SGPC’s GURU NANAK INSTITUTE OF MANAGEMENT STUDIES
Matunga (E), Mumbai – 400 019
Summer Internship Project Report
Titled
“Evaluation of RTO Agents In The Vehicle Insurance With
Respect To
Vibgyor Advisors Private Limited”
In the partial fulfillment of the Degree of
MMS
By
Mr. Govardhane Aditya Tanaji
[Class-MMS, Division-A & Roll No-17]
Semester III & Specialization: Finance
Batch: 2020-22
Under the Guidance of
Company Guide
Ms. Shanti Pandey
(Zonal Head, Vibgyor Advisors Pvt Ltd.)
Faculty Guide
Prof. Akansha Vij
(Project Guide)
2020-22
1
2
SGPC’s GURU NANAK INSTITUTE OF MANAGEMENT STUDIES
Matunga (E), Mumbai – 400 019
CERTIFICATE
This is to certify that Mr. Aditya Tanaji Govardhane, a student of Class: MMS-A, Semester:
III, bearing Roll No. 17, has successfully completed the project titled, “Evaluation Of RTO
Agents In The Vehicle Insurance With Respect To Vibgyor Advisors Pvt Ltd”, in the partial
fulfillment of the Degree of MMS.
Place: Mumbai
Date:
Name of the Project Guide: Prof. Akansha Vij
Signature of the Project Guide:
Signature
(Dr. D.Y. Patil)
Director
Institute’s seal:
3
STUDENT DECLARATION
I hereby declare that the project titled “Evaluation Of RTO Agents In The Vehicle
Insurance With Respect To Vibgyor Advisors Pvt Ltd” is my own work conducted under
the supervision of Prof. Akansha Vij.
I further declare that no part in this project work has been plagiarized without proper
citations and has not formed the basis for the award of any degree, diploma, associateship,
fellowship previously.
Name of Student: Aditya Tanaji Govardhane.
Signature of the Student:
4
ACKNOWLEDGEMENT
I avail this opportunity to express my sincere, humble and deepest sense of gratitude towards
my Guide Prof. Akansha Vij, for her valuable guidance and tremendous efforts which she
has taken to guide me to the path of success. Her constructive feedback and endless
encouragement always inspired to work hard on the topic. Her determination and ambition to
achieve goal in life is really fascinating and inspired me. I am also grateful to the Company
Guide Ms. Shanti Pandey - Zonal Head, Vibgyor Advisors Pvt Ltd. for her guidance and
suggestion which has helped me during this Work. I wish to thank my friends for their
suggestion and co-operation in completion of this project. No one can successfully complete
work without blessings and wishes, so we thank and dedicate it to our loving parents for their
love and inspiration. Above all by grace of God we would achieve it successfully.
Name of the Student: Aditya Tanaji Govardhane
5
TABLE OF CONTENTS
SR.NO
TOPIC
1
Executive summary
2
Introduction
3
Industry overview
4
Company overview
5
Project Details
6
Data analysis and interpretation
7
Recommendation and findings
8
Key learning
9
Conclusion
10
Bibliography
11
List of abbreviations
12
Annexure
13
Project progress report
14
Approved project synopsis
6
PAGE NO
LIST OF TABLES/GRAPHS
Sr No.
Title
1
CHART 6.1
2
CHART 6.2
3
CHART 6.3
4
CHART 6.4
5
CHART 6.5
6
CHART 6.6
7
CHART 6.7
8
CHART 6.8
9
CHART 6.9
10
CHART 6.10
Page No.
7
CHAPTER 1
EXECUTIVE SUMMARY
8
1. EXECUTIVE SUMMARY
Insurance is a technique through which a person who is exposed to a potential risk as a result of occurrences
beyond his control passes the financial loss to a third party, in part or in full. The ‘Insured' is the person who
transmits the potential loss, whereas the ‘Insurer' is the one who indemnifies or agrees to compensate the
other party for such possible loss. The Insurer provides the coverage for the potential financial loss for a fee
or a consideration which is called the ‘Premium’.
Everything has advanced to the point where insurance plays a significant role in every field and facet of life
in today's modern society. Insurance is concerned not just with the general public, but also with the nation's
progress.Vehicle insurance is one of the most significant non-life insurance industries in the world. This is
because it is needed by law in the great majority of countries around the world. All motor vehicles must be
registered with the state's department of transportation and carry third-party liability insurance. The advisory
group decides on vehicle tariffs and classifications, as well as the associated hazards.
The financial system of a country has an impact on its economic growth. Investments are an important
aspect of the financial structure because they determine the conditions for economic growth. Continued
investments are necessary to achieve successive growth in a country's economy. Finance is critical to the
growth of every economy.
In this project I have evaluated the role of RTO agents in the vehicle insurance industry with respect to
Vibgyor Advisors Pvt. Ltd. One of the main objective of this project was to understand the business process
followed for RTO agents in Vibgyor Advisors Pvt. Ltd. As secondary data was not available on the internet,
this effort relied on primary data.
9
CHAPTER 2
INTRODUCTION
10
2. INTRODUCTION
Insurance-Mechanism of covering risk
Insurance is a mechanism by which the person exposed to the potential risk, arising out of the
events beyond his control, transfers the financial loss; in part or in full to a third party. The party
which transfers the potential loss is termed as the ‘Insured’ and the party which indemnifies or
undertakes to compensate the other party of such potential loss is termed as ‘Insurer’. The
Insurer provides the coverage for the potential financial loss for a fee or a consideration which
is called the ‘Premium’.
Thus Insurance is a special type of contract between the Insurer (the Insurance Company) and
the Insured (the client) wherein:
a) The client agrees to pay a premium to the Insurance Company. Such premium may be a
fixed amount payable as a single payment or it may be paid as periodical payments.
This will depend upon the type of Insurance and the terms thereof.
b) In lieu of the payment of such premium the Insurance Company agrees to make some
payment to the client or bear the costs of the client due to financial loss incurred on the
occurrence of certain events.
For example, in vehicle insurance, the Insurance Company pays the cost of repairing the
vehicle if it is damaged in an accident.
Types of Insurance
Insurance in India is mainly of two types viz. Life Insurance and Non Life Insurance which is
termed as General Insurance. These are described as follows:
a) Life Insurance:
Under Life Insurance the Insured pays the premium at specified times and in turn the
Insurance Company undertakes to pay the specified fixed amount to the legal heirs in
the event of death of the Insured. Thus life insurance is a mechanism whereby the life
of the Insured is insured.
b) General Insurance:
Insurance other than Life Insurance falls under the category of General Insurance. The
different types of General Insurance are fire, marine, Motor Vehicle, accident and other
types of non life insurance.
11
General Insurance
As explained in the preceding paragraph Insurance Contracts that do not come under the ambit
of Life Insurance are called General Insurance or Non Life Insurance Contracts.
General Insurance comprises of:

