300914510-home-insurance-2.docx

CHAPTER - 1

SR NO

CONTENT

PAGE NO

1.1

BACKGROUND OF THE INSURANCE SECTOR

2

1.2

HISTORY

3

1.3

TYPES OF HOME INSURANCE

4-8

1.4

FUNCTIONS OF INSURANCE

9-10

1

1.1 BACKGROUND OF THE INSURANCE SECTOR 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 Company 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. Although efforts were made to maintain an open market for the general 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. RECENT INITIATIVES Privatization is expected to foster competition, innovations and greater awareness on the need for buying insurance services and variety of products. The IRDA bill Passed by the parliament was an important development in the field of Insurance business. The IRDA Act marks an end to the monopoly of the government in the insurance sectors by opening it up to private players. It gives priority in the Utilization of the policyholder's funds for development of society and Infrastructure sector.

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1.2 HISTORY The first homeowners policy perse in the United States was introduced in September 1950, but similar policies had existed in Great Britain and certain areas of the United States. In the late forties US insurance law was reformed and during this process multiple line statutes were written, allowing homeowners 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 issued a simplified homeowners policy for resell to insurance companies. These policies have been amended over the years.

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1.3 TYPES OF INSURANCE

There are however, four insurances that most financial experts recommend that all of us have: life, health, auto and long-term disability. Each one of these covers a specific aspect of your life, and each one is very important to your financial future.  Life Insurance The greatest factor in having life insurance is providing for those you leave behind. This is extremely important if you have a family that is dependent on your salary to pay the bills. Industry experts suggest a life insurance policy should cover "ten times your yearly income." This sum would provide enough money to cover existing expenses, funeral expenses and give your family a financial cushion. That cushion will help them re-group after your death. When estimating the amount of life insurance coverage you need, remember to factor in not only funeral expenses, but also mortgage payments and living expenses such as loans, credit cards and taxes, but also child care, and future college costs. LIMRA, formerly known as the Life Insurance Marketing & Research Association, says that if the primary wage earner dies in a family with dependent children that family will only be able to cover their living expenses for a few months, and four in 10 would have difficulty immediately. The two basic types of life insurance are Traditional Whole Life and Term Life. Simply explained, Whole Life is a policy you pay on until you die and Term Life is a policy for a set amount of time. You should seek the advice of a financial expert when planning your life insurance needs. There are considerable differences between the two policies. In deciding between these two, consumers should consider their age, occupation, number of dependent 4

children and other factors to ensure they have the coverage necessary to protect their families. (For additional reading, see What To Expect When Applying For Life Insurance.)  Health Insurance A recent Harvard study noted that statistically, "your family is just one serious illness away from bankruptcy." They also concluded that, "62% of all personal bankruptcies in the U.S. in 2007 were caused by health problems and 78% of those filers had medical insurance at the start of their illness." Those numbers alone should urge you to obtain health insurance, or increase your current coverage. The key to finding adequate coverage is shopping around. While the best option and the least expensive is participating in your employer's insurance program, many smaller businesses do not offer this benefit. Finding affordable health insurance is difficult, particularly without an employer-sponsored program or if you have a pre-existing condition. According to the Kaiser/HRET survey, the average premium cost to the employee in an employer sponsored health care program was around $4,100. With rising co-payments, yearly deductibles and dropped coverage's, health insurance has become a luxury less and less can afford, yet even a minimal policy is better than having no coverage. The cost for a day in the hospital can range from $985 to $2,696. Even if you have minimal coverage, it can provide some monetary benefit for your hospital stay. As the health care debate continues in Washington, approximately 48 million Americans are without insurance coverage. Check with your employer regarding health care benefits, inquire of any occupational organizations that you belong to regarding possible group health coverage. If you are over age 50, AARP has some health insurance offers available. (To learn more, check out Buying Private Health Insurance.) 5

 Long-Term Disability Coverage This is the one insurance most us think we will never need, as none of us assumes we will become disabled. Yet, statistics from the Social Security Administration show that three in 10 workers entering the workforce will become disabled, and will be unable to work before they reach the age of retirement. Of the population, 12% are currently disabled in some form, and nearly 50% of those workers are in their working years. Even those workers that have great health insurance, a nice nest egg and a good life insurance policy never prepare for the day when they might not be able to work for weeks, months or may not ever be able to return to the job. While health insurance pays for your hospitalization and medical bills, where is money coming from to pay those daily expenses that your paycheck covers? Here are a few very sobering statistics regarding disability: 

Disability Causes Nearly 50% of all Mortgage Foreclosures, 2% are Caused by Death.



Close to 90% of Disabling Accidents and Illnesses Are not Work Related.



In the Last 10 Minutes, 498 Americans Became Disabled.

