QUESTION
SOLUTION
Question No:-1
National Irish Bank
I have chosen National Irish Bank as the bank to do the analysis. National Irish Banks operates in Ireland and is one of the major banks doing business in Ireland. This bank was acquired by the Danske Bank Group in 2005.
Question No:-1 (a)
Loan Products of National Irish Bank
National Irish Bank offers all types of loans short term, medium term as well as long term loans to its individual as well as corporate customers depending in their worth by the name of personal loans segment and corporate loan segment.
Personal Loans Segment
Under the personal loan segment, bank offers loans in three sub categories namely, personal loans, car loans and mortgage loans. Personal loans to individuals are available at fixed as well as variable rates. Under the car loans sub category too bank offers loans on fixed as well as variable rates. Under the mortgage loans segment, bank offers three types of loans; namely variable rate mortgage, offset mortgage and fixed rate mortgage.
Corporate Loans Segment
Under the corporate loans segment, bank offer business loans to small, medium and large business organizations depending on their credit worthiness. These loans are offered to business for various purposes. A business organization can get loans for short term, medium term as well as long term durations.
Question No:-1 (b)
Procedure for Getting Loan
National Irish Bank follows two different procedures for the two categories of the customers namely personal and corporate. The procedures are as below:
Personal Loans Segment
There are three products in personal loan segment namely personal loans, car loans and mortgage loans. For every sub category, bank has different procedures and criteria.
For the personal loan, the customer has to first open an account with the bank. Then s/he will have to apply for loan specifying the loan amount. The bank will assess the credit worthiness of the applicant on the basis of his credit history and incomes. If the bank finds the applicant worthy enough, it extends loans to him.
For the car loan, the bank offer loans up to 80% of the intrinsic value of the car. While extending the loan to applicant, the bank considers the credit worthiness of the applicants and ability to pay back. The car is hypothecated to the bank.
For the mortgage loan, bank offer loans to applicants for the 80% of the intrinsic value of the home or property. The applicant has to first make a proposal to the bank. Bank then assess the proposal by valuing the property and paying capacity of the applicants. When it finds the proposal fair and applicant lendable, bank extends loans by mortgaging the property.
Corporate Loans Segment
Bank offers short term, medium term and long term loans to its corporate customers. While offering various types of loans to its customers bank considers the credit history of the clients. For the corporate loans bank usually asks for securities before it extend loans. Even if the security is part of almost every deal, it has somehow different procedures of sanctioning loans. Those are as below:
For the short term loans bank often asks for the short term assets as security before it sanctions loans to its corporate clients. The business organizations often take this type loan as mainly working capital. The client has to apply specifying the amount it needs and the purpose. Depending on the credit worthiness and financial positions, bank extends loans at the suitable rates.
For the medium term and long term loans, the clients have to make applications specifying the amount and the financial position of the company. After receiving the application bank assess the application and verify the information and financial positions of the company by evaluating the company’s financial position with help of internal evaluation team as well as sometimes an external agency does this work depending on the amount of the loan and financial position. The bank before extending the loans, asks for the enough security. When all the requirements are satisfied, bank provides loans to applicant companies.
Question No:-1 (c)
Most Common Services to Personal Customers and Charges
Bank offers a range of services to its personal customers. It offers e-banking facilities to its customers. With e-banking facility of the bank the customers can have tab on his account and investments, pay bills, transfer and receive funds internationally and trade stocks worldwide. The customers have to pay charges depending on the type of account. Bank offers current accounts, debit cards, credit cards and foreign exchange service to personal customer for nominal charges. It offers loans in three categories namely mortgage, car loans and personal loans for some certain charges depending on size of loans. Bank offers saving accounts services, deposit and investment services to its personal segment customers. Bank also offers, insurance covers (personal insurance and general insurance) to its customers and pension services to its customers.
Question No:-1 (d)
Most Common Services to Business or Corporate Customers and Charges
The National Irish Bank offers various banking and financial services to business customers such as small businesses, medium businesses and large businesses with help of some common services with varying services charges. The bank offers business e-saver services to all the business customers. This service is aimed at encouraging the businesses to save some money. Bank offers higher interest rates on the account balance under this service in comparison to other services. The most common service that bank offers to its customers is business banking as well as business e-banking. Under this service bank offers current accounts to business organizations. Using this account the business can make payments and receive funds anywhere from the world using the e-banking facilities. For these services bank takes some nominal charges from the customers as fee. The other most common service that bank offers to its business customers is cash management services. This service helps the business organizations to management and to use the funds optimally. With the help of cash management services of the banks, businesses maintain liquidity in the business.
Question No:-2 (a)
Liberty Insurance
History and Structure of the Liberty Insurance
The insurance firm was established in1912 as Liberty Mutual in the Massachusetts in response to a Massachusetts state law that required all the business owners to cover their employees with insurance cover. It opened its first branch office in 1914. During the same year company wrote its first auto policy too. The name Liberty Mutual was changed to the Liberty Mutual Insurance Company in 1917 and the company started offering full coverage auto insurance policies. In 1964 Liberty Mutual began offering life insurance through its Liberty Life Assurance Branch. In 2002 the company converted into its current mutual holding company structure. Liberty Insurance is part of the global Liberty Mutual Insurance. It has over 1,500 employees across Ireland. It has its head office located in Cavan in Ireland.
