This action might not be possible to undo. Are you sure you want to continue?
Everyone is exposed to various risks. Future is very uncertain, but there is way to protect one’s family and make one’s children’s future safe. Life Insurance companies help us to ensure that our family’s future is not just secure but also prosperous. Life Insurance is particularly important if you are the sole breadwinner for your family. The loss of you and your income could devastate your family. Life insurance will ensure that if anything happens to you, your loved ones will be able to manage financially. This study titled “Study of Consumers Perception about Life Insurance Policies” enables the Life Insurance Companies to understand how consumer’s perception differs from person to person. How a consumer selects, organizes and interprets the service quality and the product quality of different Life Insurance Policies, offered by various Life Insurance Companies.
Insurance is a tool by which fatalities of a small number are compensated out of funds (premium payment) collected from plenteous. Insurance companies pay back for financial losses arising out of occurrence of insured events e.g. in personal accident policy death due to accident, in fire policy the insured events are fire and other allied perils like riot and strike, explosion etc. hence insurance safeguard against uncertainties. It provides financial recompense for losses suffered due to incident of unanticipated events, insured with in policy of insurance. Moreover, through a number of acts of parliament, specific types of insurance are legally enforced in our country e.g. third party insurance under motor vehicles Act, public liability insurance for handlers of hazardous substances under environment protection Act. Etc.
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 abovestated notion of insurance
DEFI NITION 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:
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, wherein 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.
TYPES OF INSURANCE
Insurance occupies an important place in the modern world because of the risk, which can be insured, in number and extent owing to the growing complexity of present day economic system. The different type of insurance have come about by practice within insurance companies, and by the influence of legislation controlling the transacting of insurance business, broadly, insurance may be classified into the following categories: 1. Classification from business point of view a) Life insurance, and b) General insurance 2. Classification on the basis of nature of insurance
a) Life insurance b) Fire insurance c) Marine insurance d) Social insurance, and e) Miscellaneous insurance
3. Classification from risk point of view a) Personal insurance b) Property insurance c) Liability insurance d) Fidelity general insurance
Insurance itself has become a significant economic force in most industrialized countries. Insurance as an investment that offers a lot more in terms of returns. risk cover & as also that tax concessions & added bonuses Not all effects of insurance are positive ones. insurance encourages businesses to make economic transactions. Businesses also insure their property. Employers buy insurance to cover their employees against work-related injuries and health problems. against damage and theft. which benefits the economies of countries. for instance. The possibility of earning insurance payments motivates some people to attempt to cause damage or losses. But it also serves many other important economic and societal functions.4 million people worked in the insurance industry in the United States and Canada. Insurance also provides the capital that communities need to quickly rebuild and recover economically from natural disasters. In 1996 more than 2. This increased availability of credit helps people buy homes and cars. In addition. as a potential source of money. millions of people work for insurance companies and related businesses. Without the possibility of collecting insurance benefits. Because insurance is available and affordable.THE IMP ORTANC E OF INSURANCE Insurance benefits society by allowing individuals to share the risks faced by many people. the willful destruction of property by fire. Because it makes business operations safer. including technology used in production. banks can make loans with the assurance that the loan’s collateral (property that can be taken as payment if a loan goes unpaid) is covered against damage. such as tornadoes or hurricanes. . no one would think of arson.
insurers may change how they provide protection against losses from such events .S. products. As a result of the deregulation of financial services businesses— including insurance. the insurance business has grown dramatically and undergone tremendous changes. as scientists improve their abilities to predict severe weather patterns. Developments in computer technology that have given insurance providers the ability to quickly access and process information have allowed them to custom-design policies to fit the needs of individual customers. and services of these formerly distinct businesses have become blurred. state of California voted in 1988 to allow banks to sell insurance in that state. and securities trading— the roles. improvements in geological and meteorological technology have the potential to change the way property insurers calculate risks of damage. Some insurance companies now offer deposit accounts and mortgages. For instance. banking. and geological disturbances. such as earthquakes. banks may also soon be allowed to sell insurance. In addition.THE INSURANCE INDUSTRY TODAY Since the 1970s. For example. citizens in the U. In Canada. Advances in communications technology have also allowed traditionally distinct financial businesses to keep instantaneous track of developments in other businesses and compete for some of the same customers. But the increasing complexity of policies has also made some aspects of buying and selling insurance more difficult. such as hurricanes. life insurance companies now sell more pension plans and other asset management services than they do conventional life insurance. In the United States.
