ICICI Lombard

ICICI Lombard GIC Ltd. is a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited with 74:26 shares respectively. It is the largest private sector general insurance company in India. The company had a Gross Written Premium (GWP) of Rs. 3,694.8 crore for the year ended March 31, 2010.

Contents

• - Corporate Profile
• - Company History
• - Company Founder(s)
• - Company Milestones
• - Management Team
• - Products & Services
• - Awards & Recognition
• - Contact Details
• - Private Car Insurance
• - Two Wheeler Insurance

Over 44,00,000 policies have been issued and over 62,00,000 claims have been settled. A claim disposal ratio of 96% (percentage of claims settled against claims reported) was achieved by the company as on March 31, 2010.
A domestic rating of ‘iAAA’ has been assigned to ICICI Lombard for the period 2010-2011, the fourth consecutive year, by ICRA (Investment Information & Credit Rating Agency Limited) for having the highest claim paying ability and a fundamentally strong position in the industry. The insurance giant has carved a niche for itself in the service sector by optimally meeting customers’ expectation. According to J.D. Power Asia Pacific, the company ranks the highest in customer satisfaction among 11 auto insurance providers in India.
ICICI Lombard issues instant policy and renewals through its website www.icicilombard.com for retail insurance products such as Car Insurance, Two Wheeler Insurance, Travel Insurance, Health Insurance and Home Insurance. Multiple payment options are available on the website including internet banking, cash card, debit card and credit card.

Company History

Established on October 30, 2000, the ICICI Lombard General Insurance Company commenced general insurance business after obtaining the regulatory approval on August 3, 2001 from Insurance Regulatory and Development Authority (IRDA). Since then, the company has launched a variety of insurance products along with a host of innovative and easily accessible services for its customers. For instance, it became one of the earliest companies to adopt online policy selling which has evolved to include numerous options and convenient methods of policy comparison and payment.
It also became a pioneer in introducing Weather insurance in India in 2003-04, which has brought relief to millions of farmers across the nation and covers 30 varieties of crops.

Company Founder(s)

ICICI Bank Limited

The ICICI Bank, with its headquarter in Mumbai, is the second largest financial services company in India and provides a host of banking products and services to its customers in the corporate sector and the retail customers. It operates through 2,539 branches and 7,037 ATM (Automated Teller Machines) in 19 countries across the globe. With its well connected network of delivery channels and specialized subsidiaries, it caters to customers in the fields of insurance, investment banking and asset management.
The bank’s equity shares are listed on Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). It also has American Depositary Receipts (ADRs) which are listed on the New York Stock Exchange (NYSE).

Fairfax Financial Holdings Limited

Fairfax Financial Holdings Limited was founded in 1985 and is currently headquartered in Toronto, Canada. It has various subsidiaries through which it is engaged in reinsurance and investment management and property and casualty insurance. With an objective of earning a high rate of return on its invested capital, the financial services holding company combines disciplined underwriting with asset investment on a total return basis. It also seeks to build and enhance long term value for shareholders of the company.
The subsidiaries operate in an autonomous manner with separate management teams displaying the decentralized structure of the company. A wide portfolio of risk related products are offered by the Fairfax subsidiaries to all kinds and classes of customers across the world.

Company Milestones

The ICICI Lombard General Insurance Company has since its incorporation overcome numerous milestones apart from winning various awards and recognitions. After its commencement of business in August 2001, it had achieved break-even levels in the first full year of its operations in 2003-04, a feat achieved by a few private sector general insurance players at the time.
By 2003-04, it achieved underwriting breakeven in the second year of operations. On September 7, 2004, it became the very first general insurance company to get an ISO certification. In November 2005, the company crossed the Rs. 1,000 crore mark GWP mark. On March 31, 2006, it became the largest private sector general insurance company.
ICICI Lombard is also credited for its strong Disaster Response Mechanism during July 2005, when Mumbai was hit by floods and India saw the largest insurance loss till date. The company deployed specialized teams for quick assessment of loss and enabled fast processing of claims to ensure relief to the people.

