“COMPANY INSURANCE”

Bachelor of commerce

Banking and Insurance

Semester VI

Submitted

In partial fulfillment of the requirements For the Award of

Degree of Bachelor of Commerce – Banking & Insurance

By

CHAITALI S. DURGAWALI

Roll no. 09

VIDYAVARDHINI’S

ANNASAHEB VARTAK COLLEGE OF ARTS

K.M.COLLEGE OF SCIENCE

E.S.ANDERADES COLLEGE OF SCIENCE

VASAI ROAD-401202 DIST-PALGHAR

 PROJECT ON

COMPANY INSURANCE

BACHELOR OF COMMERCE

BANKING AND INSURANCE

SEMESTER VI

ACADEMIC YEAR

2016-17

SUBMITTED BY

CHAITALI DURGAWALI

ROLL NO. 09

VIDYAVARDHINI’S

A.V.COLLEGE OF ARTS,
K.M. COLLEGE OF COMMERCE,
E.S.A. COLLEGE OF SCIENCE,
VASAI ROAD (W), DIST-PALGHAR, MAHARASHTRA-
401202
 VIDYAVARDHINI’S

ANNASAHEB VARTAK COLLEGE OF ARTS,

KEDARNATH MALHOTRA COLLEGE OF COMMERCE,
E.S.ANDRADES COLLEGE OF SCIENCE, VASAI
ROAD, DIST-PALGHAR-401203.

CERTIFICATE

This is to certify that MRS. CHAITALI S. DURGAWALI, Roll No.o9 of

B.Com. Banking & Insurance, Semester V (2016-17) has successfully
completed the Project on COMPANY INSURANCE under the guidance of

PROF. (Dr.)ABHILASHA MAGAR

_______ ________ ____________

Principal Incharge Co-ordinator

______________ _____________ ________________

Project Incharge Project Guide/ External Examiner
Internal Examiner

Declaration
I CHAITALI S. DURGAWALI the student of B.COM. (BANKING &
INSURANCE) semester V (2016-17) hereby declare that I have completed the project
on COMPANY INSURANCE

The information submitted is true and original to the best of my knowledge.

Signature of student

Name of student: - CHAITALI DURGAWALI

Roll No: - 09

Acknowledgement

“Success is always to be found on be found on the other side of fear”

Milestones achieved in the journey of life are never achieved alone,

and this is one exception. As I completed this enfighting journey. I would like
 acknowledge and thank my guide and companions who helped me, put my best foot
forward and made this story a successful.

So, first of all I would like to thank our college “Vidyavardhini’s

A.V. College of Arts, K.M. College of Commerce & E.S.A. College of Science” and
principle of the college “Dr. S. S. KELKAR” for this continuous faith and University of
Mumbai who has given this opportunity to do this project in this curriculum.
I am very grateful to my project guide, Prof. (Dr.) ABHILASHA MAGAR who inspired
me to work well on the topic and seeing to it that my performance is upto the mark. I
would like to thank her for her support, eagerness and professional approach in guiding
me through careful details of the project.

I would also like to express my gratitude to my friends and colleagues

who have support in my efforts to explore this area of study.

TABLE OF CONTENT

CHAPTER TOPIC PAGE NO.

NO.

1. Introduction To Insurance 1

2. What Is Corporate Insurance 4

 3. Advantage Of Corporate Insurance 8

4. Challenges Of Corporate Insurance 10

5. Top 10 Corporate Insurance Policies In 13

India
6. Comparative Study Of Insurance 21
Company
7. Corporate Agents In Insurance 44

 Conclusion 46

 Bibliography 47

RESEARCH AND METHODOLOGY

The study of research methodology gives the necessary training in gathering material
and arranging them participation in the field work when required and also training in
techniques for the collection of data appropriate to particular problem.

DATA COLLECTION

There are two methods of data collection

 1) Primary data 2)
Secondary data 1) Primary
data :

Primary data are those which are collected afresh and for the first time
and thus happen to be original in character.

2) Secondary data :
Secondary data are those which have already been collected by someone
else and which have been passed through the statistical process. There is a need
to prepare data collection forms like questionnaires. It may also be necessary to
pre-test the questionnaires before the data collection starts. I used only secondary
data to make this project.

Collection of Secondary Data:

In research I used various sources for collection of published and

unpublished data with the help of books of insurance, news from economic
times, and website of corporate insurance.
 CHAPTER NO 1.
INTRODUCTION OF INSURANCE

Insurance is a form of risk management in which the insured

transfers the cost of Potential loss to another entity in exchange for monetary
compensation known as the Premium. Insurance allows individuals, businesses and
other entities to protect Themselves against significant potential losses and financial
hardship at a reasonably Affordable rate. We say “significant” because if the potential
loss is small, then it doesn’t Make sense to pay a premium to protect against the loss.
After all, you would not pay A monthly premium to protect against a $50 loss because
this would not be considered A financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss.
Take life insurance as an example. If you are the primary breadwinner in your home,
the loss of income that your family would experience as a result of our premature death
is considered a significant loss and hardship that you should protect them against. It
would be very difficult for your family to replace your income, so the monthly
premiums ensure that if you die, your income will be replaced by the insured amount.
The same principle applies to many other forms of insurance. If the potential loss will
have a detrimental effect on the person or entity, insurance makes sense. Everyone that
wants to protect themselves or someone else against financial hardship should consider
insurance.

This may include:

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 1) Protecting family after one’s death from loss of income. 2)
Ensuring debt repayment after death.

3) Covering contingent liabilities.

4) Protecting against the death of a key employee or person in your business.
5) Buying out partner or co-shareholder after his or her death.
6) Protecting your business from business interruption and loss of income.
7) Protecting yourself against unforeseeable health expenses.
8) Protecting your home against theft, fire, flood and other hazards.
9) Protecting yourself against lawsuits.
10) Protecting yourself in the event of disability.
11) Protecting your car against theft or losses incurred because of accidents.
12) And many more.

1.1 What Is Insurance?

It is a commonly acknowledged phenomenon that there are

countless risks in every sphere of life for property, there are fire risk; for shipment of
goods. There are perils of sea; for human life there are risk of death or disability; and
so on .the chances of occurrences of the events causing losses are quite uncertain
because these may or may not take place. Therefore, with this view in mind, people
facing common risks come together and make their small contribution to the common
fund. While it may not be possible to tell in advance, which person will suffer the losses,
it is possible to work out how many persons on an average out of the group, may suffer
losses. When risk occurs, the loss is made good out of the common fund .in this way
each and every one shares the risk .in fact they share the loss by payment of premium,
which is calculated on the likelihood of loss .in olden time, the contribution make the
above-stated notion of insurance.

