A Seminar On

Insurance
In India
Presented by:
Group 5
Staff Incharge:
Mr. Vijay Kumar
Team Members:
Krishnakumari
Sitara
Anusha G.J
Neha
Ramprasad
Walsh Joseph


"The reason saving comes before investing is that



you need to have seed before you can sow it in

anticipation of a harvest."

 Contents
 Introduction
 Liberalization
 IRDA
 EssentialElements of Insurance
 Types Of Insurance
 ULIP
 Insurance Players In India
 Benefits
 Conclusion
Introduction
 The insurance sector in India dates back to 1818 when
the first insurance company was established – the
Oriental Life Insurance Company , started by Anita
Bhavsar at Calcutta.

 This was followed in quick succession with the
establishment of Bombay Life Assurance Company
(1823) and Madras Equitable Life Assurance
Company (1829).In the general insurance business
Triton Insurance Company (1850) was the first to be
established
Meaning


 Insurance may be defined as a contract between
two parties where by one party called insurer undertakes,
in exchange for a fixed sum called premium, to pay the
other party called insured, a fixed amount of money, on
the happening of a certain events.
Liberalization
A liberal insurance market in one in which the market
subject only to economically justifiable government
restrictions

It determines who should be allowed to sell insurance ,
what products should be sold, and the price at which
products should be sold
 Pre-conditions for
liberalization

ü Sound competition law

ü Effective and reliable regulations
ü Consistency and impartiality between competitors
ü Effective disclosure and dissemination of
information to the society
 For developing countries, the regulation of insurance
business in liberalization era poses following concerns
and special interests,
ü Restrictions on entry, especially foreign players
ü Control of inter industry competition from those
selling similar or complementary products
ü The Indian Life Assurance Companies Act, 1912

üThe Insurance Act, 1938

ü The Life Insurance Act, 1956

ü The General Insurance Business Act, 1972

INSURANCE REGULATORY
AND DEVELOPMENT
AUTHORITY
 The insurance bill was passed in
both houses of the parliament,
after the subject matter was
discussed and debated and
subsequently government
enacted the Act viz, IRDA Act
1999.


The IRDA shall consist of not

more than nine members, not
more than five members of
whom, including the
chairperson to be full time.
Objectives Of IRDA

To take care of the policy holders interest


 To open the insurance for private
sector

 Toensure continued financial soundness
and solvency


Toregulate insurance and reinsurance

companies

 Toeliminate dishonesty and unhealthy
competition


To supervise the activities of

intermediaries

Duties and Powers of IRDA

To regulate, promote and ensure orderly

growth of the insurance business.

 To exercise all powers and functions of the
controller of insurance.


To protect the interest of the policy

holders in settlement of claims and terms
and conditions of policies.


 To promote and regulate professional
organizations connected with insurance
business.
Undertake inspection and conduct
investigations including audit of the
insurer, intermediaries and other
connected organizations and persons

To control and regulate the rates and terms
and conditions that may be offered by
the insurers in respect to general
insurance matters


To prescribe the manner and form in which

accounts will be maintained and submitted
by insurers and intermediaries.
To regulate investment of funds.

 To regulate margins of solvency.
To adjudicate disputes between insurers
and intermediaries.

ESSENTIALS OF AN
INSURANCE CONTRACT
Offer & Acceptance

Legal Consideration



 Parties Competent to contract


FreeConsent
Legal Object

BENIFITS OF INSURANCE
BENEFITS TO AN INDIVIDUAL

Security & Safety

Peace of Mind

Eliminatesdependency
Encourages Savings
Provides
 Profitable Investment

BENEFITS TO BUSINESS

Reduces Uncertainty Of Business Losses


Increase In Efficiency



Addition
to Credit
Employees Welfare

BENEFITS TO SOCIETY

Protection of Wealth of Society

Economic growth of the country
Accelerating the production growth

TYPES OF INSURANCE
GENERAL INSURANCE
per the insurance act, all the types of general insurance other than fire and marine insurance are cove
MISCELLANEOUS
INSURANCE
THE MAJOR INSURANCE
PLAYERS IN INDIA
Public sector insurance
§ Money back policies

§ Endowment schemes

§ Pension plans

Investment plans

Non life insurers

They are National Insurance company

Ltd., New India Assurance company Ltd.,
Oriental Insurance company Ltd. and
United India Company Ltd.
 Baggage Insurance

 Fire policies

 Medical claim

 House hold insurance

Auto Insurance

Private sector insurance

Bajaj Allianz Insurance Co Ltd


 Allianz Bajaj Life Insurance Co Ltd was
incorporated on 12th March 2001


 It offers individual policies and group

policies.

TATA AIG Life Insurance Co Ltd



TATA AIG insurance company Ltd is


capitalized Rs.185 crores of which 74

percent brought in by Tata sons and
American partner brings in the balance 26
percent


Security and Growth plans.




 ICICI Prudential Life Insurance Co Ltd

 Joint venture between ICICI and
Prudential UK


Individual groups and investment

products.

 HDFC Standard Life Insurance
Co Ltd
 In October 1998, the joint venture
agreement was renewed and Standard
Life purchased 2% of Infrastructure
Development Finance Co Ltd.


