CHAPTER-I

INTRODUCTION
INTRODUCTION OF INSURANCE
Insurance is the equitable transfer of the risk of a loss, from one entity
to another in exchange for payment. It is a form of risk management primarily used
to hedge against the risk of a contingent, uncertain loss.
An insurer, or insurance carrier, is a company selling the insurance;
the insured, or policyholder, is the person or entity buying the insurance policy.
The amount of money to be charged for a certain amount of insurance coverage is
called the premium. Risk management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer in exchange for
the insurer's promise to compensate (indemnify) the insured in the case of a
financial (personal) loss. The insured receives a contract, called the insurance
policy, which details the conditions and circumstances under which the insured
will be financially compensated.
Insurance is a means of guaranteeing financial protection against
various risks. In exchange for a relatively small payment, gain protection against a
potentially large loss. Some examples of a large loss would include house burning
down or spending weeks in the hospital recovering from an automobile accident.
This is a written contract detailing what an insurance company will
cover , how much it will pay, and how much policy holder pay.
Insurance is a form of risk management in which the insured
transfers the cost of potential loss to another entity in exchange for monetary
compensation known as the premium.
Insurance allows individuals, businesses and other entities to protect
themselves against significant potential losses and financial hardship at reasonably
affordable rate.
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HISTORY
Early methods
Methods for transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as the 3rd and 2nd millenniaBC,
respectively. Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in the
famous Code of Hammurabi, c. 1750 BC, and practiced by
early Mediterranean sailing merchants. If a merchant received a loan to fund his
shipment, he would pay the lender an additional sum in exchange for the lender's
guarantee to cancel the loan should the shipment be stolen or lost at sea.
At some point in the 1st millennium BC, the inhabitants
of Rhodes created the 'general average'. This allowed groups of merchants to pay
to insure their goods being shipped together. The collected premiums would be
used to reimburse any merchant whose goods were jettisoned during transport,
whether to storm or sinkage.
Separate insurance contracts (i.e., insurance policies not bundled with
loans or other kinds of contracts) were invented in Genoa in the 14th century, as
were insurance pools backed by pledges of landed estates. The first known
insurance contract dates from Genoa in 1347, and in the next century maritime
insurance developed widely and premiums were intuitively varied with
risks. These new insurance contracts allowed insurance to be separated from
investment, a separation of roles that first proved useful in marine insurance.

Modern insurance
Property insurance as we know it today can be traced to the Great Fire
of London, which in 1666 devoured more than 13,000 houses. The devastating
effects of the fire converted the development of insurance "from a matter of
convenience into one of urgency, a change of opinion reflected in Sir Christopher
Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in
1667".
A number of attempted fire insurance schemes came to nothing, but in
1681, economist Nicholas Barbon and eleven associates established the first fire
insurance company, the "Insurance Office for Houses", at the back of the Royal
2

Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by
his Insurance Office.
At the same time, the first insurance schemes for the underwriting of
business ventures became available. By the end of the seventeenth century,
London's growing importance as a centre for trade was increasing demand
for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house,
which became the meeting place for parties in the shipping industry wishing to
insure cargoes and ships, and those willing to underwrite such ventures. These
informal beginnings led to the establishment of the insurance market Lloyd's of
London and several related shipping and insurance businesses
The first life insurance policies were taken out in the early 18th century.
The first company to offer life insurance was the Amicable Society for a Perpetual
Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas
Allen. Edward Rowe Mores established the Society for Equitable Assurances on
Lives and Survivorship in 1762.
It was the world's first mutual insurer and it pioneered age based
premiums based on mortality rate laying the framework for scientific insurance
practice and development and the basis of modern life assurance upon which all
life assurance schemes were subsequently based.
In the late 19th century, "accident insurance" began to become available.
This operated much like modern disability insurance. The first company to offer
accident insurance was the Railway Passengers Assurance Company, formed in
1848 in England to insure against the rising number of fatalities on the nascentrail
way system.
By the late 19th century, governments began to initiate national
insurance programs against sickness and old age. Germany built on a tradition of
welfare programs in Prussia and Saxony that began as early as in the 1840s. In the
1880s Chancellor Otto von Bismarck introduced old age pensions, accident
insurance and medical care that formed the basis for Germany's welfare
state.[12][13] In Britain more extensive legislation was introduced by
the Liberal government in the1911 National Insurance Act. This gave the British
working classes the first contributory system of insurance against illness and
unemployment.
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UNITED INDIA INSURANCE