1.2 Definition Of Insurance

Insurance has been defined to be that in, which a sum of money as a premium is paid
by the insured in consideration of the insurer’s bearings the risk of paying a large sum
upon a given contingency. The insurance thus is a contract whereby:

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a. Certain sum, termed as premium, is charged in consideration,

b. Against the said consideration, a large amount is guaranteed to be paid by the insurer
who received the premium,

c. The compensation will be made in certain definite sum, i.e., the loss or the policy
amount which ever may be, and

d. The payment is made only upon a contingency

More specifically, insurance may be defined as a contact between two parties, where in
one party (the insurer) agrees to pay to the other party (the insured) or the beneficiary,
a certain sum upon a given contingency (the risk) against which insurance is required.

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 CHAPTER NO 2.

WHAT IS CORPORATE INSURANCE ?

Corporate insurance is a security for corporate businesses

in order to handle risks which are not avoidable in life. We can never predict what future
holds. Hence it is very important that we get corporate insurance done if you are running
a company or organization of your own. Insurance is playing a significant role not just
for individuals but also for business organization in order to protect your company as
well as the property of the company from mishaps, damage or injury one must think
and consider about corporate insurance policies.

As started earlier, we cannot predict our future. We do not

know how to cope with things when they completely go beyond our control. Thus one
must be mentally prepared how to deal with risks and take necessary precautions
beforehand. Investing on corporate insurance is definitely essential in today’s
competitive market world. Corporate insurance not takes care of the employees of the
company but also safeguards the company’s assets. In addition to employees, it also
protects against sickness, personal accidents which occur in the company.

The business sector is very much dependent on corporate

insurance as it safeguards the company against business risks like damage of properties

4
such as factories, machines and other assets belonging to the company. It also covers
cases relating to business services and negligence. Before opting for a particular
insurance plan, one needs to go through the schemes, policies, terms and conditions
thoroughly. This will avoid confusion and misunderstanding between the insured and
the insurer in future.

2.1 Corporate Insurance

Corporate insurance in different form is a must for most companies. Whether

it is fire insurance, group insurance policies for employees or insuring the machinery in
your office, it plays a vital role in the smooth functioning of any business. Be it a large
corporate entity or a small business-man, it is crucial that one identifies the insurance
solutions that protects the business from slowing down or coming to a halt. Your
expensive assets which are crucial for your business should be insured against any risk
of breakdown, damage or theft. Employees are probably the biggest asset to any
business and providing group insurance solutions, both life insurance and health
insurance can be a huge morale booster and employee retention factor.

Types of corporate insurance policy

- Liability Policies

- Professional Indemnity Policy

- Directors and Officers Liability Policy

- Employees’ Liability Policy

- Workmen’s Compensation Insurance

- Group Policies

- Group Medical/Health Insurance

- Group Accident Insurance - Group Travel Insurance

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- Group Gratuity Insurance
- Fire policy

- Marine Cargo Policy

- Special Contingency Policy

- Project Insurance

- Electronic Equipment Insurance Policy

- Machinery Breakdown Policy - Contractors Plant and Machinery Policy

- Key man Insurance.

2.2 COMPARE CORPORATE INSURANCE

In today’s corporate sector, companies stress more on safeguarding their

employees as they are a company’s biggest assets. In order to stay financially secured
and handle uncertainties one most choose the best corporate insurance policy which
provides maximum benefits as per your business requirements. There might be
instances when there are chances of personal accidents or damage of assets due to fire
or any other mishap, that’s when the corporate insurance companies come into
existence and protect your employees and company against such accidents.

Before purchasing a corporate insurance policy for your company one

must compare corporate insurance plans of various companies to opt for the best
insurance plan. This will help you choose the best corporate insurance which provides
maximum benefits to your business. Corporate insurance is extremely beneficial as it
not only safeguard your business but also your employees who play a significant role
in the company. Thus comparing insurance policies from different companies are very
important. There are various online websites which offers details on reputed insurance
companies and their schemes. You could study about these plans and opt for the one
which suits your business the best.

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 TATA AIG corporate insurance company offers you benefits which
help you stay protected. Some of the benefits provided by this insurance company are
accident and health benefit, travel benefit, property insurance, energy insurance, marine
cargo insurance, liability insurance and much more.

Bajaj Allianz is another renowned company offering best of corporate

insurance plans. The insurance takes care of aviation, project, sports, entertainment and
marine insurance. It also offers benefits to protect your employees with their schemes
like group health card, group critical illness, group travel, workmen’s compensation etc.
Fire insurance, marine insurance, public liability insurance, engineering insurance,
directors as well as officer’s liability and so on.

Reliance corporate insurance is no less in terms of offering best of

insurance benefits. It covers fire insurance, marine insurance, engineering insurance,
packages insurance, liability insurance and much more.

Thus, these are few of the comparisons of insurance companies with

their plans. However if you need a detailed description then you could visit their
websites. And after doing a comparison all you need to do to purchase a corporate
insurance plan is to provide certain details. Details include the count of employees and
their dependents count as well, status of already claimed policy if any, claim status if
any etc. Once you provide all the necessary details these companies will deal your
request with utmost promptness.

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 CHAPTER NO 3.

ADVANTAGES OF CORPORATE INSURANCE

Insurance plays a major role in our lives and if you still haven’t
thought about it then it’s time that you give corporate insurance a serious thoughts
especially if you are running a company. Corporate insurance helps you safeguards your
company as well as your employees. Employees who are considered to be the assets of
the company by majority of employees will have considered to be the assets of the
company by majority of employees will have to be taken care of with utmost protection,
which is why corporate insurance has become so essential in today’s market world.

Corporate insurance has several benefits that you cannot do without if

you have to sustain in the corporate world. There are numerous risks involved when
you established a company. Hence you need to be mentally prepared to handle any kind
of risks that comes your way. Corporate insurance is a policy that safeguards you from
many unpredictable risks. Corporate insurance helps you against many unavoidable and
unpredictable emergencies in business.

Health is wealth which is why employees believe in protecting their

employee’s safety and wellbeing by opting corporate insurance that mostly benefits the
employees. Although there are several advantages of corporate insurance plans but the
most important one is the health insurance as well as the accident insurance. Under
these insurances, the benefits are that it covers accidental death, medical expenses due
to sickness, permanent, total or partial disability, medical reimbursement due to
sickness, permanent, total or partial disability, medical reimbursement due to accidents
and much more.