It offers individual Life insurance products

like with profits Endowment Assurance,
with profits Money Back etc and group
products like Group term Insurance and
Development Insurance plan

Private Sector Insurers
Non-life Insurance
Bajaj Allianz General Insurance Company Ltd.
Ø
Ø This company is a Joint Venture between Bajaj Auto Ltd. and
Allianz AG of Germany.
Ø It conducts its business in general insurance including
health insurance
Ø Its insurance products offered are Tariff Products and Non
Tariff Products
Tata AIG General Insurance Co. Ltd.


It is joint venture between the Tata group and AIG,

Inc. of U.S.
It as many branches and offices throughout India
and it operates through these branches and
offices.
Its important non-life products family guard,
Group personal accident plan, Crime against
policy etc.,

 Royal Sundaram General Insurance company
Ltd.


This company is a joint venture between Royal

and Sun alliance insurance and Sundaram
Finance Ltd.
Its has its headquarters in Chennai and Conducts
its business through network of offices and
branches attached to the Regional offices
located in Mumbai and New Delhi.
Its important insurance products are Travel
Shield, Accident Shield, Health Shield and
Home Shield.


HDFC Chubb General Insurance Ltd.



This company is joint venture between HDFC and
Chubb corporation.
It has its branches and offices spread all over
India.
Important insurance products are personal
accident plan household insurance, Fire
insurance and Marine insurance.

 ICICI Prudential General Insurance



ICICI Prudential is a joint venture between ICICI
Bank and Prudential plc engaged in the
business of general insurance in India.
ICICI Prudential is the largest private insurance
company and second largest insurance in India
after LIC.
ICICI Prudential General has retained its
leadership position in the general insurance
industry with a wide range of flexible products
that meet the needs of the Indian customer at
every step in life.
The 30,000 employee strong organization has one
of the largest agency distribution in the industry.

 AEGON Religare General Insurance Ltd.


 AEGON, an international life and general insurance,

pension and investment company, Religare, one of India’s
leading integrated financial services groups and Bennett,
Coleman & company, India’s largest media house, have
come together to launch AEGON Religare General
Insurance Company Limited.
 Financial services which Religare offers can be broadly
clubbed across three key verticals - Retail, Institutional
and Wealth spectrums.
 Religare operates in the wealth management space under the
brand name 'Religare Macquarie Private Wealth'.
Religare operates in the wealth management space under
the brand name 'Religare Macquarie Private Wealth'.


 ULIP
(Unit Linked Insurance Policy)
What Are ULIPs ?

 ULIPsare a category of goal-based financial

solutions that combine the safety of
insurance protection with wealth creation
opportunities.
Working of ULIP

 When you decide the amount of premium to be paid and

the amount of life cover you want from the ULIP, the
insurer deducts some portion of the ULIP premium
upfront. This portion is known as the Premium
Allocation charge, and varies from product to product.
The rest of the premium is invested in the fund or
mixture of funds chosen by you.
Types Of ULIPs

Ø Retirement Plan (Pension Plans)

Ø

 ØWealth
Ø
Ø

ØChildren Education
Ø
ØHealth

When ULIP Works Best ?

 Key principles which should govern any decision related

to ULIPs. Adhering to these key principles will allow
you to make optimum utilization of your ULIP

Ø Appropriate life cover

Ø Right fund option

ØLong term investment

Ø
Ø Know the charge
Ø
Ø Know the feature
Ø
Why Buy ULIPs

(i). Flexibility

Ø Flexibility to change your life cover

Ø Flexibility to change premium amount

Ø
Ø Flexibility to opt for a rider
Ø
Ø Flexibility to choose your fund option
(ii). Transparency


Ø Benefit Illustration

Ø Brochures and key feature documents

(iii). Global Based Savings

ULIPs help you cultivate a disciplined savings

pattern which ensures that the money being set
aside will go towards the fulfillment of the specific
objective.
(iv). Tax Benefits

 Ø Life insurance plans are eligible for deduction.

Ø Pension plans are eligible for a deduction.

Ø Health insurance plans and critical illness riders are eligible

for deduction.
Ø
Ø The maturity proceeds or withdrawals of life
Ø
Ø Insurance policies are exempt
How To Choose A ULIP
 Following a few simple steps makes choosing the
right ULIP a smooth process.

Ø Understand the concept of ULIPs thoroughly
Ø
Ø Focus on your requirements and risk profile
 Ø Understand the peculiarities of the plan
Ø
Ø Examine the performance of the plan

ØCompare ULIP products of different insurance companies

Ø
Ø Know about the Company
 CONCLUSION
Ø Insurance provides compensation to a person
for an anticipated loss to his life, business
or an asset.
Ø It creates a long-term savings opportunity
with a reasonable rate of return.
Ø In these uncertain times, you're better off
planning ahead, and securing the future for
yourself, and your family. Arm yourself with
the facts for an assurance of a lifetime of
security.
A passing thought…

If A is success in life,
then A equal X plus Y
plus Z. Work is X, Y is
Play and Z is Keeping
your mouth shut ;)



 Thanks for