If you are injured and off work for even three months, would you have enough in savings to cover your living expenses? Consider what you might face financially if you suffer a major medical condition such as cancer and were unable to work for over a year. Many employers offer both short-term and long-term disability coverage as part of their benefits package. This would be the best option for securing affordable disability coverage. If they don't, seek out a private insurer. If you aren't sure how much coverage you need, AARP offers a very good disability insurance calculator to help you. A policy that guarantees income replacement is the optimal policy; more usual terms are replacement of 50 to 60% of your income. The cost of disability insurance is based on many factors including age, lifestyle and health. For group 6

or employer coverage, the average rate in 2009 was about $238 per year or approximately $5 per week. A small price to pay if you are faced with a devastating illness or injury. Disability insurance will guarantee that you will have some income when you can't work.  Auto Insurance There were over 10-million traffic accidents in the U.S. in 2009 (latest available data) and 33,808 people died in motor vehicle crashes in those accidents, according to data released by the Fatality Analysis Reporting System (FARS). The number one cause of death for American's between the ages of 5 and 34 were auto accidents. Over 2.3 million drivers and passengers received treatment in emergency rooms in 2009, and the costs of those accidents including deaths and disabling injuries was around $70 billion. While all states do not require drivers to have auto insurance, most do have requirements regarding financial responsibility in the event of an accident. Many states do periodic random checks of drivers for proof of insurance. If you do not have coverage, the fines can vary by state and can range from the suspension of your license, to points on your driving record, to fines from $500 to $1,000. If you drive without auto insurance and have an accident, the fines will probably be the least of your financial burden. Your car, like your home is a valuable asset you use every day. If your car is damaged in an accident and you have no auto insurance, you will have no way to replace that vehicle unless you have a large savings account, and you don't really want to tap into that savings when auto insurance could cover the cost. If you, a passenger or the other driver is injured in the accident, your auto insurance will pay those expenses, and help guard you against any litigation that might result from the accident. Auto insurance also protects your vehicle against theft, vandalism or a natural disaster such as a tornado or other weather related incidents. 7

Again, as with all insurances, your individual circumstances will determine the price of your auto insurance. The best advice is to seek out several rate quotes, read the coverage provided carefully and check periodically to see if you qualify for lower rates based on age, driving record or the area where you live.

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1.4 FUNCTIONS OF INSURANCE FUNCTIONS OF INSURANCE The functions of insurance can be studied into two parts: (i) Primary Functions (ii) Secondary Functions. Primary Functions:

1) Primary Functions: (i) Insurance provides certainty: insurance Provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by better planning and administration. But, the insurance relieves the person from such difficult task. Moreover, if the subject matters are not adequate, the selfprovision may prove costlier. There are different types of uncertainty in a risk. The 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 removes all these uncertainty and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty. (ii) Insurance provides protection: The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings. The insurance cannot cheek the happening of risk but can provide for losses at the happening of the risk. (iii) Risk-Sharing: The risk is uncertain, and therefore, the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons who are exposed to the risk. The risk sharing in ancient time was done only at time of damage or death, but today, on the basis of probability of risk, the share is obtained from each and every insured in the shape of premium without which protection is not guaranteed by the insurer.

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2) Secondary Functions: Besides the above primary functions, the insurance works for the following functions: (i) Prevention of loss: The insurance joins hands with those institutions which are engaged in preventing the losses of 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. So again premium is reduced to, which will stimulate more business and more protection to the masses. Therefore, the insurance assist financially to the health organization, fire brigade, educational institution and other organizations which are engaged in preventing the losses of the masses from death or damage. (ii) It provides Capital: The insurance provides capital to the society. The accumulated funds are invested in productive channel. The dearth of capital of the society is minimized to a greater extent with the help of investment of insurance. The industry, the business & the individual are benefited by the investment & loans of the insurers (iii) It improves Efficiency: The insurance eliminates worries and miseries of losses at death and destruction of property. The care-free person can devote his body & soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced. (iv) It helps Economic Progress: The insurance by protecting the society from huge losses of damage, destruction and death. Provides an initiative to work hard for the betterment of the masses. The next factor of economic progress, the capital, is also immensely provided by the masses. The property, the valuable assets, the man the machine & the society cannot lose much at the disaster.

