are earning, can be the Sum Insured chosen for under ‘Fire and Allied
Peril – Other Content’ for each individual.
 For children, between 5 years to 25 years of age, are entitles to have a Sum
Insured of 25% of the earning member of the family or Rs. 50,000 (for each
child), whichever is lesser.

2. Fire and Allied Perils:

Rs. 25 lakhs is the maximum Sum Insured (SI) for the structure of your house.
Please make use of the following points to be able to calculate your own Sum
Insured-

 The ‘built-up area’ of your house needs to be multiplied with the present
construction cost per square foot.
 The cost of the land needs to be excluded from this calculation
 If any compound wall for the house has been constructed, that needs to be
included.
 Coverage is provided for household goods, furniture, utensils, clothes, in case
they are damaged due to the following reasons –

1. Fire
2. Lightning
3. Explosion / Implosion
4. Riots, strike

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 5. Subsidence
6. Landslide, flood and inundation, earthquake
7. Impact damage
8. Terrorism

 Precious jewellery made of gold, silver, precious gems and stones or any
other valuable items are covered in case of damage or loss due to an
accident or misfortune. To get this coverage, the premises of the house
need to be covered under the policy while the misfortune strikes.
 If there is any damage or loss caused to your house due to fire, terrorism
and earthquake, the home insurance policy protects you against it.
 Domestic Mechanical and Electrical Appliances.

This coverage gives protection to domestic mechanical and electrical appliances

(maximum 10 years old) against any kind of breakdown (mechanical and
electrical).
Policyholder can choose one of the following items, that you want to be covered
(under each of the categories) -

3. Domestic Electrical and Mechanical appliances

1. Refrigerator
2. Air conditioner
3. Microwave
4. Washing Machine
5. Vacuum Cleaner
6. Domestic Electronic appliances –
7. DVD player
8. Music System
9. Computer-PC

 Certain policyholders possess more than one TV set in their house. In that
case, the sum insured for these sets will be calculated based on their total
value.
 Policyholders are provided with the freedom to choose cover for a range of
electronic items like, computers, music systems or other domestic electronic
appliances. The policy will cover the chosen appliances against burglary, fire

23
 and allied perils, breakdown etc. Please note that any kind of mobile phones,
iPods/iPads, laptops and tablets are not part of this cover.
 Cover for one or multiple television systems in the house. If you have more
than one system, calculate the sum insured based on their total value. The
following systems are considered under this cover –
1. Plasma televisions
2. LCDs
3. LEDs
4. Flat Screens

4. Burglary and Housebreaking

A financial compensation of maximum Rs.2 lakhs if any items in your house

undergo loss or damage due to any theft, larceny burglary, and housebreaking.
The policy provides coverage against loss/damage to jewellery (made of gold,
silver, precious gems and stones) and other valuable items, caused due to theft,
burglary, larceny and housebreaking.

3.3 Reliance General Insurance Claim Process

The claim settlement process is quick and hassle-free and simple provided all the
paperwork is well taken care of. As soon as the claim occurs, the policyholder
has to initiate the claim by getting in touch with the company. Within 2 business
working days of initiating the claim, Reliance General Insurance will send an
assigned surveyor to examine the extent of damage. This surveyor submits the
final assessment report and necessary documents to the company after a thorough
examination of the damaged property. The company will take the necessary steps
thereafter to settle the claim.