Insurance of property against fire, theft etc.

Personal Insurance such as Accident & Health Insurance.

Liability Insurance which covers legal liability arising out of third party claims such as
claim from a person injured in a motor accident etc.

Other types of Insurances such as Credit Insurance, Crop Insurance, etc.
Thus General Insurance provides indemnity against loss arising from damage to property or
assets, expenditure or loss of earning arising from injury to a person, legal liabilities etc.
The factors that distinguish General Insurance from Life Insurance are as follows:
Sr. No. Parameter
Life Insurance
a.
The element of risk is
Risk
General Insurance
the death of a person.
The element of risk is the damage/
loss to a property or an asset.
Comparatively
b.
Tenure
shorter
period
not
extending beyond the useful life of the
Long Period.
asset.
In the event of death The beneficiary would generally be
of
c.
Beneficiary
the
Insured
the the Insured who would also be, in
Beneficiary would be most cases, the owner of the asset.
the Legal Heirs of the
Insured.
d.
Payment of
Premium
Periodical
which
Payments Generally Lump Sum Payment at the
could
be time of taking up the Policy.
quarterly, half yearly
or yearly.
12
Introduction to Vehicle Insurance
Motor Vehicle Insurance, also referred to as ‘Automotive Insurance’, is a contract of Insurance
under which the Insurer indemnifies the Insured, who is the owner or an operator of a Motor
Vehicle, against any loss that he may incur due to damage to the property (i.e. the Motor
Vehicle) or any other person (i.e. Third Party) as a result of an accident.
There are two types of Motor Insurance:
a) Mandatory Motor Vehicle Insurance.
b) Comprehensive Motor Vehicle Insurance.
Classification of Motor Vehicles
For the purpose of motor insurance the motor vehicles are classified into following three broad
categories:
A. Private cars
B. Motor cycles and motor scooters
C. Commercial vehicles, further classified into
i.
Goods carrying vehicles
ii.
Passenger carrying vehicles e.g.
 Motorized Rickshaws
 Taxis
 Buses
iii.
Miscellaneous vehicles e.g.
 Hearses (funeral van)
 Ambulances
 Cinema Film Recording & Publicity Vans
 Mobile Dispensaries etc.
Classification of Parties
In case of motor vehicle insurance the classification of the parties is as follows:
a. The Insured is the First Party
b. The Insurer is the Second Party
c. All other parties are Third Parties
Mandatory Motor Vehicle Insurance
There are situations where an accident caused by Motorist may result into the injury or death of
a third party. Such third party may be a pedestrian walking on the road or who is knocked down
13
by the motor vehicle or a passenger who is travelling in the vehicle. Similarly the motor
accident may also result in the damage to the property of a Third Party.
In the earlier days, such third persons were not able to get any compensation as the motorists did
not have enough resources to compensate them and the insurance policies also did not provide
for the insured to compensate these victims of accidents. This anomaly was removed with the
enactment of Motor Vehicle Act 1988 which provides for mandatory insurance against Third
Party Risks.
Comprehensive Insurance
Under a comprehensive motor insurance policy apart from the coverage of Third Party
Liability various other risks are also covered. Such policy may provide coverage for the
damage to the motor vehicle caused by the following events:

Fire, Explosion, Self-Ignition, Lightning

Burglary/Housebreaking/Theft

Riot & Strike

Earthquake

Flood, Storm, Cyclone, Hurricane, Tempest, Inundation, Hailstorm, Frost

Accidental external means

Malicious Act

Acts of Terror

While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air

Land slide/ Rock slide
These damages caused due to the above events are called ‘Own Damages’. Thus a
Comprehensive/ Own Damage Policy covers both Third Party Liability and Own Damage. It
will be in the interest of the Insured that apart from coverage of third party liability which as
explained earlier is mandatory, maximum possible risks should be covered.
Exclusions from Motor Vehicle Insurance Policy
The following contingencies are generally excluded from Motor Vehicle Insurance Policy:
 Not having a valid Driving License
 Under Influence of intoxicating liquor/ drugs.
 Accident taking place beyond geographical limits.

While vehicle is used for unlawful purposes
14

Electrical/ Mechanical Breakdowns.
Private Cars/ Scooters/ Motorcycles
Rates are based upon the cubic capacity as given by manufacturers, Insured’s Declared Value (IDV),
the Zone of operation and age of the vehicle. The cubic capacity of the vehicle indicates the power of
the engine.
Separate rates apply for cars up to 1000 cc, from 1000 cc – 1500 cc and above 1500 cc and
scooters/motorcycles up to 150 cc,150-350 cc & above 350 cc.
Similarly there are different rates for vehicles in the age groups up to 5 yrs.; 5 yrs. to 10 yrs. and
above 10 yrs.
There are two Zones of operation, Zone A and Zone B, as follows:
Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi & Pune Zone
B: Rest of India.
Note: The rates for Zone A are higher than those for Zone B
Commercial Vehicles
The rating depends upon the Zone of operation, passenger carrying capacity/ gross vehicle weight,
Insured’s Declared Value (IDV) and age of the vehicle.
There are three Zones for commercial vehicles.

