Insurance Policy India provides the clients with the details required for the coverages in the policy

date of commencement of the policy and their adopting organizations. It plays a important role in the Indian insurance sector. The Insurance Policy India is regulated by certain acts like the Insurance Act(1938), the Life Insurance Corporation Act(1956), General Insurance Business (Nationalization) Act(1972), Insurance Regulatory and Development Authority (IRDA) Act(1999). The insurance policy determines the covers against risks, sometime opens investment options with insurance companies setting high returns and also informs about the tax benefits like the LIC in India. There are two types of insurance covers: 1. Life insurance 2. General insurance Life insurance – this sector deals with the risks and the accidents affecting the life of the customer. Alongside, this insurance policy also offers tax planning and investment returns. There are various types of life Insurance Policy India: a. Endowment Policy b. Whole Life Policy c. Term Life Policy d. Money-back Policy e. Joint Life Policy f. Group Insurance Policy g. Loan Cover Term Assurance Policy h. Pension Plan or Annuities i. Unit Linked Insurance Plan General Insurance – this sector covers almost everything related to property, vehicle, cash, household goods, health and also one's liability towards others. The major segments covered under general Insurance Policy India are: a. Home Insurance b. Health Insurance c. Motor Insurance d. Travel Insurance Some of the well known Insurance Policy India are: Social Security Group Scheme – a scheme covering the age group of 18-60 years and an insurance of Rs.5000 for natural death and of Rs.25000 on due to accidental death. Shiksha Sahyog Yojana – a scheme providing an educational scholarship of Rs.300 per quarter per child is given for a period of four years. Raj Rajeshwari Mahila Kalyan Yojana – a scheme providing protection to woman in the age group of 10 to 75 years with an insurance of Rs. 25,000 and premium Rs.15 per annum. Jan Arogya Bima Policy – a scheme for the adults upto the age of 45 years is Rs. 70 and for children it is Rs. 50. The limit coverage is fixed at Rs.5000 per annum. Mediclaim Insurance Policy – a scheme covering the age group from 5-80 years with a tax benefit of up to Rs 10,000. Jana Shree Bima Yojana – this is a coverage of Rs 2,000 on natural death and Rs 50,000 for accidental death. The premium amount is fixed at Rs. 200 for single member. Videsh Yatra Mitra Policy – a scheme covering medical expenses during the period of overseas travel. Bhagya Shree Child Welfare Bima Yojana – a scheme covering one girl child in a family upto the age of 18 whose parents age does not exceed 60 years, with a premium of Rs.15 per annum. Ashray Bima Yojana – a scheme covering workers in case of loss of jobs

including automobile. • Power of Suppliers: Those who are supplying the capital are not that big a threat. and then reimbursing this same money once the person passes away or the policy matures. if someone as a very talented insurance underwriter is presently working for a small insurance company. Majorly. For instance. there exists a chance that any big player willing to enter the insurance industry might entice that person off. Liability Insurance . • Power of Buyers: No individual is a big threat to the insurance industry and big corporate houses have a lot more negotiating capability with the insurance companies.Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured. health and property. home. the higher premium that person has to pay. Big corporate clients like airlines and pharmaceutical companies pay millions of dollars every year in premiums. commercial. let us clear some basics on insurance. in life insurance segment. For instance. property and professional/business mishaps.000 for partial disability INSURANCE COMPANY It is due to globalization. investing the money (usually in low risk investments). Insurance coverage includes 50. 2.Insurance against expenses incurred through illness of the insured. the large insurance companies provide similar kinds of services – be it auto. Life Insurance . health or life insurance..000 for accidental death and 25. The case is the same for all other types of insurance.This insures property such as automobiles. Therefore the companies should carve out niche areas such that the threat of new entrants might not be a hindrance. or to the insured if he or she lives beyond a certain age. In the words of a layman. The greater the probability for a person to have a shorter life span than the average mark.Personal Accident Insurance Scheme for Kissan Credit Card – a scheme covering all the KCC holders up to an age of 70 years. 3. that the insurance industry is undergoing a massive change and the metamorphosis has been noteworthy in the last few decades. deregulation and also terrorist attacks. the insurance company tries to manage mortality (death) rates among the wide array of clients. Challenges facing Insurance Industry • Threat of New Entrants: The insurance industry has been budding with new entrants every other day. insurance means managing risk. Clearing basics Before we begin the analysis of Indian insurance industry. • Ownership of insurance companies is of two types: • Shareholder ownership • Policyholder ownership Types of Insurance 1. . There is also a chance that the big players might squeeze the small new entrants. • The insurance company works in a manner by collecting premiums from policy holders. Health Insurance . • Availability of Substitutes: There exist a lot of substitutes in the insurance industry.

