Chapter - 7 Motor Policy
Chapter - 7 Motor Policy
Chapter - 7 Motor Policy
In the present study both primary and secondary data has been collected from
various
Primary data has been collected from the existing motor insurance customers
and
The first part analyses the demographic characteristic of the respondents. The
other parts
before drafting the final questionnaire that provides useful insights to the final
draft of the
questionnair
e.
The analysis is done on the basis of five parameters that are Policy, Benefits,
Premium
questionnaire consists of thirty closed ended questions and one open ended
question
relating to the above parameters, while the second questionnaire for selected
companies
Limited
.
( 150
)
I Demographic )
Analysis NIACL
NIACL
Gende
Percent(%
r
Percent(%
Gender NIACL
ICICI
Frequenc ICICI
y ICICI
ICICI
Frequenc
Percent(% y
Frequenc Frequenc
y y
Female 48 30 57 35.62
Interpretatio
n
Out of 160 , 112 respondents were Male and 48 were Female in New India
Assurance
respondents were male and 57 were Female that means majority of respondents
were
male in both the companies but in ICICI Lombard General Insurance Company
Limited
Gender of
respondents
Male Female
( 151
)
Female respondents were more as compared to Female respondents of New
India
Assurance Company
Limited.
Marital
Status
Married 91 56.87 88 55
Single 69 43.12 72 45
Interpretatio
n
In NIACL 56.87 % of respondents were married and 43.12 % were single and in
ICICI
Married Single
( 152
)
Ag )
e NIACL
Percent(%
)
Age NIACL ICICI
Frequenc Frequenc
y y
ICICI ICICI
Percent(% Frequenc
) y
NIACL ICICI
Percent(% Frequenc
) y
NIACL ICICI
Percent(% Frequenc
y
18-28 16 10 19 11.87
Interpretatio
n
in the age group of 48-58 years. In NIACL, (28.12 %) respondents were in the
age-group
of 48-58 years and in case of ICICI, (32.50 %) respondents were in the age-
group of48-
Age of the
respondents
NIACL ICICI
( 153
)
58 years. Lowest frequency of respondents were in NIACL (16) and in ICICI (19).
The
policyholders were in the age group of 48-58 which indicates that at this age
there is
Educatio
n
Others 08 05 04 02.50
Exhibit 7.7: Education of
respondents
NIACL ICICI
( 154
)
Interpretation
In respect to educational qualification of the respondents the primary information
reveals
that in NIACL, 8.75 % acquired intermediate education level, 44.37 % were graduate,
32.50 % were Post graduate, 9.30 % were professionl and 5% were in others category
In
ICICI, 6.87 % acquired intermediate education level, 33.12 % were graduate, 25.62 %
were Post graduate, 31.87 % were professionl and 2.50 % were in others category.
From
the above it can be analyzed that the majority of sample respondents were graduate in
both the companies.In other category respondents were matric pass and high school
pass.
Occupation
Occupation NIACL
Frequency
NIACL Percent(%)
ICICI Frequency
ICICI Percent(%) Employment 52 32.50 38 23.75 Business 33 20.62 56 35
Profession 67 41.87 49 30.62 Others 08 05 17 10.62
Exhibit 7.9: Occupation of respondents
Exhibit 7.10: Graphical representation of Occupation of respondents
Occupation of respondents
NIACL ICICI
( 155 )
Interpretatio
n
other category. In ICICI 23.75% were employed, 35% were businessmen, 30.62
% were
were
unempoyed.
Annual
Income
NIACL ICICI
( 156
)
Interpretatio
n
NIACL, 16.87 % of the respondents had annual income below Rs. 300000, 40 %
annual income above 900000. In ICICI, 19.37 % of the respondents had annual
income
Rs.600000-900000 and 32.50 % had annual income above 900000. From the
table it can
900000 group and in ICICI majority of the respondents were in (32.50 %) above
900000
group
.
