finalized erp case study

8/3/2019 Finalized Erp Case Study

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Certificate

This is to certify that Ms Snavy LoonofT.Y.I.T Class has

satisfactorily completed the case study on ERP FOR LIFE

INSURANCE CORPORATION OF INDIA as the Prescribed

by University of Mumbai for the year 2011 to 2012

Professor in-charge Date

Head of the Department College Stamp


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AcKnOWledgSEMENT

We express our case study sincerely thanks

to all those who helped to making this case

study a reality. and all the student and

teachers for giving help.

In this case study we have added sufficientinformation for each and every topic and we

include diagram also where necessary.

The use of ERP is growing most rapidly in

market. It is also an effective medium for

achieving the goal of organization of gaining

more and more profit .Finally,

I wish to thanks Jaynish sir

for bringing at the case study at correct

time.


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CONTENTS:

1.INTRODUCTION

2. WHAT IS INSURANCE

3. DEFINITIONS OF INSURANCE:

4.ERP FOR LIFE INSURANCE CORPORATION OF INDIA

5.MODULES OF LIC OF INDIA

POLICIES FOR CUSTOMERS

Child Life Insurance PolicY Term Insurance Plan Whole Life Insurance Money Back InsurancePolicy

EMPLOYEES HUMAN RESOURCE DEPARTMENT OF LIC

Recruitment Decision

Forecasting Of Requirements ForPersonnel

Facility For The Former Employees

AGENCY DEPARTMENT LOCATION FINANCE BENEFITS OF ERP IN LIFE INSURANCE CORPORATION OF

INDIA Reducing the procedures Rectifying Information Flow Performance of the Agents are Checked
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Enterprise resource planning (ERP) integrates internal and externalmanagement information across an entire organization, embracingfinance/accounting, manufacturing, sales and service, customer relationshipmanagement, etc. ERP systems automate this activity with an integrated softwareapplication. Its purpose is to facilitate the flow of information between all businessfunctions inside the boundaries of the organization and manage the connections tooutside stakeholders.[1]

ERP systems can run on a variety ofhardware and networkconfigurations,typically employing a database as a repository for information.

ERP systems typically include the following characteristics:

An integrated system that operates in real time (or next to real time), withoutrelying on periodic updates.

A common database, which supports all applications.

A consistent look and feel throughout each module.

WHAT IS INSURANCE
http://en.wikipedia.org/wiki/Management_informationhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Databasehttp://en.wikipedia.org/wiki/Management_informationhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Computer_networkhttp://en.wikipedia.org/wiki/Database


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FORECASTING IS HARD, PARTICULARLY WHEN IT IS ABOUT

FUTURE:

Life is the name of uncertainty and risk. We are quite sure about our present and

past but God knows what our future will be. Therefore people living in the society

have to device some way to reduce this uncertainty and risk.

People suffer not only mentally but also financially. Financial crises are so bad

that they can lead somebody easily towards social evils. So one method to avoid

all these complications is to help people financially. The Origin of the word

insurance is assurance both words have the same meaning.

DEFINITIONS OF INSURANCE:

Insurance is an agreement by contract to pay money to someone if somethingespecially a misfortune, such as illness, death or an accident or a mishap happensto him.

It is a contract in which a person agrees to pay some cost for the compensation ofany misfortune occurring in future.

There are two terms frequently used in insurance, which are the INSURER (aninsurance company, which enter into contract with the policyholder to compensatein case of any mishap to him, and the INSURED (who seeks the insurancecoverage on the payment of premium).