Zone A: Chennai, New Delhi, Kolkata and Mumbai

Zone B: All other state capital

Zone C: Rest of India
Personal Accident Cover
There is provision for Compulsory Personal Accident Cover for Owner-Driver of cars and
commercial vehicles of Rs.2.0 Lac and Rs.1 Lac for owner driver of scooters / motorcycles. It covers
Death, PTD (permanent total disability) and PPD (permanent partial disability) only.
15
Extra benefits
All Vehicles

The Third Party premium includes cover for third party property damage in excess of the
required coverage of liability of Rs.6,000/- as per the M.V.Act. In case the insured wants to
get only the liability as per act covered (i.e. Rs.6,000/-) then discount in T.P. premium is
allowed.

Wider legal liability to persons e.g. paid drivers etc. employed in operation and / or
maintenance of the vehicle i.e. under W.C. Act and at common law.

Personal Accident covers for unnamed passengers as per the registered carrying capacity of
the vehicle up to a max. of Rs.2 lac/ person on payment of extra premium.
Private Cars

Extra fittings like radios, tape-recorders, air conditioners etc. (Also applicable to commercial
vehicles).

Reliability Trials and Rallies in India (Also applicable to motor cycles).
Discounts (some examples)

Voluntary excess under Own Damage Section (Applicable to all vehicles).

Membership of recognized Automobile Association (Private cars & motor cycles).

Deletion of Riot, Strike, etc. Earthquake, Flood. (All vehicles).

Special discount for Anti-Theft device approved by AAI (2.5% on O.D. premium max. of
Rs.500).

Special discount of 25% on O.D. premium for vintage cars.
No Claim Bonus
A discount in the premium is allowed at renewal if there is no claim during the policy year for
all vehicles.
1st Year 20%, 2nd Year 25%, 3rd Year 35%, 4th Year 45%, 5th Year 50%.
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RTO
Vehicles play an important role in people's lives. Indians rely on these vehicles to suit their
transportation needs, whether it's a two-wheeler, a car, or cabs. Typically, the vehicle industry is
associated with massive manufacturing factories and appealing showrooms. However, the industry's
back-end management portion frequently goes overlooked.
RTOs are in charge of the majority of the automotive industry's operating components. RTOs are
most commonly connected with driver's license and vehicle registrations but they are also in charge
of a variety of additional responsibilities relating to the complete automotive ecosystem.
Full Form & Meaning of RTO
RTO stands for Regional Transport Office in its full or extended form. Regional Transport Authority
is another name for it (RTA). It's a government-run organisation that keeps track of drivers. It is also
in charge of maintaining the car database. All Indian states and union territories are covered by this
driver and car database. The Ministry of Road Transport and Highways is the RTO's parent agency.
Functions of RTO
The Motor Vehicles Act governs how RTOs operate. Aside from functions connected to driving
licenses, RTO’s are also in charge of vehicle registration, tax collection, vehicle inspection,
compliance with environmental standards, and road safety.
RTO Agent
RTO agent is someone who sells certain automobile insurance policies on behalf of an insurance
company. An RTO Agent would assist consumers in selecting the appropriate motor insurance policy
from among all motor vehicle-related insurance plans, based on their needs.
An RTO agent also performs a major role in various aspects like driving license, vehicle registration,
driving, PUC etc.
17
CHAPTER-3
INDUSTRY OVERVIEW
18
3.INDUSTRY OVERVIEW
3.1 Overview of the Financial services industry
Economic growth of a country is dependent on financial system of that country. Investments are
considered as the crucial part of financial structure as it determines the pre-condition of economic growth.
To achieve successive growth in countries economy continued investments are important. Finance plays a
crucial role in development of economy. The increase in the proportion of savings held in the form of
financial assets relative to tangible assets is directly related with increasing rate of saving.
The financial system consists of the group of institutions in the economy that helps to match one person’s
saving with another person’s investment. It moves the economy’s scarce resources from savers to
borrowers.
When a country saves a large fraction of its income then more resources are available for investment in
capital and higher capital raises the economy’s productivity and it helps individual to increase their
standard of living. But within a country at any given point in time some people will want to save some of
their income for the future while others will want to borrow to finance investment in physical capital. The
financial system consists of those institutions in the economy that help to match one person’s saving with
another person’s investment.

A financial system is referring as a set of institutions, instruments and markets which encourages
savings and channels them to their most efficient use. The financial system is concerned about
money, credit and finance which are intimately related but different from each other.

Indian financial system involves financial market, financial institution, financial instruments and
financial intermediation which involves generation of investment, savings, capital formation and
growth.

According to Robinson, the primary function of the Financial system is “to provide a link between
savings and investment for the creation of new wealth and to permit portfolio adjustment in the
composition of the existing wealth”.