General insurance business in the country was nationalized with effect from 1st January 1973 by the General Insurance Business (Nationalization) Act. More than 100 nonlife insurance companies including branches of foreign companies operating within the country were amalgamated and grouped into four companies. and the United India Insurance Company Ltd. This was followed by several insurance companies like London assurance and royal exchange assurance (1720). the New India Assurance Company Ltd.EVOLUTI ON OF INSURANCE IN INDIA The marine insurance is the oldest form of insurance.it is wonderful to see that Indians had even anticipated the doctrine of average and contribution. with head offices at Calcutta. Travelers by sea and land were very much exposed to the risk of losing their vessels and merchandise because of piracy on open seas and highway robbery of caravans was very common. but the nature and coverage of the insurance in this period is not well known.. Phoenix Assurance Company (1782).. Fright was fixed according to season and was then very much at the mercy of the wind and other elements. The Britishers opened general insurance in India around the year 1700 .. the Oriental Insurance Company Ltd. It was the British insurer who introduced general insurance in India in the modern form.the first company known as the sun insurance office was set up in Calcutta in the year 1710. Egypt and Greece . Bombay. New Delhi and Madras. Etc. 1972. The practice of insurance was very common during the rule of Akbar to Aurangzeb. viz. .. The code of Manu indicates that there was the practice of marine insurance carried out by the traders in India with those of Srilanka. the National Insurance Company Ltd. respectively. If we trace Indian history there are evidence that marine insurance was practiced here about three thousand years ago.
by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. the madras equitable life insurance society in 1829 and oriental life assurance company in 1874.life insurance business transacted in India by Indian and foreign insurer.prior to 1871. The first half of the 20th century marked by two world war. was the first to cover Indian lives at normal rates. 1956. the adverse affects of the World War I and World War II on the economy of India. The first half of the 20th century was also marked by struggles for India’s independence. including the provident insurance societies. an Indian insurer that came in to existence in 1871. the Parliament of India passed the Life Insurance of India Act on 19th June 1956. oriental life assurance company in 1818 followed by Bombay life assurance company in 1823. to enable the government to collect statistical information about life and non. and the Life Insurance Corporation of India was created on 1st September. Indian lives were treated as sub standard and charged an extra premium of 15% to 20%.2704 crores in 1974 to Rs .53% . revenue of both of them increased in the last years .Life insurance in the current form came in India from united kingdom with the establishment of a British firm. This had adversely affected the faith of the general public in the utility of obtaining life cover In this background.57670 in 1994 with an annual growth rate of 16. The Indian insurance company Act 1923 was enacted inter alia. As a result. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. Since 1972. the insurance sector has been totally under the control of government of India through LIC and GIC and its subsidiaries. and in between them the period of world wide economic crises triggered by the Great depression.the amount of savings pooled by LIC increased from Rs. Bombay mutual life assurance society.
