know about insurance

8/8/2019 Know About Insurance

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KnowKnow

aboutaboutInsuranceInsurance


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Contents:Contents:--

Life insuranceLife insurance

General insuranceGeneral insurance

Insurance market scenarioInsurance market scenario

Emerging trends in insuranceEmerging trends in insurance


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LearningLearning

InsuranceInsurance

What Is InsuranceWhat Is InsuranceInsurance is concerned with protectionInsurance is concerned with protectionof economic value of assets.Tangibleof economic value of assets.Tangibleassets are human beings, house,assets are human beings, house,

furniture, motor cycle etc.Intangiblefurniture, motor cycle etc.Intangibleassets are liabilitiesassets are liabilities


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History of InsuranceHistory of Insurance

It started from Lloyds coffee houseIt started from Lloyds coffee houseLondonLondon

First policy issued in England in 1583First policy issued in England in 1583

In India first policy issued in 1870In India first policy issued in 1870


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History of InsuranceHistory of Insurance

LIC of India formed in 1956 afterLIC of India formed in 1956 after

nationalization of life insurancenationalization of life insurance

Business of24

5 private insuranceBusiness of24

5 private insurancecompaniescompanies

General insurance business of 107General insurance business of 107

insurance companies wasinsurance companies was

nationalized in 1972 & four public sector Generalnationalized in 1972 & four public sector GeneralInsurance Companies were formedInsurance Companies were formed


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Classes ofClasses of

InsuranceInsurance

A. Life insuranceA. Life insurance

B. General insuranceB. General insurance

General insurance is furtherGeneral insurance is further

classified:classified:--

1.Fire insurance1.Fire insurance2.Marine insurance2.Marine insurance

3.Miscellaneous insurance3.Miscellaneous insurance


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Miscellaneous Insurances:Miscellaneous Insurances:--

1.Motor insurance1.Motor insurance

2.Mediclaim insurance2.Mediclaim insurance3.Householders insurance3.Householders insurance

4.Shopkeepers insurance4.Shopkeepers insurance

5.Engineering insurances5.Engineering insurances

etc.etc.


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1.Insurable interest1.Insurable interest-- Means financial interestMeans financial interest

2.Utmost good faith2.Utmost good faith-- Greater duties of faithGreater duties of faithon proposer & insureron proposer & insurer

3.Indemnity3.Indemnity-- Actual compensation of loss.Actual compensation of loss.not applicable in life policiesnot applicable in life policies

FundamentalFundamental

Principles of InsurancePrinciples of Insurance


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Fundamental Principles ofFundamental Principles of

InsuranceInsurance

4.Subrogation4.Subrogation--Transfer of rights ofTransfer of rights ofinsured to insurer.Not applicable in lifeinsured to insurer.Not applicable in lifepolicies.policies.

5.Contribution5.Contribution--Sharing of loss by allSharing of loss by allinsurers.Not applicable in life policies.insurers.Not applicable in life policies.


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Market Scenario before Irda ActMarket Scenario before Irda Act

19991999

Life insurance companyLife insurance company

1.1. LIC of IndiaLIC of India

General insurance companiesGeneral insurance companies

1.1.National insurance company ltdNational insurance company ltd

2.New India assurance company ltd2.New India assurance company ltd

3.Oriental insurance company ltd3.Oriental insurance company ltd4.United India insurance company ltd4.United India insurance company ltd


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Market Scenario after Irda Act 1999Market Scenario after Irda Act 1999

Stage ofStage ofLiberalization,Liberalization,

Privatization &Privatization &

GlobalizationGlobalization(Competition between public sector & private(Competition between public sector & privatesector)sector)


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Life Insurance CompaniesLife Insurance Companies

1.Bajaj Allianz Life Insurance Company Ltd1.Bajaj Allianz Life Insurance Company Ltd

2.Birla Sun Life Insurance Company Ltd2.Birla Sun Life Insurance Company Ltd

3.HDFC Standard Life Insurance Company Ltd3.HDFC Standard Life Insurance Company Ltd

4.ICICI Prudential Life Insurance Company Ltd4.ICICI Prudential Life Insurance Company Ltd

5.ING Vysya Life Insurance Company Ltd5.ING Vysya Life Insurance Company Ltd


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6.Max New York Life Insurance Company6.Max New York Life Insurance CompanyLtdLtd

7.Met Life India Insurance Company Ltd7.Met Life India Insurance Company Ltd8.Kotak Mahindra Old Mutual Life Insurance8.Kotak Mahindra Old Mutual Life InsuranceCompany LtdCompany Ltd