The Indian financial system’s evolution has been interlinked with the countries macro-economic
growth. The financial system of country has faced some variations as in pre-industrial economies
the barter system were used which is transformed to universal banking. Indian financial system
growth and development is broadly classified in different milestones.
19
3.2 INSURANCE INDUSTRY
Risk has an impact on everyone in society in some form. Risk occurs when there is the possibility of
many outcomes, one of which has negative repercussions, such as a financial loss. Individuals,
businesses, and other organisations encounter a variety of risks as a result of their various operations,
and insurance helps to mitigate these risks.
Even if a person does not buy insurance, they may be the beneficiary of insurance acquired by someone
else. As a result, risk and insurance are widespread over the world. Insurance is purchased in the United
States at a higher rate than in any other country, despite the fact that some insurance markets in other
countries are fast expanding. Insurance is a vested public interest industry because of its important and
widespread role in the economy. Every citizen's economic well-being is highly influenced by the
adequacy of their insurance cover and the amount they pay for it. As a result, the government has been
increasingly involved in insurance mandates, provision, and regulation.
Any country's economic development is dependent on the insurance industry. A well-developed
insurance sector encourages economic risk-taking by providing some protection in the case of an
unplanned, loss-causing catastrophe. It also offers much-needed support to family members in the event
of death or illness. Because insurance firms assets under control reflect long-term capital, they also
serve as a pool for long-term projects like infrastructure development.
3.3 STATISTICS
There are 24 life insurance and 34 non-life insurance companies in the Indian market who compete on price
and services to attract customers, whereas there are two reinsurance companies. The industry has been
spurred by product innovation and vibrant distribution channels, coupled with targeted publicity and
promotional campaigns by insurers.
The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. India’s
insurance penetration was pegged at 3.76% in FY20, with life insurance penetration at 2.82% and non-life
insurance penetration at 0.94%. In terms of insurance density, India’s overall density stood at US $78 in
FY20.
According to data from the Insurance Regulatory and Development Authority of India (IRDAI), 25 general
insurance companies recorded a 10.8% increase in their collective premium in January 2021 to Rs.
16,247.24 crore (US$ 2.24 billion) compared with Rs. 14,663.40 crore (US$ 2.02 billion) in January 2020.
In FY21, motor third-party premium increased by 4.4% to Rs. 106.5 billion (US$ 1.4 billion) and is likely to
expand in FY22.
20
Figure 3.1
According to data from the Insurance Regulatory and Development Authority of India (IRDAI), 25 general
insurance companies recorded a 10.8% increase in their collective premium in January 2021 to Rs.
16,247.24 crore (US$ 2.24 billion) compared with Rs. 14,663.40 crore (US$ 2.02 billion) in January 2020.
In FY21, motor third-party premium increased by 4.4% to Rs. 106.5 billion (US$ 1.4 billion) and is likely to
expand in FY22.
In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21 (between April
2020 and March 2021), from US$ 26.49 billion in FY20 (between April 2019 and March 2020), driven by
strong growth from general insurance companies.
In FY21 (until March 2021), premium from new business of life insurance companies in India stood at US$
31.9 billion. In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21
(between April 2020 and March 2021), from US$ 26.49 billion in FY20 (between April 2019 and March
2020), driven by strong growth from general insurance companies.
Figure 3.2
In March 2021, health insurance companies in the non-life insurance sector increased by 41%, driven by
rising demand for health insurance products amid COVID-19 surge.Whereas, in whole insurance industry
the vehicle insurance sector helds the largest part of the sector that is 33.91%
21
Figure 3.3
The market share of private sector companies in the general and health insurance market increased from
47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a market share of
33.8% in FY20.
According to S&P Global Market Intelligence data, India is the second-largest insurance technology market
in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurtech-focused venture investments made in
the country.
Likewise, strong growth in the automotive industry over the next decade would be a key driver for the motor
insurance market. Motor insurance accounted for 32.59% of the non-life insurance premiums earned,
followed by health insurance at 28.9%, in November 2020.
The total benefit amount claimed from private life insurance companies was Rs. 5,725 crore (US$ 780
million), whereas LIC had a total benefit claim amount of Rs. 13,694 crore (US$ 1,866 million) in FY20.
With such a huge base, LIC has performed well to maintain a settlement ratio of 96.69% by number of
policies and 93.45% by benefit amount.
3.4 FINANCIAL SYSTEM
i.
Financial Markets
Financial markets play an important role in allocation of resources and operation of modern
economy. Financial markets help to efficiently direct the flow of savings and investment in the
economy in ways that facilitate the accumulation of capital and the production of goods and
services.
ii.
Financial Institution
22
Financial institutions are types of financial intermediaries. Their role is to collect money from
savers and to invest it in financial assets. The two major types of financial institutions are banks
and insurance companies.
A. Banks
Banks collect deposits from savers and transform them into loans to borrowers. In doing so, they
indirectly connect savers with borrowers. The saver does not have a direct claim on the borrower
but rather has a claim on the bank through its deposit, and the bank has a claim on the borrower
through the loan. Bank also called as a Deposit-taking institution because they take deposits. The
Reserve Bank of India controls and issue supply of the Indian rupee.
B. Insurance Companies
Insurance companies help individuals offset the risks they face. To protect themselves against a
potential loss, individuals and companies buy insurance contracts (also known as policies) that
provide payments in the event that losses occur. They typically pay insurance companies upfront,
non-refundable premiums when they purchase insurance contracts. If the insured risks materialize,
the insured individual or company makes a claim to the insurance company and collects the
insurance settlement.
Insurers are not only financial intermediaries but also among the largest investors. They usually
invest a significant portion of the premiums they receive from the buyers of insurance contracts in
financial markets in order to meet the cost of future claims.
23
3.5 TYPES OF FINANCIAL SERVICES
Insurance
In exchange for the payment of a premium, a corporation or the government agrees to give a
guarantee of reimbursement for a certain loss, damage, illness or death.
Wealth Creation
Wealth creation is the process of investing in various asset classes with the goal of meeting certain
demands. As a result, the longer one stays invested, the greater the wealth gain. Setting financial
goals is always the first step in the wealth generation process.
Investment
Investment is a term used to describe an asset that is purchased or invested in order to grow wealth
and save money from hard-earned income or appreciation. The primary goal of investing is to earn a
second source of income or to profit from the investment over a set period of time.
Mutual Fund
A mutual fund is a corporation that collects money from multiple investors and invests it in stocks,
bonds and short-term loans. The portfolio of a mutual fund is made up of all of the fund's holdings.
Taxation
Taxation refers to the process by which a government or taxation authority imposes or collects a tax
from its citizens and businesses. Taxation is applied at all levels, from income tax to the goods and
services tax (GST).
Banking
Banking is described as the commercial activity of accepting and securing money owned by others
and then lending it out to execute economic activities such as creating a profit or merely covering
operating expenses.
Saving and Budgeting
When total expenditures are removed from the amount of disposable income received in a specific
period of time, the amount left over is referred to as savings. Budgeting is the process of projecting
revenue and expenses over a set period of time in the future.
24
3.6 Financial Services Companies In India
SBI Capital Markets Limited

This happens to be the oldest organizations in the sphere of capital markets in India.