Apart from that a major policy shift by the Narasimha Rau government during 1990’s. which was hitherto the exclusive privilege of public sector insurance companies/ corporations.similarly premium underwritten by GIC rose from 280 crores in 193 to 7647 crores in 1998 showing an annual growth rate of 25. The government of India in 1993 had set-up a high powered committee by R. Despite increase in premium collected by both LIC and GIC their were inefficiency and red tapeisum creeped in to the insurance sector. As per the provisions of IRDA Act. Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate. 1999.N Malhothra . 1999 (IRDA Act). promote and ensure orderly growth of the insurance industry. Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act.18%.. to examine the structure of Indian insurance sector and recommended changes to make it more efficient and competitive keeping in view structural changes in other part of the financial system of the country.In this background.the Indian economy opened for foreign competition . . IRDA Act 1999 paved the way for the entry of private players into the insurance market.former governor reserve bank of India.
or distributing the burden of risk among larger Persons. If some losses happened in the future the firm meets the loss out of the fund. But it can be effectively worked only when there is wide distribution of risks subjected the same hazard. While it may be called ‘self insurance’ it is not a single matter of fact. Here the insured become the insurer for the particular risk.in the early period before the advent of joint stock companies many insurance undertakings were partnership firms or unincorporated companies . a) Self-insurance The arrangement in which an individual or concern sets up a private fund to meet the future risk. insurance at all because there is no hedge. b) Partnership A partnership firm may also carry on the insurance business for the sake of profit. some of these forms are outlined here. no shifting.EVOLUTI ON OF INSURANCE ORGANIZATION With a view to serve the society. the personal liability of partners in respect to the partnership debts is unlimited. Since it is not an entity distinct from the persons comprising it. It is merely a provision to meeting the unforeseen event. In case of huge loss the partners may have to pay from their own personal funds and it will not be profitable to them to starts insurance business . the insurance organizations have been developed in different forms with innovation of insurance practice for social welfare and development.
which are organized by the shareholders who subscribe the necessary capital to start the business. These are formed for earning profits for the stockholders who are the real owners of the companies.the aim is to provide insurance protection to its members at the lowest reasonable net cost .c) Joint stock compan ies The joint stock companies are those. The concerns are also called ‘co operative insurance societies’ these societies like mutual fund companies are non profit organization . which are incorporated and registered under Indian cooperative societies Act. e) Co-operative insurance organizations Cooperative insurance organizations are those concerns. The policyholders are themselves the shareholders of the companies each member is insured as well as insured. 1938. it is accumulated I the form of saving and is entitled in reducing the rate of premium. Since the insured are insurers also. f) Lloyd’s Association . d) Mutual fund compan ies The mutual fund companies are co. But in life insurance it is the practice to share certain portion of profit among the certain policyholders. has provided special provisions for the co-operative insurance societies. Whenever the income is more than the expenses and claims. They have power to participate in management and in the profit sharing to the full extent.operative association formed for the purpose of effecting insurance on the property of its members. they always try to reduce the management expenses and to keep the business at sound level.the Indian insurance Act. The management of a company is entrusted to a board of directors who is elected by the shareholders from amongst themselves. but after nationalization the societies have ceased to exist. The company can operate insurance business and policyholders have nothing to do with the management of the concern.
. Japan and Mexico.Lloyds Act was passed incorporating the members of the association into a single corporate body with perpetual succession and a corporate seal . g) State Insurance The government of a nation. Taking its name from the coffee house Lloyd where underwriters assembled to transact business and pick-up news. The Lloyds Association also publishes. In 1871.Lloyd’s association is one of the greatest insurance institutions in the world. which were regarded as vital for the national interest.so it is the oldest insurance organization in existing form in the world. the state undertook only those insurances. owns the insurance and runs the business for the benefit of the public. In Brazil. some times. Previously. the insurance are largely nationalized. Lloyds list and register of shipping for the information of insuring public and the insurers. The organization traces its origins to the latter part of the seventeenth century .the powers of Lloyds corporation were extended from the business of marine insurance to the other insurance and guarantee business. The sate insurance is defined as that insurance which is under public sector.