Business travel insurance is another beneficial plan that can be

availed by purchasing corporate insurance. This policy protects employees against loss
of passport, medical expenses due to accidents or sickness, medical evacuation, delay
or loss of baggage etc. In addition to health and accident insurance and business travel

8
insurance, corporate insurance also provides insurance against fire, property, burglary,
marine, energy, liability etc.

And there are some exclusive plans that safeguards employees like
group personal accident, group health guard, group critical illness, workmen’s
compensation and group travel plans. Thus corporate insurance safeguards your
business as well as employees with its beneficial plans. Under this policy business
assets like trading and manufacturing units also get insured. There are various
companies that offer corporate insurance policies in India. However it is always
advisable that one goes through the terms and conditions of policies of each company
so that you can choose the one with maximum benefits. There are many online websites
which can be referred to for a comparison of corporate insurance plans.

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 CHAPTER NO 4.

CHALLENGES OF CORPORATE INSURANCE

No matter how complex your business situation or how specialized

your niche may be, our corporate team can provide the services and solutions to help
you succeed.

1. Strong capabilities for difficult situations:

Financial troubles, claims problems, Multi-state operations, foreign exposures, a

one-of-a-kind niche. A myriad of issues can complicate a company’s will to
succeed. But finding a capable broker to handle your corporate insurance doesn’t
have to be one of them. Britton-Gallagher’s knowledgeable corporate insurance
experts really shine when faced with complex situations, because they possess the
experience, creativity and resources to navigate through the most difficult
challenges a company can face.

2. Driven by risk :

At Britton-Gallagher’s, we’re not in the insurance business merely for the sake of
making a transaction. We’re insurance professionals. As such we’re driven by risks
and complexity, and by building strong relationships, because we’ve learned there
is Avery definite correlation between the two. While other brokers with fewer
resources and less experience may avoid higher risk companies, we seek them out.

We thrive on solving their challenges because we’ve found that the clients who
want and need our help the most are the same ones who are willing to invest in the
relationship to get their problems solve. And that benefits everyone.

3. National broker performance without the national broker bureaucracy :

At Britton-Gallagher we’re not huge in numbers, but we’re strong on creativity and
experience. We’re a mid-sized firm, and that’s good for you, because you’ll benefit
from a level of personalized service you just can’t find with a large, national

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 insurance broker. At the same time, you’ll sleep better at night knowing that
Britton-Gallagher’s relationships with major national carriers are as strong or
stronger than any other broker in the country. For years, we’ve worked closely with
some of the most respected insurance carriers in the world, as well as some of the
largest regional carriers. So if your needs include a carrier with a national presence,
we offer that choice. Likewise, if you have a need for a large regionally based
carrier, we offer those relationships as well. A creative broker armed with the most
capable carriers is a powerful things. It’s your assurance that no matters how
complex your business situation or how specialized your niche may be, Britton-

Gallagher’s corporate team can provide the services and solutions to help you
succeed.

4. You’ll never be without a partner or resource with Britton-Gallagher :

The most demanding and discerning buyers come to B-G because they know we
offer the world-class programs and attention to detail that solve their unique
problems. We can assets the risks that put someone out of business and recommend
the solutions to help their business thrive. We welcome your challenges. Put our
corporate insurance expertise to work for you. Call Britton-Gallagher to schedule
your own personalized corporate risk analysis today.

5. Allocating Corporate Capital Fairly :

The challenge is to decide which divisions, project, or acquisition gets the scarce
capital. The challenge varies with the sources of capital. Venture capitalists’ and
hedge funds’ tolerance for risk is offset by their high return expectations. The low
risk of municipal bonds and banks is matched.

6. Global warming, the challenge for the insurance sector :

The fear that our world will be subjected to increasingly violent weather events is
one of the major drivers prompting the nations of the world to work together to
mitigate the risks of climate change. That global warming will cause more violent
storms and create havoc is also, of course, of major concern to the world’s

11
 insurance companies, who write billions of dollars of business in fire and flood
insurance.

7. China’s Financial System : Challenges and Opportunities :

In contrast to many Western financial institutions battered by toxic assets, liquid

crunch, and capital shortfalls, Chinese banks, insurance companies, and securities
firms generally boast strong balance sheets, with adequate capital, good asset
quality, and impressive earnings performance.

8. The Challenges to Slow Growth in the Advanced Economies Just Keep Coming :

We have seen a marked slowdown in the economic data since the middle of 2010,
with another distinct slowdown in May 2011. The2010 slowdown prompted the
president of the St Louis Federal Reserve, James Bullard, to warn that there was a
very real danger that US consumers, corporates, and investors could all become
accustomed to low nominal GDP growth and a quiescent central bank.

9. Challenging investment banks over ‘rights issue’ charges :

What’s the difference between an underwriter and an undertaker? According to a

recent article in The Economist (Vexed in the City), not that much. Both operate
in arcane and little-discussed areas. And since buying underwriting services from
an investment bank for a corporate fund-raising (sometimes known as an equity

“rights issue”) and organizing a funeral are both are “distress purchases”, suppliers
can charge pretty much what they like.

10. Longevity Insurance :

An international market where insurers can hedge out longevity risks when
taking on corporate pension risks.

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 CHAPTER NO 5.

Top 10 Corporate Insurance Policies in India

Corporate insurance in India plays a prominent role for almost all

companies. There are several leading insurance companies in India which cater to the
need of both individuals as well as corporate. Corporate insurance schemes are
exclusive and meet the requirements of every business. It safeguards your business from
unavoidable risks and damages. The top 10 corporate insurance policies in India have
been listed below:

1). Property insurance is one of the top most insurance policies as far as corporate
insurance is concerned. Property insurance covers the damage or loss of a particular
location of the company. It’s also safeguards the property of others who are under your
control during such loss.

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2). Liability insurance takes care of the liabilities that are legally forced on to your
business due to negligence of its employees or the business. If your company gets
litigated for negligence them liability insurance acts as a savior and protects your
company against such charges
3). Health insurance is another policy which is provided to employees as they are
considered to be biggest assets for the company. Employees can be benefited from such
medical policies.

4). Accident insurance policy has been introduced as accidents are unpredictable and
hence insurance against accidents are equally essential. Accidents insurance covers
permanent total and partial disability, death due to an accident, medical reimbursement
for accidents etc.

5). Fire insurance policy is a policy that protects the insured from financial loss which
the might suffer due to damage of property and goods which are caused by fire.
However losses occurred due to earthquakes does not get insured.

6). Travel insurance policy benefits can be availed by employees while travelling which
helps them to deal with unpredictable emergencies like loss of baggage or passports,
personal accidents, flight delay etc. Travel insurance takes care of both domestic and
overseas travel.