Motor Insurance
Companies
( 157
)
Interpretatio
n
Benifits 08 05 38 23.75
More risk coverage 20 12.50 14 08.75
Services 26 16.25 60 37.50
Interpretatio
n
( 158
)
12.50% on the basis of risk coverage and 16.25 % on the basis of services. In
ICICI out
of 160, 22.50 % respondents were purchasing motor insurace policy on the basis
of
brand image, 7.50 % on the basis of low premium, 23.75 % on the basis of
benefits, 8.75
% on the basis of risk coverage and 37.50 % on the basis of services.It can be
said that in
( 159
)
Interpretatio
n
In respect of motor insurance policy the primary data indicates that in NIACL
70.62 %
were purchasing third party legal liability policy and 29.37 % were purchasing
means large number of respondents in NIACL were purchasing third party policy
and in
Coverage of
policy
( 160
)
Interpretation
Regarding policy coverage in NIACL 31.87 % respondents were purchasing motor
insurance policy for two wheeler, 41.87 % were opting for three wheeler, 15.62 % for
four wheeler and 10.62 % were purchasing for others. In ICICI 30.62 % respondents
were purchasing motor insurance policy for two wheeler, 26.25 % were opting for three
wheeler, 35 % for four wheeler and 8.12 % were purchasing for others. Others includes
buses ,trucks and rest of the vehicles.It was revealed that majority of the vehicle
covered
under motor insurance in NIACL were three wheeler and in ICICI large number of
vehicles were under the category of four wheeler.
Mode for purchasing policy
Mode NIACL
Frequency
NIACL Percent(%)
ICICI Frequency
ICICI Percent(%) offline 103 64.37 91 56.87 Online 57 35.62 69 43.12
Exhibit 7.21:Mode for purchasing policy
Exhibit 7.22: Graphical representation of Mode for purchasing insurance policy
Mode for purchasing policy
NIACL ICICI
( 161 )
Interpretatio
n
In context of mode for purchasing motor insurance policy the primary information
indicates that majority of the respondents in NIACL and ICICI were purchasing
policy
offline that is 64.37 % and 56.87 % respectively which means that customers are
familier
NIACL ICICI
( 162
)
Interpretatio
n
Out of 160, 83.12 % respondents from NIACL and 88.12 % from ICICI were
renewing
their motor insurance policy on time but still 16.87 % from NIACL and 11.87 %
from
ICICI were not renewing their motor insurance policy on time. As compared to
NIACL
NIACL ICICI
( 163
)
Interpretation
In respect of reason for not renewing Motor Insurance Policy on time, the primary
information indicated that in NIACL 24 respondents and in ICICI 17 respondents were
not renewing due to ignorance and two respondents, one in each company were not
receiving notices on time, reason behind this that they were giving wrong phone
numbers
and wrong email id at the time of issue of the policy. In the last category that is in others
two respondents were from NIACL customer and one for ICICI, they were not renewing
their policy due to financial reason, out of which one respondent were not wasting
money
on renewing the policy.
III Benefits
No Claim Bonus on Motor Insurance Policy
No claim bonus NIACL
Frequency
NIACL Percent(%)
ICICI Frequency
ICICI Percent(%) Yes 139 86.87 126 78.75 No 21 13.12 34 21.25
Exhibit 7.27: No Claim Bonus on Motor Insurance Policy
Exhibit 7.28.Graphical representation of no claim bonus on motor insurance
policy
No claim bonus on motor insurance policy
NIACL ICICI
( 164 )
Interpretatio
n
that in NIACL 86.87 % respondents were getting no claim bonus on their motor
insurance policy and 13.12 % were not getting getting no claim bonus on their
motor
motor insurance policy and 21.25 % were not getting no claim bonus on their
motor
insurance policy. Reason for not getting no claim bonus was laps of policy and
they got
insurance claim
amount.
( 165
)
Interpretatio
n
In NIACL out of 160, 29.37 % respondents were taking add on cover and 70.62
%
respondents were not taking add on cover on their motor insurance policy.On the
other
side in ICICI out of 160, 43.12 % respondents were taking add on cover and
56.87 %
taking add on cover was, respondents were not interested in paying extra money
for
additional
benefits.
( 166
)
Interpretatio
n
policy and 86.87% respondents were not taking on their motor insurance
policy.On the
other side in ICICI, 28.12 % respondents were taking roadside assistance and
71.87 %
for not taking roadside assistance was, respondents were not interested in
paying extra
( 167
)
Interpretation
The primary information indicates that only 3.22 % respondents in NIACL and 1.25 %
respondents in ICICI were used the portability facility and the rest of respondents
96.87%
(NIACL) and 98.75 % (ICICI) were not interested in it. Portibility means switching from
one insurer to another without losing the benefits of policy. Both public and private life
insurance companies provide portibility facility.In NIACL reason for switching was
better service and in ICICI was high premium amount.
