Micro Insurance Project by Govind 759

Project Report On MICRO-INSURANCE
SPARK INSTITUTE OF MANAGEMENT&COMPUTERS

APPROVED BY AICTE, AFFILATED TO OSMANIA UNIVERSITY.
FINANCE PROJECT
MICRO-INSURANCE IN INDIA:
T R E N D S A N D S T R AT E G I E S F O R F U RT H E R
EXTENSION
Sub
mitted by:
Gosu.Praveen
BY University School Of Management Studies Page 1

ACKNOWLEDEGMENT
I herby offer my sincere and profound thanks to M/s Divya – our

financial management teacher, who gave us such a challenging
project and guided us through out our project including analysis
and presentation of the same. Without her we would not been able
to complete our project successfully.
I would also like to thank Mr. SHALENDRA GUPTA, Genaral Manager,

TATA AIG Life Insurance, for his valuable support.

DECLARATION
I hereby declare that this project report is the result of hard core
study done by Micro insurance team – Govind Kumar Jha, Gaurav
Asthana, Shiva Jangid, Indu Bhushan, Rakesh, Himanshu Nirwan,
Deepak, Manish and Lucky Talwar.
This is to further declare that this project report is authentic and not
being submitted by any other student previously.

DATE:
(Mr. DIVYA)

Contents
Foreword...............................................................
........................................ i

Introduction..........................................................
.........................................1
Development of Micro-insurance in
India........................................3
Supply and Demand Side

Developments ........................................5
3.1 Supply of micro-

insurance ..................................................................5
3.2 Demand for micro-

insurance...............................................................6
On Extending Micro-
insurance .......................................................1
0
4.1 Flexibility in
Premium........ ................................................................11
4.2 Micro-insurance and micro-

finance ...................................................16
Conclusions...........................................................
............................20

Company profile
………………………………………………………21

Introduction
Insurance
Insurance is an essential part of running any
business. If you are operating a small business
you need more than just property insurance.
Taking out the right insurance will help protect
your business and minimize its exposure to risk.
Your insurance requirements will vary according to
the type of business you are operating, but you
should be aware that some forms of insurance
are compulsory, such as workers’ compensation
and third party car insurance.
When you’re in business you deal with a variety of
potential risks each day. Risk is not something
you can avoid, but it is something you can
manage. Risk management will increase the
probability of success and reduce the probability
of failure of your business.
Types of insurance
Assets & revenue insurance
People insurance
Liability insurance

Assets & revenue insurance

To protect your assets and revenue-generating
capacity, here are some of the types of
insurance available:
Building and contents
Covers the building, contents and stock of your business

against fire and other perils such as earthquake, lightning,
storms, impact, malicious damage and explosion.
Burglary
Insures your business assets against burglary, and

is most important for retailers or a business
which maintains unattended premises.
Business interruption or loss of profits
Covers you if your business is interrupted through

damage to property by fire or other insured
perils. Ensures your ongoing expenses are met
and anticipated net profit is maintained through
a provision of cash flow.
Fidelity guarantees
Covers losses resulting from misappropriation by

employees who embezzle or steal.
Machinery breakdown

Protects your business when mechanical and

electrical plant and machinery at the work site
break down.
Motor vehicle
It is compulsory to insure all company or business

vehicles for third party injury liability. Many
different types of policies are available, so make
sure you understand the options before making
a decision. There are four basic options:
Compulsory third party (injury) – covers you for claims
made against you for personal injuries and legal
costs arising from the use of your car. You must
obtain this insurance to register your car.
Third party property damage - covers your liability for
damage to another person or to the property of
others and your legal costs. It doesn’t include
repairs to your own car if you caused an
accident.
Third party, fire and theft - covers you against the
events covered above, as well as fire and theft.
It also insures against damage caused if your car
was stolen.
Comprehensive - covers you for all of the above plus
damage caused to your own car by you in an
accident. If you're buying a car on an installment
basis, financiers will usually insist on this cover.

People insurance
It includes:
Superannuation
Workers compensation requirements
Insurance cover for you and your employees:
Workers Compensation
You must provide accident and sickness insurance

for your employees - workers compensation -
through an approved insurer. Workers
compensation is covered by separate state and
territory legislation.
Personal accident and illness
If you are self employed you won’t be covered by

workers compensation, so you need to cover
yourself for accident and sickness insurance
through a private insurer. There are several
types of life insurance. Some are investment-
type funds where you contribute over a certain
time and get back your investment plus interest
earnings at the maturity date. Others are
designed to cover risk - things that could happen
to you.

Income protection or disability insurance - covers part

of your normal income if you are prevented from
working through sickness or accident.
Trauma insurance - provides a lump sum when you
are diagnosed with one of several specified life
threatening illnesses.
Term life insurance or whole of life cover - provides your
dependents with a lump sum if you die.
Total and permanent disability insurance - provides a
lump sum only if you are totally and
permanently disabled before retirement.
Superannuation
If you are running a business or employing
people, you are likely to have superannuation
obligations to your employees. If you are self-
employed you also need to provide for your
retirement - superannuation is generally used to
provide for a retirement plan.
Liability insurance
Types of liability insurance you need to consider:
Public Liability
Public liability insurance protects you and your

business against the financial risk of being
found liable to a third party for death or injury,
loss or damage of property or ‘pure economic’
loss resulting from your negligence.

Professional Indemnity
Professional indemnity insurance protects you

from legal action taken for losses incurred as a
result of your advice. It provides indemnity
cover if your client suffers a loss - either
material, financial or physical - directly
attributed to negligent acts.
Product Liability
If you sell, supply or deliver goods, even in the

form of repair or service, you may need cover
against claims of goods causing injury or
damage. Product liability insurance covers
damage or injury caused to another business or
person by the failure of your product or the
product you are selling.
What is Micro Insurance?
On a daily basis, the poor around the world face a

multitude of risks that threaten to derail any
progress they have made to work their way out
of poverty. The death of a family member, loss of
property and livestock, illness, and natural
disasters each pose unique dangers. Protecting
people against these losses is an important step
to alleviating global poverty.

Micro insurance - the protection of low-income

people against specific perils in exchange for
regular monetary payments (premiums)
proportionate to the likelihood and cost of the
risk involved – seeks to provide a suitable
solution for managing these risks.
The Global Landscape
It is estimated that only eighty million out of the

world's 2.5 billion poor are now covered by some
form of micro insurance. Most remain without
access to this critical financial service. In India
and China, where organizations are estimated to
serve nearly 30 million micro insurance clients
each, the percentage of poor lives insured
hovers below 3%. In Africa this figure is much
lower – just 0.3% of the continent’s poor are
insured. According to recent data, in 23 of the
poorest 100 countries in the world, there is
currently no identified micro insurance activity,
representing an unserved population of 370
million.
History and Vision

The Micro Insurance Agency has its roots within

Opportunity International, a large microfinance
network motivated by Jesus Christ’s call to serve
the poor. With a network of 47 microfinance
institutions, Opportunity International has been
serving the entrepreneurial poor since 1971. In
partnership with Opportunity’s microfinance
institutions, we began working in 2002 on the
development of a range of life, property,
livestock, crop derivative, disability,
unemployment and health insurance products to
cover the risks faced by Opportunity’s loan
clients.
Micro Insurance Agency staff observed that the
risks the poor face can often set them back
months and years behind where their loans and
savings products offered by Opportunity had
taken them. For instance, a death of a family
member from HIV/AIDS – a “pre-condition” most
insurance companies would not cover – would
often mean expensive funeral costs and the loss
of a breadwinner, resulting in increased
economic hardship for the family. In response,
Micro Insurance Agency staff developed an
affordable funeral benefit product that did not
exclude any pre-conditions, including HIV/AIDS.
This transformed the mindset of retail insurance
providers in the country, who later developed
similar non-exclusive products in light of the
competing environment.