7). Marine insurance policy safeguards the loss or damage of cargo, ships or any other
means of transport though which the property gets transferred to the required
destination.

8). Energy insurance policy protects the company through losses incurred due to
mechanical as well as electrical failure. This policy gets covered on electrical
equipment, machinery breakdown, boiler and pressure plant and machinery loss and
profits.

9). Burglary insurance policy is yet another important policy as it covers damage and
loss of property due to burglary at your office premises. This policy helps you by
providing financial reimbursement due to such acts.

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10). Workmen’s Compensation insurance policy covers an employee from an injury
through an accident or even death which arises during his employment at the company.

These are some of the top insurance policies popular with corporates in India.

5.1 Different Types of Corporate Insurance

The most common types of commercial insurance are property, liability and
workers’ compensation. In general property insurance covers damages to yours
business property; liability insurance covers damages to third parties; and
workers’compensation insurance covers on the –job injuries to your employees.

Depending on your business, you may not additional specialized coverage’s. listed
below are some of the different types of commercial insurance.

5.1.1 PROPERTY INSURANCE:

Property insurance pays for losses and damages to real or personal property. Property
insurance provides protection against most risks to property, such as fire, theft and some
weather damage. Property is insured in two main ways - open perils and named perils.
Open perils cover all the causes of loss not specifically excluded in the policy. Common
exclusions on open peril policies include damage resulting from earthquakes, floods,
nuclear incidents, acts of terrorism and war. Named perils require the actual cause of
loss to be listed in the policy for insurance to be provided. The more common named
perils include such damage-causing events as fire, lightning, explosion and theft. For
example, a property insurance policy would cover fire damage to your office space.

1) Boiler and Machinery Insurance:

Boiler and machinery insurance sometimesreferred to as "equipment breakdo

wn" or "mechanical breakdown coverage," provides coverage for the accidental
breakdown of boilers, machinery, and equipment. This type of coverage usually

15
 will reimburse you for property damage and business interruption losses. For
example, this coverage would cover fire damage to computers.

2) Debris Removal Insurance:

Debris removal insurance covers the cost of removing debris after a fire, flood,
windstorm,etc. For example, a fire burns your building to the ground. Before
you can start rebuilding, the remains of the old building have to be removed.
Your property insurance will cover the costs of rebuilding, but not of removing
the debris.

3) Builder's Risk Insurance:

Builder's risk insurance covers buildings while they are being constructed. For
example, a Builder's risk policy would cover losses if a windstorm takes down
your partially constructed condominium complex.

4) Glass Insurance:

Glass insurance covers broken store windows and plate glass windows.

5) Inland Marine Insurance:

Inland marine insurance covers property in transit and other people’s property
on your premises. For example, this insurance would cover fire-damage to
customers' clothing from a fire at your dry cleaning business.vi.

6) Business Interruption Insurance:

Business interruption insurance covers lost income and expenses resulting from
property damage or loss. For example, if a fire forces you to close your doors
for two months, this insurance would reimburse you for salaries, taxes, rents,
and net profits that would have been earned during the two-month period.

7) Ordinance or Law Insurance:

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 Ordinance or law insurance covers the costs associated with having to demolish
and rebuild to code when your building has been partially destroyed (usually 50
percent). For example, your three-story building is 100 years old. A flood
destroys the basement and first two stories. Because more than 50 percent of
your building has to be rebuilt, a local ordinance requires that the building be
completely demolished and rebuilt according to current building codes.

Property insurance covers only the replacement value, not the upgrade.

8) Tenant's Insurance:

Commercial leases often require tenants to carry a certain amount of insurance.

A renter's commercial policy covers damages to improvements you make to
your rental space and damages to the building caused by the negligence of your
employees.

9) Crime Insurance:

Crime insurance covers theft, burglary, and robbery of money, securities, stock,
and fixtures from employees and outsiders

10) Fidelity Bonds:

A Bond company covers losses due to a bonded employee's theft of business

property and money.

5.1.2 LIABILITY INSURANCE:

This commercial insurance provides coverage for injuries caused by a

business concern or the individual business owner to third parties as a result of which
the person or another business concern so affected may sue either the business concern
for personal injuries or property damages. This kind of a commercial insurance policy
makes payments towards the insurance claimed by the policy holder for the cost of
defending and resolving the law suit brought against him or her. In contrast, a general
commercial liability insurance policy will only provide coverage to the policy holder

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for the common risks such as customer injuries on the premises of the business concern.
Liability insurance is a part of the general insurance system of risk financing. With
increased globalization the need for liability insurance is gaining importance. Be it
manufacturing unit or a service industry, every industry segment is exposed to liability
claims. With increased awareness of one’s rights, the number of such claims has
increased many folds over the years. With Globalization such types of claims, has
crossed the geographical limits. Apart from the huge outgo in such types of claims, a
huge amount is spent on the litigation process, thereby crippling the company’s
financials. As such it becomes all the more vital to be properly equipped to fight such
unwelcome situations. Liability insurance is designed to offer specific protection
against third party claims, i.e., payment is not typically made to the insured, but rather
suffering loss who is not a party to the insurance contract. In general, damage caused
intentionally and contractual liabilities are not covered under liability insurance
policies. When a claim is made, the insurance carrier has the right to defend the insured.
If someone sues for personal injuries or property damage, the cost of defending and
resolving the suit would be covered by the liability insurance policy. A general liability
policy will covers common risks, including customer injuries n on company premises.
More specialized varieties of liability insurance include:

1) Errors and Omissions Insurance:

Errors and omissions ("E & O") insurance covers inadvertent mistakes or
failures that cause injury to a third party. The act must actually be an inadvertent
error, and not merely poor judgment or intentional acts. Legal liability cover for
the liability claims by third parties, on account of the bodily injury or property
damage arising out of services offered or which should have been offered by
the Insured as a part of their profession. The policy is ideal for all those engaged
in service industry, including medical practitioners, architects, engineers,
software firms etc. For example, an E & O policy would cover damages arising
from an insurance agent failing to file policy applications, or a notary forgetting
to fill out notarizations properly.

2) Malpractice Insurance:

It generally covers the payments which may arise out of a professionals defence
costs and/or any judgment or settlement in case the concerned insured
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 professional causes injury to a third party by conducting below par. These kind
of professional liability insurances are issued to doctors, dentists, accountants,
real estate agents, architects, and all professionals. Malpractice insurance, or
professional liability insurance, pays for losses resulting from injuries to third
parties when a professional's conduct falls below the profession's standard of
care. For example, if a doctor makes a mistake that other doctors of his specialty
would not have made, his patient might sue him. A malpractice policy will pay
his defence costs and any judgment or settlement. Malpractice insurance is
available for doctors, dentists, accountants, real estate agents, architects, and
other professionals.

