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It is basically risk control device.
In the contract of insurance, the insurer

agrees/undertakes the consideration of a sum of money, to make good the loss suffered by the insured against a specified risk such as fire and any other similar contingency or compensate the insured/beneficiaries on the happening of a specified event such as accident or death

Types of insurance policy

Life insurance policy
Nonlife insurance policy

Life insurance policy

They are Endowment policy Whole life policy Joint life policy Limited payment life policy Double accident indemnity policy convertible whole life policy

Non life or general insurance

Marine insurance
Fire insurance Aviation insurance

personal insurance
Motor or vehicle insurance Liability insurance;

fidelity insurance credit insurance

Other types
Burglary insurance Robbery and theft

Structure of insurance industry in India

In the year 1818 oriental LIC in Calcutta
In 1823 Bombay life insurance company In 1829 madras equitable life insurance society

In the year 1938 Insurance act

In the year 1956 life insurance corporation of India was


Reforms in insurance sector

In the year 1993 by the govt appointed a committee

under the chairmanship of R.N Malhotra to evaluate Indian insurance industry and to recommend its future.. Felt the need to improve the customer service and increase coverage through competition by private sector. It proposed to setting up of an independent regulatory body.

Major insurance players in india

Public sector insurers
Life insurers;

LIC OF INDIA Non life insurers National insurance company limited New India assurance co ltd United India insurance co ltd Oriental insurance company ltd

Private sector insurers

Life insurers;

Bajaj alliance life insurance co ltd Birla sun life insurance co ltd HDFC standard life insurance co ltd ICICI prudential life insurance co ltd Tata AIG life insurance co ltd SBI life insurance co ltd AVIVA life insurance co ltd MET LIFE life insurance co ltd ING VYSYA life insurance co ltd


Bajaj Allianz general insurance co ltd Tata AIG general insurance co ltd Chola mandalam general insurance co ltd Royal sundaram general insurance co ltd HDFC Chubb general insurance co ltd


To regulate promote and insurer steady growth of insurance sector in India 2. To exercise all powers and functions as the controller of insurance business in India to protect the interest of policy holder to monitor and encourage professional org to control and regulate terms and conditions to priscribe the format and disclosure norms to regulate margin of solvency

Role of IRDA
The protection of consumer interest
Ensuring financial soundness in the insurance sector To ensure steady and healthy growth of insurance



IRDA says ,

ULIPs have a mandatory insurance cover. unlike a MFs , ULIP are linked with the policy holders life unit linked life insurance business is defined in IRDA Regulation ,2000

SEBI says,

ULIPs are from traditional insurance products, & they are a combination of insurance and investments The attributes of the invst components of ULIPs are link to the charactersticks of MFs. Investment componenets of ulips carries equity mkt risks. So ulips need to be registered with & regulated by SEBI.