€ What € The

is INSURANCE

main function

€ Benefits

Policy: It's the written contract between an insurance company and its insured.€ Insured: The person known as the policyholder. Insurer: A company licensed to transact the business of insurance and issue insurance policies. a person with insurance coverage. It defines what the company agrees to cover for what period of time and describes the obligations and responsibilities of the insured. € € .

a loss maybe covered.€ Premium: It's the amount of money a policyholder pays for insurance protection. € € . Indemnity: An insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss. Claim: It's the notice to the insurance company that under the terms of a policy.

which the insured is responsible to pay before the insurance company pays the benefits. Deductible: It's the amount of the loss. Expiration Date: This is the date on which the policy ends.€ Agent: A licensed person or organization who sells insurance and represents the insurance company to the policyholder. Broker: An organization or person paid by the policyholder to look for insurance on their behalf. € € € .

gender. occupation and hobbies. health. . € Underwriting: The process of classifying applicants for insurance by identifying characteristics such as age.€ Limit: It's the maximum amount paid by the insurance company under the terms of a policy.

Life Insurance (general insurance) Types of Insurance Auto insurance Travel insurance Health insurance Assets / property insurance .Types of Insurance Life insurance Non .

coverage €Liability coverage €Medical coverage €Property .

€ provides compensation for damage or destruction of a home from disasters € such as flood and earthquakes. that require additional coverage. .

.€ Cover the cost of medical treatments € coverage for individuals to protect them against dental costs.

€ Theft € Accident € Uncertainty .

€ Marine insurance was being practiced in India from the beginning of 19th century insurance followed in 1825 at Madras € Fire € First Indian Company was formed in 1907 ² Indian Mercantile Insurance Company € Need to control insurance business was felt by the British government which introduced the Insurance Act in 1938. .

€ General Insurance business was being done by 106 companies including LIC (GI) In 1972 GI Nationalisation act was passed allowing the formation of GIC as the holding company and with 4 subsidiaries The objective of nationalisation was to spread insurance to nook and corner of the country and to utilise people·s money for the people·s good thus uplifting the socio economic condition of the country € € .

independent statutory authority as Regulator for insurance business came into existence in 1999 € An .€ Following globalisation moves Malhotra committee had been formed to look into the methods of liberalisation of insurance € Later on the bill in the modified form as IRDA bill was introduced in 1999 and the IRDA act was passed.

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€ Direct selling agents € Corporate € Group selling and cooperative societies € Brokers € Banc assurance .

€ Insurance is an Rs. and total investible funds with the LIC are almost 8% of GDP. and together with banking services adds about 7% to India·s GDP.20% per annum. has been growing by 15 . .400 billion business in India. € It € India also has the highest number of life insurance policies in force in the world.

REGISTERED INSURERS IN INDIA Type of business Life Insurance General Insurance Re-insurance Total Public Sector 1 6 1 8 Private Sector 21 15 0 36 Total 22 21 1 44 .

Insurer Public Apr-Jun 2008 Apr-Jun 2009 9600458 8887123 (8.52) (-7.99) Total 14571469 14205593 (14.93) (6. .44) (-2.51) Note: Figure in brackets indicates the growth (in per cent) over previous year.43) Private 4971011 5318470 (27.

Total Premium Non-Life World premium * Non-Life Rs.84 crore USD 1779 billion Geographical restriction: None for new players Equity restriction: Foreign promoter can hold up to 26 per cent of the equity Source: * Swiss Re. (figures pertain to calendar year 2008) Rest of the figures for the financial year 2008-09 .30351.

MARKET SHARE OF GENARAL INSURANCE INDUSTRY .

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