3) Automobile Insurance:

Commercial Automobile Insurance provides insurance coverage for the

vehicles used for the purposes of conducting business and also to make
payments towards the persons who may be injured by the same. Vehicle
insurance (also known as auto insurance, car insurance, or motor insurance) is
insurance purchased for cars, trucks, and other vehicles. Its primary use is to
provide protection against losses incurred as a result of traffic accidents and
against liability that could be incurred in an accident. Commercial automobile
policies cover the cars, vans, trucks and trailers used in your business. The
coverage will reimburse you if your vehicles are damaged or stolen or if the
driver injures a person or property.

4) Directors' and Officers' Liability Insurance :

It provides insurance coverage in order to make payments towards the legal

may be filed against the directors and officers belonging to corporations and n
on-profit organizations.

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5.1.3 WORKERS' COMPENSATION INSURANCE :

The Policy covers liabilities falling on the employers for death

or injury sustained by his employees who falls in the category of `workman’ as defined
in the Workmen Compensation Act. The Policy covers statutory liability as well as
liabilities arising under Common Law. The employees not falling under the definition
of `workman’ can be covered under the Common Law. The Policy primarily includes
the liabilities towards the employees, whilst on work. Medical expenses can also be
covered at the Insured’s options. The premium depends on the annual wages disbursed
to the employees and the type of work the employee is engaged in Workers'
compensation insurance covers you for an employee's on-the-job injuries. Businesses
with employees are required by various state laws to carry some type of workers'
compensation insurance. In most cases, workers' compensation laws prohibit the
employee from bringing an egligence lawsuit against an employer for workrelated
injuries. Most employers purchase workers’ compensation insurance plans from
insurance companies specifically designed to provide workers’ compensation insurance
benefits. In some countries, these are mandatory, with the exception of a few
jurisdictions that allow larger companies to insure themselves. Smaller companies,
however, such as those with just a handful of employees, need not purchase such plans.

The goal of workers’ compensation insurance is to get the injured employee back on
his feet and working again as quickly as possible without causing the employer
unnecessary hardship or loss of business.

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 CHAPTER NO 6.

COMPARATIVE STUDY OF INSURANCE COMPANY

6.1 LIC (LIFE INSURANCE CORPORATION)

Life Insurance Corporation of India was formed in September 1956 by passing LIC Act,
1956 in Indian parliament. On the nationalization of the life insurance in 1956, the
premium rating of Oriental Government security life Assurance company were adopted
by LIC with a reduction of 5% of the tabular premium or Re. 1 per thousand sum
assured, whichever was less. This reduction was made in anticipation of economies of
scale that would emerge on the merger of different insurers in a single entity. Life

21
Insurance Corporation Of India - there are many things to consider as Life Insurance
Corporation of India offers various insurance products which are very complex, but
underlying this complexity is a simple fact. The building blocks for all Life Insurance

Corporation of India are

Objectives Of LIC

 Spread Life Insurance much more widely and in particular to the rural areas and
to the socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
 Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.

 Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.

 Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.

 Act as trustees of the insured public in their individual and collective capacities.

 Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.

 Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy. Promote amongst all agents and employees of the Corporation a sense
of participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.

22
VISION

"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India”

MISSION

"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development”

Various policies offered by life insurance corporation of India are

1) Whole Life Schemes

• Whole life with profit

• Limited payment whole life

• Single Premium whole life

• Convertible whole life plan

2) Endowment Schemes

• Endowment plan with profit

• Limited payment Endowment

• Jeevan Mitra (Double Cover)

• Jeevan Mitra (Triple cover)

• Bhavishya Jeevan Jeevan Anand

• New Jana Raksha

23
3) Term Assurance Plan

• Anmol Jeevan

• Year Term Assurance

• Covertible Term

• New Bima Kiran

4) Plan for needs of Children

• Komal Jeevan

• Jeevan Sukanya

• Jeevan Kishore

• Jeevan Balya
• Jeevan Chaya

• Marriage/educational annuity

• Deffered Endowment

5) Periodic Money Back Plan

• Jeevan Samridhi

• Jeevan Rekha Plan

• Money Back Plan

• Jeevan Surabhi

• Jeevan bharathi

6) Medical benefits linked insurance

24
 • Asha Deep II

• Jeevan Asha II

7) For benefits to Handicapped

• Jeevan Aadhar

• Jeevan Vishwas

8) Plans to cover housing loans

• Mortagage redemption

9) Joint life plan

• Jeevan sathi

10) Investment plan

• Bima Nivesh Triple cover

11) Capital market linked plan

• Bima plus.

Description of the LIC Policies Whole life plan:

Whole life plan are those policies which life assured has to pay premiums till his death
the sum assured will be paid to his dependent generally 70 years is assumed as a
maximum age for payment of premium. Under the whole life premium are payable
throughout the life time of the life assured and this is the cheapest form of policy. This
plan is ideally suited to person who wants maximum provision for his family at
minimum cost. It also meets the needs for funds required for funeral, religious rite sand
ceremonies to be performed, tax liabilities if any and expenses connected with the last
sickness and hospital charges etc.

Endowment Assured Plan:

25
 Endowment plans are not covering the risk for whole life of the life
assured. The term of risk cover under this plan is as per the need of life assured.
Endowment assurance plan are the most popular. They are eminently suited to meet it
one policy the twin demands of old age provision and risk cover for family. The sum
assured is payable on maturity or at death if earlier. Thus an Endowment Assurance
Policy provides for retirement and also serves as a means of family provisions.

Term Assurance

Under the term assurance the risk cover is generally for specific short
term. Such term assurance is maximum for 2 years. Generally this type of assurance is
useful for air traveling.

Money Back Plans

Under this plan specific percentage of sum assured will be backed to the
life assured after specific period of time. This plan is of special interest to person who
besides desiring to provide for their own old age and family feels the need for lump
sum benefits at periodical intervals. Under these policies part of the sum assured is paid
to the life assured in instalments at selected intervals.

Children Plan

Under the children plans the risk on the life of the children where covered
generally this type of plans are helpful in education and marriage of the children.

Jeevan Balya:

This plan is designed to enable a parent to provide for the child by

payment of a very low premium an Endowment Assurance Policy, the risk under which
will commence from the vesting date. In addition, Premium benefit and income benefit
are included as additional benefit by payment of appropriate additional premium during
the deferment period. This policy shall be cancelled in case the life assured shall die

26
before the deferred dates and in such an event provided the policy is then in full force
in for a reduced cash option.