Through the experience of serving Opportunity’s

microfinance institutions and their clients, Micro
Insurance Agency staff observed that the
products most demanded by the poor are not
always the ones available. Health insurance, for
example, is a critical need of the poor but the
most limited in terms of supply. In addition,
policies that are available are often based on
first world practices and are too complex for the
simple coverage demanded. Further, when
offered on an individual, one-off basis, high
premium requirements and a need to pay in a
single lump sum preclude a huge sector of the
market from access. New distribution models
and channels were needed to increase access
and reduce the effective price charged to
clients.
In 2005, the Micro Insurance Agency was founded
by Opportunity International as a fully-owned
subsidiary capable of offering insurance
products and services to a wide range of
customers.
Our mission is to empower the materially poor to
transform their lives by insuring them against
financial risk and its consequences. Specifically,
we seek to serve the economically active poor
who live on $4 per day or less in developing
countries and provide a safety net to reduce
economic setbacks.
Definitions of micro-insurance

Micro-insurance, the term used to refer to

insurance to the low-income people, is different
from insurance in general as it is a low value
product (involving modest premium and benefit
package) which requires different design and
distribution strategies such as premium based
on community risk rating (as opposed to
individual risk rating), active involvement of an
intermediate agency representing the target
community and so forth. Insurance is fast
emerging as an important strategy even for the
low-income people engaged in wide variety of
income generation activities, and who remain
exposed to variety of risks mainly because of
absence of cost-effective risk hedging
instruments.

Although the type of risks faced by the poor such

as that of death, illness, injury and accident, are
no different from those faced by others, they are
more vulnerable to such risks because of their
economic circumstance. In the context of health
contingency, for example, a World Bank study
(Peters et al. 2002), reports that about one-
fourth of hospitalized Indians fall below the
poverty line as a result of their stay in hospitals.
The same study reports that more than 40
percent of hospitalized patients take loans or
sell assets to pay for hospitalization. Indeed,
enhancing the ability of the poor to deal with
various risks is increasingly being considered
integral to any poverty reduction strategy
(Holzmann and Jorgensen 2000, Siegel et al.
2001).
Of the different risk management strategies2,

insurance that spreads the loss of the (few)
affected members among all the members who
join insurance scheme and also separates time
of payment of premium from time of claims, is
particularly beneficial to the poor who have
limited ability to mitigate risk on account of
imperfect labour and credit markets.

In the past insurance as a prepaid risk managing

instrument was never considered as an option
for the poor. The poor were considered too poor
to be able to afford insurance premiums. Often
they were considered uninsurable, given the
wide variety of risks they face. However, recent
developments in India, as elsewhere, have
shown that not only can the poor make small
periodic contributions that can go towards
insuring them against risks but also that the
risks they face (such as those of illness, accident
and injury, life, loss of property etc.) are
eminently insurable as these risks are mostly
independent ,idiosyncratic. Moreover, there are
cost-effective ways of extending insurance to
them. Thus, insurance is fast emerging as a
prepaid financing option for the risks facing the
poor.
In this paper, we analyze the early evidence on

micro-insurance already available in this regard,
highlight the current initiatives being
contemplated to strengthen micro-insurance
activity in the India, and suggest specific ways
that can help promote insurance to the target
segment.
Development of Micro-insurance in India

Historically in India, a few micro-insurance

schemes were initiated, either by non-
governmental organizations (NGO) due to the
felt need in the communities in which these
organizations were involved or by the trust
hospitals. These schemes have now gathered
momentum partly due to the development of
micro-finance activity, and partly due to the
regulation that makes it mandatory for all formal
insurance companies to extend their activities to
rural and well-identified social sector in the
country (IRDA 2000). As a result, increasingly,
micro-finance institutions (MFIs) and NGOs are
negotiating with the for-profit insurers for the
purchase of customized group or standardized
individual insurance schemes for the low-income
people. Although the reach of such schemes is
still very limited anywhere between 5 and 10
million individuals---their potential is viewed to
be considerable. The overall market is estimated
to reach Rs. 250 billion by 2008 (ILO 2004).
The insurance regulatory and development

authority (IRDA) defines rural sector as
consisting of:
a population of less than five thousand,

a density of population of less than four hundred

per square kilometer
More than twenty five per cent of the male working
population is engaged in agricultural pursuits.
The categories of workers falling under
agricultural pursuits are: cultivators, agricultural
labourers, and workers in livestock, forestry,
fishing, hunting and plantations, orchards and
allied activities.
The social sector as defined by the insurance

regulator consists of:
Unorganized sector
informal sector
economically vulnerable or backward classes, and
Other categories of persons, both in rural and
urban areas.

The social obligations are in terms of number of

individuals to be covered by both life and non-
life insurers in certain identified sections of the
society. The rural obligations are in terms of
certain minimum percentage of total polices
written by life insurance companies and for
general insurance companies, these obligations
are in terms of percentage of total gross
premium collected. Some aspects of these
obligations are particularly noteworthy. First,
the social and rural obligations do not
necessarily require (cross) subsidizing
insurance. Second, these obligations are to be
fulfilled right from the first year of
commencement of operations by the new
insurers. Third, there is no exit option available
to insurers who are not keen on servicing the
rural and low-income segment. Finally, non-
fulfillment of these obligations can invite
penalties from the regulator.

In order to fulfill these requirements all insurance

companies have designed products for the
poorer sections and low-income individuals. Both
public and private insurance companies are
adopting similar strategies of developing
collaborations with the various civil societies
associations. The presence of these associations
as a mediating agency, or what we call a nodal
agency, that represents, and acts on behalf of
the target community is essential in extending
insurance cover to the poor. The nodal agency
helps the formal insurance providers overcome
both informational disadvantage and high
transaction costs in providing insurance to the
low-income people. This way micro insurance
combines positive features of formal insurance
(pre paid, scientifically organized scheme) as
well as those of informal insurance (by using
local information and resources that helps in
designing appropriate schemes delivered in a
cost effective way). In the absence of a nodal
agency, the low resource base of the poor,
coupled with high transaction costs (relative to
the magnitude of transactions) gives rise to the
affordability issue. Lack of affordability prevents
their latent demand from expressing itself in the
market. Hence the nodal agencies that organize
the poor, impart training, and work for the
welfare of the low-income people play an
important role both in generating both the
demand for insurance as well as the supply of
cost-effective insurance.