Established in 1986 in the form of an ancillary of SBI.

Second in Asia’s Project Advisory services.
 The subsidiaries of SBI capital markets are SBICAP’s Ventures Ltd.
Bajaj Capital Limited

One of the major financial services companies in India, Bajaj Capital offers best investment
advisory and financial planning services.

The services are meted out to the institutional investors, NRI’s, corporate houses, individual
investors, high network clients as well.
DSP Merrill Lynch Limited

A major player in the equity and debt market in India, DSP Merrill Lynch offers financial
advises to varied corporations and institutions.

With an array of wealth management and investor services, their services are customized in a
manner that they meet every investor requirement.
Birla Global Finance Limited

The subsidiary of Aditya Birla Nuvo Ltd., this company has operation in the corporate finance
and capital market arena.

Alliance with Sun Life Financial of Canada, they have given birth to Birla Sun Life Insurance
Co Ltd. Birla Sun Life Distribution Company.
Housing Development Finance Corporation

A best financial solution for home loans, NRI loans, HDFC is the one stop destination for
personal finance.

HDFC overseas branches all over the world like Kuwait, Qatar, Saudi Arab and may others.
25
ICICI Group

Wide arena of financial products and services, ICICI group has solutions like Instant Banking,
Online Trading.

Providing high class financial services in all segments of the society, ICICI Group deals with
Mutual Fund, Private Equity, Securities and Life Insurance etc.
LIC Finance Limited

It is the biggest Housing Finance Company in India, providing finance to individuals for
repair or construction of renovation of any old or new apartment or house.
L & T Finance Limited

Established in 1994 by the Larsen and Toubro group, this has become a significant name in
the financial sector.
 Funds for automobiles, agricultural instruments, secured loans; they have all types of loans for
a long tenure.
26
3.7 SWOT analysis of Financial Service Industry
Strengths

Valuable contributor to GDP

Regulatory environment

Government support
Weaknesses

Increasing NPA

Low penetration

Lack of product differentiation
Opportunities

Modern technology

Untapped rural market

Globalization
Threats

Unorganized money lending market

Customer dissatisfaction

Rise of monopolistic structures
27
CHAPTER-4
COMPANY OVERVIEW
28
4. COMPANY OVERVIEW
Company’s Address:
Vibgyor Advisors
117, SwastikDisha Corporate Park,
Opposite Shreyas Cinema, LalBahadurShastri Rd,
Ghatkopar (West), Mumbai 400086.
Tel No: 91-22-2516 0357
Email Id: sachin@vibgyoradvisors.com
29
4.1 Company Profile
Vibgyor Advisors Pvt Ltd.
Type – Private Company
Industry – Financial Service Industry
Founded – 2016
Headquarter – Mumbai, Maharashtra, India
Key People – Sachin Neema (Founder), Shanti Pandey (Zonal Head)
Number of Employees – 15
Website – www.vibgyoradvisors.com
4.2 Nature of Organization
Vibgyor Advisors is a financial services-focused first-generation firm. It works in a variety of financial
services industries and offers a comprehensive range of services to its valued clients. With a clientcentric approach, it advises both individuals and businesses on their diverse needs. It aspires to be the
best at all they do. Vibgyor Advisors has a penchant for delivering solutions that are both valuable and
long-lasting and sustainable. It's a first-generation advisory firm that specialises in wealth management
and corporate consulting.
4.3 Founder of Vibgyor Advisors:
Vibgyor Advisors was started by Mr. Sachin Neema. He is a management graduate from JBIMS,
Mumbai and a mechanical engineer from VJTI, Mumbai. He has about 22 years of experience in equity
markets and has worked as Analyst, Head of research, Fund manager and has been instrumental in
running business segments for some of the leading companies in the industry like HDFC Sec, IIFL and
Tata.
4.4 Top competitors are:
The top competitors in Vibgyor Advisors Pvt ltd competitive set are Bajaj Finance Ltd, Policy
Bazar, etc.
30
4.5 Brief History Of the company

The company was incorporated on 5th December 2016.

But the main work was stared in 2019. The period from date of incorporation to 2019 was planning
period.

Later when in 2019 the owner bought an office in Ghatkopar, is when he heired 20 interns to go on
the field work.

So basically, what these 20 interns use to do is that they use to click pictures of big vehicles and there
is app where if you put the vehicle registration number, we get to know the due date when the
vehicles insurance.

The interns use to do the research work and then call the vehicles owner to convince to buy insurance
through our company.

Till 2019 due to his experience in this field, the founder Sachin Neema had used networking and
made tie ups with many banks and insurance company.
4.6 Company Analysis

Type of Organization: Vibgyor Advisors Private Limited is a Private incorporated on 5th
December 2016. It is classified as a non-govt company and is registered at Registrar of
Companies, Mumbai.
 Business Volume: Because it is a private limited company, no information related to the Market
Capitalization, Turnover, Gross Fixed Assets is disclosed by the company.
 Total Staff Strength: There are only 15 Employees of the company and somewhere around 300
interns from all over the country. The number of inters keep on changing as interns only for the
period of 2 months in the company.
4.7 Insurance companies that Vibgyor Advisors has tie ups with:

Bajaj Allianz General Insurance Co. Ltd

Bharti AXA General Insurance Co. Ltd

Cholamandalam MS General Insurance Co. Ltd.

Future Generali India Insurance Co. Ltd.

HDFC ERGO General Insurance Co.Ltd.

ICICI Lombard General Insurance Co. Ltd.