Marriage Endowment/ educational annual plan:

Every father desires to see that his children are well settled in life
through sound education, leading to good jobs and happy marriage. These needs arise
at ages which can be approximately anticipated. Say when the children are between 18
to 25 year of age. This plan provides for a sum assured to keep aside to meet marriage
educational expenses of children. Under this plan the S A along with the vested bonus
shall be payable at the end of the selected term either is lump sum or in ten half yearly
instalment, at the option of the life assured nominee beneficiary.

Jeevan Mitra:

This plan provides additional insurance cover equal to the sum assured
in the event of death during the term of policy so that the total insurance cover in the
event of death is twice the basic sum assured. i.e. The basic sum assured is doubled and
the accrued bonus is also paid.

6.2 HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

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INTRODUCTION :

HDFC Incorporated in 1977 with a share capital of Rs 10 Crores,

HDFC has since emerged as the largest residential mortgage finance institution in the
country. The corporation has had a series of share issues raising its capital to Rs. 119
Crores. The gross premium income for the year ending March 31,2007 stood at Rs.
2,856 Crores and new business premium income at Rs.1,624 Crores. The company has
covered over 8, 77,000 lives year ending March 31, 2007.HDFC operates through
almost 450 locations throughout the country with its corporate headquarters in Mumbai,
India. Office in Dubai, UAE with service associates in Kuwait, Oman and Qatar.

HDFC is the largest housing company in India for the last 27 years.

The Partnership:

HDFC and Standard Life first came together for a possible joint
venture, to enter the Life Insurance market, in January 1995. It was clear from the outset
that both companies shared similar values and beliefs and a strong relationship quickly
formed. In October 1995 the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening
the relationship. The next three years were filled with uncertainty, due to changes in
government and ongoing delays in getting the IRDA (Insurance Regulatory and
Development authority) Act passed in parliament. Despite this both companies
remained firmly committed to the venture. In October 1998, the joint venture agreement

28
was renewed and additional resource made available. Around this time Standard Life
purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard
Life also started to use the services of the HDFC Treasury department to advise them
upon their investments in India. Towards the end of 1999, the opening of the market
looked very promising and both companies agreed the time was right to move the
operation to the next level. Therefore, in January 2000 an expert team from the UK
joined a handpicked team from HDFC to form the core project team, based in Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake
in HDFC Bank. In a further development Standard Life agreed to participate in the
Asset Management Company promoted by HDFC to enter the mutual fund market. The

Mutual Fund was launched on 20th July 2000

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the

name of HDFC Standard Life Insurance Company Limited. Company’s ambition from
as far back as October 1995, was to be the first private company to re-enter the life
insurance market in India. On the23rd of October 2000, this ambition was realized when
HDFC Standard Life was the only life company to be granted a certificate of
registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%,
while Standard Life owns 18.6%. Given Standard Life's existing investment in the
HDFC Group, this is the maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance company's in India are
measured. Products offered by the company are:

INDIVIDUAL PLAN

• With Profit Endowment Assurance

• With Profits Money Back

• Single Premium Whole of Life

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 • Term assurance Plan

• Loan Cover Term Assurance

• Personal Pension Plan

• Children’s Plan

GROUP PLANS

• Group Term Insurance

• Development Insurance Plan

SNAPSHOT-I

•Incorporated in 1977 as the first specialized Mortgage Company in India.

•Almost 90% of initial shareholding in the hands of domestic institutes and retail
investors. Current 77% of shares held by foreign institutional investors.

•Besides the core business of mortgage HDFC has evolved into afinancial conglomerate
with holdings In:

 HDFC Standard Life insurance Company- HDFC holds 78.07 %.

 HDFC Asset Management Company – HDFC holds 50.1%

 HDFC Bank- HDFC holds 22.25%.

 Intel net Global (Business Process Outsourcing) – HDFC holds 50%.

 HDFC Chubb General Insurance Company – HDFC holds 74%.

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SNAPSHOT-II

• Loan Approvals Rs. 805 billion.

(up to Dec 2007) (US $ 18.30 bn.)

• Loan Disbursements Rs.669 billion (up to Dec. 2007) (US $

15.20 bn)

Housing Units Financed 2.5 million.

• Distribution

Offices 181

Outreach Programs 90

KEY PLAYERS

Mr. Deepak S Parekh is the chairman of the company. He is also

the Executive Chairman of Housing Development Finance Corporation Limited (HDFC
Limited). He joined HDFC Limited in a senior management position in1978. He was
inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its
Executive Chairman in 1993. He is the Chief Executive Officer of HDFC Limited. Mr.
Parekh is a Fellow of the Institute of Chartered Accountants (England & Wales).

Mr. Deepak M Satwalekar is the Managing Director and CEO of theCompany

since November, 2000. Prior to this, he was the Managing Director of HDFC Limited
since 1993. Mr. Satwalekar obtained a Bachelor’s Degree in Technology from the
Indian Institute of Technology, Bombay and a Master’s Degree in Business
Administration from The American University, Washington DC.

GROUP COMPANIES

 HDFC Bank: World Class Indian Bank- among the top private banks in India.

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  HDFC AMC: One of the top 3 AMCs in India- Preferred investment manager.

 Intel net Global: BPO services for international customers.

 CIBIL: Credit Information Bureau India Limited.

 HDFC Chubb: Upcoming Private companies in the field of General Insurance.

 HDFC Mutual Fund HDFC reality.com: Helps to search properties in all major
cities in India

 HDFC securities

STANDARD LIFE

Standard Life is Europe’s largest mutual life assurance company.

Standard Life, which has been in the life insurance business for the past 175 years is a
modern company surviving quite a few changes since selling its first policy in1825. The
company expanded in the 19th century from kits original Edinburgh premises, opening
offices in other towns and acquitting other similar businesses.

Standard Life Currently has assets exceeding over $70 billion under its
management and has the distinction of being accorded “AAA” rating consequently for
the six years by Standard and Poor.

SNAPSHOT

“AAA” rating consequently for the six years by Standard and Poor.

SNAPSHOT

Founded in 1857, company supporting generation for last 179 years.

Currently over 5 million Policy holders benefiting from the services offered.

Europe’s largest mutual life insurer.

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BUSINESS GROWTH

Track Record so far

The gross premium income of HDFC, for the year ending March 31, 2007stood at Rs.
2,856 crores and new business premium income at Rs. 1,624crores.

The company has covered over 8,77,000 lives year ending March 31, 2007.Company
also declared our 5th consecutive bonus in as many years for our ‘with profit’
policyholders.

