Escolar Documentos
Profissional Documentos
Cultura Documentos
PRESENTED BY:-
Mihir Trivedi - 02
Rajaram Palav - 26
Chandan Kokul - 27
Samson Aranha - 28
Bansi Mehta - 23
Index
Definition of Insurance.
History of Insurance.
Liberlisation.
Contribution to the Economy.
Introduction of Micro insurance.
Misconceptions.
Critical Features.
IRDA.
Target Market.
Critical Issues.
Definition :
“Covers an individual / Company
/Household for some or all of a
financial loss that is linked to an
unpredictable event or risk, via risk
pooling & the payment of a
premium.”
1850 the first insurance company was formed in India.
1938 The insurance act was passed.
1947 economic nationalization began in insurance
sector.
1972 Insurance market was fully nationalized.
1991 economic liberalization was began.
1994 Marine tariffs were removed.
1999 the Insurance regulatory & development
authority Act (IRDA) was formed.
Liberalisation:
“ In 1991 Economic liberlisation began under
Dr.Manmohan Singh.3 Yrs later the Malhotra
committee report on the state of Indian insurance
industry was released.
These recommendation were put in to practice via
IRDA. In particular, the monopoly previously
enjoyed by GIC (General insurance corporation of
India) was removed in yr -2000 & First licensed
were granted to private. Companies.”
Contribution of Insurance market in Indian
Economy.
Insurance generated RS 400 billion business in India ,
and together with banking services adds about 7% to
India's GDP .Gross premium collection is about 2% of
GDP and has been growing by 15-20% per annum.
India also has the highest number of life insurance
policies in force in the world , and total investible
funds with the LIC are almost 8%. of GDP. Yet more
than three –fourths of India’s insurable population
has no life insurance or pension cover.
* Growth in major types of Insurance
Life insurance Non life insurance
Monitor it effectively
Risk Priorities by low-income
people
Health Problems
Death of breadwinner
Mandatory Norms :-
Rural Sector - Life Insurers
First 5 years - 7% to 16% of total policies underwritten
6th to 10th* year - 18% to 20%
Non Life
First 5 years - 2% to 5% of total gross premium
6th to 10th* year - 5% to 7%.
Social Sector - Life & Non Life
5000 to 20000 lives for the first 5 years and 25000 to 55000 lives for 6th to
10th year*
Target Market.
A Commercial Insurance for
wealthy individuals and
B companies, as well as
A
Wealthy compulsory products.
Middle
Income
B Most of non-motor related
commercial insurance.
C
C Social security and public
D E health services.
Low
Income
D Aggregate market for
microfinance providers.