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CHAPTER -2 CONTENT

PAGE NO

2.1

HOME INSURANCE IN INDIA

12-13

2.2

REASON OF HOME INSURANCE

14-15

2.3

TYPES OF HOME INSURANCE

16-18

2.4

HOME CLAIM PROCEDURE

19

2.5

CLAIMS COVERED UNDER HOME INSURANCE

20-21

2.6

HOME INSURANCE CLAIM

22

SR NO

11

2.1 HOME INSURANCE IN INDIA

The Home insurance sector in India is at a nascent stage as compared to other insurance sectors in the country. With the real estate boom at its prime in India, home finance has become an indispensable part of real estate functioning. Moreover, the housing finance companies (HFCs) are also playing an important role in the evolvement of the home insurance company in India. Due to the new regulations by the finance companies making home insurance mandatory for seeking home loans in India, the home insurance sector has recently seen massive revival in business. Industry analyst say that, if the home loans and insurance sector continue to facilitate each other’s growth, then the insurance segment is soon set to achieve a 100% growth. The latest growth curve shows the home insurance premium touching the Rs 150 crore-mark, registering a growth of 25% in the last financial year; and if the situation prevails, the trend is predicted to continue. As the growth curve of investments in Indian real estate sector escalates, more and more insurance companies are making their foray into the home insurance sector. This has also initiated a trend of insurance companies from across the globe making their foray into Indian market either as individual entity or in joint ventures with the local existing insurance companies. Home insurance and real estate has of late become conspicuous of the buzz it has created in the realty industry in India. Adding to the list of leading and existing public sector companies in the home insurance business like New India Assurance, Life Insurance Company of India, United India Insurance, Oriental Insurance and National Insurance Company; is a list of private insurance companies which are set to play a pivotal role in the growth of the sector. The most thriving amongst those are mostly joint venture companies like ICICI Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General Insurance Company Ltd, IFFCO-TOKIO and Royal Sundaram Alliance to name a few. Considering the feasibility of a largely huge and growing 12

market, the home insurance sectors has lately expanded its business beyond the metros to the Tier I and II cities where real estate development is expected to flare up in the years to come.The booming real estate sector in India is considered to be one of the most encouraging factors in the resurgence of the home insurance sector. However, apart from the real estate factor, the recent spate of calamities that has hit the country like the earthquakes, tsunami, the consistent flood every year in most parts of the country and the exceptional cases of 'deluge' in Mumbai in 2005 has made people opt for home insurance like never before.

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2.2 REASON OF HOME INSURANCE Homeowners insurance protects you against a variety of risks that come with home ownership. The benefits are designed to cover your home's structure, your personal property, the cost of living arrangements in case of damage to your home and certain liabilities you may incur to others relating to your home. It doesn't cover every kind of risk, though. For example, it doesn't cover the risk of title defects that could subject your home's ownership to legal challenges. following are they reasons . 1) Repairing Structural Damage Since homeowners insurance covers the risk of extraordinarily destructive events such as fires and tornadoes, you might submit claim to allow you to either repair or rebuild your home. Many lenders require you to purchase at least enough homeowners insurance to cover the value of the mortgage. In any case, you need enough insurance to cover the cost of completely rebuilding your home. The purchase price of your home, however, is not a good indicator of how much it might cost to rebuild it because costs might increase over time. Some policies exclude structural damage due to particularly catastrophic events such as earthquakes and hurricanes. Other policies offer coverage for these risks only at a higher cost than a standard policy. 2) Replacing Personal Property Most homeowners insurance policies cover the value of personal possessions, such as jewelry, that you keep at home. Coverage is typically limited to half or three-quarters of the value of the coverage of the structure of the home. You are covered regardless of whether you lose these items in a natural disaster or a burglary. You have a choice — you can purchase coverage for the actual cash value of your belongings, or for the cost of replacing them. Typically, replacement value coverage is higher — and costs more — because the value of your claim is proportional to the cost of purchasing a new item, rather than reimbursing you for the value of a used item. 3) Paying For Alternative Living Arrangements If your home is destroyed or damaged severely enough to cause you to have to temporarily move out, most homeowners policies cover your extra expenses. These expenses include hotel bills, restaurant meals and even lost rent if you board a tenant who moves out because of the damage. Coverage may be limited 14

by a maximum dollar amount, or it may be limited by a maximum amount of time you spend living outside your home. 4) Reimbursing You For Third-Party Liability You may be subject to legal liability arising out of your use of your home. A dangerous condition, for example, might injure a guest who then sues you for personal injury. Homeowners insurance covers your legal expenses including court costs, attorney's fees and the cost of paying any judgment against you. Your policy may exclude coverage, however, for legal expenses arising from injuries intentionally inflicted on another by you or a member of your family. Many companies offer additional policies offering higher coverage limits for an additional premium.

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2.3 TYPES OF HOME INSURANCE Home insurance in India has a key role to play in the protection of your house or building structure and valuable possessions or building content. Home insurance policy is a guarantee provided by the insurance company that combines insurance on the home, its contents the personal possessions of the homeowner, as well as insurance covering accidents that may happen at the house like fire and natural calamities. The coverage of the risk however depends on the type of policy. There are mainly two types of home insurance in India. 

Building insurance



Content insurance

1. Buildings Insurance Buildings insurance is an important part of property investments. The mandatory obligation made by the housing finance companies has strengthened the need for insurance in conjunction with property investments. Insuring the building or building structure is important since it protects you against inevitable losses in case your building is destructed and debilitated in any natural or man-made calamities. The housing finance companies are insisting on building insurance so that in the event of a disaster it can be repaired or rebuilt, as lenders don't want to be left without security for their loan. A home insurance policy should cover expenditure to rebuild your home in the event of it being totally destroyed or

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damaged to the point that complete rebuilding is necessary (in eventualities like earthquake, fire etc). Different home insurance companies have different specifications for policy coverage. It is recommended that you check the terms and conditions of the policy. Home insurance companies in India mostly have home insurance plans that insure the building structure of your home for its reconstruction value. This is the cost incurred to reconstruct the home if it is damaged and not for its market value such as the cost of land etc. Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet Home insurance plan for buildings are usually meted out on conditions as per the policy terms arising out of conditions like 

Fire, Lightening, explosion of gas in domestic appliances



Bursting and overflowing of water tanks, apparatus or pipes.