In the year 1972 general insurance business Act was passed by the
Indian parliament, and consequently, general insurance business was nationalized
with effect from 1 January 1973, 107 insurances were amalgamated and grouped
into four companies, namely national insurance company Ltd., The new India
assurance company Ltd., the oriental insurance company Ltd and the United India
Insurance company Ltd., the general insurance corporation of India was
incorporated as a company in 1971 and it commence business on 1 January 1973.
United India Insurance Company Limited was incorporated as a
Company on 18 February 1938. General Insurance Business in India was
nationalized in 1972. 12 Indian Insurance Companies, 4 Cooperative Insurance
Societies and Indian operations of 5 Foreign Insurers, besides General Insurance
operations of southern region of Life Insurance Corporation of India were merged
with United India Insurance Company Limited.
After nationalization United India has grown by leaps and bounds and
has 18300 work force spread across 1340 offices providing insurance cover to
more than 1 Crore policy holders. The Company has variety of insurance products
to provide insurance cover from bullock carts to satellites.
United India has been in the forefront of designing and implementing
complex covers to large customers, as in cases of ONGC Ltd, GMR- Hyderabad
International Airport Ltd, Mumbai International Airport Ltd Tirumala-Tirupati
Devasthanam etc.

Recent developments
In November 2007, at pune,company's top management launched an
enterprised level transformation project named UNISURGE, under this historic
initiative, company identified and set up 6 themes in order to remain a leader in
Indian General Insurance market and also stressed on the effective use of IT. In
Addition, it has been also decided to Create incentive system and link to rigorous
performance management system for the Enhancement of organizational
accountability and to strengthen HR structure of the company.
Recently, on January 11, 2012, The Company (often abberiviated as UIIC), has
been entrusted by The Govt. of Tamil Nadu for implementing the new
Comprehensive Health Insurance Scheme.This scheme would cover 1.34 crore
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families of Tamil Nadu State and has an annual outlay of Rs. 750 crore. Tamil
Nadu Chief Minister, on the launch, handed over first quarterly insurance premium
installment of Rs. 183.64 crore to 'Milind Kharat, CMD of the United India
Insurance.

Profit and performance

The United India Insurance reported over 50% jump in its profit after
tax at Rs 341.07 crore for the first 6 months of the financial year 2011-12. The
Chennai-based insurer had reported a Rs 218 crore profit during the same period
last year. Declaring the half-yearly results, United India Insurance Chairman and
Managing Director G Srinivasan told reporters the company's growth has exceeded
that of the industry. He said, "We grew by 27 per cent over the industry's growth of
23 per cent ... our market share also increased".
During the half-year period ended September 30, 2011, the company
collected a total premium of Rs 4,033 crore, up by 27 per cent from Rs 3,178 crore
in the year-ago period. "We have set a target premium of Rs 8,000 crore this year,"
he said. On plans for the year 2011-12, he said the company would focus on retail,
micro-small and medium enterprises and rural insurance segments. "We will focus
on agency channel and banc assurance. Agency channel contributed 40 per cent
and banc assurance 7 per cent (in the first half of the year). We expect it to increase
in the years to come," he said. Replying to a question, he said the company would
bid for the Tamil Nadu government's health insurance scheme. The investment
income of the company for the first-half of the year stood at over Rs 803 crore as
of September 30, 2011.
A steep reduction in management expenses (to 25% from 37%)
claims outgo and an increase in premium income across segments has enabled the
company to post 57 percent growth in net profit for the first half of the current
fiscal. United India earned Rs.803 crore from its investments during the first six
months of the 2011-12. The market value of the company's investments at the end
of second quarter stood at Rs.15,803 crore.

OBJECTIVES
The basic objective of insurance system is to compensate for losses
incurred, the motor and personal injury insurance sector have a textually key role
in ameliorating the conveniences of those causalities and crashes not avoided.
5

CHAPTER-II
CORPORATE PROFILE
United India Insurance company limited was incorporated as a
company on18th February 1938. General insurance business in India was merged
with United India Insurance company limited. After nationalization United India
has grown by leaps and bounds and has 18300 work force spread across 1340
offices providing insurance cover to more than 1 crore policy holders. The
company has variety of insurance products to provide insurance cover from
bullock carts to satellites.