Malhotra Committee. Malhotra. the committee submitted the report and gave the following recommendations: Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate Competition Private Companies with a minimum paid up capital of Rs. was formed to evaluate the Indian insurance industry and recommend its future direction.1bn should be .INSURANCE SECTOR REFORMS Having looked at the insurance sector. the efforts made by the government to make the industry more dynamic and customer friendly. In 1994. the Malhotra committee was set up with the objective of suggesting changes that would achieve the much required dynamism. The Ma lhotra Committee Report In 1993. To begin with. headed by former Finance Secretary and RBI Governor R. N.
GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time). Customer Service LIC should pay interest on delays in payments beyond 30 days. Only one State Level Life Insurance Company should be allowed to operate in each stat Regulatory Body The Insurance Act should be changed.allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried . Postal Life Insurance should be allowed to operate in the rural market. Controller of Insurance (Currently a part from the Finance Ministry) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. An Insurance Regulatory body should be set up.
The insured receives money on survival of the term and is not covered thereafter.are policies that provide benefits to the insured only upon retirement. Endowment policies .Cover the insured for life.The nominee receives a guaranteed amount of money at a pre-determined time and not immediately on death of the insured. These policies are best suited for planning children's future education and marriage costs. the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry Few Life Insur ance policies are: Whole life policies . Overall. The insured does not receive money while he is alive. But at the same time. the committee strongly felt that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. Money back policies . his nominee would receive the benefits either as a lump sum or as a pension every month.Cover the insured for a specific period. Since a single policy cannot meet all the insurance objectives. the nominee receives the sum assured plus bonus upon death of the insured. Pension schemes . one should have a portfolio of policies covering all . If the insured dies during the term of the policy.The nominee receives money immediately on death of the insured. These policies cost more than endowment with profit policies.out in the insurance industry. Annuities / Children's policies . On survival the insured receives money at regular intervals during the term. On survival the insured receives money at the same predetermined time.
the needs BACKGROUND OF THE STUDY “Life Insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against”. Obviously. by the assured. Whole life insurance provides a lifetime of protection as long as you pay the premiums to keep the policy active. Life Insurance is universally acknowledged as a tool to eliminate risk. Life insurance helps in two ways dealing with premature death. They also accrue a cash value and thus offer a savings component. The most common types of life insurance are whole life insurance and term life insurance. it is the civilized world’s partial solution to the problems caused by death. there is a price to be paid for this benefit. Usually the insurance contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. In other words. which leaves dependent families to fend for themselves and old age without visible means of support. Among other things the contracts also provides for the payment of premiums. Term life insurance provides protection only during the term of the policy and the policies are usually renewable at the end of the term . substitute certainty for uncertainty and ensure timely aid for the family in the unfortunate event of the death of the breadwinner.
There are many Life Insurance Companies like LIFE INSURANCE CORPORATION OF INDIA BAJAJ ALLIANZ LIFE INSURANCE COMPANY ICICI PRUDENTIAL LIFE INSURANCE COMPANY HDFC STANDARD LIFE INSURANCE COMPANY BIRLA SUN-LIFE INSURANCE COMPANY ING VYSYA LIFE INSURANCE COMPANY METLIFE INSURANCE COMPANY TATA AIG LIFE INSURANCE COMPANY MAX NEW YORK LIFE INSURANCE COMPANY .
came to India from the United Kingdom with establishment of a British firm. a Indian insurer which came into existence in 1871 was the first to cover Indian lives at normal rates. Prior to 1871. 1938. however. the Indian Insurance Companies Act was enacted. Later.OM KOTAK MAHINDRA LIFE INSURANCE COMPANY PROFILE OF THE INDUSTRY History and Development of Life Insurance Life Insurance. Indian Lives were treated as sub-standard and charged an extra premium of 15% to 20%. The Indian life Assurance Companies Act. . Comprehensive arrangements were. to enable the government to collect statistical information about both life and non-life insurance business transacted in India by Indian and foreign insurers. brought into effect with the enactment of the Insurance Act. the Madras Equitable Life Insurance society in 1829 and Oriental Government security Assurance Company in 1874. Bombay Mutual Life Assurance Society. in its present form. Oriental Life Insurance Company in Calcutta in 1818. in 1928. 1912 was the first statutory measure to regulate life insurance business. followed by Bombay Life Assurance Company in 1823. including the provident insurance societies.