Riot, Strike, Malicious or Terrorist Act



Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone



Damage due to earthquake, subsidence and Landslide (including Rockslide).



Damage caused by Aircraft & Impact damage



Third party liability and personal accident.

2. Content Insurance Content insurance may be considered optional but with the threat of burglaries, natural disasters and fire, content insurance covers are rising in demand. Contents insurance for home insurance plans includes protection to movable goods, possessions or contents in the house; anything that is not a fixed parts of your home, for example your appliances, electronic goods, furniture and clothing. 17

Similarly as the modalities adopted in building insurance, different home insurance companies in India have different policies for content insurance. Most companies comply with insurance plans where a value equivalent to the market value of household contents i.e. the value for which this used item could be bought or sold in the market is covered as insurance. The insured amount given against the perils for building or structure and its contents is assessed either on 'reinstatement value' basis -which is the value for replacing the item with a new item of same type and make; or on 'market value' basis -which is the reinstatement value less depreciation depending on the age of the item. Content insurance offers protection against various perils including: 

Fires



Storms/flooding



Explosions



Theft and vandalism



Valuables such as jewellery, cameras and watches against all risks,



Cover against all kinds of accidental breakage of plate glass fixed in doors and window frames.



Loss/damage to domestic appliances due to electrical and mechanical breakdown.

Home insurance can be availed for both building and content combined. However, most home insurance plans in India excludes underinsurance of the property value, wilful destruction of property, loss, damage or destruction caused by war perils, wear and tear and atmospheric conditions etc., damage due to an act of terrorism(unless specifically covered) and losses or damages incurred when premises are unoccupied beyond 60 consecutive days.

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2.4 HOME CLAIM PROCEDURE Inform the call center with policy details. Provide relevant information, which includes your policy and other details regarding your claim. Consequently, your claim request is authenticated and is escalated to the company's claims department. Company's claims department validates and registers the request. They appoint a surveyor within 48 hours. The insured submits all the relevant documents to the surveyor. The surveyor submits the Final Survey Report (FSR) along with the documents within 7 days. If surveyor is not appointed, the company's claims department sends a letter of requirement for submitting documents to the insured within 24 hours of claim intimation. On receipt of documents, the claims department processes the claim within 7 days. On approval of the claim, a letter is send to the insured giving the approved amount of settlement along with the discharge voucher. Payment cheque is released on receipt of the signed discharge voucher.

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2.5 CLAIMS COVERED UNDER HOME INSURANCE Insurance claim amount is always something creeping up on the mind of both insurer and the insurance company. It is more evident in case when there is a possibility of you filing a claim to recover the amount for that claim. If you provide sufficient proof and necessary documents for your home insurance claim, there is a fair chance you can get the amount by the Home Insurance company or provider. Also, submitting a claim on your home policy is a relatively quite simple process. The steps involve contacting your agent, filling out a claim form and waiting for an appointed arbiter to verify the facts and judge the authenticity of the damage. If the damage is really worth notice, it's a matter of few days to get the claimed amount through check. Most claims are handled quickly. Sometimes the claim process can really be time taking and frustrating. Also keep in mind that most insurance providers don't enjoy the idea of two or three claims in a short span of time and you stand almost certain chance of getting cancellation of these claims. Try to stay away from high risks, so you should be sure to make only those claims that are absolutely necessary. Or, if you are sure about your rights to claim and corresponding damage or loss, just go full throttle to register a claim. Only remember that there can sometimes be unpleasant repercussions. Here are some general tips for handling auto and home insurance claims:     

Know your policy. Stake your claim quickly. Avoid using the word "lawyer." Keep a copy of the police report. Get an estimate or two.

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 the indication and estimation of the total cost of items and damage claim amount accordingly. Photographs and/or videotapes of your home (both in pre- and post-disaster form) can also be beneficial. These will help you establish an inventory of your belongings should 20

the need arise. Always save photos or videos of the damage before 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

5.

Copy of all invoices, price lists, repair estimate

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2.6 HOME INSURANCE CLAIM In case of any incident leading to a valid claim under the policy, following steps should be taken:  Take necessary steps to minimize the loss/damage.  In case of fire, inform fire brigade immediately.  In case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their approximate value. Inform insurance company by phone or fax and in writing. Extend full co-operation to the surveyor appointed by the insurance Co. and provide necessary documents to the substantiate the loss. A claim form issued by the company is also to be submitted. In case any rights of recovery exist against any other party responsible for the loss, your rights of recovery have to be subrogated to the insurance company on payment of claim.