MISSION

To provide insurance protection to all.

To ensure customer satisfaction.
To function on sound business principles
To help minimize national waste and to help develop the
Indian company.

VISSION
The most preferred insurer in India with global footprint &
recognition.
Trusted brand admired by all stakeholders
The best in class customer service provider leveraging
technology at multiple channels
The providers of a broad range of innovative products to meet
the needs of all customer segments
Great place to work with highly motivated and empowered
employees
Recognized for its contribution to the society

COMPANY PROFILE

Name of company

:United India Insurance

Location

:Udumalpet

Type

: Wholly owned by Govt

Industry

: General Insurance

Year of commencement

: 1938

Incorporation

: 18 February 1938

Net worth

: Rs.4,587 crores

Employees

: 20

Divisional manage

: A. Sabibulla

Administrative officer

: S. Vicky kumar

General manager

: M.Thirumalaisamy

General manager

: N. Rajagopalan

Phone

: 04252-223752

Email

: asabibullah@uiic.co.in

ORGANISATION STRUCTURE

HEAD OFFICE

Regional office

Learning office

Divisional office

Branch office

Micro office

ADMINISTRATION STRUCTURE

DIVISIONAL MANAGER

Deputy manager

Assistant manager

Administrative officer

Agents

IMPORTANCE OF INSURANCE
Assets are insured, because they are likely to be destroyed or made
non-functional through an accident occurrence. Such possible
occurrences are called perils. Fire, floods, breakdowns, lighting,
earthquakes, etc., are perils. The damage that these perils cause to the
asset is the risk that the asset is exposed to.
The risk only means that there is a possibility of loss or damage. It
may or may not happen. There has to be an uncertainty about the risk.
Insurance is done against the contingency that it may happen.
Insurance is relevant only if there are uncertainties. If there is no
uncertainties about occurrence of an event, it cannot be insured
against.

Proposal form contains the following items

Name and address of the proposer

Brief description of the property insured :

Sum insured

Period of insurance

Risks cover

Rate of premium

Premium

Serial number of the cover not

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PREMIUM
Once the proposal or the risk inspection report is received the
rates, terms and conditions are quoted to the proposal.Sec.64 vb of
the insurance Act states that no risk can be assumed unless and
until the full premium is received in advance.
This full premium must be received by the insurance company by
cash or cheque and a receipt must be drawn. After receipt of full
premium from the insured the risk is accepted by the insurance
company by an acceptance cum receipt.

Document contains the following details

Policy no.

Period of insurance

Agent/dec.officer code

Policy issuing office details

Name of insured and address

Property covered

Perils covered

Sum insured

Premium charged

Service tax

Total amount received

Details of cheque

Signature of company official

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CHAPTER-III
VARIOUS TYPES OF INSURANCE POLICIES
TYPES OF INSURANCE

Motor Insurance
Industrial Insurance
Marine Insurance
Miscellaneous Insurance
Liability Insurance
Fire Insurance

MOTOR INSURANCE
The Motor Insurance forms predominant portion of the
Miscellaneous Portfolio of the Company. With the number of
vehicles plying on the roads on the increase, there has been a
quantum increase in premium income under this class of
business.
The Motor Insurance business is fully tariffed and the rates of
premium and the scope of cover are Standardise.
The Company incurred loss in" Motor Insurance in all the years.
There were heavy losses under Third Party Insurance in all the
years ranging from 200 to 316 percent. Responding to a query
about heavy losses in Motor Insurance, the Ministry stated
(August 1995) that the same was also brought out in the report
of Malhotra Committee. The Company incurred loss in" Motor
Insurance in all the years. There were heavy losses under Third
Party Insurance in all the years ranging from 200 to 316 percent.
Responding to a query about heavy losses in Motor Insurance,
the Ministry stated (August 1995) that the same was also
brought out in the report of Malhotra Committee. In spite of the
continuous losses suffered by the Company in Motor business, it
has not contemplated loading of premium for vehicles having

12

adverse claim experience with a view to increasing the premium

base.

INDUSTRIAL INSURANCE
Industrial insurance is for work related injuries and illnesses,
and pays for approved medical, hospital, and related services
essential to an injured workers treatment and recovery.
It also provides partial wage replacement for injured workers
who are temporarily unable to work.
An insured which procured the insurance of any risk or risks by
use of the services of a full-time employee acting as an
insurance manager or buyer.