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 3.4 TYPES OF HOME INSURANCE IN INDIA

1. Standard Fire and Special Perils Policy:

Offered by every leading insurance company, as the name of the policy

suggests, it provides coverage against certain special perils and fire outbreak.
This coverage can be bought by house owners (for their own house) and also by
tenants residing in a rented house. The sum insured, for this policy, is calculated
as Building - Cost of reconstruction (exclusive of land value). A Standard Fire
and Special Perils policy covers the insured home against loss and damages
caused due to following causes –
 Natural calamities like lightning, fire, volcanic eruptions, bush fire, forest fire,
earthquakes, storms, floods.
 Damages caused due to explosion/implosion, man-made anti-social activities
like strikes, riots, damage caused with malicious intent
 Damage caused by direct contact of rail/road, vehicle. Damage caused due to
the insured house, with your own vehicle, is not included in this cover.
 Damage caused due to bursting or/and overflowing of water tanks, pipes and
apparatus
 Subsidence including rockslide and landslide
 Missile testing operations
 Damage caused due to leakage from automatic sprinkler installations

25
 2. Home Structure/Building Insurance

This type of home insurance covers the structure of your house from any kinds of
dangers and risks. In addition to this, the policy also protects any permanent
fixtures within the house. This includes your kitchen and bathroom fittings, and
also the ceiling/roof of the insured house. Some houses have garages, an outdoor
room/house or sheds. This type of insurance usually extends to these structures as
well.

3. Public Liability Coverage

If any guests or third party experience damage caused to them or their property
inside the insured’s home, then this type of home insurance policy provides
coverage against the same.

4. Personal Accident

This type of home insurance covers you and your family. A compensation is
given in case of permanent disablement or death of the insured person due to
accidental or physical injury, even if it has happened anywhere is the world.

5. Burglary & Theft

In case of an occurrence of burglary or theft in the insured house, if any valuable

contents are stolen or damaged, the policy covers you for it.

6. Contents Insurance

It is not just the house, that you have insured, but also the contents inside the
house on which you would have spent a lot of time and money deserve equal
26
protection. This type of home insurance policy protects the goods inside your
house from damages and loss owing to theft, fire, flood and other such mishaps.
Your documents, portable equipment, jewellery, TV, refrigerator, etc. are
covered. It does help you when you have to replace the interiors of house if your
house is flooded, or has been burnt to ashes by break out of fire.

7. Tenants’ Insurance

As a tenant you would have obviously rented a house or flat. In that case, it is the
wisest option to not opt for a buildings cover, instead you need to focus entirely
on protecting your contents. This type of insurance is a must have for every
tenant. Though you live in a rented house, it is very much yours, at least, till the
time you reside in it.

8. Landlords' insurance

As a landlord, the maintenance and upkeep of the building/apartment/structure of

the house (that you are renting out) are clearly your responsibility. A standard
buildings insurance policy usually isn’t exclusively designed for the need of
landlords, because there are also other residents who live in the building. As a
landlord you need something specifically designed for landlords. Hence, a
landlords’ insurance policy is ideal for you and it also covers things like loss of
rent and public liability.

27
 3.5 DOCUMENTS REQUIRED

Documents are the most valid and appropriate proof for your home insurance

claims. Always keep your documents in place and ready both before you need to

make a claim and when you need to make one. It is always advisable to save the

receipts for items you buy. This will give you indication and estimation of the

total cost of items and damage claim amount accordingly. Photographs and

videotapes of your home (both in pre-and post-disaster form) and also be

beneficial. These will help you establish an inventory of your belongings should

the need arise. Always save photos or videos of the damage you begin cleaning

up.

List of documents required:

1. Duly completed and signed claim form

2. Xerox copy of policy

3. Copy of FIR

4. Final Report from police

28
5. Copy of all invoices, price lists, and repair estimate.

29
3.6 Tips for Home Insurance Claims

The following tips will help you make your home insurance claims process
faster.
 Read the policy document carefully to understand your inclusions and
exclusions. You must know what can be claimed for and what is excluded
from your policy.
 Always store your documents carefully. Safely file all the receipts and bills
regarding the contents of your house. This will greatly simplify the process
of making a claim.
 Enter the correct details when it comes to the valuation of household
goods.
 Always make it a point to follow up with the insurance provider after you
have made a claim.
 Ensure that your claims form is carefully filled with all necessary details to
avoid any bureaucratic delays.