IV Premium
Motor Insurance Premium amount
Premium amount NIACL
Frequency
NIACL Percent(%)
ICICI Frequency
ICICI Percent(%) Below 2000 56 35 30 18.75 2000 to 4000 06 03.75 14 08.75 4000 to
6000 46 28.75 44 27.50 6000 to 8000 38 23.75 52 32.50 Above 8000 14 08.75 20
12.50
Exhibit 7.35: Motor insurance premium amount
Exhibit 7.36: Graphical representation of Motor insurance premium amount
Motor insurance premium amount
NIACL ICICI
( 168 )
Interpretatio
n
Rs, 23.75 % between 6000-8000 Rs and 8.75 % above 8000 Rs. On the other
side in
between 6000-8000
Rs.
Reasonable y
premium ICICI
rate Frequenc
CL y
uenc ICICI
Percent(%
NIACL )
Percent(% ICICI
) Percent(%
NIACL )
Percent(% ICICI
) Percent(%
ICICI )
Frequenc ICICI
y Percent(%
ICICI )
Frequenc
NIACL ICICI
( 169
)
Interpretatio
n
In respect of reasonable premium rate, the primary data indicates that in NIACL
91.87 %
and in ICICI 86.87 % respondents were agree that their premium amount were
reasonable
according to their motor insurance poilcy. Those repondents who were not argee
that
their premium amount were reasonable with their policy were 8.12 % in NIACL
and
13.12 % in ICICI ,reason for disagee was premium amount, extra charges and
benefits.
Percent(% Percent(%
) )
ICICI Percent(%
ICICI )
Percent(%
Frequenc
)
y
Yes 08 05 11 06.87
NIACL ICICI
( 170
)
Interpretatio
n
Majority of the respondents were not find any problem during premium payment,
in
NIACL it was 95 % and 93.12 % in ICICI, only 5 % in NIACL and 6.87 % in ICICI
were
find problem during premium payment the reason behind it was bounce of
cheque and
server
problem.
V Customer Service And Terms &
Conditions
NIACL ICICI
( 171
)
Interpretatio
n
The primary data indicates that 98.12 % respondents in NIACL and 98.75 %
respondents
in ICICI were receiving notices on time that means both the companies were
providing
were not getting notices on time due to giving incorrect information that is giving
Percent(% Percent(%
) )
ICICI Percent(%
ICICI )
Percent(%
Frequenc
)
y
Email 16 10 47 29.37
NIACL ICICI
( 172
)
Interpretatio
n
% receiving notices from phone call and rest 10 % from email on the other side in
ICICI
phone call and rest 29.37 % from email. Majority of the respondents in both the
No 19 11.87 11 06.87
NIACL ICICI
( 173
)
Interpretatio
n
In respect of awareness of all the terms and conditions of motor insurance policy
88.22 %
in NIACL and in ICICI 93.12 % respondents were aware about all the terms and
conditions, reason behind it was that some of them were responsible and some
met
accident and got claim, those who were not aware were 11.87 % in NIACL and
6.87 %
in ICICI reason behind it was just to fulfill the formality of compulsory motor
insurance
Frequenc
as per Law. Unawareness NIACL
y
Frequenc ICICI
y ICICI
NIACL ICICI
Percent(% Percent(%
) )
ICICI Percent(%
ICICI )
Percent(%
Frequenc )
y
( 174
)
Interpretatio
n
conditions of motor insurance policy due to negligence, 3 in NIACL and 1in ICICI
were
unaware because according to them agents were not explained them properly
about the
Below 50000 56 35 48 30
( 175
)
Interpretatio
n
insured their motor vehicle below 50000, 11.25 % between 50000 to 100000,
8.75 %
between 100000 to 200000, 26.25 % between 200000 to 400000 and rest 18.75
% above
200000 to 400000 and rest 25 % above 400000.It was revealed that highest
frequency of
( 176
)
Interpretatio
n
% respondents vehicle got damage, 90 % in NIACL and 83.75 % were not having
these
issues.that means ratio of accident was less in both the companies which is good
for
societ
y.