IFFCO TOKIO General Insurance Co. Ltd.
31

Kotak Mahindra General Insurance Co. Ltd.

Liberty General Insurance Ltd.

Magma HDI General Insurance Co. Ltd.

National Insurance Co. Ltd.

Reliance General Insurance Co.Ltd

Royal Sundaram General Insurance Co. Ltd.

SBI General Insurance Co. Ltd.

Shriram General Insurance Co. Ltd.

Tata AIG General Insurance Co. Ltd.

The New India Assurance Co. Ltd

The Oriental Insurance Co. Ltd.

United India Insurance Co. Ltd.

Universal Sompo General Insurance Co. Ltd.
4.8 Some Banks that Vibgyor Advisors has tie ups with:

Bank of Baroda

Bank of India

Canara bank

State bank of India

Punjab national bank

HDFC bank

Axis bank

Union bank of India

Central bank of India

ICICI bank

UCO bank

Bank of Maharashtra

Kotak Mahindra bank

Federal bank

Karnataka bank

Karur vysya bank

IndusInd bank
32

Syndicate bank

IDBI bank

Yes bank
4.9 Values of the Company:
Vibgyor Advisors with its client’s centric approach doing valuable quality work in the field that it
operates, is a preferred partner of choice for its clients looking for excellence values.
It focuses on 5 major factor:-
Integrity:

We are fair and honest in our conduct.

We deal all our duties utmost ethically.

We conduct all deals transparently thus aiming to provide better service to our customers.
Dedication:

Our passion for work helps us to put consistent efforts.

Our dedicated efforts will surely bring out the best solution.
Client Centric Approach:

We believe in putting our clients as out topmost priority in every situation.
Trust:

Our loyalty towards our clients are paramount.

We affirm that our honesty and dedication know no bounds.
Solution Based Approach:

We understand our client's requirement and direct our efforts in fulfilling them.

We assure to give our best to find the proper solution.
Creativity:

We create an environment where employees can think big and have fun.

We work with our minds afresh that brings out new and innovative solutions.
33
4.10 Services Provided by Vibgyor Advisors
Wealth Management Service

Equity Advisory Services

Option Strategies

Trading Portfolios

Portfolio Construction and Evaluation

Research and Industry Analysis

Start-up Investments

Real Estate

Debt Investments and Lending

Project Investments
Investment Banking

Investment Banking

Start Ups

Fund Raising

Corporate Advisory

Asset Sale

Brand Acquisition

Project Advisory
Trading and Proprietary Investment

Direct and Client Investments

Agency Business

Special Projects
Real Estate

Project Funding

Direct and Client Investments

Agency Business

Special Projects
Investor Relations

Corporate Advisory
34

Investor Relations

Assignment based projects
Distribution of Financial Service

Mutual Funds

Equity Broking

Structured Products

PMS

Life & Vehicle Insurance

Personal & Business Loans
35
CHAPTER-5
PROJECT DETAILS
36
5.PROJECT DETAILS
5.1 OBJECTIVES OF THE PROJECT:

To study the preference of RTO agents towards Vibgyor Advisors Pvt Ltd.

To understand the business process followed for RTO agents in Vibgyor Advisors Pvt. Ltd.

To have better insights of the challenges faced by RTO agents and Vibgyor Advisors Pvt. Ltd. during
pandemic.
5.2 RESEARCH METHODOLOGY:
The study being descriptive in nature, mainly rely upon primary data. There is no secondary
data available for this study.
Primary research or first-hand research is the research method where the researcher conducts
the research themselves or commissions the data to be collected on their behalf. Primary
research means going directly to the source, rather than relying on pre-existing data samples.
Primary research can be done by interview method, questionnaire method, postal surveys, etc.
Primary research guarantees that the information collected is up-to-date and relevant, enabling
accurate trends to be revealed. Primary research also allows the person or organization to
control ownership of the data.
For the purpose of – “evaluation of the rto agents in the vehicle insurance with respect to
vibgyor advisors private limited”, primary data have been used. Primary data refers to the data
that is collected firsthand by the researcher for a specific research purpose or project.
So, to conclude, behavior of RTO agent towards Vibgyor Advisors Pvt. Ltd., have been
analyzed by questionnaire method. I have spoken with every of the RTO agents personaly to
have the better insights.
5.2 SAMPLING TYPE AND SAMPLE SIZE:

Sampling type of the study is Convenience Sampling as the data is collected from the people who
were easy to reach and contact. I have contacted RTO agents who all are available on internet sites
such as just dial, yellow pages etc.

Sample size of the study is 91 RTO agents.

Target audience of the study is basically the RTO agents.
37
5.5 Limitations of the Project:

As the research is based on primary data, I wanted to visit the RTO agent offices and collect
the required data but due to lockdown I was not able to go there personally. So, the data which
was collect was on online mode.

As there was limited time period i.e., 2 months of internship, it was not possible to collect the
detailed information about the topic.

Data collection will be difficult because the RTO agents might not disclose all the details.

Work from home can lead to less practical and hands-on knowledge.