MARINE INSURANCE
In marine insurance cover notes are normally issued when
details required for the issue of policy such as name of the
steamer, number of packages or exact value etc., are not known.
Certificate of insurance is issued to provide evidence of cover on
shipments insured under cargo open cover or floating policies.

MISCELLANEOUS INSURANCE
The Motor Insurance All types of General Insurance
business which do not fall under Fire or Marine Insurance business, are covered
under the 1category "Miscellaneous Insurance". The different types of
miscellaneous insurance covered by the Company are

Motor Insurance
Engineering Insurance
Personal Accident Insurance
Burglary Insurance
Mediclaim Insurance
Cash-in-transit Insurance
Workmen's Compensation Insurance and

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 Other classes of Accident Insurance such as

Bankers' Indemnity, Jewelers' Block Policy
and Fidelity Guarantee Insurance.

LIABILITY INSURANCE
Liability insurance does not have direct policy-holder. Insurer does
not deal with policy-holder but deals with third parties.
Each liability policy has different nuances in its wording.
Liability insurance is a part of the general insurance system
of risk financing to protect the purchaser (the "insured") from the
risks of liabilities imposed by lawsuits and similar claims. It protects
the insured in the event he or she is sued for claims that come within
the coverage of the insurance policy. Originally, individuals or
companies that faced a common peril, formed a group and created a
self-help fund out of which to pay compensation should any member
incur loss (in other words, a mutual insurance arrangement). The
modern system relies on dedicated carriers, usually for-profit, to offer
protection against specified perils in consideration of a premium.
Liability insurance is designed to offer specific protection against
third party insurance claims, i.e., payment is not typically made to the
insured, but rather to someone suffering loss who is not a party to the
insurance contract. In general, damage caused intentionally as well as
contractual liability are not covered under liability insurance policies.
When a claim is made, the insurance

FIRE INSURANCE
According to section 2 of the Insurance Act, 1938 defined as an
agreement between the insurers and the insured whereby the
insurers having received premium, undertake to make good the
financial loss, (subject to the sum insured) suffered by the insured
as a result of damage or destruction of the insured property by fire
or other specified perils, during a stated period.
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 Fire insurance contracts are governed by the general law of

contract as embodied in the Indian contract Act, 1872, and a fire
insurance contract must have the following essential ingredients in
order to make it enforceable at law:
Offer and acceptance
Consideration
Agreement between the parties
Legal competence of the parties and
Legality of the contract

In addition, fire insurance is governed by basic principles evolved

under common law, there are
Utmost good faith

Insurable interest
Indemnity
Subrogation
contribution

STANDARD FIRE & SPECIAL PERILS INSURANCE POLICY

(MATERIAL DAMAGE)
The perils which are covered by an endorsement of the basic fire
policy are collectively called special perils.
It will be observed that most of the perils are connected directly or
indirectly with fie.
The other perils such as storm,flood,etc.are added to the fire
policy by custom as it was found convenient to provide cover in
respect of all the material damage perils under one policy.

15

Fire
Excluding destruction or damage caused to the property insured by
Its own fermentation, natural heating or spontaneous combustion.
Its undergoing any heating or drying process.
Burning of property insured by order of any public authority.

Lightning
Explosion/Implosion
Excluding loss, destruction of or damage
To boilers (other than domestic boilers), economizers or other
vessels, machinery or apparatus(in which steam is generated) or
their contents resulting from their own explosion/implosion,
Caused by centrifugal forces.

AIRCRAFT DAMAGE
Loss, destruction or damage caused by aircraft, other aerial or
space devices and artides dropped there from excluding those
caused by pressure waves.

Riot, Strike and malicious damage

Loss of or visible physical damage or destruction by external vident
means directly caused to the property insured but excluding those
caused by
Total or partial cessation of work or the retardation or interruption or
cessation of any process or operations or omissions of any kind.
Permanent or temporary dispossession resulting from confiscation,
commandeering, requisition or destruction by order of the
Government or any lawfully constituted authority.

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Storm, cyclone, typhoon, hurricane, tornado, flood and

inundation
Impact damage
Loss of or visible physical damage or destruction caused to the
property insured due to impact by any rail/road vehicle or animal by
direct contact not belonging to or owned by
The insured or any occupier of the premises or
Their employees while acting in the course of their employment.