Question No:-2 (b)
Type of Insurance Policies
Company offers a range of insurance policies in Ireland. It offers insurances policies in broadly 6 categories namely car insurance, home insurance, business insurance, motorcycle insurance, van insurance and fleet insurance.
Under the car insurance policies, company free breakdown cover and home start benefits to its customers. It also offers some very low cost insurance covers to its loyal customers by offering various types of discounts depending on the age of car.
Under the home insurance segment company offers competitive home insurance policies to its customers. The home insurance services of the company include contents insurance and building insurance. The customers have option to choose any of these two options or both the options. The policy premium varies according to the options and other conditions such locality and natural risks that are assigned to the area.
Liberty Insurance offers its business insurance services to a range of business categories namely construction, commercial properties, motor trade, pubs and restaurants, manufacturing, hotel and leisure, professional, shops and offices and farming sector. It almost covers all the basic categories of businesses under the business insurance segment. It charges different premiums from various types of customers depending on the risks in business and size of business and policy cover.
Liberty Insurance offers insurance cover to its customers for their motorcycles. It offers its services at very competitive prices and a lot of benefits. It offers various covers such as third party, third party, fire and theft and comprehensive cover. These three categories offer different facilities and benefits and so the premium is different for each category.
Company offers van insurance cover in Ireland at very competitive prices for vans and commercial vehicles to the businesses. The customers can enjoy the benefits of this insurance cover across the Europe and the customers can protect their bonus for 4 years in case of no claim. This insurance product is offered to from small vans to heavy commercial vehicles. Three different covers are available under this product; third party, third party fire and theft and comprehensive.
Under the fleet insurance product those businesses come that have at least 5 or more vehicle to be covered. Under this cover, company offers comprehensive cover to commercial vehicles, company cars and many types of other large commercial vehicles.
Question No:-2 (c)
Van Insurance
The company provides insurance cover to van and commercial vehicles. The benefits and values that a customer derives are as below:
Third party
Under third party insurance cover the person who owns and everyone who can be affected by the vehicles for the legal responsibilities arise to a third party only. These benefits are subject to the terms and conditions of the policy.
Third party, fire and theft
Because of some reasons or circumstances the vehicle may be subjected to theft, attempt to theft, self ignition, explosion or fire. This is a loss for the owners. To safeguard the interests of the owners, the vehicle is covered such accidents to cover all the liabilities arising. The benefits under this covers are subjected to the terms and conditions of the policy.
Comprehensive
Under this cover, the vehicle is covered for all types of liabilities that arise because of theft or fire in addition for covering liability to Third Parties. The benefits are subjected to the terms and conditions of the policy.
Commercial vehicle insurance policies of Liberty Insurance include:
- It covers almost all types of vehicle from small vans to heavy goods vehicles
- Products for both haulage and own goods transport
- Online quotes and cover
- Competitive rates
- Maximum period of protected no claims bonus option
- Huge amount as discount available because of no claim
- One can easily pay on monthly basis
- Claims settlement is quick and fast.
- Open drive option
- Provides repair expenses in case of fire and attempt to theft
- All the legal costs that arise due to accidents
- All expense related to emergency treatments
- Audio accessories
- Damage expenses because accidents
Question No:-2 (d)
Difference between Third Party, Third Party, Fire and Theft and Comprehensive
Liberty Insurance provides van and commercial vehicle insurance cover. Below is the difference between three types of covers.
Third party
Under third party insurance cover the person who owns and everyone who can be affected by the vehicles for the legal responsibilities arise to a third party only. These benefits are subject to the terms and conditions of the policy.
Third party, fire and theft
Because of some reasons or circumstances the vehicle may be subjected to theft, attempt to theft, self ignition, explosion or fire. This is a loss for the owners. To safeguard the interests of the owners, the vehicle is covered such accidents to cover all the liabilities arising. The benefits under this covers are subjected to the terms and conditions of the policy.
Comprehensive
Under this cover, the vehicle is covered for all types of liabilities that arise because of theft or fire in addition for covering liability to Third Parties. The benefits are subjected to the terms and conditions of the policy.
Question No:-2 (e)
All the activities in the industry and commerce consist of a large number of activities and process that are able to affect third parties such as public, visitors or others. Many states and country have public liability insurance provision and all the companies and industries have to subscribe to public liability insurance depending upon the possible damage they can have on the environment and other public life. This insurance is aimed at to benefit the public at large.
References
· Cash Management Optimization, accessed on 29th March 2012 from, http://www.nationalirishbank.ie/en-ie/Business/Medium-business/Cash-Management/Cash-Management-Optimisation/Pages/Cash-Management-Optimisation.aspx?tab=1#tabanchor
· Business Banking, accessed on 29th March 2012 from, http://www.nationalirishbank.ie/en-ie/Business/Medium-business/Online-services/Business-eBanking/Pages/Business-eBanking.aspx?tab=2#tabanchor
· Business e-saver, accessed on 29th March 2012 from, http://www.nationalirishbank.ie/en-ie/Business/Medium-business/Savings-and-Deposits/Pages/Business-eSaver.aspx
· Car Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/car-insurance/
· Home Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/house/
· Business Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/business/
· Motorcycle Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/motorcycle/
· Van Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/van/
· Fleet Insurance, accessed on 29th March 2012 from, http://www.libertyinsurance.ie/fleet/
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