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Government-owned corporation

Industry Insurance

Founded 1 September 1956

Headquarters Mumbai, India

Key people

D. K. Mehrotra, T.S.Vijayan(Chairman),

Thomas Mathew, Ashok Chawla, R

Gopalan, Yogesh Lohia, S. Sridhar, and

A.K.Dasgupta (MD)

Products

Life insurance

Pensions

Mutual funds

Total assets 13.25 trillion (US$295.48 billion)

Owner(s) Government of India

Employees 115,966 (2010)

Subsidiaries

LIC Housing Finance Limited

LIC Cards Services Limited

LIC Nomura Mutual Fund

LIC(Nepal)Ltd

LIC(Lanka)Ltd

LIC(International)BSC(C)

Website www.licindia.in

MODULES OF LIFE INSURANCE CORPORATION OFINDIA :
http://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Subsidiaryhttp://www.licindia.in/http://en.wikipedia.org/wiki/File:LIC_Logo.svghttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Subsidiaryhttp://www.licindia.in/


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1: POLICIES FOR CUSTOMERSNothing is more important to a person than the feeling that their family is

financially secure - at all times. Though frightening, the thought that your family

will not be financially burdened in case of your un-timely death, gives you and

your family some respite to know at all times that YOU have planned for such anevent too. Hence it is very important that you get the best life insurance policy for

yourself - both in terms of price and features.

LIC display the list of life insurance plans that are available based on your

requirements. You can compare life insurance policies - both price and the features

and select the life insurance policy that suits your requirements the best. Life

insurance quotes from different life insurance companies are displayed - the

policies with the cheapest premiums being displayed on top. We do not sell

insurance and hence we do not have any incentive to push any particular insurance

policy to you. We take pride in the fact that we could help you select the best life

insurance policy.

.Child Life Insurance Policy

As the name suggests, child insurance policy or children plans means an insurance

policy on the lives of children, who are not majors. Since the age of child is below

18 years, the proposal will have to be made by a parent or a guardian.

One of the advantages of child insurance plans is that the premium which will be

considered at the commencement of the policy is relatively lower because of theyoung age. Usually, a child insurance plan can be purchased when the child is 3

months old (or 91 days of age). However, the risk cover on the life of the insured

child will commence only when the child attains a specified age. This clause is

according to the rules of IRDA (Insurance Regulatory and Development

Authority). Such a time gap between the date of commencement of the insurance

policy and the commencement of the risk is called the Deferment period. The

date, on which the risk will commence, at the end of the deferment period is called

the Deferred Date.

Let us explain the basic concept of a child plan with Ranjans example. He is 27

years old, married with a 2-year old daughter. He purchases a child plan for his

daughter Sameera. Ranjan has now covered his daughter under the child insurance

plan but her life cover doesnt start till she is 7 years old. However, the plan

continues as usual and no mortality charge is deducted till Sameera reaches 7 years


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of age; this is because her life cover doesnt start till such time. The day her life

cover starts, i.e. the first policy anniversary after her 7th birthday, is called the

Deferred Date. From this day onwards the life cover of the child Sameera starts,

i.e. if she dies after the deferred date her family would get the entire sum assured.

But if she had died before the deferred date, her family would only get back thepremiums paid and no sum assured would be payable. When Sameera attains 18

years of age or any later date as may be chosen, the title of the policy

automatically passes on to her name. This process is called as Vesting. Therefore,

the day on which the policy contract is transferred from Ranjan to Sameera, i.e. the

first policy anniversary after her 18th birthday, is called the Vesting Date. After

vesting, the insurance policy becomes a contract between the insurance company

and Sameera.

This life insurance policy covers the risk of the childs life. This is a distinctive

plan as the entire amount payable gets transferred in the name of the child once he/

she is 18 years old. Thus it becomes a big asset for the childs future to take care

of various financial commitments and pursue higher education, professional

courses, develop skill sets, travel places, plan other investments and many others.

Child Plans from LIFE INSURANCE CORPORATION

LIC Jeevan Anurag

LIC CDA Endowment Vesting At 21

LIC CDA Endowment Vesting At 18

LIC Jeevan KishoreLIC Child Career Plan

LIC Child Fortune Plus

LIC Komal Jeevan

LIC Marriage Endowment Or Educational Annuity Plan

LIC Jeevan Chhaya

LIC Child Future Plan

Term Insurance PlansTerm insurance plans are commonly known as pure protection plans. This is a

pure insurance cover where only the risk of death is covered for a specified period.