Due to the pandemic the personal interviews method can’t be Employed.
38
CHAPTER 6
DATA ANALYSIS AND INTERPRETATION
39
6. DATA ANALYSIS AND INTERPRETATION
Chart 6.1
Interpretation:
From the online survey with the help of Google Form, it came to know that among the 91 RTO
agnets, Male agents are more than Female.
Chart 6.2
Interpretation:
From the above chart it is clear that, 29.7% RTO agents have been practicing there profession since
10 to 15 years, 28.6% have been practicing there profession since 5 to 10 years, 22% have been
practicing there profession since 15 to 30 years, 14.3% have been practicing there profession from
less than 5 years and rest are for more than 30 years.
40
Chart 6.3
Interpretation:
From the above chart it is clear that 63.7% RTO agents usually cater both type of vehicles, i.e.,
commercial as well as personal. 28.6% RTO agents encounter only personal vehicles and rest
encounter only commercial vehicles.
Chart 6.4
Interpretation:
From the above chart it is clear that 59.3% of RTO agents already have tie-ups with different
insurance companies and 40.7% do not have tie-ups with any insurance companies.
41
Chart 6.5
Interpretation:
The RTO agents already have tie-ups with various insurance companies. As we can see 30.9% RTO
agents have tie-up with Bajaj Allianz General Insurance Co. Ltd., 16.4% have tie-up with Kotak
Mahindra General Insurance Co. Ltd., 12.7% have tie-up with Reliance General Insurance Co. Ltd. and
40% have tie-up with other insurance companies which mainly include Future Generali India Insurance
Co. Ltd., Shriram General Insurance Co. Ltd., etc.
Chart 6.6
Interpretation:
As we saw in previous question, RTO agents have tie-up with different insurance companies and
according to their ratings it can be seen that for Bajaj Allianz General Insurance Co. Ltd., maximum
RTO agents are neutral about the ratings followed by satisfied and then very satisfied. For Kotak
42
Mahindra General Insurance Co. Ltd. maximum rating is for neutral followed by satisfied, very
satisfied and then very few have rated unsatisfied. For Reliance General Insurance Co. Ltd., maximum
RTO agents are neutral about the ratings followed by satisfied and then very satisfied. Similarly for
Vibgyor Advisors Pvt. Ltd. maximum RTO agents rated neutral about the ratings followed by satisfied
and then very satisfied after conveincing them on call. According to the ratings given by RTO agents, it
is clear that RTO agents prefer Bajaj Allianz General Insurance Co. Ltd. over other companies as more
number of people are satisfied by their services, followed by Vibgyor Advisors Pvt. Ltd. as it has
customer centric approach.
Chart 6.7
Interpretation:
As we can see 59.3% RTO agnets are not ready to take any other financial services than vehicle
insurance as they are not sure about the functioning of the company. 22% are ready to avail other
financial services apart from vehicle insurance and 18.7% are confused.
Chart 6.8
43
Interpretation:
From the above chart it is clear that 47.3% RTO agnets are happy with the commission which Vibgyor is
offering them, i.e., 40%. 20.9% are not happy with the commission as they receive more from other
companies and 31.9% are not sure about it.
Chart 6.9
Interpretation:
According to the feedback that I got from RTO agents, 33% of them were interested to become a
channel partner of the company, 30.8% were busy and wanted to talk later, 22% were not interested and
14.3% wanted to talk to the senior as they wanted more technical details about the partnership offered
by the company.
Chart 6.10
Interpretation:
The company has a referral application specially designed for their channel partners through which the
channel partners give the details about the potential client to the company. To begin with the process
44
the channel partners have to provide their details for the purpose of KYC. Therefore, we can see that
24.2% are comfortable to use the referral app of the company, 31.9% are not comfortable to use the
application for two reasons:

They do not want to give their personal details for security purpose.

They were not able to use the application because of lack of technical knowledge.
44% are confused whether they will be able to use the application or not.
45
CHAPTER-7
RECOMMENDATIONS AND FINDINGS
46
7. RECOMMENDATIONS AND FINDINGS
7.1 Recommendations:
Based on the findings of the study, I'd like to suggest to the company a few things that I believe would
benefit the company in the future if they worked on them.

The company’s website has very less information from which it can be difficult to understand
what all the company has to offer. The company's website should be updated on a regular basis
by the authorities.

To reach out to more individuals, the company should use social media platforms frequently
along with cold calling.

The authorities preserve a minimal stipend as a motivator for all interns.

Company should hire more interns from different locations to spread the company’s goodwill.

To improve the existing conversion rate of the channel partners, the concerned authorities
should take the scheduled follow up so that the doubts of the channel partner can be clarified.

Company should provide proper training to the trainees as it become difficult for many interns
to explain the services that Vibgyor Advisors are providing. Due to the insufficient knowledge
about the services, interns are not able to solve the queries of potential clients.

In order to obtain more clients and channel partners, the organisation should train its personnel
more effectively.

The IT department should instruct channel partners on how to effectively use the web platform.

The company should give them a higher percentage of the commission because the company's
competitors, such as Bajaj Allianz General Insurance Co. Ltd., Reliance Insurance Co. Ltd.,
and others, already pay their agents a higher percentage of commission. As a result, channel
partners will be forced to choose other companies over Vibgyor Advisors Pvt. Ltd.

The company should be clear with the respective Slab rates so that the channel could have a
more clarity about the offer. It will enhance the conversion rate of the channel partners.

Company should be more aggressive about the marketing through social media platforms.
47
7.2 Findings:

Because of online auto insurance services, RTO representatives are having a difficult time
introducing clients to the organisation. People would rather use internet services than travel
physically.

The RTO agents who have more than 15 years of experience are least interested to become a
channel partner as they are already getting a commission offered by Vibgyor Advisors Pvt. Ltd.

Most of the RTO agents are cater to both the insurances, i.e., commercial as well as personal
followed by only commercial and personal.

The RTO agents who have already tie-ups with the companies, they want more clarity on the
business process and the commission.

Most of RTO agents are having tie-up with local insurance companies.

The RTO agents who do not have tie-up with any insurance companies they all are satisfied
with the commission rate provided by Vibgyor Advisors Pvt. Ltd.

Most of the RTO agents are not ready to buy any other financial service from Vibgyor
Advisors Pvt. Ltd. apart from vehicle insurance as they are not aware about the business
process and culture of the company. The RTO agents having less than 5 years of experience are
more interested to take other financial services from the company.

Most of the RTO agents are happy with the payouts offered by the Vibgyor Advisors Pvt. Ltd.
Many of the RTO agents are confused about the payouts and the business process.

Most of the RTO agents has shown interest to become a channel partner. But many of them are
not ready to register themselves on referral application as far as the security is concerned or
they are confused whether they are able to use referral application.