9.SBI Life Insurance Company Ltd9.SBI Life Insurance Company Ltd


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10.Tata AIG Life Insurance Company Ltd10.Tata AIG Life Insurance Company Ltd

11.Reliance Life Insurance Company Ltd11.Reliance Life Insurance Company Ltd

12.Aviva Life Insurance

Company Ltd1

2.Aviva Life Insurance

Company Ltd

13.Sahara India Life Insurance13.Sahara India Life InsuranceCompany LtdCompany Ltd


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14.Shriram Life Insurance Company14.Shriram Life Insurance CompanyLtdLtd

15.Bharti Axa Life Insurance Company15.Bharti Axa Life Insurance Company

LtdLtd16.Life Insurance Corporation Of16.Life Insurance Corporation Of

IndiaIndia

17.Future Generali India Life Insurance17.Future Generali India Life InsuranceCompany Ltd.Company Ltd.


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18.18. IDBI Fortis Life Insurance CompanyIDBI Fortis Life Insurance Company

Ltd.Ltd.

19.19.Canara HSBC Oriental Bank ofCanara HSBC Oriental Bank of

Commerce Life Insurance Company Ltd.Commerce Life Insurance Company Ltd.20.Aegon Religare Life Insurance20.Aegon Religare Life Insurance

Company Limited.Company Limited.

21. DLF Pramerica Life Insurance Co. Ltd.21. DLF Pramerica Life Insurance Co. Ltd.

22. Star Union Dai22. Star Union Dai--ichi Life Insurance Co.ichi Life Insurance Co.

Ltd.Ltd.

23.India First Life Insurance Company Ltd23.India First Life Insurance Company Ltd..


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General Insurance CompaniesGeneral Insurance Companies

1.Bajaj Allianz General Insurance Company1.Bajaj Allianz General Insurance CompanyLtdLtd

2.Icici Lombard General Insurance2.Icici Lombard General InsuranceCompany LtdCompany Ltd

3.Iffco Tokio General Insurance Company3.Iffco Tokio General Insurance CompanyLtdLtd

4.Reliance General Insurance Company Ltd4.Reliance General Insurance Company Ltd5.Royal Sundaram Alliance Insurance5.Royal Sundaram Alliance InsuranceCompany LtdCompany Ltd


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6.Tata AIG General Insurance Company Ltd6.Tata AIG General Insurance Company Ltd7.Cholamandalam Ms General Insurance7.Cholamandalam Ms General InsuranceCompany LtdCompany Ltd

8.HDFC8.HDFC--ERGO General Insurance CompanyERGO General Insurance CompanyLtdLtd

9.Star Health & Allied Insurance Company9.Star Health & Allied Insurance CompanyLtdLtd


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10.ExportCredit Guarantee Corporation10.ExportCredit Guarantee CorporationLtdLtd

11.Agriculture Insurance11.Agriculture InsuranceCompany Of India LtdCompany Of India Ltd

12.National Insurance Company12.National Insurance Company

LtdLtd13.New India Assurance Company13.New India Assurance CompanyLtdLtd


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14.Oriental Insurance Company14.Oriental Insurance CompanyLtdLtd

15.United India Insurance Company15.United India Insurance CompanyLtdLtd

16. Apollo Munich Health Insurance Company Ltd16. Apollo Munich Health Insurance Company Ltd


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17.Future Generali India Insurance Company17.Future Generali India Insurance Company

LtdLtd

18. Universal Sompo General Insurance Co.18. Universal Sompo General Insurance Co.

Ltd.Ltd.19.Shriram General Insurance Company Limited19.Shriram General Insurance Company Limited

20.Bharti AXA General Insurance Company ltd.20.Bharti AXA General Insurance Company ltd.

21.Raheja QBE General Insurance Company Limited21.Raheja QBE General Insurance Company Limited

22.SBI General Insurance Company Ltd.22.SBI General Insurance Company Ltd.

23.Max Bupa Health Insurance Company Ltd.23.Max Bupa Health Insurance Company Ltd.

24.L & T General Insurance Company Ltd.24.L & T General Insurance Company Ltd.