AN OVERVIEW OF THE MARKET
B Wealthy A
Middle Income
D
C
Poor
Severely Poor


The market for micro insurance is represented by

this pyramid diagram. Formal sector insurance
companies generally focus on the area identified
as “A”. In this realm the customers are
corporations and wealthy individuals, and the
products are voluntary products such as life
insurance, and obligatory products required
either by law (such as motor third party liability)
or by banks (such as property loss and credit
life). Also offered are products covering
employees and civil liability. Most of the non-
auto related commercial products are being sold
within the area marked “B”. The aggregate
market for microfinance providers is generally in
the area identified as “C”. Some MFPs require
borrowers to obtain insurance for property, or
credit-life insurance as a means of protecting
the institution’s interests. Area “D” indicates
the broad range of products offered by the
social security and public health insurance
systems of developing country governments.
They include coverage for pensions, disability
benefits, primary health care, and medications.
The weakness of this sector is indicated by the
dashed line that suggests incomplete coverage.
The potential market for microinsurance is
indicated as “E”. This extends above the MFP
range in providing access to individuals and
others that cannot obtain appropriate products
from the commercial sector. The microinsurance
range also extends below the MFP range
because it addresses agricultural coverage in
some cases, and is now being sold through many

delivery channels other than MFPs. Just a few of

these delivery channels include:
Low-income focused retailers in South Africa

Post offices in Indonesia
On bags of agricultural inputs or through computer
kiosks in India.
Micro-insurance delivery models
One of the greatest challenges for micro-insurance

is the actual delivery to clients. Methods and
models for doing so vary depending on the
organization, institution, and provider involved.
In general, there are four main methods for
offering micro-insurance the partner-agent
model, the provider-driven model, the full-
service model, and the community-based model.
Each of these models has their own advantages
and disadvantages.

Partner agent model: A partnership is formed

between the micro-insurance scheme and an
agent (insurance company, microfinance
institution, donor, etc.), and in some cases a
third-party healthcare provider. The micro-
insurance scheme is responsible for the delivery
and marketing of products to the clients, while
the agent retains all responsibility for design
and development. In this model, micro-insurance
schemes benefit from limited risk, but are also
disadvantaged in their limited control.
Full service model: The micro-insurance scheme is in
charge of everything; both the design and
delivery of products to the clients, working with
external healthcare providers to provide the
services. This model has the advantage of
offering micro-insurance schemes full control,
yet the disadvantage of higher risks.
Provider-driven model: The healthcare provider is the
micro-insurance scheme, and similar to the full-
service model, is responsible for all operations,
delivery, design, and service. There is an
advantage once more in the amount of control
retained, yet disadvantage in the limitations on
products and services.

Community-based/mutual model: The policyholders or

clients are in charge, managing and owning the
operations, and working with external
healthcare providers to offer services. This
model is advantageous for its ability to design
and market products more easily and effectively,
yet is disadvantaged by its small size and scope
of operations.
NEW MODELS FOR POOR COMMUNITIES

Much interest over the last few decades has

focused on helping communities to establish
mutual or community-based insurance schemes.
Professionals typically manage mutual insurance
companies. Community-based schemes,
promoted by ILO STEP and CIDR among others,
tend to be run by well meaning local people who
give freely of their time, but are not insurance
professionals. Often people who were simply in
need of insurance end up being insurance
managers with these schemes. One member of
the management committee of a community-
based scheme in Tanzania noted that he “wants
insurance, but doesn’t want to be an insurer.” In
community-based schemes, the limited
management capacity frequently leads to a
range of difficulties. The key issues of concern
for community-based schemes include:
Pricing – Often the process of pricing is focused on

what people say they can pay rather than being
linked to the cost structure of benefits that the
group wants to receive.

Insurance is subject to cash flow fluctuations and

thus requires significant reserves. These
schemes frequently have insufficient reserves or
no reserves at all. Also, commercial reinsurance
is rarely available to unregulated insurance
schemes thus leaving them with no ability to
manage cash flow deficits.
Controls on management are weak and temptation

is strong. Fraud by management is frequently a
problem.
These schemes are limited in size to those people

within the defined local area. This reduces their
ability to diversify a rather small risk pool, and
enhances the potential for adverse selection,
both of which make sustainability a serious
challenge for local management.

Finally, in many countries there is no legal

framework for these schemes. Indeed regulators
are often unwilling to allow such schemes for
fear that they will not be able to adequately
supervise many small schemes run by non-
professionals. This is the case in India. Service
providers, most typically hospitals and other
healthcare providers have offered pre-financing
mechanisms that act somewhat like insurance.
These products, it is argued, will attract more
people to the facility and the people who come
will be able to pay for the services. Often this
becomes a problem because providers have
limited ability to manage the insurance
administration issues. One overseer of a
particular group of hospitals noted that
attempting to offer microinsurance could
present a dual threat to the hospital network for
which he works. He noted that the hospital
administrators “do not even know how to price
their own healthcare services”. Therefore, they
mis-price their premiums based on those prices,
which are typically too low. The resulting
increase in patients using the insurance leads to
even higher losses, due to higher administrative
costs and incorrect fees that do not cover the
actual costs of services. Governments also
provide a form of microinsurance through the
programs they provide for low-income Citizens.
Unfortunately, in many countries these programs
are simply insufficient to address the financial
risks of the low- income and destitute
populations. Certainly there is a population that

will not be covered by commercial or other non-

government microinsurance. However, if a
proper balance could be found, it is possible that
the combination of government programs,
commercial microinsurance, mutual insurance,
and traditional commercial insurance could make
each of these more efficient, and make the
government interventions more effective in
addressing those that truly require such
services.
Need for Developing Micro-Insurance in India – IRDA

perspective
Background

Micro-insurance refers to protection of assets and

lives against insurable risks of target
populations such as micro-entrepreneurs, small
farmers and the landless, women and low-
income people through formal, semiformal and
informal institutions. Such products are often
bundled with micro-savings and micro-credit,
thereby allocating scarce resources to micro-
investments with the highest marginal rates of
return. Microinsurance is the most
underdeveloped part of microfinance. Yet
various schemes exist that are viable, benefiting
both the institutions and their clients. Such
schemes have generally served two major
purposes: (i) they have contributed to loan
security; and (ii) they have served as
instruments of resource mobilization. The
greatest challenge for microinsurance lies in the
combination of viability and sustainability with
outreach.
Although introduction of sound practices such as
appropriate policy sizes and timely payment of
installments of premium or positive incentives to
renew on time in order to avoid policy getting
lapsed can be feasible, the ultimate
effectiveness of interventions focusing on
institutional transformation and sound insurance
practices will vary considerably, depending on
the appropriateness of the regulatory
environment.

Development Goal
To enable microinsurance to be an integral part of

a country's wider insurance system, it is
important for every insurer to adjust its costs of
serving marginal clients in remote areas,
collecting premiums and installments, and
offering doorstep services. It is also important to
recognize a wide network of intermediaries in
the rural and social sectors and notify
regulations in order to guide and supervise the
micro-insurance service providers and their
customers.
Today we have a variety of microfinance

institutions with national and local outreach.
Many of them have already become corporate
agents or have entered into referral
arrangements with insurers. However, semiformal

institutions including savings and credit
cooperatives, NGOs and self-help groups which
have immense potential in carrying the message
of insurance as also solicit insurance business
are yet to be utilized in a manner where their
true potential can be harnessed to increase the
insurance penetration levels. This is due to
restrictions in the existing agency regulations in
terms of minimum eligibility norms in order to
become an agent.

Depending on the existence and vigour of such

institutions, the following alternatives have
emerged, for offering strategic entry points for
microinsurance development:
Adapting formal insurance arrangements to the

needs of the micro-economy.
Upgrading non-formal (comprising semiformal and

informal) insurance arrangements with
insurance companies.
Linking formal and non formal insurance

institutions with banks and self-help groups.
Establishing new local institutions providing

microinsurance services.
The first three strategies may be inter-connected:
adapting insurance companies to the requirements

of the micro-economy is a first step; then
Linking them as wholesale institutions to self-help
groups as retailers; and finally,

Upgrading self-help groups e.g. to the level of

financial cooperatives or village banks.
If insurers are to serve customers who differ

widely in terms of service costs and risks, the
only viable inducement for them is an adequate
margin, lest they exclude small farmers, - micro-
entrepreneurs and people in remote areas. Only
sound social insurance, which combines a social
mandate with profit-making, has a chance of
sustainability.
Institutional Adaptation
The experience so far has been that formal

financial institutions serve but a fraction of the
population, which typically lies within the upper
quartile of the social hierarchy. Through
adaptation to the microfinance market
requirements, they may gradually expand into
the second-highest quartile and into segments
of the lower quartiles. Within the foreseeable
future they will normally not be able to fully
serve that market.