KEY STRENGTH

 Financial Expertise

As a joint venture of leading financial services groups. HDFC standard Life has
the financial expertise required to manage long-term investments safely and
efficiently.

 Range of Solutions

HDFC SLIC has a range of individual and group solutions, which can be easily
customized to specific needs. These group solutions have been designed to offer
complete flexibility combined with a low charging structure.

 Strong Ethical Values:

HDFC SLIC is an ethical and Cultural Organization. False selling or falsecom

mitment with the customers is not allowed.

 Most respected Private Insurance Company

HDFC SLIC was awarded No-1 Private Insurance Company in 2004 by the
World Class Magazine Business World for Integrity, Innovation and Customer
Care.

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CORPORATE OBJECTIVES

The most successful and admired life insurance company, which means
that we are the most trusted company. The easiest to deal with, offer the best value for

money, and set the standards in the industry’-

‘The most obvious choice for all’.

 Values

 Integrity

 Innovation

 Customer centric
 People care One for all

 Teamwork

 Joy and Simplicity

Products & Services

The right investment strategies won’t just help plan for a more comfortable tomorrow
– they will help you get “Sar Utha Ke Jiyo”. At HDFC SLIC, life insurance plans are
created keeping in mind the changing needs of family. Its meet life insurance plans are
designed to provide you with flexible options that meet both protection and savings
needs. It offers a full range of transparent, flexible and value for money products. HDFC
SLIC products are modern and contemporary unitized products that offer unique
customer benefits like flexibility to choose cover levels, indexation and partial
withdrawals. (Source: www.hdfcslic.com)

PLANS THAT ARE OFFERED BY HDFC STANDARDS LIFE INSURANCE

INDIVIDUAL PRODUCTS

 Protection Plans

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 A person can protect his family against the loss of his income of
the burden of a loan in the event of his unfortunate demise, disability or sickness.
These plans offer valuable peace of mind at a small price. Protection range includes
our Team Assurance Plans & Loan Cover Term Assurance plan.  Investment
plans

HDFC SLIC’s Single Premium Whole of Life plan is well suited to

meet long term investment needs. This provides attractive long term returns
through regular bonuses.

 Pension Plans

Pension plans help to secure financial independence even after

retirement. Pension range includes Personal Pension Plan, Unit Linked Pension,
Unit Linked Pension Plus.

 Savings Plans

• Savings Plans offer a flexible option to build savings for future needs such as
buying a dream home or fulfilling your children’s immediate and future needs.

• Saving range includes Endowment Assurance plan, Unit Linked Endowment,

Unit Linked Endowment, Plus II, Money Back.

• Unit Linked Enhanced Life Protection II, Children’s Plan, Unit Linked Young
Star, Unit linked Young Star Plus, Unit Linked Young Star Plus II.

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6.3 ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank a premier financial powerhouse, and prudential plc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in December

2000 after receiving approval from Insurance Regulatory Development Authority

(IRDA).ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the quarter ended June
30,2005 , the company garnered Rs 335 crore of new business premium for a total sum

36
assured of Rs 2,619 crore and wrote 111,522 policies. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with
a wide range of flexible products that meet the needs of the Indian customer at every
step in life. Products offered by ICICI Prudential are

1. Protection plan

• Life Guard

• Extra Protection Through Riders

2. Retirement Plans Forever Life

• Life link pension

• Life time pension

• Reassure

3. Investment Plans

• Assure Invest

• Life Link

4. Group plans

• Group Superannuation

• Group Gratuity

• Group Term
Assurance
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6.4 ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Private Limited entered the

private life insurance industry in India in September 2001, and in a short span of 18
months has established itself as a distinctive life insurance brand with an innovative,
attractive and customer friendly product portfolio and a professional advisor force. It
also distributes products in close cooperation with its sister company ING Vysya Bank
through Bank assurance. Currently, it has over 3000 advisors working from 22 locations
across the country and over 300 employees.

ING Vysya Life Insurance Company is headquartered at Bangalore

and has established a strong presence in the cities of Delhi, Mumbai, Kolkata,
Hyderabad and Chennai. In addition ING Vysya Life operates in Vizag, Vijaywada,
Mangalore, Mysore, Pune, Nagpur, Chandigarh, Ludhiana and Jaipur.ING Vysya Life
has pioneered product innovations in the Indian life insurance market with
customeroriented cash bonus endowment and money back products. (Reassuring Life
and Maximizing Life), the first anticipated whole life product (Fulfilling Life) and the
first Term/Critical Illness combination product (Conquering Life). Conquering Life is
an innovative term and critical illness product that has been launched recently.
38
Conquering Life provides affordable term cover and critical illness coverage for
10critical illnesses of up to 50% of the Sum Assured. ING Vysya Life declared a bonus
in September 2002 of 5% (cash bonus - payable immediately) and 4% (reversionary
bonus - payable at the end of the term).

The company has over 25,000 customers at the end of 2002 and has
achieved a first premium income of Rs. 17 crores in 2002.ING Vysya Life Insurance is
a joint venture between ING Insurance International BV a part of ING Group, the
world's largest life insurance company (Fortune Global 500,2002), ING Vysya Bank,
with 1.5 million customers and over 400 outlets and GMR Technologies and Industries
Limited, part of GMR Group also based in Bangalore and involved in the field of power
generation, infrastructural development and several other businesses. ING Vysya Life
has a paid up capital of Rs.140 crores and an authorised capital of Rs.200 crores.Life
insurance products offered by the company are:

1) Protection plan

• Critical illness plan

• Endowment plan

2) Savings plan

• Endowment plan

• Child protection plan

• Money back plan

3) Investment Plan

• Whole life plan

• Limited payment endowment plan

• Anticipated whole life plan

39
6.5 OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

Established in 1985 as Kotak Capital Management Finance

promoted by Uday Kotak the company has come a long way since its entry into
corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment
banking, consumer finance, broking etc. The company got its name Kotak Mahindra as
industrialists Harish Mahindra and Anand Mahindra picked a stake in the company.
Kotak Mahindra is today one of India's leading Financial Institutions Old Mutual plc is
an international financial services group based in London with expanding operations in
life assurance, asset management, banking and general insurance. Old Mutual is listed
on the London Stock Exchange (where it is included on the FTSE 100 Index) and also
on the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 156

40
years of experience in the life insurance business. The Products offered by the Company
are

Individual Plan

• Kotak Endowment Plan

• Kotak Term Plan

• Kotak Retirement Income Plan

• Kotak Child Advantage Plan

• Kotak Preferred Term Plan

• Kotak Capital Multiplier Plan

• Kotak Safe Investment Plan

• Riders

• Exclusions Under Riders

Group Plan

• Kotak Term Group plan

• Kotak Gratuity Group plan

• Kotak Credit Term Group plan

• Riders

• Exclusions Under Riders

Rural

• Kotak Gramina Bima Yojan

41
6.6 BIRLA SUN LIFE INSURANCE COMANY LIMITED

Birla Sun Life Financial Services offers a range of

financial services for resident Indians and Non-Resident Indians. Brought together by
two large, powerful and reputed business houses, the Aditya Birla Group and Sun Life
Financial, it is our aim to offer diverse and top quality financial services to customers.
The Mutual Fund and Insurance companies provide wealth management and protection
products to customers while the Distribution and Securities companies provide

42
brokerage and trading services for investment inequities, debt securities, fixed deposits,
etc.