If the insured does not die within the specified period, then no payment is made

under the term insurance plan. This is also the cheapest form of life insurance as

mortality charges and administration expenses incurred in booking the policy are

the only components of the premium.


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Being the cheapest life insurance policy, one can get a substantially high life cover

(sum assured) with a nominal premium amount. Therefore, a person gets to protect

his family's financial security at a very low cost. By paying an amount as low as

Rs.6000 per year, one can secure their family's future to the tune of 50 lakhs.

Experts believe that term insurance is the best and the most important form ofinsurance and one should take as high a cover as possible as early in life. At

MyInsuranceClub.com we give you an un-biased term insurance comparison.

LIC Amulya Jeevan 4,026

Whole Life InsuranceWhole life insurance policies are very similar to term insurance plans. This is a

term plan with an unlimited term. As the name suggests, a whole life policy is an

insurance cover against death, where the sum assured is payable only on death,

whenever it may occur.

Under this plan, the policyholder pays regular premiums until his death (till a

claim arises), following which the payment is made to the nominee or the

claimant. Although, in the case of Whole Life policies, the sum assured is payable

only on death, many insurance companies pay the sum assured, when the life

insured reaches a particular age. Earlier a lot of insurance companies used to make

this payment at the age of 100 years and recently many have dropped it down to

75 years.

Premium is usually paid till the sum assures becomes payable but many insurers

provide an option to pay premiums for a limited period. Such policies would be

called as Limited payment policies. People who are skeptical of the consistency of

their earnings and expect it to discontinue or drop substantially over a period of

time may prefer limited payment policies. This is often the case with professionals

like sports personalities, skilled artists and armed forces personnel. Many a times,

a person has or receives a lump sum amount from somewhere and is not sure

whether he will be able to pay the same amount every year. For such customers,

there is an option to pay the premium only once. Such a policy where the premium

is payable only for one year at the beginning of the policy is called as a single

premium policy.


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The premium for a whole life insurance policy would surely be higher than a pure

term insurance plan and unlike a term plan where the cover is for a specific period,

a whole life insurance policy doesnt attach a policy term and is valid till the death

of the policy holder, whenever it may occur.

Whole Life Insurance Plans from different Insurance CompaniesLIC - The Whole Life Policy

LIC - The Whole Life Policy- Limited Payment

LIC - The Whole Life Policy- Single Premium

LIC - Jeevan Tarang

Money Back Insurance PolicyIn the insurance terminology this is called Anticipated Endowment Plan, meaning

that the customer can anticipate when the sum assured would be paid to him. In

money back insurance policy, a certain percentage of the sum assured comes back

to the policy holder on survival after say every 3 or 5 years, as pre-determined.

This is also referred to as a survival benefit. The common example used is,

consider 20% of the sum assured is paid every 5 years and 40% on survival for a

20-year term and full sum assured is paid in case of death at any time during the

20 years. If the policy holder dies before the policy matures, then the entire sum

assured is paid to the family as death benefit, irrespective of the survival benefits

paid or not. It is effectively a combination of a term insurance plan for 20 years for

full sum assured and 4 different pure endowment plans, that is, 20% sum assured

for 5 years, 20% sum assured for 10 years, 20% sum assured for 15 years and 40%sum assured for 20 years.

The plan can be best explained with the help of an example. Rahul who is 27 years

old has taken a money back plan of sum assured Rs. 25,00,000 for a term of 30

years. According to the terms of the plan, he would get 15% of sum assured, i.e.

Rs. 3,75,000 every 5 years and on maturity of the policy he would get 25% of the

sum assured, i.e. Rs. 6,25,000.

Thus following is his illustration:

On completion of 5 years, when Rahul is 32 yrs old: Rs. 3,75,000 is due.