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Market IntermediariesMarket Intermediaries

Who procure theWho procure the

insurance business:insurance business:--

AgentsAgents Corporate agentsCorporate agents

Insurance brokersInsurance brokers

Banks (Bancassurance)Banks (Bancassurance)


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Other market IntermediariesOther market Intermediaries

SurveyorsSurveyors

Who assess the loss in NonWho assess the loss in Non--Life InsuranceLife InsuranceClaims

Claims

TPA ( Third Party Administrators)TPA ( Third Party Administrators)

Who provide the claim settlement serviceWho provide the claim settlement service

in health insurance policiesin health insurance policies


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Basic Life Insurance PoliciesBasic Life Insurance Policies

Term assurance policyTerm assurance policy Provides death cover onlyProvides death cover only

during policy periodduring policy period Premium is lowPremium is low

No refund of premiumNo refund of premium

Sum assured paid on deathSum assured paid on death


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Whole Life PolicyWhole Life Policy

Death cover onlyDeath cover only

Period is not specifiedPeriod is not specified

Premium is low & paidPremium is low & paidduring life timeduring life time

No refund of premiumNo refund of premium

Sum assured paid on deathSum assured paid on death


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Endowment Assurance PlanEndowment Assurance Plan

Covers death & survivalCovers death & survival

benefitsbenefits

Sum assured paid on deathSum assured paid on deathor on maturity of policyor on maturity of policy

Period of policy at the optionPeriod of policy at the option

of proposerof proposer Most common planMost common plan


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Money Back PolicyMoney Back Policy

Available for different periodsAvailable for different periods

Covers death & survival benefitsCovers death & survival benefits

Lump sum paid periodicallyLump sum paid periodically

Full sum assured paid on deathFull sum assured paid on death


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Unit Linked Insurance PoliciesUnit Linked Insurance Policies

(ULIP)(ULIP) Each premium split into units and riskEach premium split into units and risk

premium for life coverpremium for life cover

Units are priced as per currentUnits are priced as per currentmarket valuemarket value

Sum assured & current value of units paidSum assured & current value of units paidon death as per policy conditionon death as per policy condition

Current value of units paid on maturityCurrent value of units paid on maturity


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Annuity (Pension)Annuity (Pension)

PlansPlans These are pension plansThese are pension plans

Immediate annuity or deferred annuityImmediate annuity or deferred annuity

starts at specified age periodicallystarts at specified age periodically Single premium paid for immediateSingle premium paid for immediate

annuityannuity

Premium in installments paidPremium in installments paidfor deferred annuityfor deferred annuity

Life cover simultaneouslyLife cover simultaneously


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Important aspects of Life InsuranceImportant aspects of Life InsurancePoliciesPolicies

Policies available with bonus or without bonusPolicies available with bonus or without bonus

Death due to accidents can be covered forDeath due to accidents can be covered for

additional S.A.additional S.A. Policies available exclusively for women &Policies available exclusively for women &

childrenchildren

Additional cover for major diseases availableAdditional cover for major diseases available

Guaranteed bonus policies availableGuaranteed bonus policies available


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Policies available for limited periodPolicies available for limited periodpremium payment & risk for longer policypremium payment & risk for longer policy

periodperiod

Premium can be paid in monthly,Premium can be paid in monthly,quarterly, half yearly, yearly installmentsquarterly, half yearly, yearly installments


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Loans are available on policiesLoans are available on policies

Lapsed policies can be revivedLapsed policies can be revived

Policy can be surrendered after threePolicy can be surrendered after threeyearsyears

Nomination & assignment can be doneNomination & assignment can be done


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General Insurance PoliciesGeneral Insurance Policies

Fire policiesFire policies

Marine policiesMarine policies

Motor vehicle policiesMotor vehicle policies Personal line policiesPersonal line policies

Health insurancesHealth insurances

Liability insurancesLiability insurances

Rural insurance policiesRural insurance policies

Engineering insurancesEngineering insurances


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Fire PoliciesFire Policies

Standard fire policyStandard fire policy--

Common policy for buildings, shops,offices,Common policy for buildings, shops,offices,

Industrial & manufacturing risksIndustrial & manufacturing risks


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FIRE POLICIESFIRE POLICIES--SPECIAL POLICIESSPECIAL POLICIES

Industrial & ManufacturingIndustrial & Manufacturing

clientsclients Floater policyFloater policy Declaration policyDeclaration policy

Floater declaration policyFloater declaration policy

Reinstatement value policyReinstatement value policy Industrial all risk policyIndustrial all risk policy

Consequential loss policyConsequential loss policy


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Marine PolicyMarine Policy

Marine Cargo PolicyMarine Cargo Policy

Policy insures physical loss or damage to thePolicy insures physical loss or damage to thegoods in transit by road, rail, air, water causedgoods in transit by road, rail, air, water causeddue to accidents, fire etcdue to accidents, fire etc..

Marine Hull PolicyMarine Hull Policy Policy insures marine ships,steamers etc.Policy insures marine ships,steamers etc.