It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. Yet. The Insurance sector. With largest number of life insurance policies in force in the world. nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. 154 Indian insurers. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. it adds about 7 per cent to the country’s GDP. can enable investments in infrastructure development to sustain economic growth of the country.By 1956. Together with banking services. 16 non-Indian insurers and 15 provident societies were carrying online insurance business in India. . to some extent. Insurance happens to be a mega opportunity in India. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. On 19th January 1956. the management of the entire life insurance business of 229 Indian insurers and provident insurance societies and the Indian life insurance business of 16 non-Indian Life insurance companies then operating in India. was taken over by the central Government and then nationalized on 1st September 1956 when the Life Insurance Corporation came into existence. This itself is an indicator that growth potential for the insurance sector is immense. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion.
Here I would like to mention about Indian business environment and their impact on insurance sector. policyholders. technology. and commercial. competitors. Internal environment includes management. . shareholders. The external environment of insurance business has been classified in four parts.so the growth of insurance industry largely depends up on the environment in which they exists. marketing intermediary etc. let us discus them in detail by taking one by one. This industry provides long term funds which are essential for the growth and development of the nation . employees. There are two type of environment which affect the business one is environment which is internal to the organization (internal environment) and the other one which is external to the organization (external environment). economic. namely legal. financial.INSURANCE AND BUSINESS ENVIRONMENT Insurance is considered as one of the important segment of the economy for its growth and development.
promote and ensure orderly growth of the insurance business and reinsurance business. For this purpose. Reforms and Implications The liberalizations of the Indian insurance sector has been the subject of .The Insurance Regulatory and Development Authority. it had proposed setting up an independent regulatory body.the authority shall have the duty to regulate.THE INSURANCE REGULATORY AND DEVEL OPM ENT AUTHO RITY (IRDA) The Malhotra Committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. Section 14 of the IRDA Act 1999. Based on the Malhotra committee report in April 2000 IRDA was incorporated. lays the duties. power and functions of the authority . Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations.
as the government is keen to invite private sector participation into insurance. are. and to restrict international companies to a minority equity holding of 26 percent in any new company. Whether the insurer is old or new. expanding the market will present challenges. The sector is finally set to open up to private competition. the bill requires direct insurers to have a minimum paid-up capital of Rest. to invest policyholder’s funds only in India. around 30 companies have expressed interest in entering the sector and many foreign and Indian companies have arranged alliances. which have tied up with International partners. Over the past three year. 1 billion. private or public. The likely impact of opening up of India’s insurance sector is that private players may swamp the market. perhaps there home markets are saturated while emerging countries have low insurance penetration and high growth rates Type of life insur ance policies Whole life insurance Whole life is a form of permanent insurance. To address those concerns. Indian Promoters will also have to dilute their equity holding to 26 percent over a 10-year period. Some of the Indian companies. Multinational insurers are indeed keenly interested as. with guaranteed rates and guaranteed cash values. A number of foreign Insurance Companies have set up representative offices in India and have also tied up with various asset management companies. International insurers often derive a significant part of their business from multinational operations. .much heated debate for some years. The Insurance Regulatory and Development Authority bill will clear the way for private entry into insurance. It is the least flexible form of permanent insurance.
