Principles, importance and Types of insurance. Life insurance corporation

1. Compiled and Edited By
Ajita Gupta
Research Scholar
Dayalbagh Educational
Institute

2. INSURANCE…….
•An economic device that provides financial
protection against a possible unexpected loss.
•Promises or guarantees compensation for any
probable future losses.
•Insurance is a mechanism that provides
compensation for pre-financial value of the
asset in case of loss and damage (Gopala
krishna, 2008).

3. Principles
of
Insurance
Nature of
Contract
Proximate
Cause
Double
Insurance
Subrogation
Indemnity
Insurable
Interest
Good Faith

4. Importance of Insurance
• Provides security
• Encourages savings
• Medical support
• Provides credit facilities
• Provides peace of mind
• Reduces types of risk or losses
• Generates financial resources to the country

5. Types of Insurance
Non-Life(General)
Business
Property
CommercialPersonal
Auto
Home
Accident
Pension
Health
Life
Life
Insurance

6. Types of
Life
Insurance
Life
Health
Pension

7. Life Insurance
Life insurance provides a sum of money called death benefits
on the death of the insured person in return for small periodic
payments called premiums.
Types of Policies
1. Term Insurance
2. Money-back
3. Unit-linked
Investment (ULIP)
4. Pension Policies

8. Health Insurance
Health insurance covers the expenditures
associated to treatment and medical
expenditures.
1. Hospitalization
2. Top up
3. Critical illness
Types of policies

9. Pension Insurance
Pension plan benefits will be paid when the
members reach a specified retirement age

10. Types of
Non-Life
Insurance
Personal Commercial

11. • Automobile/
Vehicle Insurance
• Home Insurance
• Accident Insurance
Personal Insurance

12. Automobile Insurance
• Automobile insurances cover
damages and legal financial
expenditures of automobile owner.
• Vehicle insurance (also known as,
Car insurance, or Motor insurance)
is insurance purchased for cars,
trucks, motorcycles, and other road
vehicles.

13. Home Insurance
Home Insurance, also commonly
called hazard insurance or
homeowner’s insurance
Type of property insurance that
covers a personal residence

14. Accident Insurance
Compensation for death or disablement
resulting from accidental bodily injury.

15. Commercial Insurance
• Property Insurance
• Business Insurance

16. Properties are insured in two main ways
Open Perils
Open perils cover all
the causes of loss
not specifically
excluded in the
policy.
Named Perils
Named perils require
the actual cause of
loss to be listed in
the policy for
insurance to be
provided.

17. Types of Insurance Companies

18. Life Insurer in
Public Sector
Life Insurance
Corporation of
India.
Life Insurance in India was nationalized by
incorporating Life Insurance Corporation (LIC) in
1956.
Life Insurance Companies

19. LIC- Life Insurance Cooperation
• Founded – 1 September 1956
• Headquarters – Mumbai, India.
• Chairman – S. K. Roy
• Owner – Government of India.
Slogan
“Your welfare is
our
responsibility”

20. General Insurance
Companies
Provides all type of insurance apart
from life insurance.

21. GIC- General Insurance Cooperation
• Founded -22November 1972
• Headquarters – Mumbai, India
• Chairman & MD – A. K. Roy
• Owner – Government of India.
Four re-organized
companies of GIC
1. National Insurance
2. New India Insurance
3. Oriental Insurance
4. United Insurance

22. Life Insurers in Private Sector
 SBI Life Insurance.
 PNB MetLife India Life Insurance.
 ICICI Prudential Life Insurance.
 Bajaj Allianz Life.
 Max Life Insurance.
 Sahara Life Insurance.
 Tata AIG Life.
 HDFC Life.
 Birla Sun Life Insurance.
 Kotak Life Insurance India.
 First Life Insurance.
 Aviva Life Insurance.
 Reliance Life Insurance Company
Limited .
 LIC Exide Life Insurance -
 DHFL Pramerica Life Insurance -
 Shriram Life Insurance.
 Bharti AXA Life Insurance Co Ltd.
 Future General Life Insurance Co
Ltd.
 IDBI Federal Life Insurance.
 AEGON Religare Life Insurance.
 CANARA HSBC Oriental Bank of
Commerce.
 Star Union Dia-ichi Life Insurance
Co. Ltd.
 Edelweiss Tokio Life Insurance
Company Ltd.