Management Team

ICICI Lombard boasts of a management team comprising highly experienced and accomplished professionals. Specialized in fields of accounting, finance, investment and banking, corporate restructuring, taxation and law, strategies and merger & acquisitions, these eminent personalities have helped the company create and maintain a strong brand presence in the Indian insurance and auto industry. The management team consists of the following personnel:

• Chanda Kochhar, Chairperson
• R. Athappan, Director
• B.V. Bhargava, Director
• Dileep Choksi, Director
• N.S. Kannan, Director
• S. Mukherji, Director
• Chandran Ratnaswami, Director
• M.K. Sharma, Director
• H.N. Sinor, Director
• Bhargav Dasgupta, Managing Director & CEO
• Alok Kumar Agarwal, Executive Director

Products & Services

ICICI Lombard General Insurance Company Ltd. offers a multitude of insurance products such as health insurance, travel insurance, motor insurance, home insurance and student medical insurance. The company endeavours to provide its customers with products that suit their exact requirements and hence have numerous options and variations with each kind of insurance. The benefits and features with each product have been designed carefully to offer the ideal coverage desired by customers.
Motor insurance comprises the following products:

• Car Insurance
• Two-wheeler Insurance
• Passenger Carrying Vehicle Insurance
• Goods Carrying Vehicle Insurance

Awards & Recognition

ICICI Lombard Auto Insurance currently holds the status of being the highest rated insurance provider among 11 top auto insurance providers in India according to a study conducted by J.D. Power Asia Pacific. J.D. Power Asia Pacific is an organization which studies the customer satisfaction level for companies in the auto industry. Apart from that, ICICI Lombard has won numerous awards over the years for its unique products and services offered to customers.
Following are some of its achievements:

• The Golden Peacock- Eco Innovation Award of 2009 for weather insurance
• The Customer and Brand Loyalty award in the ‘Insurance Sector - Non-Life’ at the 3rd Loyalty Awards, 2010
• Awarded the ‘General Insurance Company of the Year’ at the 11th Asia Insurance Industry Awards
• Won the NDTV Profit Business Leadership Award 2007
• Adjudged as the most Customer Responsive Company in the Insurance category at the Economic Times Avaya GlobalConnect Customer Responsiveness Award 2006
• The Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006

Contact Details

Mailing Address

Customer Support,
ICICI Lombard General Insurance Co. Ltd.
401-402, Interface Bldg; No.11,
Link Road, Malad (West),
Mumbai – 400064

Call Toll Free: 1800 2666
Email Address: customersupport@icicilombard.com
Website: https://www.icicilombard.com/

Private Car Insurance

With ICICI Lombard’s car insurance, customers can avail coverage for all kind of insurable risks with a number of benefits and options to satisfy their requirements. These products have been designed after careful analysis and study of the all possible situations that may arise while owing a car in India and offer utmost convenience to the customers in terms of access to quick and efficient services, as well as meeting their expectations optimally.
For policy wording, go to https://www.icicilombard.com/content/ilom-en/Downloads/PolicyWording/2009/private-car-package-policy.pdf

Key Benefits

ICICI Lombard offers a list of unique benefits that customers enjoy through its car insurance products. Among the key benefits are efficient online facilities such as 24x7 access to a digitally signed policy issued immediately on application, cashless claims at over 2700 garages in the ICICI insurance network and optional personal accident cover of upto Rs. 2,00,000 for co-passengers. A doorstep surveyor facility is also offered to customers to enable utmost convenience.
Other benefits include the following:

• No Claim Bonus (NCB) on renewals if no claim has been made during the previous policy period.
• Coverage of towing charges up to Rs. 1,500 in case of accidental damage
• Transfer of No Claim Bonus (NCB) benefits when changing motor insurance policy from other company to ICICI Lombard GIC Ltd.
• 5% discount for recognised Automobile Association’s Membership
• 2.5% discount on insurance premium if the vehicle is equipped with ARAI approved anti-theft device
• Add-on covers for items such as fog lights, music system and seat covers
• Online buy and pay options on instalment basis without extra charges

Coverage

The car insurance policy provided by ICICI Lombard covers all possible insurable risks and losses to customers. These include coverage against natural calamities such as earthquake, flood, typhoon, hurricane and storm along with fire, explosion and self-ignition. Various man-made calamities are also covered in the policy including accident by external means, any damage in transit by road, rail, inland waterway, lift, elevator or air, as well as theft, riot, strike, malicious act and even terrorist activity. The customers may also avail as per their requirement, a personal accident cover of upto Rs. 2,00,000 for the driver of the vehicle and the co-passengers. Since the third party insurance is mandatory by the law in India, the policy also covers any legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property.