No 09 56.25 17 65.38
Exhibit 7.53: Problems during claim
settlement
( 177
)
Interpretatio
n
The primary data of the respondents indicates that out of 16 and 26, in NIACL 7
and in
Interpretatio
n
( 178
)
in the category of others facing the problem of delay in work from police
authority.In
ICICI 3 respondents were facing the problem of claim declined, 1 were delayed
payment,
2 respondents were receiving less claim amount, 1 facing legal disputes and 2 in
the
category of others facing the problem due to delay in work from police authority.
Reason
for claim declined was not following the terms and conditions of the policy,
delayed
payments occur due to cheque bounce, accessor and surveyor reach the place
of accident
too late, less claim amount is an another issue due to mistakes by the
inexperienced staff,
In order to fulfil the objective of the research and determine the level of
satisfaction
The satisfaction level was determine by five point likert scale in the context of
parameters
like
–
1. Premium Amount
4. Risk coverage
9. Renewal of policy
11. Customer perception- Customers feels safe while dealing with the
insurance
compan
y
( 179
)
As the data are Non parametric in nature Weighted Mean has been used for
comparative
analysis of public & private sector insurance companies
Public sector insurance company
Level of Satisfaction – Satisfaction level of NIACL
S.No. Particulars HS S N DS HDS WM 1- Premium Amount 96 40 06 10 08 4.25 2-
Premium computation method 60 42 36 12 10 3.25
3-
Benefits offered under policy (Add on covers, Road side assistance, No claim bonus&
portibility)
54 40 36 20 10 3.67
After Sale service / Customer service : Call
4- Risk coverage 88 54 08 06 04 4.35 5-
64 78 10 04 04 4.21
and queries 6- Terms & conditions 50 78 26 04 02 4.06 7- Claim
Settlement procedure 72 82 03 02 01 4.38 8- Renual of policy procedures 76 58 02 12
Customer feels safe while
02 4.02 9- Sum assured amount 124 16 04 10 06 4.51 10-
dealing with the
104 52 02 01 01 4.60
insurance company Mean score 4.23
Exhibit 7.58: Satisfaction level of NIACL
Source: estimates based on field survey, 5= HS- Highly satisfied, 4=S – Satisfied, 3= N
–
Neutral , 2= DS – Dissatisfied ,1= HDS – Highly dissatisfied and WM =Weighted mean.
Interpetation
The five point likert scale indicates that in case of safety the mean value of 4.60 is
maximum, reason behind it was that majority of the customers of NIACL were highly
satisfied with that, customers feel safe while dealing with NIACL the reason behind it
was brand image and public undertaking and the trust of 98 years since
1919.Customers
have faith in NIACL, they have a bonding with that and they donʻt want to change their
insurance as long as it has.
( 180 )
While the lowest value is 3.25 in case of Premium computation method, that
means some
customers of NIACL were highly satisfied, some were satisfied and some were
neutral,
methods for premium computation, indirecty some customers were not satisfied
with
their premium amount in comparison to sum assured. The overall mean score of
NIACL
was
4.23.
Level of
Satisfaction
( 181
)
Interpretation
The five point likert scale indicates that in case of after sale services the mean value of
4.93 is maximum, reason behind it was that majority of the customers of ICICI were
highly satisfied with that, customers feel that services provided by ICICI were better in
comparison to other companies, the reason behind it was company provided quick
services by giving information and notices on time to their policyholders, through this
customers were aware about all the policy details, terms and conditions and other motor
insurance policy related issues.