On completion of 30 years, i.e. on the day of policy maturity, when Rahul is 57 yrs

old: Rs. 6,25,000 is due.


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Now, Rahul needs to be alive to get the survival benefits, as the name suggests.

Somehow, if Rahul happens to die when he is 55 years old, he would have

received Rs. 18,75,000 already. However the entire sum assured of Rs. 25,00,000

would then be paid to Rahuls family as he died before the policy matured. This is

the uniqueness of the policy.This policy could be taken by someone who might require liquidity at regular

intervals for purposes like childrens education, wedding, purchase business

equipment, buy an asset or some other planned expense. Also the fact that the

death benefit is guaranteed irrespective of the survival benefits already paid makes

it a compelling insurance policy to buy.

So compare from the several money back insurance plans available from the life

insurance companies in India and calculate the life insurance quotes meeting your

requirements.

Money Back Plans from different Insurance Companies

LIC The Money Back Policy-20 Years

LIC The Money Back Policy-25 Years

LIC Jeevan Surabhi-15 Years



LIC Bima Bachat.

2.EMPLOYEES

SOME IMPORTANT DESIGNATIONS OF LIC

S. R. (Sales Representative)

S. O. (Sales Officer)

S. M. (Sales Manager)

M. (Assistant Manager)

M. M. (Marketing manager)

G. M. (Assistant General Manager) G. M. (General Manager)

Requirement for Selection of Sales Representative

F. A. or F. Sc. (Education)

At least two policies

Identity card


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3.HUMAN RESOURCE DEPARTMENT OF LIC

RECRUITMENT

Recruitment DecisionBasically for top management level post, it is centralized procedure (i.e. at

principal office competent authority, executive director gives approval and than

they start procedure). For other jobs, recruitment decision depend upon the nature

of vacancy e.g.

1. For field oriented job sales officers and sales managers are employer of agent

i.e. sales representative.

2. For office lower level job, head office can transfer and delegate power to region

and zone. Forecasting Of Requirements For Personnel

For field business, there is always requirement of personnel. Because if we

increase our sales force, our business will increase. Therefore, if there is more

business, more administrative professionals are needed to handle it i.e. strength of

office depends upon number of policies which are active e.g. for 100,000 policies

record, standard zone strength of employees should be 200.

Considerations in Selection Decisions

For Office JobPerson, to whom you are calling for created job, whether he meets the criteria (i.e.

appropriate according to criteria), also check background (screen him at the spot

and evaluate educational record and personality at the time of recruitment).

For Marketing Job

Ultimately check the marketing aptitude and other qualities for selection e.g. for I.

S. R. (Insurance Sales Representative) established criteria for urban is (F. A.) and

sub-urban is (Matriculation).

Maximum people are invited for the fulfillment of requirement, evaluation through

in depth interview, explore whether person is in need, to raise salary packages,extrovert or introvert (multidimensional personality).

Facility For The Former EmployeesNo such policy in the organization. If they come upto criteria, they should be

recruited.


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Equal Employment Opportunity

There is no discrimination, always follow the rule of equal employment

opportunity, and all applicants are treated equally. But there is some quota for

disable people.

Privacy Of Employee RecordState Life Insurance Corporation always follow the privacy of employee record

and peoples access is always denied.

Selection StandardsIt depends upon nature of job i.e. for underwriting job, the requirement standards

are in that applicant must be MBBS doctors and well aware of medical

procedures.

.

4. AGENCY DEPARTMENTService provided by the LIC are intangible and therefore are not acquired at the

counter by the people, who need it, so it must be sold them through persuasive

method. Field force of LIC plays an effective role in selling of intangible products

(Insurance Plants). In order to maintain the record of the field force agency

department was established. The main function of this department includes

recruitment, promotion, and termination of the field force, allied and medical

facility for field force. This department is also responsible for issuance andrenewal of licenses to the field force

5. LOCATION

1. Headquartered in Mumbai, financial and commercial capital of India theLife Insurance Corporation of India currently has 8 zonal Offices and 113divisional offices located in different parts of India, around 3500 servicingoffices including 2048 branches, 54 Customer Zones, 25 Metro AreaService Hubs and a number of Satellite Offices located in different citiesand towns of India and has a network of 13,37,064 individual agents, 242Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on31.3.2011) for soliciting life insurance business from the public.