if the insured person dies during the term of coverage. they go down. There are a number of policies for specific i nsurance need s. the life insurance company will invest your insurance premiums for you. If the investments do well. except that you can change the death benefit (the money paid to the beneficiary when the insured person dies). Variable life insurance Variable life insurance is the riskiest form of permanent insurance.Universal life insurance Universal life is similar to whole life. Some of these includ e: 1. but it can also give you the best return for your money. you can get very good rates for this insurance but you have to give the insurance up when you stop working there. For that reason. Usually. the amount of premiums and how often you pay the premiums. This is a decreasing term policy that provides a stated income for a fixed period of time. Group life insurance Many companies allow their employees to buy group life insurance through the company. group insurance can be a good way to buy a little extra life insurance. but it does not make sense to make it your main policy. These payments continue until the end of a time period specified when the policy is . It's a little like putting your savings into the stock market. If they do poorly. Family income life insurance. the death benefit and cash value of the policy go up. Essentially.
For example. However.purchased. Usually the coverage is sold in units per person. with the primary wage-earner insured for the greatest amount. After that period. usually the parents or guardians. 5. Juvenile insurance. This is life insurance on a child. wife and children. . Such policies are not considered traditional life insurance because the child is not producing an income that needs to be protected. they provide for a graded amount to be paid to the beneficiary. 4. Also known as graded death benefit plans. in each of the first three to five years after the insured dies. Coverage is paid for by an adult. A whole life policy that insures all the members of an immediate family -husband. 2. by buying the policy when the child is young. but would be in a better position to handle it a few years later. the parents are able to lock in an extremely low premium rate and allow many more years of tax-deferred cash value buildup . Family insurance. 3. the death benefit slowly increases. Credit life insurance. This might be appropriate if the beneficiary is not able to handle a large amount of money soon after the death. the entire death benefit is paid to the beneficiary. Senior life insurance.
The proceeds of the policy are paid to the beneficiaries of the policy. you give the insurance company money for a certain period of time.This insurance is designed to pay off the balance of a loan if you die before you have repaid it. furniture and other personal loans including credit cards. Credit life insurance can be purchased by an individual. meaning that the financial institution granting the mortgage is separate from the insurance company issuing the policy. Usually it is sold by financial institutions making loans. There are many different forms of annuities. Mortgage insurance This decreasing term coverage is designed to pay off the unpaid balance of a mortgage if you die before the mortgage is paid off. Basically. Premiums are generally level throughout the term of the policy. farm equipment loans. Annu ity An annuity is a form of insurance that enables you to save for your retirement. . The beneficiary is not required to use the proceeds to pay off the mortgage 7. not the mortgage company. If a borrower dies. and then after you retire they will pay you a certain amount of money every year until you die. to borrowers at the time they take out the loan. Most people who buy annuities are 55 or older . auto loans. Credit life insurance is available for many kinds of loans including student loans. The policy is usually independent of the mortgage. 6. the proceeds of the policy repay the loan directly to the lender or creditor. like banks.
PR OF ILE OF THE ORG ANIS ATION S: LIFE INSURANCE CO RPORA TION OF INDIA 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 .
• Meet the various life insurance needs of the community that would arise in the changing social and economic environment. • Maximize mobilization of people's savings by making insurancelinked savings adequately attractive.there are many things to consider as Life Insurance Corporation of India offers various insurance products which are very complex. This reduction was made in anticipation of economies of scale that would emerge on the merger of different insurers in a single entity. (2) mortality experience. the primary obligation to its policyholders. • Act as trustees of the insured public in their individual and collective capacities. The building blocks for all Life Insurance Corporation of India are (1) investment return. whichever was less. keeping in view national priorities and obligations of attractive return. . Life Insurance Corporation Of India . the funds to be deployed to the best advantage of the investors as well as the community as a whole. in the investment of funds. for your Life Insurance Corporation Of India 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. but underlying this complexity is a simple fact. without losing sight of the interest of the community as a whole. • Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. whose money it holds in trust.Assurance company were adopted by LIC with a reduction of 5% of the tabular premium or Re. • Bear in mind. 1 per thousand sum assured. and (3) expense management.
and by rendering resources for economic development” Various policies offered by life insurance corporat ion of India are 1) Whole Life Schemes • Whole life with profit • Limited payment whole life . Promote amongst all agents and employees of the Corporation a sense of participation.• 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. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective V I SI O N "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.