BURSTING AND/OR OVERFLOWING OF WATER TANKS,

APPARATUS AND PIPES
MISSILE TESTING OPERATIONS
LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATION
Defects in construction known to the insured.

Location of Risk
The proposer shall describe all locations where the properties are
built or installed or stored or kept at the inception
Any change of location of risk shall be covered on intimation of
such change.
Change of ownership in the insured property shall be intimated so
that the new owner may be covered be means of suitable
endorsement.
Any material change in the location of risk, trade or manufacturing
activities shall be intimated to the insurer so that the changes are
endorsed to offer continuous cover.
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Period of Coverage
Fire Policy is an annual policy, generally, renewable each year.
Long Term policy (for a minimum period of three years) can be
considered for covering "dwellings" only with suitable discounts in
premium.
Cover for STFI and RSMTD perils can be considered during
currency (where they are deleted at inception by choice) in special
circumstances.
Policy can be cancelled at any time during the currency with
suitable refund of premium for the unexpired period.

GENERAL EXCLUSIONS

Spontaneous combustion, fermentation

Burning of property by order of any Public Authority
Its undergoing any heating or drying process
Explosion of boilers(other than domestic boilers)
Total or partial cessation of work
Permanent or temporary dispossession by order of Government
Burglary, house breaking, theft
Normal cracking or settlement or bedding down of new structures
War or war like operations
Defective design, workmanship, defective materials
Pollution or contamination
Over-running, short circuit etc.
Earthquake
Spoilage loss

GENERAL CONDITIONS
This policy shall be voidable in the event of mis representation,
mis-description or non-disclosure of any material particular.
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 All insurances under this policy shall cease on expiry of seven days
from the date of fall or displacement of any building or part thereof
or of the whole or any part of any range of buildings or of any
structure of which such building forms part
On the happening of loss or damage to any of the property insured
by this policy, the company may
Enter and take and keep possession of the building or premises
where the loss or damage has happened.
Take possession of or require to be delivered to it any property of
the insured in the building or on the premises at the time of the loss
or damage.
Keep possession of any such property and examine, sort, arrange,
remove or otherwise deal with the same.
Sell any such property or dispose of the same for account of whom
it may concern.
If the claim be in any respect fraudulent, or if any false declaration be
made or used in support thereof or if any fraudulent means or devices
are used by the insured or any one acting on his behalf to obtain any
benefit under the policy or if the loss or damage be occasioned by the
willful act, or with the connivance of the insured, all benefits under
this policy shall be forfeited.
Every notice and other communication to the company required by
these conditions must be written or printed.
If at the time of any loss or damage happening to any property
hereby insured there be any other subsisting insurance or
insurances, whether effected by the insured or by any other person
or persons covering the same property, this company shall not be
liable to pay or contribute more than its rateable proportion of such
loss or damage.

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FIRE HAZARDS AND FIRE PREVENTION

The tariff system of fire insurance rating is based on
classification of risks, which in turn is based on assessment
of fire hazards and loss experience in each class.
The term Fire hazards refers to not only the causes of
fires (sometimes called originating or inception risk) but
also those circumstances which increase the probability of a
fire occurring, or which enable fires ones started to spread
and increase the loss (contributory risk).
Besides originating and contributory factors there are other hazards
which result in further losses. some examples are
Collapse of intermediate floors, roof and walls
Breakage and spoilage of materials, plant, machinery etc.,
Spoilage through smoke, heat and water
ORGINATING HAZARDS

Electrical
Smoking
Friction
Overheated materials
Hot surfaces
Burner flames
Cutting and welding
Mechanical sparks
Molten substances

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RISK COVERED UNDER STANDARD FIRE & SPECIAL PERIL

POLICY
Fire, lightning, explosion/implosion, aircraft damage,
riot, strike and malicious damages, storm, cyclone-tempest and flood &
inundation, impact damage by rail/road vehicle or animal, subsidence
and landslide, bursting and / or overflowing of water tanks, bush fire
etc.,

Tariff for dwellings, offices, hotels, shops etc., located outside the
compounds of industrial risk
Description
Dwellings, places of worship, libraries,
museums, school, college, hospital
including x-ray and other diagnostic
clinics, office premises, meeting rooms,
auditoriums, planetarium, mess, houses,
club etc.,
Cafes, restaurants, hotels.
Shops dealing in hazardous goods as per
the list arms & vehicle
Showrooms including sales and service
petrol/diesel.

