Submitted to: Prof.

Rahul Dalavi

Aarti R.Mungekar FYMMS

Insurance is concerned with protection of economic value of assets. Tangible assets are human beings, house, furniture, motor cycle etc.

What is Insurance?

Need For Insurance

Tax benefit + Tax free cash on maturity Help during retirement act as a pensions Savings Instrument Contribution towards sustaining a standard of living when one contributing partner dies. Cover against risk Financial Planning
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History of Insurance
1666Great Fire of London. Shortly thereafter, Nicholas Barbon opens the first fire insurance office in England. It eventually becomes The Phoenix Assurance Company. 1690s Fire insurance companies form the first professional fire brigades.

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
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 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized
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Insurance Regulatory & Development Authority (IRDA)

The regulator for insurance business in India is IRDA. IRDA was established in 2000 IRDAs functions: 1.To regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India 2.To protect the interests of policy holders
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Services in Insurance Sector

Term Life Insurance
Life Insurance Permanent Life Insurance Fire Insurance Marine Insurance General Insurance Mediclaim

Insurance

Accidental
Motor Vehicle

It is a written contract between the insured and the insurer.

Term Life: the insured is covered while the policy is in effect, usually 1020 years. Whole Life: similar to term life, but allows the policyholder to borrow against the policies cash value. When the term of policy expires, the insured can get the cash value of the policy.
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General Insurance
It is a non life insurance policies, including automobile and homeowners policies, provides payments depending on the loss from a particular financial events. General insurance typically comprises any insurance that is not determined to be life insurance.

Types of General Insurance

Health insurance: Just like one looks to safeguard ones wealth, these
policies ensure guarding the insurer's health against any calamities that may cause long term harm to ones life and even hamper ones earning ability for a lifetime.

Business insurance: Risks of loss of profits/business, goods, plant and

machinery are most profound in case of business.

Automobile insurance: Auto Policy is required to be taken to cover the

risks that arise to the owner, vehicle and third party.

Fire insurance: This policy is required to be taken to prevent any loss of

profits / property from incidental fire.

General Insurance Corporation (GIC)

Prior nationalization there were 68 Indian insurers (including LIC) and 45 non-Indian insurers did the business. GIC and its four subsidiaries -: 1. National Insurance Co. Ltd., 2. New India Assurance Co. Ltd., 3. Oriental Fire and General Insurance Co. Ltd., 4. United India Insurance Co. Ltd. GIC was incorporated as a holding company in 1992. General Insurance Business is completely owned by the government.
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 The Govt of India took over Control, supervision, and policy making is with GIC.
The premium income for GIC comes mainly through the obligatory reinsurance premium on a quota share basis from subsidiaries on their direct business in India (almost 20% of subsidiaries business come to GIC).
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The 15 private players together saw their business grow 32 % to Rs 848 crore with a market share of 28.44 %.
Insurers Premium[Rs.Cr.]

ICICI Prudential
Bajaj Allianz SBI Life HDFC Standard Max New York Life Tata AIG Aviva Reliance Life

271.00
124.00 90.00 70.00 69.00 48.00 39.00 33.00

Birla Sunlife Kotak Mahindra Old

28.00

Mutual

26.00

Met Life
Shriram Life

19.00
4.50

Sahara Life
Bharti Axa Life

1.70
0.72
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Major Players

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Current Scenario
Growing at the rate of 15-20% annually 75% population has no insurance Annuity or pension product have over 33% of market Unity linked insurance scheme have monopoly The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby deregulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed

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Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings Spread of financial services in rural areas and amongst socially less privileged Long term funds for infrastructure Strong positive correlation between development of capital markets and insurance /pension sector Employment generation
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Schemes of insurance

Jeevan anurag Jeevan kishore Child career plan Child fortune plus Komal jeevan Jeevan chaya
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 Jeevan adhar Jeevan vishwas The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha Plan Jeevan Amrit
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 Jeevan Shree-I Jeevan Pramukh

The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat

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 Jeevan Bharati

The Whole Life Policy The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium Jeevan Anand Jeevan Tarang
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Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I Amulya Jeevan-I

Jeevan Saathi Plus Jeevan Saathi Jeevan Nidhi Jeevan Akshay-VI New Jeevan Dhara-I New Jeevan Suraksha-I

Wealth Plus Market Plus I Profit Plus Money Plus-I

Conclusion
Share of private sector players has increased to 30 per cent from 2 per cent over FY03-11. Enormous opportunities available. . However, the largest life-insurance company in India is still owned by the government.

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