• 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 3) Term Assurance Plan • Anmol Jeevan • 2 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 • Asha Deep II • Jeevan Asha II 7) For benefits to Handicapped • Jeevan Aadhar • Jeevan Vishwas .
religious rites and ceremonies to be performed. .8) Plans to cover housing loans • Mortagage redemption 9) Joint life plan • Jeevan sathi. tax liabilities if any and expenses connected with the last sickness and hospital charges etc. It also meets the needs for funds required for funeral. Under the whole life premium are payable throughout the life time of the life assured and this is the cheapest form of policy. The term of risk cover under this plan is as per the need of life assured. Endowment Assured Plan: Endowment plans are not covering the risk for whole life of the life assured. 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. This plan is ideally suited to person who wants maximum provision for his family at minimum cost.
The sum assured is payable on maturity or at death if earlier. . Generally this type of assurance is useful for air traveling. Such term assurance is maximum for 2 years.Endowment assurance plan are the most popular. 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. They are eminently Suited to meet it one policy the twin demands of old age provision and risk cover for family.
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. Under these policies part of the sum assured is paid to the life assured in installments at selected intervals. This plan provides for a sum assured to keep aside to meet marriage educational expenses of 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. Premium benefit and income benefit are included as additional benefit by payment of appropriate additional premium during the deferment period. 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. Say when the children are between 18 to 25 year of age. In addition. leading to good jobs and happy marriage. the risk under which will commence from the vesting date. These needs arise at ages which can be approximately anticipated. at the option of the life assured nominee 33 . This policy shall be cancelled in case the life assured shall die before the deferred dates and in such an event provided the policy is then in full force in for a reduced cash option.Money Back Plans Under this plan specific percentage of sum assured will be backed to the life assured after specific period of time. 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 installment. Marr iage Endowment/ educat ional annual plan Every father desires to see that his children are well settled in life through sound education.
e. Jeevan Mitra This plan provides additional insurance cover equal to the sum assured in the even of death during the term of policy so that the total insurance cover in the event of death is twice the basic sum assured. The basic sum assured is doubled and the accrued bonus is also paid. 34 .beneficiary. i.
ICICI Prudential’s equity base stands at Rs. the company garnered Rs 335 crore of new business premium for a total sum assured of Rs 2. and prudential plc. 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). with a wide range of flexible products that meet the needs of the Indian customer at every step in life.522 policies.619 crore and wrote 111. For the past four years. 2005 . ICICI Prudential has retained its position as the No. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. a premier financial powerhouse.ICICI PRUDENTIAL INSURANCE COMPANY LIFE ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. 1 private life insurer in the country. a leading international financial services group headquartered in the United Kingdom. 35 . In the quarter ended June 30.
Mysore.ING VYSYA LIFE INSURANCE ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001. Conquering Life is an innovative term and critical illness product that has been launched recently. Pune. It also distributes products in close cooperation with its sister company ING Vysya Bank through Bank assurance. 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. ING Vysya Life Insurance Company is headquartered at Bangalore and has established a strong presence in the cities of Delhi. Mangalore. Conquering Life provides affordable term cover and critical illness coverage for 10 critical illnesses of upto 50% of the Sum Assured. ING Vysya Life has pioneered product innovations in the Indian life insurance market with customer-oriented cash bonus endowment and money back products. Chandigarh. it has over 3000 advisors working from 22 locations across the country and over 300 employees. Nagpur. (Reassuring Life and Maximising Life). 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). Hyderabad and Chennai. In addition ING Vysya Life operates in Vizag. the first anticipated whole life product (Fulfilling Life) and the first Term/Critical Illness combination product (Conquering Life). Kolkata. 36 . Mumbai. Currently. Ludhiana and Jaipur. Vijaywada.