CALCULATION OF HOME INSURANCE PREMIUM OR AMOUNT.  The factors to be kept in mind while calculating the insurance premium and accepting the home insurance quote being offered by the home insurance company are  Area of the House (calculated in sq.ft.)  Location and neighbourhood  Approximate rate of construction (calculated in Rs. per sq.ft.)  Permanent construction on the land  The time period offered for the insurance premium (monthly, quarterly or six monthly depending upon the insurance amount) Property more than 50 years old is not covered in home insurance  The insurance policy offered is standard or flexi covering

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CHAPTER -3 SR NO 3.1

CONTENT

PAGE NO

COMPANIES PROVIDING HOME INSURANCE

24-26

3.2

ICICI Home Insurance Tata AIG General Insurance Company Limited

27

3.3

The Oriental Insurance Co. Ltd.

28

3.4

BAJAJ ALLIANZ

29-30

3.5

IFFCO-TOKIO General Insurance

31-32

3.6

Quality Buildings Insurance from Royal Sundaram

33-34

3.7

The New India Assurance Co. Ltd

35-37

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3.1 COMPANIES PROVIDING HOME INSURANCE  ICICI Home Insurance

It is imperative that you secure your home from natural and man-made catastrophes. Before Applying for Home Insurance you should know about Importance of Home Insurance. Our Home Insurance Plan ensures you peace of mind by protecting the structure and the contents of your home.

Policy Details & Coverage You can choose to buy insurance for only the building (structure) of your home, or only the contents (belongings) or both. The policy covers the losses to the structure and contents of your home due to any natural and man made calamities. The calamities covered are: 1.

Fire

2.

Riot, strike & malicious damage

3.

Explosion & implosion

4.

Earthquake

5.

Lightning

6.

Storm, cyclone, tempest, tornado, hurricane, flood & inundation

7.

Damage due to impact by vehicles

8.

Missile testing operation

9.

Subsidence, landslides and rockslides

10.

Leakage from automatic Sprinkler installations

11.

Bursting and/or overflowing of water tanks, apparatus and pipes Burglary covers (only for contents): 24

 The contents of your home are also covered against loss due to burglary or an attempted burglary. It also covers loss of jewellery, silver articles and precious stones kept under lock and key, up to 25% of the total content sum insured or Rs. 1 Lac, whichever is lower.  Additional expenses of rent for alternative accommodation - If you are forced to shift into an alternative accommodation because your home is destroyed or damaged by any insured peril, the policy will cover you against the additional rent.  The maximum coverage is up to Rs. 1,00,000 for up to 6 months. The cover is available only if you are insuring the structure of your home.

Key Benefits 

     





Digitally signed policy is available 24X7 online, customer can take prints instantly. The hard copy of the policy is couriered the same day (or next day if customer buys after 6 PM) and will reach him/her within 2-3 working days. Avail 15% discount on a 3 years home insurance policy and 25% discount on 5 years policy. Optional covers available - Terrorism and Additional expenses of rent for alternative accommodation. Sum Insured How to calculate the sum insured for: Home Structure The home insurance policy insures the structure of your home for its reconstruction value (and not for market value). Reconstruction value is defined as the cost incurred to reconstruct the home if it is damaged. On the other hand market value is a combination of cost of land, demand & supply scenario, etc. Sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet, e.g. if your built up area of your home is 1000 sq. feet and the construction rate is Rs. 800 per sq. feet, the sum insured for your home structure is Rs. 8,00,000. We recommend the rate of construction for your location when you are buying online. However, this value can be revised appropriately if expensive material - like marble flooring, etc. - has been used in construction. If your home has lawn / garden surrounded by a perimeter 25

wall, the construction rate can be revised to include the cost of construction of this wall in home structure sum insured.

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3.2 Tata AIG General Insurance Company Limited

HOME INSURANCE "Home sweet Home" - a destination, any individual or a family feels very close to the heart. It is an investment of one's lifetime savings, emotional dreams and aspirations to realize their ideal home. Home signifies a set of emotions for any individual, be it pride, ownership, stability or be it a sense of belonging. It echoes the owners' sentiments "It's my house". After all, one's Home including its contents is the single most important and expensive asset that we have created for ourselves. We have learnt to value life and health sufficiently to understand the importance of insuring it. But when it comes to applying the same logic to our home (around which our lives revolve) most of us suffers a blind spot. It is only when a calamity or catastrophe strikes that we feel helpless. HOME SECURE BENEFITS. Home Insurance in India provides exactly the care one needs at such times - to safeguard against unforeseen eventualities and to preserve one's lifestyle and that too at an affordable price. You can protect your priceless investment for very little money. Assuming you have possessions worth Rs. 300,000 in your house, you can insure those possessions for as little as Rs. 3 a day - for Fire, Natural Hazards (Flood, Earthquake etc) and Burglary & Theft.

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3.3 The Oriental Insurance Co. Ltd.

Householders Insurance Policy Brief Description: The House holder's Insurance Policy is a comprehensive shelter that protects your house and the various contents in it against a variety of risks. It is a single policy that takes care of a number of contingencies. The policy is divided into 10 sections. Sec 1(B) and a minimum of any 2 other sections are compulsory. 1. 2. 3. 4.