GIC was incorporated as a company. Important milestones in the Indian general insurance business • 1907: The Indian Mercantile Insurance Ltd. viz. • 1972: The General Insurance Business (Nationalization) Act.• How to choose an insurance company? There are many factors to probe into when an investor chose an insurance company. the National Insurance Company Ltd. LIC Act. Brief history of insurance sector The insurance sector in India has completed all the facets of competition –from being an open competitive market to being nationalized and then getting back to the form of a liberalized market once again.. 5 crore and that too from the Government of India. • 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. framed a code of conduct for guaranteeing fair conduct and sound business patterns. (the first general insurance company) which was formed in the year 1850 in Kolkata by the British. • 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. 1956. the business of Indian life insurance started in the year 1818 Important milestones in the Indian life insurance business • 1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. With the establishment of the Oriental Life Insurance Company in Kolkata. It was with effect from 1st January 1973. • The consumers as well as the investors should only focus on the insurer's financial strength and capability to meet ongoing responsibilities to its policyholders. LIC was formed by an Act of Parliament. It started off with a capital of Rs. the Oriental Insurance Company Ltd. an arm of the Insurance Association of India. 107 insurers integrated and grouped into four companies viz. . The history of the insurance sector in India reveals that it has witnessed complete dynamism for the past two centuries approximately. • 1957: General Insurance Council. The history of general insurance business in India can be traced back to Triton Insurance Company Ltd. was set up which was the first company of its type to transact all general insurance business. • 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized.. the New India Assurance Company Ltd. • The fundamentals of the insurance company should be strong and should not indicate a poor investment opportunity as this might also deter growth. and the United India Insurance Company Ltd. 1972 nationalized the general insurance business in India. • 1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up.

General Insurance Corporation has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance business. List of Insurance companies in India LIFE INSURERS Public Sector Life Insurance Corporation of India Private Sector Allianz Bajaj Life Insurance Company Limited Birla Sun-Life Insurance Company Limited HDFC Standard Life Insurance Co. If the existing public sector insurance companies are considered then there are presently 13 insurance companies in the life side and 13 companies functioning in general insurance www.birlasunlife.iciciprulife. Limited MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Pvt. Limited GENERAL INSURERS Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited Websites .in www.orientalinsurance. SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Limited ICICI Prudential Life Insurance www.allianzbajaj. Ltd. Limited ING Vysya Life Insurance Company Limited Max New York Life Insurance Co.niacl.Insurance companies in India IRDA has till now provided registration to 12 private life insurance companies and 9 general insurance www.

Ltd. Ltd. ‘a guard against pecuniary loss arising on the happening of an unforeseen event’. are you? The functions of Insurance will give you an idea on how to go ahead with the approach of insurance and what type of insurance to choose.royalsun.. In a layman's words. factory. Limited ICICI Lombard General Insurance Co. . and the hand of an author.bajajallianz. accidents and uncertainty. 2. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance www. insurance means.icicilombard. REINSURER General Insurance Corporation of India www.Other Functions Primary functions of insurance • Providing protection – The elementary purpose of insurance is to allow security against future www.Primary Functions 2. Ltd. 1. leg of a www. by apportioning the risk with car. It is possible to insure all these as they have the possibility of becoming non functional by any disaster or an accident.tata-aig. TATA AIG General Insurance Co. Insurance is in reality a protective cover against economic Concept of Insurance Insured.cholainsurance. Limited Royal Sundaram Alliance Insurance Co. but can for sure allow for the losses arising with the risk. In developing economies. Basic functions of Insurance 1. Ltd.Private Sector Bajaj Allianz General Insurance Insurance cannot arrest the risk from taking place. or the voice of a singer. the insurance sector still holds a lot of potential which can be tapped.etc. www. Majority of the people in the developing countries remains unaware of the functions and benefits of insurance and it is for this reason that the insurance sector is still to Tangible or intangible – an individual can insure anything! Be it a www. IFFCO-Tokio General Insurance www.. Limited Cholamandalam General Insurance www.Secondary Functions 3.gicindia. Reliance General Insurance Co.