Non formal finance mostly rests on local

institutions which are directly accessible to all
segments of the population. Self-Help Groups
(SHGs) are member-owned and member-
controlled local institutions. They may either be
financial groups, with financial intermediation as
their primary purpose; or non financial groups,
with financial intermediation as a secondary
purpose, such as vendors' associations, family
planning groups and numerous other types of
voluntary associations.
The functions that need to be focused must

include: providing guidance to members,
collecting premium installments from members,
insurance services to members, communication
and exchange of experience, providing linkages
with banks, NGOs or donors, supporting the
proposals of individual members to insurance
companies through recommendations.
Linkage to Insurers

On a modest scale, various forms of life and health

insurance have been successfully practiced by
different institutions in different countries,
particularly as part of loan protection schemes.
Micro-insurance procedures and services should
be set by insurers rather than the regulator.
Appropriate procedures and services should be
applied to attain:
(1) Sound financial management,
(2) Convenient and safe savings premium

collection and deposit facilities,
(3) Appropriate claim appraisal and processing

procedures,
(4) Adequate risk management,
(5) Timely collection of premium installments,
(6) Monitoring and

(7) Effective information gathering, all of which

may include cooperation between different
formal and non-formal intermediaries in fields
where each is most effective.
Proposed Micro-insurance Regulations
In order to introduce the concept micro-insurance

it is necessary to draft suitable bring in suitable
regulations to enable insurers to design and
distribute and service micro-insurance products
and discharge their obligations to the rural and
social sectors as per provisions of the Insurance
Act, 1938.
It is proposed that an insurer transacting life

insurance business shall be permitted to provide
life micro-insurance products as well as general
micro-insurance products provided it ties up
with an insurer transacting general insurance
business for the general micro-insurance
products, and vice versa.

In addition to an insurance agent or corporate

agent or insurance broker who are authorized to
solicit and procure insurance business, including
micro-insurance business with an insurer in
accordance with the provisions of the Insurance
Act, 1938 and the regulations made there under
it is also proposed to introduce the concepts of
“micro-insurance product” and “micro-insurance
agent” .
Micro-insurance Product
A “life micro-insurance product” means any term

insurance contract with or without return of
premium, any endowment insurance contract or
health insurance contract, with or without an
accident benefit rider, either on individual or
group basis, as per terms stated in the Table A
below, filed with the Authority:
Table A:

Type of Minimum Maximu Term of Term of Minimum Maximum age

Cov Amou m Cov Cover Age at at entry
er nt of Am er entry
Cover oun Max.
t of Min.
Cov
er
Term Rs. 10,000 Rs. 5 year 7 years 18 60

Insu 50,0
ranc 00
e
with
or
with
out
retu
rn
of
pre
miu
m
Endowm Rs. 10,000 Rs. 5 year 7 years 18 60

ent 50,0
Insu 00
ranc
e
Health Rs. 10,000 Rs. 1 year 7 year 18 60

Insu 15,0
ranc 00
e
Con
trac
t

Accident Rs. 10,000 Rs. 1 year 5 years 18 60

Ben 50,0
efit 00
as
ride
r

NOTE: The present average sum insured is

around Rs. 5,000. This is highly
inadequate to provide any tangible relief
even to an individual below the
poverty line. Therefore, it is suggested that
the minimum amount of cover of Rs.
10,000 appear more realistic.
A “general micro-insurance product” means any

health insurance contract, any contract covering
the belongings such as hut, livestock, any
personal accident contract, or tools or
instruments, either on individual or group basis,
as per terms stated in the Table B below, filed
with the Authority:
Table B:

Type of Minimu Maximu Term of Term of Minimum Maximum age at

Cov m m Cove Cove Age entry
er Am Amo r r at
oun unt entry
t of of Min. Max.
Cov Cov
er er
Hut or Rs. Rs. 1 year 1 year 18 70

live 10,0 20,0
stoc 00 00
k or
Tool
s or
impl
eme
nts
or
othe
r
ass
ets
—
agai
nst
all
peril
s
Health Rs. Rs. 1 year 1 year 18 60

Insu 10,0 15,0
ranc 00 00
e
Con
trac
t

Personal Rs. Rs. 1 year 1 year 18 60

Acci 10,0 50,0
dent 00 00
Micro-insurance Agent
A “micro-insurance agent” shall be a Non

Government Organization (NGO) or a Self Help
Group (SHG).
Explanation: For the purposes of this regulation:
A Non Government Organization (NGO) shall be a

registered non-profit organization under the
Society’s Act, 1968 with a proven track record of
working with marginalized groups with clearly
stated aims and objectives, transparency, and
accountability outlined in its memorandum, rules
and regulations and demonstrates involvement
of committed people.

Self Help Group (SHG) may be an informal group or

registered under Societies Act, State Co-
operative Act or as a partnership firm, consisting
of 10 to 20 with a proven track record of working
with marginalized groups with clearly stated
aims and objectives, transparency, and
accountability outlined in its memorandum, rules
and regulations and demonstrates involvement
of committed people.
The minimum number of members comprising a

group should be atleast ten for insurance of
individuals, and atleast fifty for group insurance.
Scope and Functions
A micro-insurance agent shall be appointed by an

insurer by a deed of agreement or memorandum
of understanding which should clearly specify
the terms and conditions, duties and
responsibilities of both the micro-insurance
agent and the insurer, and he shall abide by the
following:-
He shall work either for one life insurer or for one

general insurer or for one life insurer and one
general insurer;

He shall be specifically authorized to perform one

or more of the following functions:--
Maintaining a register of all members and their

dependants covered under the insurance
scheme alongwith details of name, age, address,
nominees and thumb impression/ signature;
Collection of proposal forms;
Collection of self declaration from the member that

he is in good health;
Collection of monies for issuance of contract or

remittance of premium;
distribution of policy documents;
Assistance in the settlement of claims;
Nomination; and
Any policy administration service.

The micro-insurance agent or the insurance

company shall have the option to terminate the
agreement/ MOU after giving a notice of three
months.
All such agreements/ MOU must have the prior

approval of the Head office of the insurance
company.
Initiative Taken By Private Sectors
Tata AIG Life - First insurance company to launch Micro

Insurance
First major Micro Insurance initiatives venture by an Indian

insurance company
Launches three new Micro Insurance products and five Micro

Insurance branches

Adopts a tailor made rural communication strategy to reach

out to the rural community
American International Group, Inc. (AIG)
American International Group, Inc. (AIG), world leaders in

insurance and financial services, is the leading
international insurance organization with operations in
more than 130 countries and jurisdictions. AIG companies
serve commercial, institutional and individual customers
through the most extensive worldwide property-casualty
and life insurance networks of any insurer. In addition,
AIG companies are leading providers of retirement
services, financial services and asset management
around the world. AIG's common stock is listed in the U.S.
on the New York Stock Exchange, as well as the stock
exchanges in London, Paris, Switzerland and Tokyo.