Section 1: Fire and Allied Perils. Section 2: Burglary. Section 3: All risks. Section 4: Plate Glass.

Section 5: Breakdown of domestic appliances. 6. Section 6: T.V. Set. 7. Section 7: Pedal Cycles. Section 8: Baggage Insurance. 9. Section 9: Personal Accident. 10. Section 10: Public Liability Covered Risks: Buildings of class 'A' construction, Plate Glass, Breakdown of domestic appliances, T.V. Set, Pedal Cycles, Baggage Insurance, Personal Accident, Public Liability.

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3.4 BAJAJ ALLIANZ

Householders Your home is our most valued possession, a haven of safety. But is it really as safe as we would like to believe? We at Bajaj Allianz realize your need to make your home as secure in reality as it is in your mind. This is why we bring to you the House- Holders' Insurance policy designed to cover various risks and contingencies faced by householders under a single policy. It provides protection for property and interests of the insured and his family members who permanently reside with the insured. A home insurance(householder's insurance), protects not just your flat but also your domestic and electronic appliances. Unique Features 1. 2. 3. 4. 5.

Very competitive premium rates. First loss basis option for burglary and jewelry. Flexible rating for personal accident of the insured No valuation certificate required for jewelry upto Rs.2 lacs. Assembled computers can also be covered under EEI.

Benefits 1. 2. 3. 4. 5.

No strain on pockets of insured. xSaving on cost. Customized cover can be opted by the insured. Save on time while proposing. Same policy addressing varied needs.

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Advantages 1. 2. 3. 4. 5.

Single Proposal form. Complete coverage at reduced premium. Client needs being addressed. Simple and quick documentation. Related items got covered under respective sections

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3.5 IFFCO-TOKIO General Insurance

A Complete Protector Our Home Suvidha Insurance Policy gives complete protection to your home against a wide range of risks and perils. It is a simple Home Insurance Policy wherein there are various categories of Sum Insured and you may opt for the category most suitable to you depending upon the extent of risk perceived and total value of your assets. The Sum Insured under Section 1 & 2 represents the First Loss limit which should be within 50% of the actual Market Value of the property at risk, below which underinsurance condition will be applicable. The other Sections are covered on Full Value basis - Market Value for Section 5 and Reinstatement Value for Section 3 & 6. Sections 5 and 6 are optional. Either on both of them can be deleted from the cover taken, in case they are not relevant to you. Coverage Under Home Suvidha  Fire and Allied Perils (Contents): Contents of your premises are covered against fire, explosion, bursting/ overflowing of watertanks, riots, strike and malicious damage, earthquake, flood, cyclone, landslide etc.  Burglary and other Perils (Contents): Contents of your premises are covered against housebreaking, burglary, robbery or dacoity and also against impact damages by falling trees/electric poles/lamp posts, breakage or collapse of television or radio aerials/satellite dishes and damage by civic authorities in the prevention of fire.  Television/Video Equipment: This Section covers loss or damage to your television/ video equipment against fire, theft, accidental damage and breakdown.  Personal Accident: This section covers you and your named family members against accidental bodily injury leading to death or disablement (either permanent total or permanent partial). 31

 Fire and Allied Perils (Building): This Section covers the residential building, if owned by you against perils mentioned under the Fire and Allied Perils (Contents) Section.  Personal Computer: This Section covers loss or damage to your personal computer against fire, theft, accidental damage and breakdown.

Who can apply for this policy? This Policy is suitable for you as a householder, whether you are a landlord or a tenant, whether you reside in an independent house or in a flat/apartment, whether the building is single storied or is a high rise, since each of the alternatives above would imply different risk exposures which can be covered under this policy.

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3.6 Quality Buildings Insurance from Royal Sundaram

Home Insurance Homeshield Classic is a comprehensive package of insurance benefits designed to cover the buildings and contents of your home against all possible kinds of perils such as fire, earthquake, terrorism, storm, flood, cyclone, burglary and breakdown of appliances. Your building cover can be arranged in conjunction with your contents cover or on its own. Homeshield Classic - Coverage When it comes to contents of your home, Royal Sundaram-s Homeshield Classic will give you complete peace of mind by covering the contents against a range of risks. We also cover building insurance. Three levels of cover to choose from to suit your lifestyle.  You have the option of insuring your building against fire and allied perils.  You have an option of payment through credit card with automatic renewal facility.  Assured Claims service: Claims will be settled within 10 days of receipt of documents.  We provide you 15 days to review your policy document. If you are not completely satisfied, simply return your policy for cancellation and Royal Sundaram will refund the entire premium paid provided no claim has been made.

