Motor Insurance Case Study

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Motor Insurance is designed to cover loss of motor vehicle, accidental damages and motor third party liability. Every person is required by law Motor Traffic Act, No 14 of 1951 and its amendments required having a Motor Insurance Policy to use a motor vehicle on the road or where people have access ”(Thangakone,2001). The insurance policy must be in force and must fulfill the legal requirement. Motor insurance consist of following three basic covers: Comprehensive, third party only and third party Fire and Theft. There are four motor policies available under this category. Private Car Policy, Commercial Vehicle Policy, Motor Cycle Policy and Motor trade policies are categorize according to vehicle type. Private Vehicle Policy offers insurance …show more content…

People attracted to the products via sales representatives. Especially in insurance organization highly depend on sales representatives. The customer in insurance attracted by various sales representatives: “brokers agents and banking representatives” (Kavoos et al., 2014, p.75). Bowers (1999) study cited (cited in Zboja and James, 2006, p.39) defined Insurance views cross selling as “Capture the loyalty of their customers by meeting all of their financial needs” Therefore Insurance companies attract customers retain customers by putting effort on sales persons performance. Sales persons role in cross selling important not only in insurance industry but also telecommunication (Jarroszewicz, 2008), banking (Yasar and Neely, 2001), engineering, chemical industry (Schmitz, 2014), financial services, insurance, health care, accounting, airlines, and retailing” (Li, Sun and Montgomery, 2010). Most of the companies spend their resources to plan the cross selling strategy but fails to focus in implement and continue the strategy in right way. Sales persons are interact with their customers throughout the policy period at that time before cross sell, organization should understand the customer needs and wants. Then the company can provide the right product to the right customer (Li, Sun and Montgomery, 2010). Most of the company believes their 80% sales improve from 20% of customers (Jobber and Lancaster, 2009) therefore sales person and management should concern on profitable customer to cross sell. DeGabrielle (2007) study (cited in Schmits, Lee and Lilien, 2014, p.1) argued that “three quarters of the all cross selling initiatives fails. Lack of investigation will turn the cross selling unsuccessful strategy (Bansal and Bhatia,

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