Introduction to General Insurance Sector•1850: Legacy of British occupation by establishment of Triton Insurance Company Ltd.•1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of its type to transact all general insurance business.•1957: General Insurance Council, an arm of the Insurance Association of India, framed a code of conduct for guaranteeing fair conduct and sound business patterns.•1968: The Insurance Act improved for regulating investments and set minimal solvency levels and the Tariff Advisory Committee was set up.•1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India. It was with effect from 1st January 1973.
•107 insurers integrated and grouped into four public companies viz. theNational Insurance Company Ltd., the New India Assurance CompanyLtd., the Oriental Insurance Company Ltd. and the United India InsuranceCompany Ltd. GIC was incorporated as a company• General insurance includes • Fire Insurance • Accident Insurance • Marine Insurance • Home Insurance • Health Insurance • Motor Insurance • Travel Insurance
History of LIC Life insurance in its Modern Form came to India From England in the year 1818.Oriental Life Insurance Company Started By the Europeans inCalcutta was the First Life Insurance Company on Indian Soil. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870 The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with totalbusiness-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
• LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956• Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network.• LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience.• LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.• The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
LIFE INSURANCE MEANING of life insurance TYPES OF LIFE INSURANCE POLICES SECTORS IN LIFE INSURANCE Reason for Public Sector
Private Sector v/s Public Sector• Public owned corporation • State-owned enterprises• Main objective of earning • Main motive of providing profit service to public• Formation involves a long • Formed in short time just process by government decision• Capital contributed by owner and investor • Capital contributed by• More freedom of operations government• Managed and control by board • Less freedom of of directors selected by operations shareholders • Managed and control by• Not directly accountable to board of directors selected general public by government• Performance evolution on basis • Accountable to general of economic gains public on performance discus in parliament • Performance evolution on basis of economic and non- economic gain
National Insurance Company United India Insurance Co.Limited (NICL) Ltd.• largest and fastest • leading Public sector general growing general insurance company has more than three decades of experience in insurance companies in India. Non-life Insurance business.• range of coverage policies • Products targeting different sectors: • Personal Policies • Householderi. Personal Insurance policies • Personal Accidentii. Personal Insurance policies • Mediclaimiii. Industrial Insurance policies • Unimedicare • Commercial Policies Commercial • Fire Insuranceiv. Insurance policies • Marine Insurance• 3rd rank in the f.y. 2011 with • Motor Insurance (vehicle insurance) premium income grew by • Industrial Insurance • Liability Insurance 32.22%
Market player & market shares of Private and Public Companies Jayshil and anmol
Jayshil and anmol
Jayshil and anmol
Scope and Growth of Insurance Sector Scope Growth• Effects of saturated • Requirement of Insurance points due to financial• Potential and Competition independence• Variety of Insurances • Market Penetration in• Awareness about growing economy Insurance • Percentage to GDP • Increasing rate of Insurance • Annual growth rate
Contribution Of Insurance Sector ToGDP
• Average annual of life segment &nonlife segment of the Indian insuranceindustry .• . An evolving insurance sector is of vital importance for economic growth.• A steady cash stream of premium or contributions to pension plans. Present insurance penetration•In india it is quite low - 2.26% of GDP.•At Korea penetration stands at 6.77%•In Singapore -6.38%.
Need For Insurance• Tax benefit + Tax free cash on maturity• Help during retirement – act as a pensions• Savings Instrument• Improves credit rating- considered as a financial asset• Contribution towards sustaining a standard of living when one contributing partner dies.• Cover against risk• Financial Planning• Insurances contributes to our country as an employer, taxpayer and investor - 7
GENERAL INSURANCE POLICIES• Fire insurance• Burglary insurance• Marine insurance• Personal insurance• Medical insurance• Motor private/commercial insurance• Carrier legal liability• Travel insurance• All risk insurance• Fidelity guarantee insuranceand many more…….