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Homeshield Classic - Features    

Simple documentation & customer-friendly package. Comprehensive package covering fire, earthquake, terrorism, storm, Option to cover building against Fire & allied perils @ Rs.78.56/- per lac. Covers household contents, appliances, jewellery & breakdown of appliances.  3 levels of cover to choose from : Silver, Gold & Platinum.  Assured Claims service: Claims will be settled within 10 days of receipt of documents. You have an option of payment through credit card with automatic renewal facility. Option of Add-on covers for Computer, Air-conditioner, Air Cooler.

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3.7 The New India Assurance Co. Ltd.

Householders Policy Highlights This is a package policy specially designed to meet the insurance requirements of a householder by combining under a single policy, a number of our standard policies usually taken by householders. Discount in premium is offered depending upon the number of sections of the policy, opted for, by the proposer. Scope    

The policy comprises of 10 sections as given here under Section I - Fire & Allied Peril Coverage for building Covers contents of the dwelling belonging to the proposer and his/her family members permanently residing with him/her.

Allied Perils:    

Fire, Lightening, Explosion of gas in domestic appliances Bursting and overflowing of water tanks, apparatus or pipes. Damage caused by Aircraft , Riot, Strike, Malicious or Terrorist Act Earthquake, Fire and/or Shock, subsidence and Landslide (including Rockslide) damage  Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or Cyclone, Impact damage Section II - Burglary & House Breaking including larceny and theft. 35

Covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft. Section III - All Risks (Jewellery & Valuables) Covers loss or damage to your jewellery and valuables by accident or misfortune whilst kept, worn or carried anywhere in India subject to the value declared in the schedule. Section IV - Plate Glass Loss or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insured Section V - Breakdown of Domestic appliances Covers domestic appliances against unforeseen and sudden physical damage due to mechanical or electrical breakdown. Section VI - T.V. Set including VCP/VCR (ALL RISKS) Covers loss or damage to T.V. Set including VCP/VCR by fire and allied perils, burglary, house breaking or theft, breakage due to accidental external means, mechanical or electrical breakdown. Any legal liability arising out of bodily injury or accidental death of any person other than insured's family members or employee as also damage to property not belonging to or in the custody of insured , caused by use of the T.V. Set is also covered up to a limit of Rs.25,000/-. Section VII - Pedal Cycles (All Risks)  Covers loss or damage to pedal cycles by : Fire & allied perils , Burglary, housebreaking, theft , Accidental external means  Third party personal injury or Third party property damage for Rs.10,000/Section VII - Baggage Insurance Covers loss or damage to insured's accompanied baggage by accident or misfortune whilst the insured is traveling on tour or holiday anywhere in India.

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Section IX - Public Accident Covers Death or bodily injury by accidental, violent, external and visible means to the insured person named in the schedule and subject to limits specified therein. Section X - Public liability. Covers Insured's legal liability for bodily injury or loss of or damage to property of third party limited to amount specified in the schedule and workmen's compensation liability to domestic servants engaged in insured's premises. It is compulsory to opt for Section IB of the policy. A minimum of three sections including Section IB have to be taken for issuance of this policy. How to select sum insured For the insurance of household items, it would be necessary to group the items in a broad category like furniture, clothing , linen, utensils , crockery etc. and give a value equivalent to the market value i.e. the value for which this used item could be bought or sold in the market. Sections I A & B, II, III, IV, VI, VII & VIII should be insured on market value basis as described above. It is a condition of Section V i.e. breakdown of domestic appliances, that the sum insured should represent the current replacement value of a similar item. For e.g. to insure 165 ltr. Godrej fridge which is 3 years old, the sum insured should be equivalent to the cost price of a new 165 ltr. Godrej fridge. However, the claim amount payable would be the amount required to bring the damaged item to the same condition as it was prior to the damage subject to the adequacy of the sum insured. The sum insured under section IX i.e. Personal Accident should not exceed 72 months salary from gainful employment.

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CHAPTER -4

SR NO 4.1

CONTENT

PAGE NO

DATA ANALYSIS

39-48

38

4.1 DATA ANALYSIS 1) Are you aware about Home Insurance ?

Table No:- 4.1 Review about aware of Home Insurance

Sample Size

Yes

No

50

35

15

15 %

35 %

Yes

No

Diagram No:- 4.1 Review about aware of Home Insurance

39

2) Do you have Home Insurance ? Table No:- 4.2 Review about Home Insurance

Sample Size

Yes

No

50

11

39

11%

39%

Yes

No

Diagram No :- 4.2 Review about Home Insurance

40

3) From which company you have Home Insurance, Please specify the name of the company Table No:- 4.3 Review about Home Insurance company

Sample Size

ICICI Home Insurance

BAJAJ ALLIANZ

11

6

5

5%

6%

ICICI Home Insurance

BAJAJ ALLIANZ

Diagram No:- 4.3 Review about Home Insurance company

41

4) Have you taken this Policy from any “Agent” or have you visited company “personally”? Table No:- 4.4 Review of Policy taken about customer policy

Sample Size

Agent

Personally

11

7

4

4%

7%

Agent

Personally

Diagram No:- 4.4 Review of Policy taken about customer policy

42

5) Does company provide knowledge on entire product range in its portfolio? Table No:- 4.5 Review about company providing knowledge to customer