Insurance is not about something going wrong. It's often about things
going right. One of the wonders of human nature is that we never believe anything can
actually go wrong. Surely, life has its share of ifs. At Birla Sun Life however, they
believe it has its equally pleasant share of buts as well. Birla Sun Life stand committed
to help you realize those happy moments which make a life. Be it living the same
lifestyle in your post retirement days or providing a secure future for your loved ones,
in case something happens to you. The life insurance products offered by the company
are

Individual life

• Premium Back Term Plan

• Flexi Secure Life Retirement Plan

• Single Premium Bond

• Birla Sun Life Term Plan

• Flexi Life Line Whole Life Plan

• Flexi Cash Flow Money back Plan

Group Life

• Pro Group Term Insurance

• Group Superannuation Plan

• Group Gratuity Plan

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6.7 MAX NEW YORK LIFE INSURANCE COMPANY LTD.

Max New York Life today emerged as the country's

leading private life insurance company having recorded a sum assured of over Rs 2100
crore for the year ending March31, 2002. This was the first full year of operations for
Max New York Life. The company has sold over 64,000 policies in the last financial
year. The total annualized first year premium for the financial year was over Rs 43 crore
with the First Year Premium Income amounting to over Rs 38 crore. This has exceeded
the expectations of the company and the projections as submitted to IRDA. Over 70 per
cent of the premium income was from protection-oriented Whole Life Policies, which

44
reinforces the company's focus on providing the true value of life insurance to the
customer Given the better-than-expected performance of the company, the shareholders
have increased their investment in the company to Rs 250 crore with an authorized
share capital to Rs 300 crore making Max New York Life Insurance Company among
the highest capitalized life insurance companies in India Max New York Life also met
its commitment for the rural and social sectors. The company has 11 offices, over 1900
Agent Advisors and over 490 employees. Max New York Life believes in delivering
top value to all its stakeholders. As part of the best practices adopted, the Company
instituted satisfaction survey's conducted by independent agencies to measure the
satisfaction levels of its customers, agents and employees. Max New York Life has
clearly emerged as delivering top value across all these stakeholders Max New York
Life offers a suite of flexible products. It has eight base products and nine options &
riders that can be customized to over 250 combinations enabling customers to choose
the policy that best fits their need

The products are –

• Whole Life Participating d Convertible

• Whole Life-Non-Participating

• Children Endowment at age 18

• Children Endowment at age 24

• 20-year Endowment Participating Policy

• Endowment to age 60

• Five-year Term Renewable an

• Easy Term

45
 CHAPTER NO 7.

CORPORATE AGENT IN INSURANCE

Corporate agents in insurance are those representatives of insurance

companies who are responsible for selling general insurance. They usually meet the
insurance needs of corporates and they approach for selling specific corporate insurance
plans to them.

IRDA is the organization which lays down the rules and procedures
which govern the job requirements and eligibility criteria of corporate insurance agents.
These rules were laid down way back in 2002 and are valid even today when it comes
to insurance companies selling their policies through corporate agents.

The various requirements in applying for the position of corporate

agents as detailed by520 IRDA are explained below :

Such an applicant has to be a company who is into a business which is

apart from the distribution of such insurance products. A corporate agent can sell such

46
insurance products only when it employs professionals who have the requisite
qualifications to sell such products. Those who are employed to sell such insurance
products should be fully employed in the company and should have the requisite
qualifications of having acquired the FFII or AFII certifications.

For those companies who can fulfill the above criteria can apply for
the position of corporate insurance agents in the insurance sector of India. When
applicants meet the above criteria, the insurance companies send across training staff to
the corporate insurance agency to train the on the policies of the company once due
training is completed, the corporate agent’s license is issued.

The commission structure of corporate agents in India varies from one

corporate insurance agency to another and also, the type of business the corporate agent
is into. Since there are a wide category of insurance policies that corporate agents can
sell, the commissions earned on each type of policy is also laid out in the beginning.
There are broad guidelines set by the IRDA but in general, the commission structure is
bargainable between the two parties at the beginning of the partnership. There may be
two types of commission earned-one from the initial sale of the insurance policy and
the subsequent ones on renewals of the same. Of course, some corporate agents might
have a structure with an insurance company whereby the commission is earned by them
only after the initial sale and not on subsequent renewals.

Thus, corporate insurance agents are a flourishing business in the insurance

sector in India and this is an interdependent relationship whereby both parties are
benefited. Usually, an insurance company will list the number of corporate agents listed
to provide its policies to customers, the validity of their licenses and so forth to prevent
fraud by other parties.

47
 CONCLUSION

As stated earlier, we cannot predict our future. We do not

know how to cope with things when they completely go beyond our control. Thus one
must be mentally prepared how to deal with risk and take necessary precautions
beforehand. Investing on corporate insurance is definitely essential in today’s
competitive market world. Corporate insurance not only takes care of the employees of
the company but also safeguards of the company’s assets. In addition to employees, it
also protect against sickness, personal accidents which occur in the company.

Corporate insurance and general insurance are not the same they are
two different types of insurances but both are very important as far as safeguarding the
company, clients and employees are concerned. Corporate insurance and general
insurance are the most widespread policies that are being used these days. General
insurance mostly targets the individuals whereas corporate insurance targets on the
employees and clients.

Thus corporate insurance helps the company deals with even toughest
of situations. These insurances can help you retain the financial damages of the

48
company as well. But one needs to be extremely careful while choosing the right kind
of insurance as per your business needs. Companies need to plan out their requirements
and then choose an appropriate insurance policy which can cover maximum
requirements pertaining to their business. Choosing a right insurance policy will help
you deal with financial crisis of the company.

Corporate insurance and general insurance are not the same. They are the
two differents types of insurances but both are very important as far as safeguarding the
company, clients and employees are concerned.

BIBLIOGRAPHY

www.google.com www.wikipedia.com
www.slideshare.com
www.linkedin.com

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