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Life insurance in India
Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The same year that the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA  --started issuing licenses to private life insurers.
List of Life Insurers (as of Sept, 2008)
Apart from Life Insurance Corporation, the public sector life insurer, there are 22 other private sector life insurers, most of them joint ventures between Indian groups and global insurance giants. Life Insurer in Public Sector 1. Life Insurance Corporation of India Life Insurers in Private Sector 1. SBI Life Insurance  2. Metlife India Life Insurance  3. ICICI Prudential Life Insurance  4. Bajaj Allianz Life  5. Max New York Life Insurance  6. Sahara Life Insurance  7. Tata AIG Life  8. HDFC Standard Life  9. Birla Sunlife  10. Kotak Life Insurance  11. Aviva Life Insurance  12. Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC 13. ING Vysya Life Insurance  14. Shriram Life Insurance 15. Bharti AXA Life Insurance Co Ltd  16. Future Generali Life Insurance Co Ltd 17. IDBI Fortis Life Insurance 18. AEGON Religare Life Insurance  19. DLF Pramerica Life Insurance 20. CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE  21. India First Life insurance company limited 22. Star Union Dia-ichi Life Insurance Co. Ltd
These type of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act. Life Insurance Corporation of India (LIC).June 2010 . In October 2010. Initial Public Offer (IPO) rules for Indian Life Insurance Companies A key piece of legislation impacting on the Life Insurance industries capital raising abilities is the lock-in period of 10 years for investment to be limited to promoter group equity investments.Life insurance in India 2 Foreign Direct Investment (FDI) Policy in Insurance Sector As per the current (Mar 06) FDI norms.February 2010 . Under the Insurance Guidelines. The Indian government has supported an increase in the FDI limit. which requires a change in the Insurance Act. A change in the Insurance Act requires a passage of the bill in both houses of Parliament.>>%20Life%20>>%20Guidelines Norms for public disclosures by Life Insurance Companies  . foreign participation in an Indian insurance company is restricted to 26. Indian Life Insurance companies can opt for a public issue of equity through an Initial Public Offer (IPO) after 10 years of operations. Comparison of such products with mutual funds would be erroneous. Securities and Exchange Board of India (SEBI). The Union Budget for fiscal 2005 had recommended that the ceiling on foreign holding be increased to 49. The private companies have come out with products called ULIPs (Unit Linked Investment Plans) which offer both life cover as well as scope for savings or investment options as the customer desires. Recent Revisions to Life Insurance Guidelines = . the state owned behemoth. issued disclosure norms for Indian Life Insurance Companies seeking to make an initial public offer for sale of equity shares to the public. which has resulted in an increase in the benefits and lowering of cost of ULIP products  Indian life insurance industry overview All life insurance companies in India have to comply with the strict regulations laid out by Insurance Regulatory and Development Authority of India (IRDA).0% of its equity / ordinary share capital. the securities market regulator. .>>%20Life%20>>%20Guidelines Change in guidelines  for Unit Linked Insurance Products. The Insurance Regulator has stipulated that foreign investment in Indian Insurance companies be limited to 26% of total equity issued (FDI limit) with the balance being funded by Indian promoter entities. The limit to foreign investment includes both direct and indirect investment and has been a cause of significant lobbying by foreign insurance companies for a change in regulations to increase the FDI limit to 49% of equity issued. remains by far the largest player in the market.0%. The Indian government has tabled the bill in the Upper House of Parliament in August 2010.
gov. com/  http:/ / www.Unit linked policies it varies between 1.30% • Referral fees to banks – Max 55% for regular premium and 10% for single premium. irdaindia. com/  http:/ / www. in/  http:/ / www. bharti-axalife. com/  http:/ / www. i-save.5% for 1st year premium and 2. maxnewyorklife. in/ ADMINCMS/ cms/ frmGeneral_Layout. tata-aig-life. However in any case this fee cannot be more than the agency commission as filed under the product. aspx?page=PageNo758& flag=1& mid=Insurers%20  http:/ / www.yr 2 and 3rd year and 3.5% thereafter • Maximum broker commission . gov. co. • Agency commission for retail pension policies • 7. the above commission may be further subject to the product wise limits specified by IRDA while approving the product. co.5% . hdfclife.Life insurance in India 3 Commission / intermediation fees • The maximum commission limits as per statutory provisions are: Agency commission for retail life insurance business: • • • • 7. bajajallianzlife. com/  http:/ / www. com/  http:/ / www. in  http:/ / www. avivaindia. aspx . com/  http:/ / www. com/ blog/ post/ 2010/ 08/ 31/ The-new-face-of-ULIPs-What-should-customers-expect. aspx?page=PageNo676& flag=1& mid=Insurers%20  http:/ / www. kotaklifeinsurance. co.90% for 1st year premium if the premium paying term is more than 20 years 7. birlasunlife. canarahsbclife.5% to6% on the premium paid. com/  http:/ / www. saharalife. in/  http:/ / www.10% for 1st year premium if the premium paying term is less than 10 years 7% . References  http:/ / www. in/ ADMINCMS/ cms/ frmGeneral_Layout. com  http:/ / www. com/  http:/ / www. org/  http:/ / sbilife.thereafter for all premium paying terms. irda. • However. htm  http:/ / www. metlife.10% for 1st year premium if the premium paying term is more than 15 years 7. inglife. iciciprulife. irda. in/  http:/ / www. In case of Mutual fund related . aegonreligare. com/ public/ default. co. com  http:/ / www.
Rjwilmsi. TheIguana. Sobanbabu. Bikerb96. Bige1977. G716. Deepaksem09. Mokshjuneja. Drkau21. Crohnie. Mangeshrnair. Kunal kunde.org/w/index. Kamal.Jacob. Signalhead. King 2000uk. Onlinebuff.wikipedia.marketing. Tassedethe. Kli.php?oldid=433358512 Contributors: Adrenalin k. Tarun1979. Shyamsunder. Diptiprakashpalai. Mdrtindia. 86 anonymous edits License Creative Commons Attribution-Share Alike 3. Indraneel76. Gurch. Chintu1992. JodyB. org/ licenses/ by-sa/ 3. Barry Wells. Manishgh. 0/ . Pinoakcourt. Michael Devore.Article Sources and Contributors 4 Article Sources and Contributors Life insurance in India Source: http://en. Asprakash. Jayu. Gogo Dodo. IndianGeneralist. Jacksonli0210. YellowMonkey.0 Unported http:/ / creativecommons. Bryan Derksen.b. Excirial. Ckatz. Martinvoll.
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