Sample Size

Yes

No

11

10

1

1%

10 %

Yes

No

Diagram No:- 4.5 Review about company providing knowledge to customer

43

6) Are you satisfied with the service provided by them? Table No:- 4.6 Review about customer satisfied of service provided

Sample Size

Yes

No

11

9

2

2%

9%

Yes

No

Diagram No:- 4.6 Review about customer satisfied of service provided

44

7) Does your Insurance Company provide information and alerts about your policy from time to time? Table No:- 4.7 Review of customer alerts and information provide by company

Sample Size

Yes

No

11

11

0

0%

11 %

Yes

No

Diagram No:- 4.7 Review of customer alerts and information provide by company

45

8) Does your company provide online claim facility? Table No:- 4.8 Review of customer provide online claim facility by company

Sample Size

Yes

No

11

7

4

4%

7%

Yes

No

Diagram No:- 4.8 Review of customer provide online claim facility by company

46

9) How would you like to pay premium? Table No:- 4.9 Review about customer paying premium

Sample size

Monthly

HalfYearly

Quarterly

Yearly

11

1

4

5

1

1%

1%

4% 5%

Monthly

Half-Yearly

Quarterly

Yearly

Diagram No:- 4.9 Review about customer paying premium

47

10) Which Insurance company is good for Home Insurance plan? Table No:- 4.10 Customer review of Insurance Company

Sample ICICI BAJAJ Oriental Tata size Home ALLIANZ Insurance AIG Insurance Co. Ltd. General Insurance

11

6

4

0

1

0%

1%

4%

ICICI Home Insurance

6%

BAJAJ ALLIANG

Oriental Insurance Co. Ltd

Tata AIG General Insurance

Diagram No:- 4.10 Customer review of Insurance Company

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CHAPTER 5 SR NO

CONTENT

PAGE NO

5.1

FINDINGS AND SUGGESTION

50-51

5.2

CONCLUSION

52

5.3

ANNEXURE

53-54

5.4

WEBLOGRAPHY

55

49

5.1 FINDINGS AND SUGGESTION Finding of the Study  After doing survey I have analysed that many of customers

having Insurance, but they are not aware about all the kinds of Home Insurance plans which can be more beneficial for them.

 From above survey and find out most of the people are not

prefer to but Home Insurance and they have absence of knowledge above Home Insurance.

 From above survey and find out many people not having much

more knowledge about Home Insurance.

LIMITATIONS  Inadequate time was the major constraints during the whole

project.

 All the answers given by the respondents have been assumed

true.

50

SUGGESTIONS

 It is necessary that every person should be aware Home

Insurance company plan.  The home insurance company provide proper and detail

information to their customers of Home Insurance.

 Today is competitive world. Home Insurance Company provide

online claim facility to their customers.

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5.2 CONCLUSION

The insurance industry is in the silent revolution and the best part is that all of us are part of this revolution process, contributing to it and influencing shape of things to emerge. It will be quite interesting to see an excess of distribution system taking shape and competing with each other’s. There is one truth in marketing that is “different consumers Approach buying differently. Studies have time and again shown that insurance is bought because of convenience, product features, product placement, and safety of funds, advice, and not the price. From the survey of customers I came to conclusion that many of the customers are not aware about the concept home insurance. As this policy is generally taken by the businessmen’s, self-professionals. We can expect from this organization that it will lead the innovative process with quality of services that will help the Indian consumer to take advantage from insurance business.

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5.3 ANNEXURE NAME: - ____________________________________ AGE: - ______

1) Are you aware about Home Insurance? 1. Yes

2. No

2) Do you have Home Insurance? 1. Yes

2. No

3) From which company you have Home Insurance, Please specify the name of the company 1.______________________ 4) Have you taken this Policy from any “Agent” or have you visited company “personally”? 1. Agent

2. Personally

5) Does company provide knowledge on entire product range in its portfolio? 1. Yes

2. No

6) Are you satisfied with the service provided by them? 1. Yes

2. No

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7) Does your Insurance Company provide information and alerts about your policy from time to time? 1. Yes

2. No

8) Does your company provide online claim facility? 1. Yes

2. No

9) How would you like to pay premium? 1. Monthly 2. Half-Yearly 3. Quarterly 4. Yearly

10) Which Insurance company is good for Home Insurance plan? 1. ICICI Home Insurance 2. BAJAJ ALLIANZ 3. Oriental Insurance Co. Ltd. 4. Tata AIG General Insurance

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5.4 WEBLOGRAPHY 

WWW.GOOGLE.COM

 WWW.ICICILOMBARD .COM



www.nriol.com/tata-aig/property-insurance



https://www.orientalinsurance.org.in

 www.iffcotokio.co.in/home-insurance  https://www.bajajallianz.com/Corp/property-insurance/homeinsurance.jsp  www.royalsundaram.in/homeinsurance-online.aspx  www.investopedia.com/terms/h/home owners-insurance.asp

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