Micro Insurance is the process of delivering and servicing

relevant and affordable life insurance products to the low-
income socio economic strata. The focus of Tata AIG
Life’s Micro insurance program is rural India, where
traditionally the far-flung, lower and lower middle-income
segments have had limited access to life insurance
services.
Cost of plans:
Tata AIG Life Micro insurance plans are available

with or without survival benefits and with death
benefits ranging from Rs.5, 000 to Rs.50, 000.
With premiums as low as Rs.5** per month,
there is now an affordable life insurance product
for nearly every rural household in India.
Policies Available:
The following special Micro Insurance products

from Tata AIG Life are now available for the rural
population at the bottom of the pyramid.
Navkalyan Yojana
Ayushman Yojana
Sampoorn Bima Yojana
NAVKALYAN YOJANA

A regular premium payment, low cost term plan for

the rural adults who seek life insurance
protection without any maturity benefit.
Key features include:
Policy Term : 5 years

Coverage Limits : Minimum Death Benefit (Sum
Assured): Rs.5,000/-
Maximum Death Benefit (Sum
Premium payment frequency : Monthly, quarterly,
half yearly & yearly
Death Benifit : Sum assured to the policyholder’s
nominee
Maturity benefit : None
Rider : Option to attach Accident Death Benefit
Rider for issue ages 18 to 55 years at a nominal
extra charge.
Tax Benefits and Age Eligibility

Premiums paid under this plan are eligible for tax

benefits as per the Income Tax Act, 1961 and are
subject to any amendments made therein from
time to time.*
Anyone between ages 18 and 60 can apply for this

policy.
AYUSHMAN YOJANA
A single premium plan where the policyholder pays

the premium at the beginning of the policy term.
This is especially useful for those rural people
who have a seasonal income.

Death Benifit : Sum assured to the policyholder’s
nominee

Maturity benefit : On survival, 125% of the single

premium paid.

benefits to the extent of 20% of Sum Assured as
per the Income Tax Act, 1961 and are subject to
amendments made therein from time to time.*
Anyone between ages 18 and 60 can apply for this
policy.
SAMPOORNA BIMA YOJANA
A low cost insurance plan where the policyholder

receives all the premiums paid during the policy
term upon survival until the term of the policy.
Premiums are payable for only 10 years, while
the coverage is up to 15 years.
How do we operate?

We operate in 11 states with a specific relationship

management team for each state. A dedicated &
trained sales and marketing team manages the
front end of the Micro insurance program. Our
micro insurance distribution model collaborates
with NGO’s (Non-governmental organizations)
and Rural organizations with community level
SHG (Self Help Group) women advisors who
provide insurance advisory services to the rural
customers at their doorstep. The grassroots
level agents explain the product details in the
local language of the customer, thereby enabling
the customer to make a decision. The training
programs, brochures, contract documents, and
application forms are available in 8 different
languages other than English and Hindi

Premium payment frequency : Monthly, quarterly,
half yearly & yearly
Death Benifit : Sum assured is paid to the
policyholder’s nominee

Maturity benefit : At the end of the 15 years, all

the premiums paid will be returned to the
policyholder.

benefits as per the Income Tax Act, 1961 and are
subject to any amendments made therein from
time to time.* Anyone between ages 18 and 60
can apply for this policy.
RESEARCH OBJECTIVE
To find out potential depth in society for providing

opportunities for further extention for micro
insurance
Sub objective:

Determine need and ability of people segment

whose per day income is less than 100 bugs.
What really matters to him or her while think
about insurance.
Determine awareness about insurance among
them. if aware then source of information
To determine the govt. and private sector
proceeding in this area and extent of their
success
RESEARCH METHODOLGY
Data collection
For data collection, we developed a well defined

questionnaire as a research instrument,
consisting questions aimed to measure the
people perception about insurance, their need
and problems, bottleneck why hadn’t insured,
and target to find out opportunities for further
extention of micro insurance. We conducted
unstructured interviews (sample size) of 52
general people having income even less than
100 bugs per day like vendors, rickshaw wala,
coolies etc. at survey location (Kashmiri gate,
old Delhi railway station, prostitutional area etc.
All the data generated was primary data that
was generated directly from face to face
communication

Data analysis
The data collected based on structured

questionnaire is recorded on an excel sheet and
with the help of SPSS software a pie chart
analysis along with pillar data analysis is
generated and based on this findings a
qualitative inferences are made for each
analysis. The same is being presented in form of
graphs and tables
SURVEY RESULTS
The following are our findings regarding the survey

conducted by us. The following graphs show the
potential depth from different perspectives, as
shown below:

ANALYSIS AND INTERPRETATION
Table 1:
Gender of the respondents

S. Sex No of Percentage
N Responde
o nts
.
1. Male 50 91
2. Female 05 09

Total 55 100

Chart 1:
Gender of the respondents

No of Respondents
9% 0% 1
2
3
4
5
6
7
8
9
91% 10
Inference:

The above reveals the fact that Majority of the

respondents, about 91% belong to the category
of male and 9% belong to the category of female.
Table 2: Age of the respondents Chart 2:

frequency
17% 12%
AGE 1
2
3
38% 4
33%
25 20
20 17
15
9
10 6
5
Inference:
0
1 2 3 4 5 6 7 8

The above reveals the fact that Majority of the

respondents, about 38% belong to the category
of 2 age and 33% belong to the category of 3 of
age, 17% belong to category 2 and 12% belong
to the category 1 of age.
Table 3: Educational Qualification Chart 3:

Educational Qualification Frequency
2%
2%
28
no.of respondent
30 22
20 1
10 42% 2
1 1
0 3
54%
1 2 3 4 5 6 7 8 9 10 4
catagory of education
Inference:

The above result reveal that majority of

respondents (22+28)% were either uneducated
or educated only upto primary level
Table 4: No. of family members Chart 4:

family size freq
0%
30
no.of respondent
20 1
freq
45% 2
10
0
55% 3
1 2 3 4 5 6 7 8 9 10 4
age catagory
Inference:

Above result reveals that majority of respondent

55% live with joint family or have big size of
family
Table 5: No. of earning member Chart 5:

Series1 2% freq
earning member
Series2 4%
Series3
no.of respondent
40 33
30 Series4
16 1
20 Series5 31%
2
10 2 1 Series6
3
0 Series7
63% 4
freq Series8
earning member/family Series9
Series10
Inference:
From the above result it can be clearly seen that

about 63% of the respondent were the only
earning member of their family, 31% have 2
earning member because of size of family.

Table 6: Income level Chart 6:

Series1 freq
income level 12%
Series2
30 Series3
no.of respondent
24 22
Series4
20
Series5 46% 1
10 6
Series6 2
0 Series7 3
freq Series8 42%
incom e catagory Series9
Series10
Inference:

The above result reveals that 46% of respondent

have income level 1 while 42% and 12% have
income level 2 and 3 respectively.
Table 7: Account Holder Chart 7:

account map freq
15%
40 33
no.of account
30
holder
20 11 1
8
10 2
21%
0
3
1 2 3 4 5 6 7 8 9 10 64%
no.of account
Inference:
The above result reveals that 64% of respondent

don’t have any account any where while 36%
have their own bank or post office account.

Table 8: Background Chart 8:

background freq
19%
40 36
no.of respondent
30
20 1
10 12%
10 6 2
0 3
1 2 3 4 5 6 7 8 9 10 69%
background catagory
Inference:
The above result reveals that majority of

respondent belong to the background of type
3(69%), then type 1 (19%) and type 2(12%).