3.7 How is the insured amount and premium calculated?

 

In case of property insurance, the sum insured and the premium are calculated on
basis of the property area, rate of construction (per square feet) and the location
of the property. The insured sum of two houses of same size can be different. The
logic is similar to what goes in buying a house. For instance, House A is 500 sq.
ft. and constructed in a prime location in the heart of Mumbai will easily cost you
around Rs 5-10 crore, while House B also 500 sq. ft. built in the outskirts of the
Metro shall be rated around Rs 30-60 lakh. Similarly, factors like location and
construction cost play equally important role in deciding your house's insurance
amount.
 
Also, it is important to note that the property is insured for the value that it would
require to rebuild the it and not for the market value. Whereas, the contents in the
house are insured for 'market value minus the deprecation'.
 
Therefore, while buying a house insurance, keep a check of the following factors:

30
 

a) Coverage:  While buying a property insurance, you will come across options
of insuring contents in the house, structure of the house or both. Depending on
which plan you take, your premium and security of your property will differ.
 
If the house you are staying in is on rent, then it would be more sensible to insure
just the contents of the house.
 
b) Rate of construction:  Insurance companies generally have fixed rate of
construction for different localities. Nevertheless, if your property was built using
a higher or lower standard material then your policy's rate of construction may
vary accordingly.
 
c) What is covered and what is not:  Most of the insurance companies offer
coverage against similar factors. However, what they do not cover may differ in
each case. Do not forget to read policy wording about things included and
excluded.
 
d) Clarity on claim process a must:  As a thumb rule, get a clear understanding
of the clauses included in the claim process. Make a note of all required
documents, proofs to get your claim.

These are just few basic factors that can make the process of buying a house
insurance policy easy for you. However, depending on each individual's needs
and preferences, every insurance policy is different in its own way. Therefore, it
becomes even more necessary to do your personal research before buying the
right policy to meet your needs.

31
CHAPTER-4

32
 4.1 OBJECTIVES OF THE STUDY:

 To acquire knowledge about insurance sector.

 To identify the products of reliance home insurance.

 To understand the significance of reliance home insurance.

 To know what are the trends in Home Insurance.

 To find out the developments in the General Insurance.

 To find out the Procedure of Claims.

 

33
4.2 DATA AND METHODOLOGY

Research methodology is a way to find out the result of a given

problem on a specific matter or problem. In methodology, researcher
uses different criteria for solving/searching the given research
problem. Different sources use different type of methods for solving
the problem. If we think about “Methodology”, it is the way of
searching or solving the research problem. The advanced learner’s
dictionary of current English lays down the meaning research as a
careful investigation or inquiry especially through search for new facts
in any branch of knowledge.

PRIMARY DATA:

Primary data has been collected through the interviews of the

customers of the reliance home insurance in Dombivli to know the
policies of reliance home insurance.

SECONDARY DATA:

Secondary data had been collected through various websites, books,

journals, extensive library research, magazines and newspaper and
internet have been referred.

34
 CHAPTER-5

REVIEW OF LITERATURE

35
5.1 Home insurance premiums can rise due to nearby fracking
March 2, 2018

Industry experts have cautioned homeowners in those areas that they should
expect to pay more.
The Yorkshire Post reported that experts in home insurance premiums believe
fracking may affect the amount people pay. That said, precisely how
the insurance rates will be affected has yet to be seen. The fracking industry
remains quite new in the United Kingdom. Therefore, insurers – and their
customers – will need to wait before they know just what the impact will be.

The Department for Business, Energy & Industrial Strategy recently issued a
letter to residents near affected areas. People living close to the Rotherham
planned shale gas exploration project were among those in receipt. “The
Association of British Insurers have confirmed that ‘any potential damage as a
result of fracking, such as earthquakes, subsidence, heave and landslip are all
covered in general, under buildings insurance’. In addition to insurance
cover, landowners could bring a claim against the company if their activities
caused damage to their property,” explained the letter.