21

Building
rate per mille.

Contents
rate per mille.

0.35%

0.35%

1.26%

1.96%

1.26%

2.66%

FIRE POLICY TARIFF FOR INDUSTRIES/MANUFACTURING

RISK

Description of risk

Rate
per mile.

Biscuit factories

2.10

Aluminium, zinc, copper factories

Printing press
Rubber factories
Saw mills
Sugar factories
Textile mills
Weigh bridges
Fire works manufacturing
Poultry farms

1.05
1.75
2.10
3.85
1.05
1.40
1.05
3.85
1.05

Electronic goods manufacturing

1.57

Flour mills

2.45

Fertilizer manufacturing

1.57

Plastic goods manufacturing

1.75

Oils mills

1.40

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FIRE PROTECTION SYSTEM

Fire prevention has been dealt with at appropriate places.
Fire prevention has another dimension viz. loss reduction
through fire detection and fire extinguishment, which
together constitute fire protection.
When fire is detected in its early stages, trained personnel
can easily extinguish it using first aid appliances.
Automatic fire detection systems can thus help minimize
losses.
These detectors are actually activated by smoke, radiation
or heat.

The different fire extinguishment systems are as follows.

First aid appliances
These are portable extinguishers, buckets and internal
hose reels designed for use on fire in the early stage
External appliances
These are mobile mechanically driven fire engines and
trailor pumps and hydrant system installed in the
compound.
Hydrant system involve the provision of adequate water
supplies along with piping, hoses, nozzles etc., by means
of which water can be brought to the site of fire.

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Sprinkler Installation
This is a device designed for automatic detection and
extinguishment of a fire by the use of water in its initial
stages.
Its operation simultaneously causes an alarm bell to
sound.
Special Extinguishment Systems
Automatic medium and high velocity water spray
systems. These are used to protect special hazards e.g. for
extinguishing fire in open tanks of certain high flashing
flammable liquids and for protecting storage tanks
containing low flashing hazardous liquids or gases against
heat form an exposure fire.
Carbondioxide extinguishers are used chiefly for fires
electrical equipment or flammable liquids and are not
suitable for fire in ordinary combustibles.
Dry chemical extinguishers are recommended for
flammable liquid and electrical fires (but excluding
delicate electrical equipment such as telephone switch
boards, computers erc.,)
Foam systems are recommended for fires in flammable
liquids of the oil and gasoline types. They are not suitable
for fires in ordinary combustibles or in electrical
equipments.
Mutual aid scheme operates where there are 2 or more
industrial plants, warehouses are public utilities.
These use their resources to help each other when fire
occurs in one of the members premises.
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The fire package cover includes the following named perils

Fire and explosion

RSMTD
Earthquake, fire and shock
STFI
Subsidence and landslide/rockslide
Subterraneous fire
Aircraft damage
Impact damage

Entire property like pipelines, pumping stations, gas

compressor stations, oil collecting and gathering stations, booster
stations etc. (excluding intermediate storage tanks) should be insured.
WARRANTIES FORMING PART OF THE POLICY
CLASS OF CONSTRUCTION

Warranted that the buildings are not of kutcha construction

consisting of walls and / or roots of wooden planks /
thatched leaves and / or grass /of any kind / plastic cloth /
asphalt cloth / canvas / tarpaulin / and the like.
STOCKS LYING ADGACENT IN OPEN

Warranted that policy covers stocks lying in open adjacent to

the insureds premises.
STOCKS STORED IN SHOPS

Warranted that storage of following materials should not

exceed 5% of the total stock.
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 Celluloid goods, coirloose, crackers and fire works,

explosives of any kind, hay/straw, jute loose, matches,
methylated spirit, nitro-cellulose plastics, paints with
inflammable base having flash point below 32*C other than
in sealed tins or drums, varnishes having flash point below
32*C other than in sealed tins or drums, disinfectant liquids
and liquid insecticides other than in sealed tins or drums,
vegetable fibers of any kind including rayon fiber
SILENT RISKS
Warranted that no manufacturing activity is carried out in
the insured premises for consecutive period of 30days or
more.
CHEMICAL MANUFACTURING
Warranted that no materials having flash point below 32*C
are used / stored in the premises.
CIGRATTE FILTER MANUFACTURING
Warranted that no solvents having flash point below 32*C
are used / stored in the premises.
CINEMATOGRAPH LABORATORY
Warranted that no film processing is carried out in the
premises.
DETERGENT MANUFACTURING
Warranted that no sulphonation process is carried out in the
premises.