2. The slogan of LIC is "Zindagi ke saath bhi,Zindagi ke baad bhi" .whichmeans "during life and after life"
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbai


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Some of the locations of Life Insurance Corporation of India accordingto their zone and along with their addresses are as listed beow:Northern Zone

Place Address E-MAIL-ID

Ajmer Jeevan Prakash Ranade Marg Alwar gate Ajmer RAJASTHAN 305008 [email protected]

ChandigarhJeevan Prakash Post Box No 42 Sector 17-B Chandigarh CHANDIGARH

[email protected]

Eastern Zone:AsansolJeevan Prakash West EndG T Road Asansol WEST BENGAL 713304 [email protected]

KolkataLIC of India,P&GS Unit Jeevan Prakash,Calcutta Metro DO-I 16

Chittaranjan Avenue Kolkata WEST BENGAL [email protected]

Western Zone:

Ahmedabad

Jeevan Prakash GHB Complex,

2nd Floor,Opp.to Rupal Park,Behind Ankur Bus stop,

Naranpura,AhmedabadUJARAT 380013

[email protected]

Amravati LIC of India,P&GS UnitJeevanPrakash,

Near Daffrin Hospital ShriKrishnaPeth Amravati

MAHARASHTRA 444601

[email protected]

6. FINANCEThe Life Insurance Corporation of India (LIC) is the largest state-owned lifeinsurance company in India, and also the country's largest investor. It is fullyowned by the Government of India. It also funds close to 24.6% of the Indian

Government's expenses. It has assets estimated of 13.25 trillion (US$295.48billion). It was founded in 1956 with the merger of 243 insurance companies andprovident societies .

Life Insurance is the fastest growing sectorin India since 2000 as Governmentallowed Private players and FDI up to 26%. Life Insurance in India wasnationalised by incorporating Life Insurance Corporation (LIC) in 1956. All

private life insurance companies at that time were taken over by LIC.In 1993 the Government of Republic of India appointed RN Malhotra Committeeto lay down a road map for privatisation of the life insurance sector.

Gorakhpur

North Central Zone

Prathiba Complex Jubilee Road Post Box No 21 Gorakhpur UTTARPRADESH 273001

[email protected]

KanpurJeevan Vikas 16/98 M G Road Post Box No 170 Kanpur

UTTAR PRADESH [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/956http://en.wikipedia.org/wiki/Life_insurancemailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/956http://en.wikipedia.org/wiki/Life_insurance


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While the committee submitted its report in 1994, it took another six years beforethe enabling legislation was passed in the year 2000, legislation amending the

Insurance Actof 1938 and legislating theInsurance Regulatory and DevelopmentAuthority Actof 2000. The same year that the newly appointed insurance regulator- Insurance Regulatory and Development Authority IRDA --started issuinglicenses to private life insurers.List of Life Insurers (as of Sept, 2008)Apart from Life Insurance Corporation, the public sector life insurer, there are 22other private sector life insurers, most of them joint ventures between Indiangroups and global insurance giants.Life Insurer in Public Sector

1. Life Insurance Corporation of IndiaLife Insurers in Private Sector

1. SBI Life Insurance2.

Metlife India Life Insurance3. ICICI Prudential Life Insurance4. Bajaj Allianz Life5. Max New York Life Insurance6. Sahara Life Insurance7. Tata AIG Life8. HDFC Standard Life9. Birla Sunlife10.Kotak Life Insurance11.Aviva Life Insurance12.

