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SURVEY SURVEY Presentation Transcript

  • DEFINITION A contract (policy) in which an individual or entityreceives financial protection or reimbursement againstlosses from an insurance company. The company poolsclients risks to make payments more affordable for theinsured.
  • Broadly speaking, insurance carriers may be classifiedas: Life insurance companies, which sell life insurance, annuities and pensionsproducts. Life, annuity, and pension business is very long-term in nature —coverage for life assurance or a pension can cover risks over many decades, andexplains why this type of insurance is also called “long term insurance”. Non-life (or ‘general’) insurance companies that sell "other" types ofinsurance. By contrast to life insurers, non-life insurance cover usually covers ashorter period - such as one year - which is why this type of insurance is alsocalled “short term insurance”. General insurance companies can be subdivided into: Standard lines / personal lines insurers that are typically "main stream"lines insurers that specialize in motor, home or commercial insurance thatmay even be made available directly to the public , or Excess lines insurers that typically insure risks not covered by the standardlines market. They are broadly referred as being all insurance placed with non-admitted insurers. Non-admitted (USA) insurers are not licensed in the stateswhere the risks are located. These companies have more flexibility and canreact faster than standard insurance companies because they are not subject tothe same regulations. View slide
  • Risk which can be insured by private companies typically sharesseven common characteristics: Large number of similar exposure units:Since insurance operates through pooling resources, themajority of insurance policies are provided for individual members of largeclasses, allowing insurers to benefit from the law of large numbers inwhich predicted losses are similar to the actual losses. Definite loss:The loss takes place at a known time, in a known place, andfrom a known cause. The classic example is death of an insured person on alife insurance policy. Fire, automobile accidents, and worker injuries mayall easily meet this criterion. Accidental loss:The event that constitutes the trigger of a claim should befortuitous, or at least outside the control of the beneficiary of theinsurance. The loss should be pure, in the sense that it results from anevent for which there is only the opportunity for cost. Large loss:The size of the loss must be meaningful from the perspective ofthe insured. Insurance premiums need to cover both the expected cost oflosses, plus the cost of issuing and administering the policy, adjustinglosses, and supplying the capital needed to reasonably assure that theinsurer will be able to pay claims. View slide
  •  Affordable premium:If the likelihood of an insured event is so high, or the cost of the event so large, thatthe resulting premium is large relative to the amount of protection offered, then it is not likely thatthe insurance will be purchased, even if on offer. Calculable loss:There are two elements that must be at least estimable, if not formally calculable: theprobability of loss, and the attendant cost. Limited risk of catastrophically large losses:Insurable losses are ideally independent and non-catastrophic, meaning that the losses donot happen all at once and individual losses are not severe enough to bankrupt the insurer; insurersmay prefer to limit their exposure to a loss from a single event to some small portion of their capitalbase.
  • How Insurers Determine Your Premium Many factors affect the premium you pay, including which insurance companyyou choose. Different insurance companies charge different premiums forsimilar coverage. Decisions you make about how much insurance coverage to buy also affect yourpremium. Some of the other things that are likely to affect your premium areThe characteristics of your home • The cost to rebuild your home. This is not the same as the purchase price(which includes the cost of the land). Your insurance agent might help youestimate replacement cost using information about your home and itscontents. • Whether your home is made of brick or wood. The premium usually is lowerfor homes that are primarily brick or masonry than for wood frame homes. • The distance from your home to a water source or fire department and thequality of your community’s fire protection services. • The age and condition of your home. The premium often is higher for olderhomes and homes in poor condition than for newer homes and homes in goodcondition. • The claims history of your home and of homes in your area.
  • Your choices and characteristics • The coverages you choose, including optional endorsements. • The deductible you choose. • Insuring your home and autos with the same insurancecompany. • The length of time you’ve been with your current insurancecompany. • Your credit history. To access your credit report, the insurance agent might ask youfor your Social Security number. In many states, insurers useyour credit history as a factor to decide whether to sell youinsurance and what price to charge you. • Your history of filing claims for water damage, fire, theft orliability on homes you’ve owned
  • Why You Need Insurance Homeowners insurance is an important purchase for many people. There aretwo major reasons to buy homeowners insurance: • To protect your assets Homeowners insurance covers the structure of your home and your personalproperty, as well as your personal legal responsibility (or liability) for injuries toothers or their property while they’re on your property.• To satisfy your mortgage lender Most mortgage lenders require you to have insurance as long as you have amortgage and to list them as the mortgagee on the policy. If you let yourinsurance lapse, your mortgage lender will likely have your home insured. Compared to a policy you would buy on your own, the premium might bemuch higher and the coverage will be limited to damage to the structure ofyour home. The lender can require you to pay this higher premium until you get your ownHome owners insurance again
  • What are factors affecting car insurance premium? Motor insurance premium on a motor vehicle in India can be classified into two parts --own damage premium (OD Premium) and third-party premium (TP Premium).While own damage (OD) premium is determined by a vehicles insured declared value(IDV) (value of the vehicle after depreciation), the third-party (TP) premium is fixed bythe insurance regulator and depends on the volume of the vehicle. Premium for private vehicle is based on parameters like Insured DeclaredValue (IDV),Cubic Capacity (CC) of the insured vehicle, GeographicalZones and age of the vehicle.
