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LIC & GIC
B N HARSHA
Insurance is a form of contract under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good the loss to something in which the insured has a pecuniary interest as a result of some uncertain event. It is a device by which the loss likely to be Caused by an uncertain event is spread over a large number of persons who are exposed to it & who propose to insure themselves against such an event.
Life insurance is a contract under which one person known as the insurer in return for a premium undertakes to pay an assured amount to another person known as the insured either on the event of death or on the expiry of a specified period of time whichever is earlier.
LIFE INSURANCE CORPORATION OF INDIA (LIC) Establishment LI C w a s e sta b l sh e d o n S e p te m b e r 1 st i 1 9 5 6 u n d e r a n A ct p a sse d b y th e P a rl a m e n t a s a w h o l y o w n e d i l C o rp o ra ti n o f G o vt o f I d i w i a o n a th ca p i lo f R s. 5 C ro re ta T h e G o vt o f I d i n a i 1 9 5 6 b ro u g h t n to g e th e r o ve r 2 4 0 p ri te l fe i su re rs & va i n p ro vi e n t so ci ti s u n d e r o n e d e e n a ti n a l ze d m o n o p o l co rp ie ., LI . o i y . C
LIFE INSURANCE CORPORATION OF INDIA (LIC)
"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic development."
To spread life insurance & provide life insurance prot ect ion t o t he m asses at reasonable cost . To m obilise people’s savings t hrough insurance linked savings schem es. To invest t he funds t o serve t he best int erest s of bot h policy-holders & t he nat ion. To conduct business w it h m axim um econom y rem em bering always t hat t he m oney belongs t o t he policy-holders. To innovat e and adapt t o m eet t he changing life insurance needs of t he com m unit y. To prom ot e am ongst all agent s & em ployees of t he corporat ion a sense of pride & job sat isfact ion t hrough dedicat ed service t o achieve t he corporat e object ive.
Board of Directors of LIC
Shri. T.S. Vijayan (Chairman) Shri. D.K. Mehrotra (Managing Director - LIC) Shri. Thomas Mathew T. (Managing Director - LIC) Shri. A.K. Dasgupta (Managing Director - LIC) Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India) Shri. G.C. Chaturvedi (Additional Secretary, Department of Financial Services, Ministry of Finance, Govt. of India.) Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India) Shri. T.C. Venkat Subramanian (Chairman & Managing Director. Export Import Bank of India) Dr. Sooranad Rajashekhran Shri. Monis R. Kidwai
AW ARD S
Ø Golden Peacock Award for Excellence in Corporate Governance Ø NDTV Profit Business Leadership Award 2008 Ø Loyalty Awards 2008 - Insurance Sector Ø IT USER 2008 NASCOM Ø Loyalty Awards - 2009 Ø Readers Digest Trusted Brand Award 2008 in the Platinum category. Ø CNBC Awaaz Consumer Awards 2008 Ø Web 18 Genius of the web awards 2007 Ø Selected Business Super brand India 2008 ASIA BRAND Ø Golden Peacock Innovative Product / Service Award – 2009 Ø CONGRESS BRAND LEADERSHIP AWARD 2008 Ø SKOCH Challengers Award 2008 for Jeevan Madhur
POLICIES & SCHEMES of LIC
Here the policy amount is not paid to the insured
during his lifetime, but is paid to the nominees on
the death of the insured.
Here the policy amount is paid actually to the insured
after the attainment of a specified age.
LIC has been increasing its financial assistance in the last 33 years to the corporate sector. In 1970-71, assistance sanctioned was Rs. 17.8 crore while it increased to Rs. 4341.5 crore in 2002-03. In 2000-01, there was a sudden increase in assistance provided which went to Rs. 10867.3 crore from Rs. 6825.5 crore a year earlier showing an increase of 59.2%. Trend in Assistance sanctioned & disbursed to Corporate Sector
Year Sanctions Growth 2000-01 (Crores) rate (%) 10867.3 59.2 2001-02 6741.5 -38.0 2002-03 4341.5 -35.6 2003-04 27748 539.1 Cumulativ e up to 82732.8 endMarch Source : IDBI Report, 2003-04 2004
Disbursement Growth s (Crores) rate (%) 7095 26 8914.2 25.6 6205.8 -30.4 15781.6 154.3 67736.1
Insurance Penetration & Insurance Density
Country USA 2. Brazil 3. Mexico 4. U.K 5. Russia 6. Japan 7. China 8. Malaysia 9. Indonesia 10. India
Insurance Penetration (IP) Non- life Life% Total% % 4.28 4.48 8.76 1.75 0.36 2.11 0.85 0.86 1.72 3.07 12.71 15.78 1.29 1.13 2.42 2.22 8.70 10.92 0.67 1.12 1.79 1.59 2.13 3.72 0.64 0.54 1.18 2.83 14.04 16.86
Insurance Density (Per capita insurance premium) Non-life % Life % Total % 1541 63 50 731 22 808 6 65 5 79 1611 13 51 3028 19 3165 9 86 4 393 3152 76 101 3759 41 3973 15 151 9 472
GENERAL INSURANCE CORPORATION (GIC)
The GIC was formed as a Government Company under Sec 9 of the General Insurance Business (Nationalisation) Act, 1972. It was registered as a private company under the Companies Act, 1956.
Subsidiaries of GIC
1.The National Insurance Company 2.The New India Assurance Company 3.The Oriental Fire & General Insurance Company 4.The United India Fire & General Insurance Company Ltd.
To be a leading global reinsurance and risk solution provider”
To achieve our vision by Ø Building long-term mutually beneficial relationship with business partners. Ø Practicing fair business ethics and values Ø Applying “state-of-art” technology, processes including enterprise risk management and innovative solutions Ø Developing and retaining highly motivated professional team of employees Ø Enhancing profitability and financial strength befitting the global position
Ø The authorised capital of the corporation is Rs. 75 crores. Ø Shri Yogesh Lohiya is the Chairman cum Managing Director of GIC. Ø The objectives of GIC include “superintending, controlling and carrying on
SERVICES OF GIC
Insurance ► Fire Insurance ► Vehicle Insurance ► Crop Insurance ► House Insurance ► Any other insurance except life insurance.
v 25% of the fresh accrual of funds to be invested in Central Govt Securities. v 10% of the fresh accrual of funds to be invested in State Govt securities, bond & debentures of public sector corporations & semi Govt bodies. v 35% as loan to State Govts for housing & bonds & debentures of Housing & Urban Development Corp. v 30% in debentures, equity shares, preference shares & term loans.
1.Direct Assistance The GIC finances industry in two ways: ► Granting loans. ► Underwriting & direct subscription to shares & debentures of the company. 2. Purpose-wise Assistance ► New projects ► Expansion & diversification ► Modernisation, rehabilitation & balancing equipment ► Working capital requirements.
Insurance Development & Regulatory Authority (IRDA)
IRDA bill was passed in December 1999.The IRDA became the statutory body in April 2000 & has been framing regulations & registering the private sector insurance Companies. The insurance sector was opened up to private players in August 2000. Consequently many Indian & foreign Companies have entered in the insurance business.
Mission of IRDA
To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith.
Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and reinsurance business.
Ø Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration. Ø Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. Ø Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business. Ø Regulating investment of funds by insurance companies. Ø Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. Ø Promoting and regulating professional organisations connected with the insurance and re-insurance business
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