or reimbursement.000 cities and towns across the country. It offers various plans like Child. Protection and Rural. AVIVA Life Insurance has an extensive network of 208 branches and about 40 Bancassurance partnerships. etc. Savings. Retirement. Other functions of insurance • Is a savings and investment tool – Insurance is the best savings and investment option. The life insurance unit is known as Tata AIG Life Insurance Company Limited. is a joint venture between the renowned business group. . making foreign trade risk free with the help of different types of policies under marine insurance cover. Health. • Risk Free trade – Insurance boosts exports insurance. Also to take the benefit of income tax exemptions. A joint venture between Tata Group (74% stake) and American International Group. started its operation on April 1. Tata AIG Insurance Solutions has two different units for life insurance and general insurance. 2001. All the insured add the premiums towards a fund and out of which the persons facing a specific risk is paid. • Covering larger risks with small capital – Insurance assuages the businessmen from security investments. (AIG) (26% stake). Dabur and the largest insurance group in the UK.• Collective risk bearing – Insurance is an instrument to share the financial loss. There are loads of companies who are providing such customized insurance policies. installation of automatic sparkler or alarm systems. spread across 3. Inc. Risk is the basis for ascertaining the premium rate as well. which assists in changing uncertainty to certainty. • Medium of earning foreign exchange – Being an international business. There are more than 30. whereas the general insurance unit is known as Tata AIG General Insurance Company Limited.000 Financial Planning Advisers (FPAs) working for AVIAV Life Insurance. • Helps in the development of larger industries – Insurance provides an opportunity to develop to those larger industries which have more risks in their setting up. • Provide Certainty – Insurance is a device. AVIVA Life Insurance AVIVA Life Insurance. This is done by paying small amount of premium against larger risks and dubiety. one of the popular insurance companies in India. restricting unnecessary expenses by the insured. Aviva plc. There are different types of insurance policies under the sun cover almost anything that one might think of. List of top insurance companies Tata AIG Insurance SolutionsTata AIG Insurance Solutions. in the event of an unanticipated loss or disaster. • Evaluating risk – Insurance fixes the likely volume of risk by assessing diverse factors that give rise to risk. one of the leading insurance providers in India. Secondary functions of insurance • Preventing losses – Insurance warns individuals and businessmen to embrace appropriate device to prevent unfortunate aftermaths of risk by observing safety instructions. people take up insurance as a good investment option. any country can earn foreign exchange by way of issue of marine insurance policies and a different other ways. It is a medium through which few losses are divided among larger number of people. Insurance provides indemnity.