Many RTO agents want to meet company members inperson as they are not use to the online
platforms.

Due to pandemic, many RTO agents stopped their profession but due to the companies referral
application thing, they are ready to start their business as a side income.
48
CHAPTER-8
KEY LEARNINGS
49
8. KEY LEARNINGS
8.1 SPECIFIC:

Analyzed and learnt about functioning of Vibgyor Advisors Pvt. Ltd.

Studied the impact of lockdown on this sector.

Learnt the business process of Vibgyor Advisors Pvt. Ltd. to convert potential client into
channel partner.

Studied the challenges faced by the company and channel partners.

Learnt about various aspects of the company.
8.2 GENERAL:

Leadership Quality

Time Management

Teamwork

Professional Communication and Management

Adaptability of the situation and work at this difficult time also
50
CHAPTER-9
CONCLUSION
51
9. CONCLUSION
 RTO agents have shown keen interest to become the channel partners of Vibgyor
Advisors Pvt. Ltd.

There is a scope for raising the numbers of channel partners by increasing the commission
rates.

Despite being a startup, the company is gaining business across India as a result of its
business methods and client-centric approach.

During the pandemic, the company developed a referral tool that assisted in connecting all
of the channel partners around the country.

Small businesses that provide financial services have been severely impacted. In this
environment, individuals are hesitant to trust new companies or agents. People would
rather be with their existing insurance companies.

RTO agents who all are new in the industry tend to have more interest to become the
channel partners of Vibgyor Advisors Pvt. Ltd.
52
CHAPTER-10
BIBLIOGRAPHY
53
10. BIBLIOGRAPHY

www.vibgyoradvisors.com

www.mca.gov.in

www.ibef.org

www.investopedia.com

www.slideshare.net

www.acko.com
54
CHAPTER-11
LIST OF ABBREVIATIONS
55
11. LIST OF ABBREVIATIONS

RTO: Regional Transport Office

IDV: Insured’s Declared Value

CC: Cubic Capacity

PTD: Permanent Total Disability

PPD: Permanent Partial Disability

M.V.Act: Motor Vehicle Act

OD: Own Damage

PUC: Pollution Control Unit

Co.: Company

Ltd.: Limited

KYC: Know Your Customer

Pvt.: Private
56
CHAPTER-12
ANNEXURE
57
12. ANNEXURE
QUESTIONNAIRE
1. Name of the channel partner
2. Gender
a. Female
b. Male
c. Prefer not to say
3. How long have you been practicing your profession ?
a. Less than 5 years
b. 5-10 years
c. 10-15 years
d. 15-30 years
e. more than 30 years
4. What type of vehicles do you usually cater to ?
a. Commercial
b. Personal
c. Both
5. Have you tied up with any insurance company ?
a. Yes
b. No
6. If "YES" then which insurance company?
a. Bajaj Allianz General Insurance Co. Ltd.
b. Kotak Mahindra General Insurance Co. Ltd.
c. Reliance General Insurance Co. Ltd.
58
d. Other
7. How would you rate following companies ?
Very Satisfied 2 3 4 Very Unsatisfied
8. Are you willing to take any other financial services with Vibgyor Advisors Pvt. Ltd. ? (Loans, Other
insurances etc.)
a. Yes
b. No
c. May be
9. Are you happy with your payout ?
a. Yes
b. No
c. May be
10. Any Comments/Feedback ?
a. Callback
b. Showing Interest
c. Want to talk to senior
d. Not interested
11. Are you comfortable to use the referral app of Vibgyor Advisors Pvt. Ltd. ?
a. Yes
b. No
c. May be
59
CHAPTER-13
PROJECT PROGRESS REPORT
60
13. PROJECT PROGRESS REPORT
Name of the Student: Aditya Tanaji Govardhane
Class & Roll No.: MMS-A 17
Project Guide: Prof. Akansha Vij
Project Title: Evaluation Of The RTO Agents In The Vehicle Insurance With Respect To Vibgyor
Advisors Private Limited
Sr.
No.
Date
Topic Discussed
22nd May
2021
Discussion about the
project topic
2
30th May
2021
SIP Topic Approval
3
21st June
2021
Synopsis Approval
4
14th July
2021
Project related
discussion
5
21st July
2021
Submission of SIP
First Draft
1
Next
Meeting
Date
61
Student
Signature
Project Guide
Signature
62
CHAPTER-14
APPROVED SYNOPSIS
63
14. APPROVED SYNOPSIS
SUMMER INTERNSHIP PROJECT SYNOPSIS
Student Name: Aditya Tanaji Govardhane
Class & Roll No.: MMS, A-17
Specialization: Finance
1. PROJECT TITLE:
‘Evaluation of The RTO Agents In The Vehicle Insurance With Respect To Vibgyor Advisors Pvt.
Ltd.’
2. OBJECTIVES OF THE PROJECT:

To study the preference of RTO agents towards Vibgyor Advisors Pvt Ltd.

To understand the business process followed for RTO agents in Vibgyor Advisors Pvt. Ltd.

To have better insights of the challenges faced by RTO agents and Vibgyor Advisors Pvt.
Ltd. during pandemic.
3. LIMITATIONS OF THE PROJECT:

Respondents are apprehensive about disclosing personal information.

Data collection will be challenging due to the possibility that the company would not give all
relevant information.

Working from home may result in a lack of practical and hands-on experience.
4. METHODOLOGY TO BE USED:

Sampling type:- Convenience Sampling

Sample size :- 91 Respondents

Sampling Unit :- RTO Agents

Measurement Tool :– Questionnaire
5. SOURCE/S OF DATA:
Primary Data: Questionnaire
Secondary Data: Company website
64
6. PRIMARY DATA COLLECTION INSTRUMENT:

Google Form
(Approved/Not Approved):
Date: 21th June, 2021
Approved.
Project Guide: Prof. Akansha Vij
Signature: _______________________________________
65