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Special Marine Cargo PoliciesSpecial Marine Cargo Policies

For business, industries,For business, industries,

importers and exportersimporters and exporters

Annual policyAnnual policy Special declaration policySpecial declaration policy

Open coverOpen cover

Open policyOpen policy


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Motor Vehicle PoliciesMotor Vehicle Policies

Liability only motor policyLiability only motor policyMandatory motor vehicle policyMandatory motor vehicle policy

Package motor policyPackage motor policyMotor policy additionally insures loss andMotor policy additionally insures loss anddamage of the motor vehicle due to theftdamage of the motor vehicle due to theft

and accidents along with third party riskand accidents along with third party riskis called a package motor policyis called a package motor policy..


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Personal Line InsurancesPersonal Line Insurances

House holders policyHouse holders policy

Shop keepers policyShop keepers policy

Personal accident policyPersonal accident policy

Group personal accident policyGroup personal accident policy

Fidelity guarantee policyFidelity guarantee policy


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Health InsuranceHealth Insurance

Medi claim policyMedi claim policy

Overseas medi claim policyOverseas medi claim policy

Videsh yatra mitra policyVidesh yatra mitra policy Corporate frequent travelers policyCorporate frequent travelers policy

Employment & study policyEmployment & study policy

Group medi claim policyGroup medi claim policy Cancer policyCancer policy


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Liability InsurancesLiability Insurances

Compulsory public liability policyCompulsory public liability policy

Public liability policyPublic liability policy

Products liability policyProducts liability policy Professional indemnity policyProfessional indemnity policy

Lift (third party) policyLift (third party) policy

Directors liability policyDirectors liability policy Employers liability policyEmployers liability policy


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Rural Insurance PoliciesRural Insurance Policies

Cattle policyCattle policy

Poultry policyPoultry policy

Agricultural pump setAgricultural pump set

policypolicy

Crop insuranceCrop insurance


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Engineering InsurancesEngineering Insurances

Machinery Breakdown InsuranceMachinery Breakdown Insurance

Loss of Profits (MachineryLoss of Profits (MachineryBreakdown) InsuranceBreakdown) Insurance

Electronic Equipment InsuranceElectronic Equipment Insurance

Erection All Risk Insurance (EAR)Erection All Risk Insurance (EAR)

Storage cum Erection InsuranceStorage cum Erection Insurance(SCE)(SCE)


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Engineering InsurancesEngineering Insurances

Contractors All Risk Insurance (CAR)Contractors All Risk Insurance (CAR)

Contractors Plant and Machinery InsuranceContractors Plant and Machinery Insurance(CPM)(CPM) Boiler and Pressure Plant InsuranceBoiler and Pressure Plant Insurance Loss of Profits (Boiler Explosion) InsuranceLoss of Profits (Boiler Explosion) Insurance

Deterioration of Stocks Insurance.Deterioration of Stocks Insurance.


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Insurance LawInsurance Law

The Insurance Act 1938The Insurance Act 1938

(amended)(amended) Insurance Regulatory & DevelopmentInsurance Regulatory & DevelopmentAuthority Act 1999Authority Act 1999


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IRDAIRDA

Insurance Regulatory & DevelopmentInsurance Regulatory & DevelopmentAuthority is the controlling and regulatoryAuthority is the controlling and regulatoryapex body in the country for insuranceapex body in the country for insurancesector and its chairman and members aresector and its chairman and members areappointed by Government of India. IRDAsappointed by Government of India. IRDAsHQ is located atHyderabadHQ is located atHyderabad


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Insurance RegulationsInsurance Regulations(Regulations issued by IRDA)(Regulations issued by IRDA)

IRDA Actuarial Report and Abstract2000IRDA Actuarial Report and Abstract2000

IRDA Registration of Indian InsuranceIRDA Registration of Indian InsuranceCompanies

2000

Companies

2000

IRDAIRDA Insurance Advertisement andAdvertisement andDisclosure 2000Disclosure 2000

IRDA The IRDA (Meetings) 2000IRDA The IRDA (Meetings) 2000

IRDA Investments (Life and General) 2000IRDA Investments (Life and General) 2000

IRDA Statements of Accounts 2000IRDA Statements of Accounts 2000


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IRDA The Insurance Advisory CommitteeIRDA The Insurance Advisory Committee(Meetings) Regulations, 2000(Meetings) Regulations, 2000

IRDA Assets, Liabilities, and SolvencyIRDA Assets, Liabilities, and Solvency

Margin of Insurers Regulations, 2000Margin of Insurers Regulations, 2000 IRDA Obligations of Insurers to RuralIRDA Obligations of Insurers to Rural

Social Sectors Regulations, 2000Social Sectors Regulations, 2000

IRDA Licensing of Insurance AgentsIRDA Licensing of Insurance AgentsRegulations, 2000Regulations, 2000