Table 9: No. of dependent Chart 9:

dependent members freq
12% 8%
20 18
15 16%
respondent
15 1
10 8
6 2
4
5 3
29%
0 4
1 2 3 4 5 6 7 8 9 10
5
no. of de pendent/family
35%
Inference:
The above result reveal that majority of

respondent (35+29)% have no. of dependent
more than 1 and less than 4. 16% have only 1
dependent and 12%have 4 or more than 4
dependent in their family.

Table 10: Whether has ID proof Chart 10:

ID proof freq 1
2
27.5 27 0%
27 3
no.of respondent
26.5 4
26
48%
5
25.5 25
25 52% 6
24.5 7
24
8
1 2 3 4 5 6 7 8 9 10
9
1-yes ,2-no
10
Inference:
Above result reveals that 52% have ID proof but

almost there were equal no that hadn’t any id
proof.

Table 11: Faced prob with health or asset Chart 11:

health/asset problem faced Freq
23%
60
40
responses
40
20 12 1
2
0
1 2 3 4 5 6 7 8 9 10
1-yes, 2-no 77%
Inference:
Above result shows that 23% of respondent didn’t

face any problem related with health or asset
but 77% faced a serious health of asset loss in
past of their life.

Table 12: If yes how they managed Chart 12:

monetory management way of monetary management
19
20 2%
15 21%
15 1
response
10 40%
10 2
3
5 1 3
0 6% 4
1 2 3 4 5
5
w ay of m anage 31%
Inference:
The above result reveals that majority of the

respondent 40% managed their financial
problem by way 1, 31% by way2 and 21% by
way4 and rest managed their problem by pattern
of ways shown above in chart12.

Table 13: How many times fell ill Chart 13:

illness illness map
7%
28
30
26%
response
20
11 1
10 3 2
0 3
67%
1 2 3 4 5 6 7 8 9 10
times fell ill/month
Inference:
The result above reveals that 67% of the

respondent don’t have serious health problem
and they hardly use to fell ill once in a month.
But beside of this some sector 26% and 7%
respectively are those who use to fall twice or
thrice in month.

Table 14: Risk on job Chart 14:

risk on job
risk on job
28
27
27 48%
response
26 1
25
25 52% 2
24
1 2 3 4 5 6 7 8 9 10
1-yes, 2-no
Inference:
The above result reveals that 52% of the

respondent didn’t had any risk on job but almost
equal proportion 48% who had serious job risk.

Table 15: Risk toward assets Chart 15:
risk toward asset risk toward asset
40 35
33%
30
response
17
20
1
10
2
0 67%
1 2 3 4 5 6 7 8 9 10
1-yes , 2-no
Inference:
Above result reveals that a majority of respondent

67% don’t have any risk toward their asset while
33% were those who have. Reason might be
because of their low income they hadn’t had any
significant asset.

Table 16: Awareness about insurance Chart 16:
awareness about insurance awareness about insurance

8%
60 48
response
40
20 1
4
2
0
1 2 3 4 5 6 7 8 9 10
1-ye s, 2-no
92%
Inference:
Above result reveals that majority of respondent

92% were awared of insurance but 8% were also
there who even didn’t know what the insurance
is.

Table 17: Source of information Chart 17:

source of information source of information
0%
1% 11%
11%
1%
0%
30 25 3%
22
responses
20
8 8
10 5
1 0 2 0 1
0 35% 31%
1 2 3 4 5 6 7 8 9 10
source
7%
Inference:
The result above reveals that 35% of the

respondent got the information about insurance
from source 7, 31% got info. from source 5 and
remaining from the source pattern shown above.
Chart 18:
insurance taken
Table 18: No. of insurance taken insurance tak en
2%
40 31
30 38%
responses
20
20 1
10 1 60% 2
0 3
1 2 3 4 5 6 7 8 9 10
no.of insurance taken
Inference:
Above shown result reveals that a majority of

respondent 60% were not insured from any
where , 38% had taken life insurance but 2%
were also there who were very well awared and
had 2 or more than 2 insurance.
Table 19: Why not insured? Chart 19:

reason for no insurance reason for no insurance
20 17 16
41% 44%
responses
15
10 1
6
5 2
0 3
15%
1 2 3 4 5 6 7 8 9 10
reason

Inference:
The result got above reveals that 44% were not

insured because of reason1, 41% because of
reason3 and 15% were not insured because of
reason 2.
Table 20: Kind of insurance like to purchase Chart 20:

insurance like to have insurance like to have
9%
30 27
18 14%
responses
20
1
8
10 5 46% 2
0 3
1 2 3 4 5 6 7 8 9 10 4
type of ins urance
BY University School Of Management Studies 31%
Page 80
Inference:
Above result reveals that 46% of respondent like to

have life insurance, 31% like to have health
insurance but there are some 14% who are
awared toward their child education and like to
have education insurance, while some 9% want
to minimize risk toward their assets and like to
have asset insurance as well.
Table 21: Premium ready to pay Chart 21:

premium map p re miu m map
27% 24%
20
15 14
15 12
responses
10 1
10 2
5 3
0
20% 29% 4
1 2 3 4 5 6 7 8 9 10
type of prem ium

Inference:
Above result reveals that in this particular sector

all the respondent were almost have equally
distributed opinion about premium package.
24% were ready to pay a sound premium,
majority were aligned toward premium package
2, 20% were ready to pay premium 3, while 27%
agreed to pay premium package 4.
Table 22: How many members like to insured Chart 22:

members like to be insured members like to be insured
40 2%
31 2%
30 2% 1
responses
35%
18 2
20
3
10 4
1 1 1
0 59% 5
1 2 3 4 5 6 7 8 9 10
members/family

Inference:
The above shown result reveals that majority of

respondent 59% like to insured two members of
their family apart from self but 35% were those
who can’t bear even so less premium of micro
insurance product and like to insure only one
member apart from self rest are distributed as
shown above.
Table 23: From where you like to Chart 23:
Purchase Ins. Policy

facility location facility location
40 36
9% 0% 7% 1
4%
responses
30 2
16%
20 3
9
10 4 5
0 2 4
0
64% 5
1 2 3 4 5 6 7 8 9 10
6
location catagory
Inference:
The result above reveals that a majority of

respondent 64% believes on facility location 3
and likes to have insurance from there, 16%
believe on facility location 4 and rest are shown
above.
Table 24: Insurance Duration Chart 24:
insurance duration insurance duration
21%
25 29%
20
20 1
15
15 2
11
10 3
6
5 12% 4
38%
0
1 2 3 4 5 6 7 8 9 10

Inference:
The result found above reveals that a majority of

respondent 38% like the insurance for the
duration of 5-10 years, 29% upto 15-20 years,
12% upto 10-15 years but some were also those
21% who can’t bear even so less premium and
want to have insurance policy upto duration of
0-5 years.
FINDINGS
Study reveals that majority of people whose daily income is less than
100 bugs have big family
Earning member in majority of family is only male.

Income level lies between 100-200 bugs per day
Majority of respondent didn’t had any saving account because of no

ID proof
Majority of respondent have more spending on travel & rent, after that
on food & cloth and Medicare & entertainment
Majority of respondent are the only earning member in family size of

5-8.
Majority of respondent hadn’t significant asset
Majority of them managed critical financial problem from some lender

like master of their service
They hadn’t any significant job risk but yes they had asset loss risk
Many of them awared about insurance but not of micro insurance and
best source of information medium found to be “Radio” and
“advertisement banners”.
Many of respondents were not insured just because of either high

premium or lack of complete information.
Some complaint about bad approachability of insurance provider

company to them as well.
Majority of respondent shows keen interest in micro-insurance policy

in life and health , some were very sensitive toward education and
like to have education insurance as well
Because of low income they are ready to pay 150-200 bugs per year
for insurance and like to have atleast one more member of their
family to be insured
They are ready to pay premium 15-20 years.