It also has around 75. MAX New York Life Max New York Life Insurance Company Ltd. Inc. life and health insurance.New York Life). Currently. Met Mortgage Protector and Met Suraksha Plus etc. Birla Sun Life Financial Services Birla Sun Life Financial Services is a joint venture between Aditya Birla Group and Sun Life Financial Inc. It has its branches situated over 600 locations across the country.000 empanelled advisors work for Birla Sun Life. Canada. one of the top insurance companies in India. Private Limited and other private investors and MetLife International Holdings. whereas Allianz SE holds the rest 26% stake. Bajaj Allianz Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE. It offers a range of individual. The first channel has branches in 234 cities across the country and has got 366 sales teams. More than 50. Met Suraksha TROP.832 agent advisors. Max New York Life offers 39 products. Bajaj Allianz has been rated iAAA by ICRA for its ability to pay claims. 2866 crore as on March 31. The company also achieved a growth of 11% with a premium income of Rs. It has got an extensive network of more than 600 branches. Bharti AXA Life Insurance Bharti AXA Life Insurance. A joint venture between the Jammu and Kashmir Bank. 2009. which currently covers over 2 million lives. Pallonji and Co.MetLife Insurance MetLife India Insurance Company Limited is another popular player in Indian insurance sector. On the other hand. More than 1. which cover both. Ambuja Cements.75. Bharti AXA has its branches located in 12 states across the country. Currently more than 8000 employees work for Bharti AXA Life Insurance. whereas AXA holds the rest of 26%. Exide Industries and Enam Group. Insurance Companies in India • • • • • • • • • • • • Life Insurance Companies Aviva Life Insurance Bajaj Allianz Life Insurance Birla Sun-Life Insurance HDFC Standard Life Insurance ING Vysya Life Insurance Life Insurance Corporation Max New York Life Insurance MetLife Insurance Om Kotak Mahindra Life Insurance Reliance Life Insurance Sahara India Life Insurance .000 Financial Advisors work for MetLife.. is one of the top insurance companies in India. started its operation in April 2001. M. the Alternate Channel and the Tied Agency Force to distribute its products. group and health plans for its customers. where Bajaj Finserv Limited holds 74% of the stake.000 advisors. A joint venture between ING Group. It currently has around 715 offices located in 389 cities across the country. ING Vysya Life Insurance has tie ups with more than 200 cooperative banks. MetLife Insurance offers a wide range of financial solutions to its customers including Met Suraksha. A joint venture between Max India Limited and New York Life International (a part of the Fortune 100 company . viz. ING Vysya Life Insurance uses its two channels. ING Vysya Life Insurance ING Vysya Life Insurance entered into the Indian insurance industry in September 2001. Bharti holds 74% stakes. Max New York Life Insurance Company Ltd. is a joint venture between Bharti group and world leader AXA. the later one has more than 60.

natural calamities like floods. 1972. It covers: • loss or damage caused to the vehicle or its accessories due to natural and man made calamities . Nearly 100 general insurance companies have been nationalized under the General Insurance Business (Nationalization) Act. Major insurance policies that are covered underIndia General Insurance are: • Home Insurance � Home insurance policies under the India General Insurance provides protection against earthquake. other hazards like gas cylinder explosion. cash. • Health Insurance . The basic difference of general insurance with the life insurance policy is that it offers protection against contingencies. The home insurance policies under the India General Insurance covers: • • Building structure Contents inside the home However it should be remembered. and merged into four companies. as stated under Section 80D. fire due to electric short circuit and burglary. • Motor Insurance .Motor insurance policies under India General Insurance is obligatory as all vehicles are needed to be insured. National Insurance . health and also one's liability towards others. New India Assurance . Mediclaim policies is also tax beneficial. namely.000. Health insurance policy covers expenses incurred during hospitalization and also the expenses during the pre as well as post hospitalization stages like pathological tests and buying medicines.000 and in case of senior citizens Rs 15.• • • • • • • • • • • • • • • • • SBI Life Insurance TATA AIG Life Insurance General Insurance Companies Agriculture Insurance Amsure Insurance ANZ Insurance Bajaj Allianz General Insurance Cholamandalam General Insurance Employee State Insurance Export Credit Guarantee Corporation ICICI Lombard General Insurance IFFCO-Tokio General Insurance National Insurance Oriental Insurance Peerless Smart Financial Royal Sundaram Alliance TATA AIG General Insurance India General Insurance India General Insurance covers almost everything related to property.Health insurance under the India General Insurance is commonly calledMediclaim policies. that a home insurance does not cover the market value of the house but all the contents are covered on the market value of the items. Oriental Insurance and United India Insurance. vehicle. household goods. landslides and torrential rains. with the maximum amount of deduction being fixed at Rs 10.