36
5.2 SWOT ANALYSIS OF RELIANCE GENERAL INSURANCE

STRENGTHS:

1. Growing revenues and profitability.

2. Good distribution network.

3. Strong capital base.

WEAKNESSES:

1. Less investment in Research & Development.

2. Small business unit.

OPPORTUNITIES:

1. Increasing income levels.

2. Growing demand and owing to newer risks in businesses.

THREATS:

1. Increasing interest rates.

2. Increasing labour costs.

37
 CHAPTER-6

DATA ANALYSIS AND INTREPRETATION

38
Q.1) What is the people’s perception about insurance?

PARTICULARS RESPONDENT PERCENTAGE

A saving tool 5 17%
A tax saving 3 10%
device
A tool to protect 22 73%
your family
Total 30 100%

Column1
A saving tool A tax saving device
A tool to protect your family
17%

10%

73%

Interpretation:

From the above chart it is cleared that 17% of the respondents prefer
insurance as a saving tool. And 10% of the respondents as a tax saving
device. Whereas 73% of the respondents as a tool to protect family.

39
Q.2) How many customers give preference to different insurance
companies?

Particulars RESPONDENT PERCENTAGE

Reliance general 20 66%
insurance
ICICI prudential 2 7%
SBI home insurance 2 7%
New India insurance 2 7%
HDFC Standard 4 13%
insurance
Total 30 100%

70%
60%
50%
40% 66%
30%
20%
10% 7% 7% 7% 13%
0%
ce al ce ce ce
n ti n n n
ra en ra ra ra
su u
d su su su
in pr in in in
al I e ia d
e r IC o
m d ar
en IC h In d
g I an
SB ew St
ce N
n FC
ia D
el H
R

Interpretation:

From the above chart it shows that 66% of the customer prefers
reliance home insurance, 7% of the customer prefer ICICI prudential,
7% prefers SBI insurance,7% prefers LIC, and 13 of customers prefers
HDFC standard insurance.

40
Q.3) Which type of benefits you get from Reliance Home
Insurance?

PARTICULAR RESPONDENT PERCENTAGE

Cover future 19 64%

uncertainty
Tax deduction 11 36%

Total 30 100%

BENEFITS

36% Cover future uncertainty

Tax deduction
64%

Interpretation:

From the above chart it shows that 64% of the respondents believe that
covering future uncertainty is the biggest benefits of an insurance
policy. Whereas, 36% of them believe in tax deduction.

41
Q.4) Which feature of Reliance Home Insurance policy attract you
most?

PARTICULAR RESPONDENT PERCENTAGE

Money back 3 13%
conversance
large risk conversance 11 57%
Low premium 4 20%
Company reputation 2 7%
Easy access to agent 1 3%
Total 20 100%

Chart Title
60%
50%
40%
30%
20%
10%
0%
e e m on t
nc nc iu en
sa rs
a ati ag
er ve em ut o
nv n pr re
p st
co co Lo
w ny es
k k a cc
bac ris m
p ya
e y ge Co Ea
s
on l ar
M

Interpretation:

From the above diagram it shows that 13% of respondents prefer the
features of money back conversance, 57% for large risk conversance,
20% for low risk conversance, 7% for company reputation, and 3% for
easy access to agent.

42
Q.5) Which policy do you prefer most?

Particulars Respondent Percentage

Protection plan 14 47%
Retirement plan 4 13%
Child plan 3 10%
Health plan 6 20%
Saving & Investment 3 10%
Total 30 100%

INSURANCE POLICY

10%
Protection plan
Retirement plan
20% Child plan
47% Health plan
Saving & Investment

10%

13%

Interpretation:

From the above diagram it is cleared that 47% of the respondents

prefer protection plan, 20% prefer healthy plan, and 13% prefer
retirement plan, 10% for child plan and 10% for saving and
investment.

43
Q.6) What made you take insurance policy of that company?

Particulars Respondent Percentage

Better service 18 60%

Low premium 12 40%

Total 30 100%

40%

Better service
60%
Low premium

Interpretation:

From the above diagram it shows that 60% of respondents purchase

policy for better services, whereas 45 for low premium.