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MAN MADE FIBRE / YARN MANUFACTURING

Warranted that no manufacturing process using cellulose is
carried out the premises.
METALLISING WORKS
Warranted that metalizing operations other than metals is not
done in the process.
PAINT FACTORIES
Warranted that other than water based paint manufacturing
is not carried out in the premises, warranted that nitrocellulose based paint manufacturing is not carried out in the
premises.
ROPE WORKS
Warranted that rope works using plastics is prohibited in the
premises.
TINY SECTOR INSUSTRIES
Warranted that value at risk shall not exceed Rs.10 lakhs
towards building, machinery and stocks and other contents
belonging to the insured.
GODOWN AND WAREHOUSES
Warranted that the presence of hazardous goods of a higher
category does not exceed 5% of the total value.

27

FUTURE PLANS
Company is waiting to get approval from
Regulator IRDA to introduce three products under the health portfolio.
Logging an average business growth of 27 percent in 2011-12, India's leading nonlife insurer United India Insurance Company Ltd declared that it is targeting a
gross premium of Rs.10,000 crore in fiscal year 2013-14 and sizeable reduction in
underwriting losses - premium less claims outgo - to Rs.900 crore from last year's
figure of Rs.1,760 crore.
The company would focus the retail, and small and
medium enterprises (SME) segments for growth. It is in the process of adding
further to its 48,000 agents and also to open around 100 one-man offices across the
country. Currently, there are 400 such micro-offices bringing in around Rs.275
crore premium.
Company is waiting for approval from the insurance
regulator IRDA to introduce three products under the health portfolio

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CONCLUSION

The company providing variety of products to the people which

start from insurance cover for pedal cycle to satellites. Their social welfare
policies are really a protecting hand to backward and typical middleclass people.
People in India receiving a lot of advantage from those policies which offering tieups with Govt.of India. The company is much interested national development
that we can understood by analyzing their social and rural insurance policies.
The study has enabled to arrive at the conclusion regarding
product portfolio. Majority of the customers are satisfied with the products offered
by this organization. Any effort in the part of the company to develop the product
portfolio will definitely improve the present position. I hope in the coming days
they would be the largest insurer in India by all means.

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DECLARATION

R.POORNIMA (12-BI-33) hereby declare that An Institutional Training

report in UNITED INDIA INSURANCE CO.LTD. Udumalpet-642 126.submitted to NGM
College Pollachi, in partial fulfillment of the requirements for the award of degree of
BACHELOR OF COMMERCE is a record of original work done by me, during 2013-2014,
under the supervision and guidance of Ms. M.JeevaM.Com,M.Phil,PGDCA,M.C.A., Head,
Department of Commerce, Nallamuthu Gounder Mahalingam College, Pollachi.

Place

:Pollachi

Date

Signature of the Candidate

(R. Poornima)

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ACKNOWLEDGEMENT

I wish to express my gratitude to Dr. B.K. Krishnaraj Vanavarayar,

B.com.,B.L., President and Thiru. M. Balasubramanian, M.Com., M.B.A., the
secretary, Dr. P. Badri Sriman Narayanan.,M.A.,MSc.,M.Phil.,Ph.D.,
Principal, Nallamuthu Gounder Mahalingam College, Pollachi, for giving me the
permission to undergone the practical training in a well established concern.
I whole heartedly thank Prof. M.Jeeva, M.com, M.Phil, PGDCA,
M.C.A., Head of the Department of Bcom.Banking and Insurance, Nalla
Muthu Gounder Mahalingam College, Pollachi, for her encouragement in this
training.
I express my sincere gratitude to M.Jeeva, M.com, M.Phil, PGDCA,
M.C.A., Department of Bcom.,B.I.,for the Project Guide, for her immense
support in the preparation of this report.
I wholeheartedly thank Mr.A.SABIBULLA, Divisional Manager,
United India Insurance Co.LTD., for permiting me to undergone the Institutional
Training in their esteemed concern.
My sincere thanks to all the teachers in the Department of B.com.B.I.,
Nallamuthu Gounder Mahalingam College, Pollachi, for their constant help and
brilliant ideas for the preparation of this report.

(R. Poornima)

31