CONCLUSION:
From the above statistical interpretation it could

be concluded that potential lies in the society.
There is a large segment of the population
whose income level lies under the boundary line
of poverty and since micro insurance target to
those people whose income level is even less
than 100 bugs per day, it can penetrate
population very well. Many of our target
segments have recommended many other
facilities with micro insurance which found to be
really concernable. Micro insurance product
should be manufactured in such a way that
those respondents who had denied for having
insurance for all family members only just
because of premium, can also get access
through it.

COMPANY PROFILE
Introduction
Indiabulls is India’s leading Financial, Real Estate and Power Company
with a wide presence throughout India. They ensure convenience and
reliability in all their products and services. Indiabulls has over 640
branches all over India. The customers of Indiabulls are more than
4,50,000 which covers from a wide range of financial services and
products from securities, derivatives trading, depositary services,
research & advisory services, consumer secured & unsecured credit,
loan against shares and mortgage & housing finance. The company
employs around 4000 Relationship managers who help the clients to
satisfy their customized financial goals. Indiabulls entered the Real
Estate business in the year 2005 with its group of companies. Large
scale projects worth several hundred million dollars are evaluated by
them.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange

(NSE), Bombay Stock Exchange (BSE) and Luxembourg Stock
Exchange. The market capitalization of Indiabulls is around USD 2500
million (29thDecember, 2006). Consolidated net worth of the group is
around USD 700 million. Indiabulls and its group companies have
attracted USD 500 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders
of Indiabulls are the largest financial institutions of the world such as
Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and
Farallon Capital.
Growth of Indiabulls
Year 2000-01:
One of India’s first trading platforms was set up by Indiabulls Financial
Services Ltd. with the development of an in-house team.
Year 2001-03:
The service offered by Indiabulls was increased to include Equity, F&O,
Wholesale Debt, Mutual fund, IPO Financing/Distribution and Equity
Research.
Year 2003-04:
In this particular year Indiabulls ventured into Distribution and
Commodities Trading business.

Year 2004-05:
This was one of the most important years in the history of Indiabulls. In
this year:
Indiabulls came out with its initial public offer (IPO) in September 2004.
Indiabulls started its Consumer Finance business.
Indiabulls entered the Indian Real Estate market and became the first
company to bring FDI in Indian Real Estate.
Indiabulls won bids for landmark properties in Mumbai.
Year 2005-06:
In this year the company acquired over 115 acres of land in Sonepat for
residential home site development. The world renowned investment
banks like Merrill Lynch and Goldman Sachs increased their
shareholding in Indiabulls. It also became a market leader in
securities brokerage industry, with around 31% share in Online
Trading. The world’s largest hedge fund, Farallon Capital and its
affiliates committed Rs. 2000 million for Indiabulls subsidiaries Viz.
Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd. In
the same year, the Steel Tycoon Mr. L N Mittal promoted LNM India
Internet venture Ltd. acquired 8.2% stake in Indiabulls Credit
Services Ltd.
Year 2006-07:

In this year, Indiabulls Financial Services Ltd. was included in the

prestigious Morgan Stanley Capital International Index (MSCI).
Indiabulls Financial Services Ltd. was benefited with the Farallon
Capital agreeing to invest Rs. 6,440 million in it. The company also
received an “in principle approval” from Government of India for
development of multi product SEZ in the state of Maharashtra.
Indiabulls Financial Services Ltd acquired 100% of the equity share
capital of Noble Realtors Pvt. Ltd. Noble Realtors is a Company
engaged in the business of construction and development of real
estate projects. Indiabulls Real Estate Business was demerged to
become a separate entity called Indiabulls Real Estate Ltd. The Board
of Indiabulls Financial Services Ltd., Resolved to Amalgamate
Indiabulls Credit Services Ltd and demerge Indiabulls Securities
Limited.
Indiabulls Financial Services Ltd
Year 2008-09:
Several developments across its group companies have propelled
indiabulls forward and are expected to continue to power the rise of
this conglomerate. Indiabulls financial services limited has recently
signed a joint venture agreement with sogecap, the insurance arm of
Societe Generale (SocGen) for its upcoming life insurance venture.
At the same time it has also signed a Memorandum of understanding

with MMTC.
On the asset management front, the company has received formal

approval uhby7hbfrom SEBI and is expected to shortly launch its
first NFO.
Indiabulls enter in to Public issue for his Indiabulls power Ltd.
Promoters for Indiabulls

Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal
Are the promoters of Indiabulls Financial Services Limited. While

Sameer Gehlaut will have a 23.0% stake in the company post the IPO
Rajiv Rattan and Saurabh Mittal will have a post issue holding of 11.5%
and 10.1% respectively.
All the three promoters of the company are engineering graduates while
Saurabh Mittal is a management graduate as well.
Sector
Since Indiabulls derives most of its revenues from the brokerage

business, its fortunes are very much dependent on the Performance
of the capital markets, i.e. debt, derivative and equity markets.

The Indian equity markets have grown from strength to strength in the
last decade with combined daily volumes of all segments on the BSE
and the NSE touching Rs 232 bn in April 2004, from Rs 5 bn in FY96.
Total shareholders in the country are over 20 m (2% of population) and

this is the third largest after the US and Japan, in absolute terms.
However, if one were to compare the percentage of all households in

India that are invested in the stock markets, it is only about 1.9% as
compared to an estimated 52%(including indirect ownership by way
of mutual funds) of all households in the US. This highlights the
long-term potential for the sector. to apply
The Team:
Indiabulls Securities Ltd, main strength lies in its formidable team. This
team comprising highly qualified and experienced personnel has
been responsible for the overall management of the company and
has provided direction in diverse areas of business strategy,
operating management, regulatory reporting, human resources
development and product development.

Senior Vice President

Yuv Raj Singh
Regional Manager
Dashmeet Singh
Branch Manager
Senior Sales Manager
Sujeet Roy Chowdary
Support System Sujeet Roy Chowdary Sales Function

Vishal Subrot
RM/SRM
Satish Kumar
Back Office Local Compliance
Executive Officer S
Ifran Khan Chary
ARM
Raja
Dealer
Badri Nath

Vision statement: To become the preferred long term financial partner

to a wide base of customers whilst optimizing stake holder’s value
Mission statement: To establish a base of 1 million satisfied

customers by 2010. We will create this by being a responsible and
trustworthy partner
Corporate action: An Approach to Business that reflects

Responsibility, Transparency and Ethical Behavior. Respect for
Employees, Clients & Stakeholder groups

