Insurance and its product( MBA 2 year Finance)

1. INSURANCE AND ITS PRODUCTS

2. WHAT IS INSURANCE..??
• Insurance may be described as a financial
device or contract to mitigate or eliminate the
risk of loss and property.
• An arrangement by which a company or the
state undertakes to provide a guarantee of
compensation for specified loss, damage,
illness or death in return for payment of a
specified premium.

3. • An entity which provides insurance is known
as an insurer, insurance company, insurance
carrier or underwriter. A person or entity who
buys insurance is known as an insured or as a
policyholder.
• Insurance is a collective bearing of risk.
Insurance spreads the risks and losses of few
people among a large number of people as
people prefer small fixed liability instead of big
uncertain and changing liability.

4. CHARACTERISTICS OF INSURANCE
• Risk Sharing
• Risk Assessment
• Cooperation
• Payment at the time of Contingency
• Quantum of Compensation
• Larger the number , Better the care

5. ELEMENTS OF INSURANCE RISK
• Large Number of Homogeneous Exposure
Units
• Loss must be definite and Measurable
• Non-Catastrophic Loss
• Fortuitous Loss
• Calculable Loss
• Affordable Premium

6. FUNCTIONS OF INSURANCE
 PRIMARY FUNCTIONS:-
- Provide Protection
-Collective Bearing of risk
- Assessment of Risk
 Secondary Functions:-
- Prevention of Losses
- Small Capital to Cover Larger risks
-Contributes towards the development of larger industries.

7. CONTD…
 Others functions:-
- Means of Saving and Investment
- Source of Earning Foreign Exchange
- Risk Free Trade

9. LIFE INSURANCE

10. LIFE INSURANCE…
• The insurance Act ,1938, defines life insurance
business as the effecting contracts of insurance
upon human life ,including any contract whereby
the payment of money is assured on death
(except death by accident only)or the happening
of any event insured by the contract .
• Life insurance contract are contingent contract
while non-life insurance contract are contract of
indemnify. That is why ,Life insurance is known
as life assurance and not insurance .

12. - Kotak Life insurance
- HDFC Standard Life Insurance Company limited
- Reliance Life
- MetLife India Insurance co.pvt.ltd.
- OM Kotak Mahindra Life Insurance co.ltd.
- Bharti-AXA Life Insurance
- TATA AIG Life
- Aviva Life Insurance co.ltd.
- IDBI Fortis Life Insurance co. Ltd

13. PRODUCTS OF LIFE INSURANCE
• Term Insurance
• Whole Life Insurance
• Endowment Insurance
• Money- back policy
• Annuities
• Unit Linked Insurance Policy

15. GENERAL INSURANCE
• Insuring anything other than human life is called
as general insurance.
• Examples are insuring property like house and
belongings against accidental damage or benefit.
• General insurance or non life insurance policies,
including automobiles and homeowners policies ,
provides payments depending on the loss from a
particular financial event.

17. GENERAL INSURANCE PRODUCTS
• Marine Insurance
• Fire Insurance
• Motor Insurance
• Health Insurance

19. • ICICI Lombard General Insurance Company
Limited
• Bajaj Allianz General Insurance Company
Limited
• Star Health and Allied Insurance Co.
• SBI General Insurance Company Limited
• Bharti AXA General Insurance Company
Limited
• Shriram General Insurance Company Limited
etc

20. IRDA – Insurance Regulatory and
Development and Authority

21. IRDA
IRDA as an autonomous statutory agency
which is regulator of the insurance and re-
insurance industries in India.
IRDA was act Passed upon the
recommendations of Malhotra Committee
Report (Jan 7, 1994) headed by Mr. R.N.
Malhotra who was retired governor of RBI.
It was constituted by the insurance regulatory
and development authority act,1999.

22. CONTD..
IRDA came into existence on 19th april,2000 as
statutory body which has head quarter in New
Delhi.

23. ROLE OF IRDA
• To promote the interest and rights of policy
holders.
• To promote and ensure the growth of
insurance industry.
• To ensure speedy settlement of genuine
claims and to prevents frauds and
malpractices.
• To set , promote and monitor fair dealings.

24. CONTD..
• To bring transparence in dealing with
insurance.
• To take action where necessary.
• To bring self-regulation.

25. RESPONSIBILTIES OF IRDA
• Registration
• Protection
• Qualification
• Code of conduct
• Efficiency
• Professionalism
• Fees

26. CONTD..
• Information
• Book of accounts
• Funds investment
• Margin of solvency
• Adjudication
• Supervising
• Premium income
• Others

27. Thank you..