On the other side the lowest value is 3.53 in case of Premium amount of ICICI, that
means customers were not very satisfied with their motor insurance premium amount,
according to them premium amount was more in comparision to their sum assured
amount. Customers give mixed views on this that some were highly satisfied, some were
satisfied, some were neutral, some were dissatisfied and highly dissatisfied. Customers
want affordable premium amount. The overall mean score of ICICI was 4.19
S.No. Particulars WM
(NIACL)
WM (ICICI) 1- Premium Amount 4.25 3.53 2- Premium computation method 3.25 3.75
3- Benefits offered under policy (Add on covers, Road side
assistance, No claim bonus & portibility)
3.67 4.48
4- Risk coverage 4.35 4.40 5- After Sale service / Customer service : Call and queries
4.21 4.93 6- Terms & conditions 4.06 3.97 7- Claim Settlement procedure 4.38 4.10 8-
Renual of policy procedures 4.02 4.43 9- Sum assured amount 4.51 4.26 10- Customer
feels safe while dealing with the insurance
company
4.60 4.14
Mean score 4.23 4.19
Exhibit 7.60: Comparative analysis of satisfaction level of NIACL and ICICI
( 182 )
Interpretatio
n
• The first parameter was premium amount where in NIACL Mean was 4.25
and in
ICICI Mean was 3.53, in this case mean score of public sector company
(NIACL)
3.25 and 3.75 respectively, the Mean of ICICI were more in comparison to
NIACL that means ICICI customers were more satisfied with premium
• The third parameter was benefits (Add on covers, Road side assistance, No
claim
bonus & portibility) under this the Mean of NIACL was 3.67 and ICICI was
• On the basis of risk coverage the Mean of NIACL was 4.35 and ICICI was
4.40
( 183
)
• The Mean of NIACL was 4.21 and ICICI was 4.93 on after sale service
parameter
ICICI were highly saisfied, the reason behind it was quick and prompt
services
• On the basis of terms and conditions, the Mean of NIACL was 4.06 and
ICICI
was 3.97, the Mean of NIACL was high in comparison to ICICI and due to
this
the satisfaction level of NIACL customers were high the reason behind it
was
customers of NIACL were agree with all the terms and conditions of the
compan
y.
• Regarding claim settlement procedure, the Mean of NIACL was 4.38 and
ICICI
was 4.10 that means Mean of NIACL was more as compared to ICICI the
cutomers, the reason behind it was customers of NIACL were happy with
claim
• On renual of policy procedure, Mean of NIACL was 4.02 and ICICI was 4.43,
the
level of customers of NIACL was high because they were happy and
satisfied
• And in the last the satisfaction level of customers were measured on the
basis of
safety and the Mean of NIACL was 4.60 and ICICI was 4.14 which means
( 184
)
NIACL Mean was high in comparison to ICICI and customers of NIACL
were
highly satisfied with their company , they fell safe while dealing with NIACL
,
ICICI was 4.19 and in that NIACL Mean score was more in comparison to
ICICI,
comparison to
ICICI.
( 185
)
sample company consisted of public and private sector insurance companies that
is
NIACL and ICICI respectively. The primary data was collected through well
defined
questionnare and personal interview from regional , zonal & branch manager of
selected
Caim
Settlement
The questions were raised about difficulties faces in claim settlement process
and the
time taken to settle the claim. Private sector insurance companies ICICI, were
facing
Primary data in case of NIACL indicates that claim settlement process is not
cumbersome for them. The analysis reveals that since private sector companies
are profit
motivated, claim settlement is quite difficult for them while public sector
companies are
welfare
oriented.
Regarding the time period of claim settlement process the primary information
indicates
that on an average NIACL takes 10-45 days for settling the claim while ICICI
Lombard
takes approx 10-35 days in completing the claim settlement process, it depends
upon the
situatio
n.
Assess
ors
Regarding assessor, question were raised from both the companies was, that the
assessors
reach the place of accident on time to assess the quantum of damages, the
answer for this
( 186
)
question given by the officials of both the companies were same that on an
average
almost in most of the cases assessors reaches within the stipulated time as per
the
company rules but some time due to uncertainities they become late but
not always.
Renewal of
policy
NIACL 97 % customers were renew their motor insurance policy on time and in
ICICI 98
% were renew their policy on time. Only few were not renewing reason behind it
was that
Fake
claims
It was asked from officials of both the companies that for the purpose of gaining
profit
customers made fake claims. In NIALC minimum 16-17 cases were there in a
year in
relation to fake claims and on the other side in ICICI minimum 18-19 cases in a
year
were there. Overall we can say that still some improvements will be needed in
both the
It was revealed that in both the companies mostly policyholders were not
disclosed all
the facts related to their policy especially in case of commercial vehicles for the
purpose
7.3.
Conclusion
The seventh chapter deals with data analysis and its interpretations. In this two
set of
questionnnare were used for primary data, questionnnare one is for policyholders
and
questionnare two is for selected companies. Data was analysed on the basis of
statistical
tools like percentage, charts and weighted mean. It was found from the analysis
that
( 187
)