Thus. There are two types of health insurance policies offered by the popular insurance companies in India. Most of the renowned companies in India provide comprehensive health insurance polices.Benefits Below is a list of the advantages of a comprehensive Health Insurance policy . Since most of us today have joined the rat race and every one wants to be rich and successful the one major thing that we are neglecting is our most precious asset health. Offered by most of the reputed insurance companies in India the individual health policies insure you against any illnesses. This policy also entitles the insured or his spouse of kids to cashless hospitalization and all other benefits that are enjoyed by an individual with an Individual Health Insurance policy. cancer etc were rare till a few decades back but with every passing day these dreadfully diseases are getting more and more common by the day. These health insurance policies cover all the costs incurred before hospitalization. The policies cover the hospitalization expenses for an individual for up to the sum assured limit. financial emergency assistance and hijack distress allowance and as well covers expenses incurred due to delayed flight. The unique feature about this policy is that with the payment of a single premium the entire family is covered against illnesses. stroke. In order to get treated by a good specialist or doctor one has to pay through his nose. (B) GENERAL INSURANCE • • • • Fire Insurance Marine Insurance Accident Insurance Some of the leading insurance companies covering general insurances are the ICICI Lombard Insurance Direct. It also takes care of valued assets left at home. cancellation of trip. Types of Health Insurance in India Individual Health Insurance The most popular form of health insurance policies are the Individual Mediclaim policies. In order to assist you in the event of an unforeseen health problem health insurance has been introduced. These insurance companies have a tie up with the reputed hospital spread across the country.• compulsory personal accident coverage for individual owners of the vehicle while driving Travel Insurance . during hospitalization and after hospitalization. Health is slowly and steadily becoming a major matter of concern for most individuals today. renal failure. this ensures all travel worries. Even daily hospital charges are sky high.Travel insurance policies under India General Insurance offers lots of benefits such as medical expenses. Treatment is India is no longer cheap. personal accident. Health Insurance . Ailments like Heart problems. Family Floater policy Another common policy that is ruling the insurance sector today is the family health insurance policy. diabetes. The insurance premium is dependent on the sum assured value. Health Insurance After life insurance health insurance policies are perhaps the most insurance policies required by human beings today. and others. loss or delay of baggage or passport. Bajaj Allianz. Tata-AIG.

• The health insurance policies also include Ambulance Charges. Tata AIG Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest. • Health insurance policies entitle you to regular free health Check ups The premiums paid for health insurance policies exempt the insured from paying Income Tax Under Section 80 D of the Income Tax Act Health Insurance • • • • • • • • • • • • • • • • • • • • • Children Health Policy Health Insurance Options Individual Health Insurance Cheap Health Insiurance Health Insurance Companies Health Insurance Premium Find Health Insurance-policy Health Insurance Benefits Health Insurance Claim Health Insurance Costs Group Health Insurance Private Health Insurance Senior Health Insurance Plan Women Health Insurance Plan Corporate Health Insurance Employee Heallth Insurance Health Insurance Articles Parents Health Insurance Family Health Insurance Individual Health Coverage Instant Health Insurance Non-life insurers clock 22% growth in AprilAbout Tata AIG Life Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company. • Pre and Post Hospitalization Expenses are taken care of by most of the health care providing insurance companies. This facility covers a wide network of renowned hospitals spread across the country. • You or any of your family members is entitled to cashless facility in case of hospitalization due to illness. formed by Tata Sons and AIA Group Limited (AIA). independent listed pan-Asia life insurance group in the world spanning 15 markets in Asia . • The policy generally covers relevant medical expenses incurred 60 days prior to and 90 days after hospitalization.• Most of the Family Health insurance policies offered by the insurance companies in India protect you and your family which includes your spouse and two children under a single policy. • Some of the reputed insurance companies also provide Cash benefits to the insured during the time of hospitalization. • One single health insurance policy covers the entire family. • Every claim free year entitles the ensured to an additional amount known as cumulative bonus.

2001 and started operations on April 1. Tata Sons holds a majority stake (74%) in the company and AIA holds 26% through an AIA Group company. Tata AIG Life Insurance Company was licensed to operate in India on February 12.Pacific. . 2001.

Sign up to vote on this title
UsefulNot useful