IRDA Appointed Actuary 2000IRDA Appointed Actuary 2000


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IRDA General InsuranceIRDA General Insurance -- ReinsuranceReinsuranceRegulations, 2000Regulations, 2000

IRDA The IRDA (Staff) 2000IRDA The IRDA (Staff) 2000

IRDA Surveyors and Loss Assessors 2000IRDA Surveyors and Loss Assessors 2000 IRDA ReinsuranceIRDA Reinsurance Life 2000Life 2000

IRDA Revised Investment Regulations in AprilIRDA Revised Investment Regulations in April20012001


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Insurance RegulationsInsurance Regulations

Irda (manner of receipt of premium)Irda (manner of receipt of premium)regulation 2002regulation 2002

Irda (licencing of brokers) regulation 2002Irda (licencing of brokers) regulation 2002

Irda (microIrda (micro--insurance) regulations, 2005insurance) regulations, 2005

IRDA (Treatment ofDiscontinued LinkedIRDA (Treatment ofDiscontinued Linked

Insurance Policies) Regulations, 2010Insurance Policies) Regulations, 2010 IRDA (Sharing ofDatabase for DistributionIRDA (Sharing ofDatabase for Distribution

of Insurance Products) Regulations, 2010of Insurance Products) Regulations, 2010


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IRDA Guidelines on Corporate GovernanceIRDA Guidelines on Corporate Governance

for the Insurance Sectorfor the Insurance Sector

IRDA vide letter no. IRDA/F&A/CIR/025/2009IRDA vide letter no. IRDA/F&A/CIR/025/2009--10 dated10 dated

0505--0808--2009 has issued detailed guidelines to all insurers2009 has issued detailed guidelines to all insurerson corporate governance for the insurance sector foron corporate governance for the insurance sector forcompliance with effect from 01compliance with effect from 01--0404--2010 and an2010 and anAmendment No.1 has been issued vide letterAmendment No.1 has been issued vide letterno.no.IRDA/F&I/CIR/F&A/014/01/2010 dated 29IRDA/F&I/CIR/F&A/014/01/2010 dated 29--0101--

20102010


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Economic GrowthEconomic GrowthGDP 8.7 % in 2007GDP 8.7 % in 2007--0808

SectorSector GrowthGrowth % of GDP% of GDP

Agriculture 2.6 17.5Agriculture 2.6 17.5

Industry 8.9 26.8Industry 8.9 26.8Services 10.7 55.7Services 10.7 55.7

(Fin.& 11.7 14.7(Fin.& 11.7 14.7

Insurance)Insurance)


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Growth of Insurance BusinessGrowth of Insurance Business

Life Insurance Premium from Rs.400Life Insurance Premium from Rs.400crores in 1956 to Rs.221791 crores incrores in 1956 to Rs.221791 crores in20082008--09 with 10.15 % growth over 200709 with 10.15 % growth over 2007--0808

General Insurance Premium from Rs.200General Insurance Premium from Rs.200

crores in 1972 to Rs.38182 crores in 2009crores in 1972 to Rs.38182 crores in 2009--10 with 16.55 % growth over 200810 with 16.55 % growth over 2008--0909


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Emerging TrendsEmerging Trends

Detariffing in General Insurance fromDetariffing in General Insurance from1.1.2007 leading to greater price war &1.1.2007 leading to greater price war &new products in futurenew products in future

Banks entering insurance market throughBanks entering insurance market throughjoint ventures with foreign finance majorsjoint ventures with foreign finance majors


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Increasing Role ofIncreasing Role of

Insurance BrokersInsurance Brokers BancassuranceBancassurance

Corporate AgencyCorporate Agency

IT intervention & usesIT intervention & uses


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Greater Job OpportunitiesGreater Job Opportunities

For thousands of InsuranceFor thousands of Insurance

Managers, IT ProfessionalsManagers, IT Professionals

For lacs of Insurance AdvisorsFor lacs of Insurance Advisors

For Insurance ProfessionalsFor Insurance Professionals

For Risk ManagersFor Risk Managers

For UnderwritersFor Underwriters

For claim SettlementsFor claim Settlements


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Vast No. of uninsured populationVast No. of uninsured population

UnderinsuranceUnderinsurance Untapped potential for General InsuranceUntapped potential for General Insurance


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Increasing awareness aboutHealthIncreasing awareness aboutHealthInsuranceInsurance

Increasing awareness about Personal LineIncreasing awareness about Personal LineInsurance like House, Shop, PersonalInsurance like House, Shop, Personal

AccidentAccident

Market flooded with new insuranceMarket flooded with new insurance

productsproducts

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