Indiabulls Group entities in India

Indiabulls Capital Services Ltd.
Indiabulls Commodities Pvt. Ltd.
Indiabulls Credit Services Ltd.
Indiabulls Finance Co. Pvt. Ltd
Indiabulls Housing Finance Ltd.
Indiabulls Insurance Advisors Pvt. Ltd.
Indiabulls Resources Ltd.
Indiabulls Securities Ltd.
Indiabulls Power Ltd.
Indiabulls Securities Ltd is listed on the National Stock Exchange (NSE)

and the Bombay Stock Exchange (BSE) and its global depository
shares are listed on the Luxembourg Stock Exchange
Reasons to choose Indiabulls Securities Ltd:
The Indiabulls Financial Services stock is the best performing stock in

the MSCI Index – the global benchmark for equity investments

A person who bought Indiabulls shares in the IPO at Rs. 19 (US$ 0.48) in
September 2004 has been rewarded almost 100 times in three and a
half years – a feat unparalleled in the history of Indian capital
markets
Indiabulls Real Estate Limited partnered Farallon Capital Management

LLC of the US to bring the first Foreign Direct Investment into real
estate
Seven Reasons why investing with Indiabulls Securities Limited is

smarter
1) Customization: Formulates investment plans based on customer

individual requirements
2) Expertise: Brings within customer reach, about institutional expertise

and companies valuable understanding of the financial markets
3) One-stop shop: Caters to all customers’ investment needs under one

roof.
4) Trust: Enjoys the pedigree of Indiabulls Securities Ltd and share its
expertise in financial services.
5) Personalized service: Helps customer through the entire investment

process, step by step, with innovative and efficient services.
6) Unbiased & Objective advice: We partner you in your investment

process, with our team of expert investment advisors
Reasons to apply
Online trading potential is huge: Online trading accounted for 5% of

overall market in FY04 as compared to an estimated 3% in FY03.
Indiabulls currently has almost 20% market share of volumes in the
Internet trading space. The table below indicates the growth in
volumes of the Internet trading segment on the NSE over the last few
years. The growth is indicative of the potential of this segment, which
we believe is likely to be robust going forward as well.

This is primarily driven by increasing penetration of computers,

significant decline in Internet charges, convenience of usage and
cost advantage. To put things in perspective, the offline brokerage on
equities is around 1.0% as compared to 0.5% in the online trading
space.
NSE online trading statistics...

Enabled Trading % of total

member Registered Value (Rs trading
s* clients* bn) value
FY00 3
FY01 61 123,578 73 0.5
FY02 82 231,899 81 1.6
FY03
C
M 80 346,420 154 2.5
F&O** 13 69,340 51 1.4
FY04
C
M 70 413,454 379 3.5

F&O** 14 164,642 430 2

CM: Cash Market, F&O: Futures and Options market
* At the end of the financial year
** trading value for F&O segment compiled from June 2009
Advisory services:
Indiabulls is also into mutual fund and insurance advisory businesses.

Though this field is extremely competitive and requires significant
research skills, these are highly profitable business segments.
Though these businesses currently account for an insignificant
portion of overall revenues, considering the penetration levels of
mutual funds and insurance in the country, prospects are promising.
Aggressive growth plans:
Indiabulls has set aggressive targets to expand its business in the

offline space. This includes investments in upgradation of branch
network and opening another 75 branches by the end of calendar
year 2009 (150 in total). The company has also indicated its intent to
acquire strategic stake in other companies towards growing the
business inorganically
Products provided
Power Indiabulls An online trading system designed for the high-
volume trader. The platform provides enhanced trade information
and executes orders on an integrated software based trading
platform.

Indiabulls financial service offers:
? SME finance
? Mortgage loans
? Commercial vehicle loans
? Farm equipment loans
? Commercial credit loans
? Loan against shares and
? Third part distribution of insurance products.
Broking: Equity, Derivatives, Commodities, Currency Derivatives.
Distribution: Mutual funds, IPO’s, Home loans, Insurace.
Divisions:
Investment Advisory and Broking? Division
Project Syndication Division?
Institutional Equity Broking? Division
Institutional Debt Broking? Division
Retail Offerings:
? Wealth Management Services
? Portfolio Management Services
? Securities Broking-Equities and derivatives

? Depository & Custodial Service & Distribution of financial .

. Products.
Services:
Indiabulls securities provides a wide range of services that include
Power Indiabulls: An online trading system designed for the high-

volume trader. The platform provides enhanced trade information
and executes orders on an integrated software based trading
platform.
1) Equities
2) Commodities
3) Wholesale debts
4) Futures and options
5) Depository services
6) Equity research services
7) Post Trade -Custodial,
8) Depository Services
9) Payment Gateway
10) Other back office support
Online Banks Tie-ups for trading:
Company having online transaction tie-ups with banks like
HDFC BANK,
ICICI BANK,

IDBI BANK,
CITI BANK.
Company Achievements:
The Indiabulls Group is one of the top fifteen conglomerates in the
country with businesses in several significant sectors.
The Indiabulls Financial Services stock is the best performing stock in

the MSCI Index – the global benchmark for equity investments.
Indiabulls Real Estate Limited partnered Farallon Capital Management

LLC of the US to bring the first Foreign Direct Investment into real
estate.
Indiabulls Financial Services Limited was accorded the highest rating

P1+ for short term debt and the highest rating of AAA (SO) by CRISIL
for loan receivables securitization while Indiabulls Securities Limited
is the only broker in India to be assigned CRISIL’s highest broker
quality grading of BQ1.
In December 2007, Indiabulls acquired Pyramid Retail including Piramyd

Megastores and Trumart, their chain of lifestyle and convenience
outlets


Micro Insurance Project by Govind 759

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Project Report On MICRO-INSURANCE

SPARK INSTITUTE OF MANAGEMENT&COMPUTERS

BY University School Of Management Studies Page 1

I herby offer my sincere and profound thanks to M/s Divya – our

I would also like to thank Mr. SHALENDRA GUPTA, Genaral Manager,

BY University School Of Management Studies Page 2

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Supply and Demand Side

3.1 Supply of micro-

3.2 Demand for micro-

4.2 Micro-insurance and micro-

BY University School Of Management Studies Page 6

BY University School Of Management Studies Page 7

BY University School Of Management Studies Page 8

Assets & revenue insurance

Covers the building, contents and stock of your business

Insures your business assets against burglary, and

Covers you if your business is interrupted through

Covers losses resulting from misappropriation by

BY University School Of Management Studies Page 9

Protects your business when mechanical and

It is compulsory to insure all company or business

BY University School Of Management Studies Page 10

You must provide accident and sickness insurance

If you are self employed you won’t be covered by

BY University School Of Management Studies Page 11

Income protection or disability insurance - covers part

Public liability insurance protects you and your

BY University School Of Management Studies Page 12

Professional indemnity insurance protects you

If you sell, supply or deliver goods, even in the

What is Micro Insurance?

On a daily basis, the poor around the world face a

BY University School Of Management Studies Page 13

Micro insurance - the protection of low-income

It is estimated that only eighty million out of the

BY University School Of Management Studies Page 14

The Micro Insurance Agency has its roots within

BY University School Of Management Studies Page 15

Through the experience of serving Opportunity’s

BY University School Of Management Studies Page 16

Micro-insurance, the term used to refer to

BY University School Of Management Studies Page 17

Although the type of risks faced by the poor such

Of the different risk management strategies2,

BY University School Of Management Studies Page 18

In the past insurance as a prepaid risk managing

In this paper, we analyze the early evidence on

Development of Micro-insurance in India

BY University School Of Management Studies Page 19

Historically in India, a few micro-insurance

The insurance regulatory and development

a population of less than five thousand,

BY University School Of Management Studies Page 20

a density of population of less than four hundred

The social sector as defined by the insurance

BY University School Of Management Studies Page 21

The social obligations are in terms of number of

BY University School Of Management Studies Page 22

In order to fulfill these requirements all insurance

BY University School Of Management Studies Page 23