23. Top 10 Insurance Companies in India
• Life Insurance Corporation of India (LIC)
Corporate Office – Mumbai, Maharashtra,
• SBI Life Insurance Corporate Office – Mumbai,
Maharashtra,
• Birla Sunlife Insurance Corporate Office .
• Reliance Life Insurance (RLIC) Corporate
Office – Navi Mumbai
• Corporate Office – United Kingdom.

24. Top 10 Insurance Companies in India
• Tata AIG Life Insurance Corporate Office –
Mumbai, Maharashtra,
• ING Vysya Life Insurance Corporate Office –
Bangalore, Karnataka,
• Bajaj Allianz Life Insurance Corporate Office –
• Max Life Insurance Corporate Office – New
Delhi,
• HDFC Standard Life Insurance Corporate
Office – Mumbai, Maharashtra,

25. • During the early years of a term policy, the
premium will usually be significantly lower
than for cash value insurance.
• Purchased to meet a specific financial
obligation.
• Many term policies can be converted to cash
value life insurance if insurance needs change.

26. • Provides coverage only for a limited period of time, although
some policies can be renewed indefinitely.
• Depending on the policy, premiums may be level for a period
of 1, 5, 10, 15, 20, 25, or 30 years and then end without any
renewal option, or offer continual renewals at a higher
premium rate.
• Deteriorating health can trap in a policy with rapidly
increasing premiums.

27. GOVERNMENT SCHEAMS
The Union Finance Minister has proposed to
launch 3 Social Security Schemes in Budget
2015-16. The three Schemes are;
• Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY)
• Pradhan Mantri Suraksha Bima Yojana
• Atal Pension Yojana

28. Pradhan Mantri Suraksha Bima Yojana (PMSBY
– Scheme 1 – for Accidental Death Insurance)
• Premium: Rs. 12 per annum.
• Risk Coverage: For accidental death and full disability – Rs. 2 Lakh and for
partial disability – Rs. 1 Lakh.
• Payment Mode: The premium will be directly auto-debited by the bank from
the subscribers account.
• Eligibility: Available to people in age group 18 to 70 years with bank account.
Any person having a bank account and Aadhaar number linked to the
bank account can give a simple form to the bank every year before 1st of June in
order to join the scheme. Name of nominees to be given in the form.
The scheme will be offered by all Public Sector General Insurance
Companies and all other insurers who are willing to join the scheme and tie-up
with banks for this purpose.

29. Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY – Scheme2 – for Life Insurance
• Premium: Rs 330 per annum.
• Risk Coverage: Rs. 2 Lakh in case of death for any reason.
• Payment Mode: The payment of premium will be directly
auto-debited by the bank from the subscribers account.
• Eligibility: Available to people in the age group of 18 to 50
and having a bank account.
People who join the scheme before completing 50
years can, however, continue to have the risk of life cover up
to the age of 55 years subject to payment of premium.
The scheme will be offered by Life Insurance
Corporation and all other life insurers who are willing to join
the scheme and tie-up with banks for this purpose.

30. Atal Pension Yojna (APY)
• The scheme will be launched on June 1, 2015 and focus is on the
unorganized sector. A pension provides people with a monthly
income when they are no longer earning. A Subscriber receives
pension based on accumulated contribution out of his current
income.
• Age of joining and contribution period: The minimum age of
joining APY is 18 years and maximum age is 40 years. would
receive the fixed monthly pension of Rs. 1000 to Rs 5000 at the age
of 60 years, depending on their contributions.
• Eligibility for APY: Atal Pension Yojana (APY) is open to all bank
account holders who are not members of any statutory social
security scheme.

32. A person whose life or property is insured.
Beneficiary
Insured
A person and organization etc., that receives
money or property when some one dies.
An agent is a person who represents an insurance
firm and sells insurance policies on its behalf
Agent

33. A demand made by the insured, or the insured's
beneficiary, for payment of the benefits as provided by
the policy
The price of insurance protection from a specified risk
for a specified period of time
Premium
The limit of insurance or the amount of benefit
that will be paid in the event of the death of a
covered person.
Death Benefit
Claim

34. Risk date is the date the policy begins coverage,
also referred to as the “Effective Date”.
Risk Date
Due date means extra time to pay the premium
after the actual date.
Due Date
The length of time (usually 30 or 31 days) after a
premium is due and unpaid during which the
policy, including all riders, remains in force.
Grace Period