Reliance Life Insurance Company Limited - Formerly known as AMPSanmar LIC13.ING Vysya Life Insurance14.Shriram Life Insurance15.Bharti AXA Life Insurance Co Ltd16.Future Generali Life Insurance Co Ltd17.IDBI Fortis Life Insurance18.AEGON Religare Life Insurance19.DLF Pramerica Life Insurance20.CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE

21.India First Life insurance company limited22.Star Union Dia-ichi Life Insurance Co. Ltd

Foreign Direct Investment (FDI) Policy in Insurance SectorAs per the current (Mar 06) FDI norms, foreign participation in an Indianinsurance company is restricted to 26.0% of its equity / ordinary share capital. TheInsurance Regulator has stipulated that foreign investment in Indian Insurancecompanies be limited to 26% of total equity issued (FDI limit) with the balance
http://www.irdaindia.org/http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://sbilife.co.in/http://www.metlife.co.in/http://www.iciciprulife.com/public/default.htmhttp://www.bajajallianzlife.co.in/http://www.maxnewyorklife.com/http://www.saharalife.com/http://www.tata-aig-life.com/http://www.hdfclife.com/http://www.birlasunlife.com/http://www.kotaklifeinsurance.com/http://www.avivaindia.com/http://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://www.inglife.co.in/http://www.bharti-axalife.com/http://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://www.aegonreligare.com/http://www.canarahsbclife.com/http://www.irdaindia.org/http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://sbilife.co.in/http://www.metlife.co.in/http://www.iciciprulife.com/public/default.htmhttp://www.bajajallianzlife.co.in/http://www.maxnewyorklife.com/http://www.saharalife.com/http://www.tata-aig-life.com/http://www.hdfclife.com/http://www.birlasunlife.com/http://www.kotaklifeinsurance.com/http://www.avivaindia.com/http://en.wikipedia.org/wiki/Reliance_Life_Insurance_Company_Limitedhttp://www.inglife.co.in/http://www.bharti-axalife.com/http://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://www.aegonreligare.com/http://www.canarahsbclife.com/


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being funded by Indian promoter entities. The limit to foreign investment includesboth direct and indirect investment and has been a cause of significant lobbying byforeign insurance companies for a change in regulations to increase the FDI limitto 49% of equity issued.The Indian government has supported an increase in the FDI limit, which requiresa change in the Insurance Act. The Union Budget for fiscal 2005 hadrecommended that the ceiling on foreign holding be increased to 49.0%.A change in the Insurance Act requires a passage of the bill in both houses ofParliament. The Indian government has tabled the bill in the Upper House ofParliament in August 2010.[edit] Initial Public Offer (IPO) rules for Indian Life Insurance CompaniesA key piece of legislation impacting on the Life Insurance industries capitalraising abilities is the lock-in period of 10 years for investment to be limited to

promoter group equity investments. Under the Insurance Guidelines, Indian Life

Insurance companies can opt for a public issue of equity through an Initial PublicOffer (IPO) after 10 years of operations.In October 2010, the securities market regulator, Securities and Exchange Boardof India (SEBI), issued disclosure norms for Indian Life Insurance Companiesseeking to make an initial public offer for sale of equity shares to the public.

Indian life insurance industry overviewAll life insurance companies in India have to comply with the strict regulationslaid out by Insurance Regulatory and Development Authority of India (IRDA).Life Insurance Corporation of India (LIC), the state owned behemoth, remains by

far the largest player in the market. The private companies have come out withproducts called ULIPs (Unit Linked Investment Plans) which offer both life coveras well as scope for savings or investment options as the customer desires. Thesetype of plans are subject to a minimum lock-in period of three years to preventmisuse of the significant tax benefits offered to such plans under the Income TaxAct. Comparison of such products with mutual funds would be erroneous.Commission / intermediation fees The maximum commission limits as per statutory provisions are:Agency commission for retail life insurance business:

7- 90% for 1st year premium if the premium paying term is more than20 years

7- 10% for 1st year premium if the premium paying term is more than15 years

7- 10% for 1st year premium if the premium paying term is less than 10years
http://en.wikipedia.org/w/index.php?title=Life_insurance_in_India&action=edit&section=3http://en.wikipedia.org/w/index.php?title=Life_insurance_in_India&action=edit&section=3


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7% - yr 2 and 3rd year and 3.5% - thereafter for all premium payingterms.

