RESEARCH DESIGN
NEED FOR STUDY
In the present day scenario, it is well known that the insurance sector is a growing sector and it is also been noted down that the growth of this sector is showing significant growth year after year. For most of the insurance companies MOTOR INSURANCE is the major premium earning head of insurance, this is because of the factor that in India for a motorized vehicle to run on road it has been made compulsory by the Government of India to take “motor third party insurance”.
Motor insurance being an obligation is very well acquainted with the public and it has a huge customer base, but the flip side to this is that motor insurance also has many numbers of claims.
The claim ratio of motor insurance is mostly on the higher side. Higher claim ratio has both negative and positive side for the insurance company.
The main focus of this project will be in studying the impact of higher claim ratio on the financial stability of an insurance company and the reasons because of which the claim ratio is high under Motor Insurance.
This study gives a more clear picture of functioning and impact of motor revenues and claims on an insurance company.
OBJECTIVES OF THE STUDY
The work of this research paper is focused on following objectives:
1) To have a wisdom about the importance of motor insurance.
2) To know how it affects the balance sheet of an insurance company.
3) To know what changes and improvement could be done from the point of view of an insurance company.
SCOPE OF STUDY
The primary data is envisioned to be collected through various means of communications, i.e. In person, by telephone, e-mail, the period and mode of collecting data shall be explored suitably at appropriate times so as to make it relevan...
... middle of paper ...
...ses on the customers, who already pays high premium rates.
Questionnaire
(How motor third party claims are affecting the balance sheet of insurance companies)
1) Name of company :
2) Name and Designation of interviewee :
3) Percentage of motor business for last three years :
Years % of business
2010 – 2011
2011 – 2012
2012 – 2013
4) Motor insurance total premium amount:
Years Amount
2010 – 2011
2011 – 2012
2012 – 2013
5) Motor insurance claims ratio for the year:
Year Own Damage Third Party Overall
2010 – 2011
2011 – 2012
2012 – 2013
6) According to you what is the reason of high claim ratio under:
Own Damage
Third Party
7) In what way claim ratio is affecting your company’s balance sheet?
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Business Insurance News, Analysis & Articles. Web. The Web. The Web.
Car insurance is a very important aspect of driving that all motor vehicle owners should look into. It is underutilised with only around 35% of all road users having had their motor vehicle/s insured. This leaves many drivers in financial debts as they are unable to pay, either the medical expenses due to a collision or the physical damage done to the vehicle, as they are not covered.
Picciotto, Dan and Nishit K Madlani. "The Global Auto Industry Shifts Its Focus To OVerseas And Emerging Markets." Credit Week (2013): 26. Online. 21 May 2014. .
It is no doubt that automobiles have become a way of life in the current society besides the transport sector contributing immensely to the economic growth of every cou...
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