44
Q.7) How do you rate the quality of service provided by Reliance
insurance?

Particulars Respondent Percentage

Excellent 13 43%
Good 10 34%
Fair 5 16%
Bad 2 7%
Total 30 100%

RATING

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Excellent Good Fair Bad

Interpretation:

From the above diagram it shows that 43% of the customers rated the
quality of services provided by reliance, excellent and 34% as good,
16% as fair and 7% customer as bad.

45
Q.8) Are you aware about the various plans offered by Insurance
Companies?

Particulars Respondent Percentage

YES 17 57%
NO 13 43%
Total 30 100%

AWARENESS

YES
43% NO

57%

Interpretation:

From the above chart if shows that 57% of the respondents are aware
about the various plans of insurance and 43% of the respondents are
not aware about the various plans.

46
Q.9) Are you satisfied with the products offered by reliance home
insurance?

Particulars Respondent Percentage

Satisfied 21 70%
Not-satisfied 9 30%
Total 30 100%

CUSTOMER SATISFACTION

30%
Satisfied
Not-satisfied

70%

Interpretation:

From the above diagram it shows that 70% of respondents are satisfied
by the products offered and rest of 30% are not-satisfied with the
products offered by Reliance home insurance.

47
CHAPTER-7

48
 CONCLUSIONS:

From the research, it could be concluded that Reliance in all ways as

compared with the others has very good scope. It provides very good
services to their customers.

Reliance in all ways is good, just that it need to provide more and
better services and fast services to the customers.

Still in the city the brand name (Reliance general insurance) need to be
emphasized on, while marketing and selling the product. Still the
market is not 100% fully aware that what Reliance general insurance
is. There are so many potential customers for Insurance industry. Still
business man and professionals are investing their money in other
components. So company has to make more marketing and try to
convert their investment in insurance policy and make a more
customer. So company not only focuses to their present customer but
also focus on other potential customers. It could come up with
products, which cater to all segments of the society after a little cost
cutting, than fixing up a standard service for all its customers, whose
needs vary diversely.

49
 CHAPTER-8

BIBLIOGRAPHY

50
 BIBLIOGRAPHY

REFERENCE:

1. Insurance industry in India- Uma Narang

2. Insurance and risk management-John Teale

WEBSITES:

1. https://www.scribd.com/home insurance

2. https://www.bankbazaar.com/insurance/reliance-home-insurance.html
3. www.google.com
4. www.reliance general insurance

NEWSPAPER:

1. The times of India

2. Economics times
3. Business times

51
CHAPTER-9

ANNEXURE

52
QUESTIONNAIRE FOR CUSTOMERS:

Q.1) What is the people’s perception about insurance?

1. A saving tool
2. A tax saving device
3. A tool to protect your family

Q.2) How many customers give preference to different insurance

companies?
1. Reliance home insurance
2. ICICI prudential
3. HDFC standard
4. Life Insurance Corporation of India

Q.3) Which type of benefits you get from Reliance Home Insurance?
1. Cover future uncertainty
2. Tax deduction

Q.4) Which feature of Reliance Home Insurance policy attract you

most?
1. Money back conversance
2. Large risk conversance
3. Low premium
4. Company reputation
5. Easy access to agent

Q.5) Which policy do you prefer most?

53
1. Protection plan
2. Retirement plan
3. Child plan
4. Health plan
5. Saving and investment

Q.6) What made you take insurance policy of that company?

1. Better service
2. Low premium

Q.7) How do you rate the quality of service provided by Reliance

insurance?
1. Excellent
2. Good
3. Fair
4. Bad

Q.8) Are you aware about the various plans offered by Insurance
Companies?

1. Yes

2. No

Q.9) Are you satisfied with the products offered by reliance home
insurance?
1. Satisfied
2. Not satisfied

54