In case of Mutual fund related - Unit linked policies it varies between 1.5% to6%on the premium paid.

Agency commission for retail pension policies

7.5% for 1st year premium and 2.5% thereafter Maximum broker commission - 30% Referral fees to banks Max 55% for regular premium and 10% for single

premium. However in any case this fee cannot be more than the agencycommission as filed under the product.

However, the above commission may be further subject to the product wiselimits specified by IRDA while approving the product.

Benefits of ERP in Insurance Sector

|

PLANS FOR CUSTOMERS HUMAN RESOURCE
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With the arrival of the globalization, the industry which is booming is theinsurance industry. Many companies from all over the world are venturing intothis insurance business. In developed as well as underdeveloped countries thereare lots of scope in this sector. The contribution of ERP is great in the sector ofinsurance for simplifying the big and the small operations.

Especially in three areas which are very vital this Enterprise resource planning hasplayed an important role in this business sector. For the betterment and interest ofthe business ERP has facilitated coordination between the insurer and agents bysolving the problems of both the fields. ERP has provided the insurer and the agenta common platform. By this, now it has become possible to keep eyes on the

agents and the ERP has eased the transaction process also. Insurance sector isfamous for inefficiencies and procedural delay. ERP has helped this sector to curbthis problem. ERP has helped the insurance sector on various issues. Some of themare-

An integrated system that operates in real time (or next to real time), withoutrelying on periodic updates.

A common database, which supports all applications.

A consistent look and feel throughout each module.

Installation of the system without elaborate application/data integration by the

Information Technology (IT) department.

They eliminate the need to synchronize changes between multiple systemsconsolidation of finance, marketing and sales, human resource, andmanufacturing applications

CENTRAL DATABASE

FINANCE AGENCY

EMPLOYEE LOCATION


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They provide a comprehensive enterprise view (no "islands of information").They make realtime information available to management anywhere, any timeto make proper decisions.

They protect sensitive data by consolidating multiple security systems into a

single structure. Reducing the procedures-:It was very difficult for the insurance

companies prior to ERP to go ahead with procedures in time. It compiles theassessing damages, settling claims, difference between insured value andloss in time besides litigations. With the help of Enterprise resource

planning software the data of different departments are integrated in onecommon data base. This has solved the problem of the tedious job. Ininsurance company the different departments like settling claims andlitigations do not depend on each other due to which efficiency is improvedin their departments

Rectifying Information Flo w :In insurance sector executives areresponsible for receiving the details of each and every minute process. If the

processing information is delayed the executives cant go ahead and do theneedful.Insurance companies are always at the courts mercy and in a helm. Manyclaims of the insurance are at the courts intervention. They have to pay thecost of litigation even if the claims are in their favor.

ERP is able to solve these entire problems very easily and it also saves the

money, and cost of information of the company. Insurance sectors are therebyhelped by the ERP to remove all the set backs of the company.

Performance of the Agents are Checked :The important part of theinsurance sector is the agency. Selling, marketing and giving service are theimportant aspect of an insurance agent. After the intervention of ERP eachand every transaction is updated. This step has helped the insurer also. Soafter the intervention of the ERP now, there is a transparency in theinsurance sector. Every one is getting the opportunity to know each andevery thing about the insurer and the agent.


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Bibliography

www.google.com

www.wekipedia.com

www.mypptsearch.comwww.wikiAnswer.com

www.lic india .in

www. liclifeinsuranceindia .com
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