200 crores.The company has over 25. infrastructural development and several other businesses. ING Vysya Life has a paid up capital of Rs. ING Vysya Bank. 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 37 . 2002).5 million customers and over 400 outlets and GMR Technologies and Industries Limited. with 1. the world's largest life insurance company (Fortune Global 500. ING Vysya Life Insurance is a joint venture between ING Insurance International BV a part of ING Group. 17 crores in 2002.000 customers at the end of 2002 and has achieved a first premium income of Rs. part of GMR Group also based in Bangalore and involved in the field of power generation.140 crores and an authorised capital of Rs.
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.000 policies in the last financial year. 2002. This was the first full year of operations for Max New York Life. The company has sold over 64. Over 70 per cent of the premia income was from protection-oriented Whole Life Policies. 38 . The company has 11 offices.MAX NEW YORK LIFE INSURANCE COMPANY LTD. which 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. 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 March 31. over 1900 Agent Advisors and over 490 employees. This has exceeded the expectations of the company and the projections as submitted to IRDA. 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.
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. Endowment to age 60. 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. Five-year Term Renewable an. the Company instituted satisfaction survey's conducted by independent agencies to measure the satisfaction levels of its customers. 20-year Endowment Participating Policy. Easy Term BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED 39 . agents and employees.Max New York Life believes in delivering top value to all its stakeholders. As part of the best practices adopted. Children Endowment at age 24.
20 Crores over the last year for the same period. From Surat to Siliguri and Jammu to Thiruvananthapuram. which is a jump of 60% and the profit zoomed by 125% to Rs. Both enjoy a reputation of expertise. In its first year of operations. The Company has an authorized and paid up capital of Rs 110 crores.480 Crores. Bajaj Allianz General Insurance maintained its leadership position by garnering a premium income of Rs.6 Crores 40 . the company has acquired the No. Bajaj Allianz also became one of the few companies to make a profit in its first full year of operations. AG. 1 status among the private non-life insurers. Bajaj Allianz garnered a premium income of Rs. 2004-05. In the first half of the current financial year. 2001 to conduct General Insurance business (including Health Insurance business) in India. the premium earned was Rs. all the offices are interconnected with the Head Office at Pune. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd. Bajaj Auto holds 74% and Allianz. Bajaj Allianz made a profit after tax of Rs. 21. In the financial year 2003-04. As on 31st March 2003.9. achieving a growth of 84% and registered a 52% growth in Net profits of Rs. stability and strength.6 crores Bajaj Allianz today has a network of 42 offices spread across the length and breadth of the country. holds the remaining 26% Germany. 405 crores.Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany.300 Crores.
From this study it reveals that the consumer’s attitude towards Insurance Policy and Insurance Company changed a lot. From this it is found that The LIC is the major market share holder in the insurance field. Only a few portion of Indian population is insured. They are interested to take high return policies in order to secure their lives. It is invested in a portfolio of debt and equity instruments. As a result of this new international and domestic companies are coming to the Indian Market. A 5 years before the consumers and the general public were not interested to take an Insurance Policy but now days there are many options and choices in front of the customers. As compared to other investment plans. Hence it grows or erodes in line with the performance of that portfolio. People are aware of all the benefits and returns of insurance policies. Since there are many players in the Indian Insurance Market the competition level is very high.CONCLUSION An Insurance policy is an investment oriented plan. in conformity with the announced investment policy. the investment portfolio of the Insurance Policy functions like a mutual fund and other investment. BIBLIOGRAPHY 41 . So the companies are introducing new schemes. Even if there are many players in this field still it is an untapped market.
wikipedia. Arun Kumar.Rutchnee .irda.lic.T & K. Newspap ers: • Economic Times • Business Line World Wide Web: • www. PGDSM.com 42 . Consumer preference & buying perception of ready made silk garments. International center for training & research in tropical sericulture.com • www.S.org • www.