What is not covered?

There are a few exceptions to the coverage by the insurance policy which include wear and tear of the vehicle and its parts, ageing of the vehicle, depreciation, breakdowns, damage during illegal vehicle use and to non-licensed person and person driving under the influence of drugs or liquor and loss/ damage due to war, mutiny or nuclear risk. Wear and tear of consumables such as tyres and tubes, are also an exception to the coverage unless these are damaged at the same time as the car, in the event of which the company will be liable to pay 50% of the cost of replacement.

Sum insured

As per the guidelines of the India Motor Tariff Act, every vehicle in India is insured at a fixed value called the Insured’s Declared Value (IDV) which is calculated on the basis of the manufacturer’s listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. In case, the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer’s listed selling price, the actual value of this item (after depreciation) is added to the sum insured over and above the IDV.
In case, the vehicle is fitted with bi-fuel system such as Petrol/ Diesel and CNG/ LPG, permitted by the concerned RTO, the CNG/LPG kit fitted to the vehicle must be insured separately at an additional premium of 4% on the value of such kit. The fitting of such a kit must be specifically declared in the proposal form at the time of insurance application.

Two Wheeler Insurance

ICICI Lombard provides its customers with a comprehensive Motor Insurance policy for two-wheelers which protects them against damage caused by natural as well as man-made calamities. The two-wheeler policies offered include coverage of own damage and personal accident & liability. These policies address the risks involved during the ownership of a two wheeler in India where a huge population prefers two wheeler vehicles such as motorcycles and scooters.
For policy wording, go to https://www.icicilombard.com/content/ilom-en/Downloads/PolicyWording/2009/two-wheeler-package-policy.pdf

Key Benefits

ICICI Lombard offers a list of unique benefits that customers enjoy through its two-wheeler insurance policy. Among the key benefits are efficient online facilities such as 24x7 access to a digitally signed policy issued on application, cashless claims at over 2700 garages in the ICICI insurance network and optional personal accident cover of upto Rs. 1,00,000 for co-passengers. A doorstep surveyor facility is also offered to customers to enable utmost convenience and satisfaction.
Other benefits include the following:

• No Claim Bonus (NCB) on renewals if no claim has been made during the previous policy period.
• Transfer of No Claim Bonus (NCB) benefits when changing motor insurance policy from other company to ICICI Lombard GIC Ltd.
• 5% discount for recognised Automobile Association’s Membership
• 2.5% discount on insurance premium if the vehicle is equipped with ARAI approved anti-theft device
• Avail add-on covers for electrical and non-electrical items.
• Online buy and pay options on instalment basis without extra charges

Coverage

The car insurance policy provided by ICICI Lombard covers all kind of possibly insurable risks and losses to customers. These include coverage against natural calamities such as earthquake, flood, typhoon, hurricane and storm along with fire, explosion and self-ignition. Various man-made calamities are also covered in the policy including accident by external means, any damage in transit by road, rail, inland waterway, lift, elevator or air, as well as theft, riot, strike, malicious act and even terrorist activity.
The customers may also avail as per their requirement a personal accident cover of upto Rs. 1,00,000 for the driver of the vehicle and the co-passengers. Since the third party insurance is mandatory by the law in India, the policy also covers any legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property.

What is not covered?

There are a few exceptions to the coverage by the insurance policy which include wear and tear of the vehicle and its parts, ageing of the vehicle, depreciation, breakdowns, damage during illegal vehicle use and to non-licensed person and person driving under the influence of drugs or liquor and loss/ damage due to war, mutiny or nuclear risk. Wear and tear of consumables such as tyres and tubes are also an exception to the coverage unless these are damaged at the same time as that of the car, in the event of which the company will be liable to pay 50% of the cost of replacement.

Sum insured

As per the guidelines of the India Motor Tariff Act, every vehicle in India is insured at a fixed value called the Insured’s Declared Value (IDV) which is calculated on the basis of the manufacturer’s listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. In case, the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer’s listed selling price, the actual value of this item (after depreciation) is added to the sum insured over and above the IDV.