  •  Insured Declared Value (IDV) of the vehicle : This is afunction of current showroom price Cubic Capacity : Cubic capacity is segregated in threeslabs viz. Less than 1000 cc More than 1000 cc but less than 1500 cc More than 1500 cc Geographical Zones : For the purpose of rating, India hasbeen divided into the following zones depending on thelocation of the office of registration the vehicle. Zone A: Zone A includes Ahmedabad, Bangalore, Chennai,Hyderabad , Kolkata, Mumbai, New Delhi and Pune. Zone B: It includes rest of India. Age of the Vehicle Not exceeding seven years
  •  What is IDV? The Insured Declared Value (IDV) is decided on thebasis of manufacturer’s listed selling price of the brandand model of the vehicle. It is basically the depreciatedvalue of the vehicle agreed upon by the insurer and thepolicyholder The IDV of the vehicle reduces with age. However, if any electrical and /or electronic items areinstalled separately, which are not included in themanufacturer’s selling price, their IDV is decidedindependently at an extra cost. Recently, Third-Party (TP) premium rates wereincreased by the regulator. Owners of cars willhave to shell out a third party premium based oncubic capacity of the vehicle as mentioned below.
  • Types of PoliciesTypes of Homeowners Policies To be reimbursed for damage to your property, a covered peril (such asfire, theft or windstorm) must have caused your loss. Which perils yourpolicy covers depends on the type of policy you buy. The most commontypes of homeowners policies are listed below. All of the policy typesexcept the dwelling fire form cover your dwelling and its contents, aswell as personal liability and medical payments. • The Dwelling Fire Form covers only your dwelling. It does not coveryour personal property, personal liability or medical payments. It alsocovers only a few perils. It’s the type of policy your mortgage lender willbuy for you if you let your homeowners policy lapse. It’s also used forvacation homes and when you can’t find other coverage.
  •  • The Modified Coverage Form is for older homes, wherethe cost to rebuild is greater than the market value. Itcovers the same set of perils as the Basic Form. • The Special Form is the most popular of all homeownersforms. It insures your property against all perils, exceptthose the policy specifically names as notcovered. Perilscommonly excluded are flood and earthquake. • The Tenants Form is for renters. It insures your personalproperty against all of the perils in the Broad Form. • The Condominium Unit Owners Form is for owner-occupants of condominium units. It insures your personalproperty and your walls, floors and ceiling against all of theperils in the Broad Form.
  • UNITED INDIA INSURANCE Co . Ltd United India Insurance Company Limited (UIIC)is the one among the 4 public General InsuranceCompanies of India and a leading General Insuranceplayer including public and private sector. With thenetworth of Rs 4,587 croreas as on September 30, 2011,The company has more than three decades ofexperience in Non-life Insurance business. It wasformed by the merger of 22 companies, consequent tothe nationalisation of General Insurance companies inIndia. Its Head Quarters is at 24, Whites Road,Chennai, India.
  • About the company United India Insurance Company Limited was incorporated as a Company on18 February 1938. General Insurance Business in India was nationalized in 1972.12 Indian Insurance Companies, 4 Cooperative Insurance Societies and Indianoperations of 5 Foreign Insurers, besides General Insurance operations ofsouthern region of Life Insurance Corporation of India were merged withUnited India Insurance Company Limited. After nationalization United Indiahas grown by leaps and bounds and has 18300 work force spread across 1340offices providing insurance cover to more than 1 Crore policy holders. TheCompany has variety of insurance products to provide insurance cover frombullock carts to satellites. United India has been in the forefront of designing and implementing complexcovers to large customers, as in cases of ONGC Ltd, GMR- HyderabadInternational Airport Ltd, Mumbai International Airport Ltd Tirumala-Tirupati Devasthanam etc. It has been also the pioneer in taking Insurance torural masses with large level implementation of Universal Health InsuranceProgramme of Government of India & Vijaya Raji Janani Kalyan Yojana (covering 45 lakhs women in the state of Madhya Pradesh), Tsunami Jan BimaYojana (in 4 states covering 4.59 lakhs of families), National LivestockInsurance and many such schemes. It has also made its presence in more than200 tier II & II towns and villages through its innovative Micro Offices.
  • Types of insurance Auto insuranceMain article: Vehicle insurance Auto insurance protects the policyholder against financialloss in the event of an incident involving a vehicle theyown, such as in a traffic collision.Coverage typically includes: Property coverage, for damage to or theft of the car; Liability coverage, for the legal responsibility to others forbodily injury or property damage; Medical coverage, for the cost of treating injuries,rehabilitation and sometimes lost wages and funeralexpenses.
  • Gap insuranceMain article: Gap insurance Gap insurance covers the excess amount on your autoloan in an instance where your insurance companydoes not cover the entire loan. Depending on thecompanies specific policies it might or might not coverthe deductible as well. This coverage is marketed forthose who put low down payments, have high interestrates on their loans, and those with 60 month orlonger terms.
  • Health insurance Health insurance policies cover the cost of medicaltreatments. Dental insurance, like medical insuranceprotects policyholders for dental costs.
  • Accident, sickness and unemployment insurance Disability insurance policies provide financial support in the event ofthe policyholder becoming unable to work because of disabling illnessor injury. It provides monthly support to help pay such obligations asmortgage loans and credit cards. Long-term disability insurance covers an individuals expenses for thelong term, up until such time as they are considered permanentlydisabled and thereafter. Disability overhead insurance allows business owners to cover theoverhead expenses of their business while they are unable to work. Total permanent disability insurance provides benefits when a personis permanently disabled and can no longer work in their profession,often taken as an adjunct to life insurance. Workers compensation insurance replaces all or part of a workerswages lost and accompanying medical expenses incurred because of ajob-related injury.