The story of insurance is probably as old as the story of mankind. Tendency of a human being to secure themselves against loss and disaster has been from the starting of world. They sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years as per records. We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses. Insurance other than Life Insurance' falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.
[...] Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on May 2nd to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, SE. As on 31st March 2007 Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs.1803 crore. Bajaj Allianz has made a profit before taxes of Rs.117 crore and emerged as the first private insurance company to make profit before taxes of more than Rs.100 crores. [...]
[...] Set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act nationalize the general insurance business in India with effect from 1st January insurers amalgamated and grouped into four company's viz. [...]
[...] The public sector companies have already established themselves in the market. But there are multiple challenges faced by these insurance companies, of which two are critical: Designing of products suiting the market Using the right distribution channel to reach the customer While the companies have been quite successful in dealing with the first of these challenges using the existing product features and leveraging the technical know-how of their partners, most are still grappling with the right channel mix for reaching potential customers. These are the distribution channel in insurance. [...]
[...] The effectiveness of different distribution channel of the Bajaj Allianz (Ranchi) is measured on the four different bases, Sales volume Turnover Reach Some other data are also collected through personal meeting to the employee of Bajaj Allianz (Ranchi) and this research needs further study also Research is a kind of pilot study. Limitations: Time limitation Research has been done only in Ranchi. Companies did not disclose their secrets data and strategies. Possibility of Error in data collection. DATA ANALYSIS ON THE BASIS OF TURNOVER CHANNEL DIRECT MOTOR AGENCY BANK INTERPRETATION: - Here according to the above data of the total sales turnover comes from agency distribution channel, so on the basis of the sales turnover it is found that agency distribution channel is the most effective channel Motor distribution channel with sales turnover found second most effective distribution channel. [...]
[...] Can they also become the foremost channel for distribution of insurance? Perhaps in the future. The public sector banks, with their vast branch networks, are also plagued by a rigid unionized workforce and archaic systems, and lack vision of a broader service spectrum encompassing non- banking products. The newer banks are constrained by their lack of reach and meager branch strength. For banks to become a predominant channel for selling insurance will require a paradigm shift. But the encouraging fact for insurance companies waiting for bancassurance to take off is that bank branches are here to stay, and customers do want them. [...]
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