RESEARCH PROJECT NEED FOR STUDY In the current scenario, it is well known that the insurance sector is a growing sector and it has also been noticed that the growth of this sector is showing significant growth year after year. For most of the insurance companies, MOTOR INSURANCE is the main insurance company that earns premiums, this is because in India for driving a motor vehicle on road it has been made mandatory by the Indian government to take charge of "third party motor vehicles "Car insurance". Being a must, car insurance is very well known by the public and has a huge customer base, but the downside is that car insurance also has a lot of claims. auto insurance is mostly on the higher side. Higher loss ratio has both negative and positive sides for the insurance company insurance company and the reasons why the loss rate is high. Auto Insurance. This study provides a clearer picture of the functioning and impact of auto insurance revenues and claims. OBJECTIVES OF THE STUDY The work of this research paper is focused on the following objectives: 1) To have a wisdom about the importance of auto insurance insurance.2) To know how it affects the balance sheet of an insurance company.3) To know what changes and improvements could be made from an insurance company's perspective. SCOPE OF STUDY It is expected that the primary data will be collected through different means of communication, i.e. in person, by telephone, via e-mail, the period and methods of data collection will be explored appropriately at appropriate times so as to make them relevant.. .... half paper...... is aimed at customers, who already pay high rates. Questionnaire (How do third-party motor claims affect the balance sheet of insurance companies) 1) Name of the company: 2) Name and designation of the interviewee: 3) Percentage of the motor class for the last three years: Years % of activity 2010 – 2011 2011 – 2012 2012 – 20134) Total amount of car insurance premium: Year Amount 2010 – 2011 2011 – 2012 2012 – 20135) Car insurance claims ratio for the year: Year Total own damages to third parties 2010 – 2011 2011 – 2012201 2 – 20136) In your opinion, what is the reason for the high percentage of claims in: Own damage to third parties 7) How does the percentage of claims affect your company's balance sheet?______________________________________________________________________________________________________________________________________________