The document is a project report submitted by Arun S Kaimal for his Bachelor of Management Studies program. It includes a declaration by Kaimal stating that the project was completed as required. It also includes a certificate signed by his project guide and college administrators confirming completion of the project titled "Life Insurance Sector in India". The project provides an overview and analysis of the life insurance sector in India.
This presentation is part of our continuing series of training modules for the Financial Services Industry. The Insurance Industry Overview module provides a quick look at products offered by insurance companies and how insurance companies are organized. We provide training in a wide range of topics targeted at the business lines of financial services companies. Contact us for a quote or a needs analysis. Please email me at: Floyd.saunders@yahoo.com.
hi frnd this a pdf version of my own created file containing the history of insurance in world and in India..moreover there is a brief description of LIC is given.i think it wl b veru useful for u.and kindly mail me if u have ne prob ao if u wanna me to do ne correction.....
thanx
This document provides information about insurance and the insurance sector in India. It discusses that insurance involves compensation for potential future losses in exchange for periodic payments. It also outlines the objectives of insurance companies to provide protection and invest policyholder funds. The document summarizes the history and growth of the insurance sector in India, including the liberalization of the sector in 2000 that allowed private companies. It provides details on major life and non-life insurance companies in India.
A project report on customer perception towards insuranceProjects Kart
The document provides an introduction and overview of the insurance industry in India. It discusses the history and evolution of insurance from ancient times to its nationalization in India in the 1950s. It also summarizes the key types of insurance like life and non-life insurance. The insurance industry in India is categorized into public and private sector for both life and non-life insurance. It provides a breakdown of the major players in both life and non-life insurance sectors in India.
General insurance companies provide financial protection against losses from events like fire, floods or theft. They earn income from premiums paid by policyholders and investment returns. Premiums cover costs like claims payments, expenses and dividends. Investment returns depend on market conditions and vary yearly. Reliance General Insurance offers over 80 insurance products across categories like personal accident, fire, marine, motor, health and travel. It aims to make insurance accessible through branches across India and online services. The company follows quality standards and received ISO 9001:2000 certification.
The document discusses Birla Sun Life Insurance and provides information about the company. It acknowledges the guidance received for the project report. It then discusses the fundamental principles of insurance such as indemnity, utmost good faith, insurable interest, and others. Finally, it provides details about Birla Sun Life Insurance such as its vision, mission and values, company profile, products offered and funds managed.
This presentation is part of our continuing series of training modules for the Financial Services Industry. The Insurance Industry Overview module provides a quick look at products offered by insurance companies and how insurance companies are organized. We provide training in a wide range of topics targeted at the business lines of financial services companies. Contact us for a quote or a needs analysis. Please email me at: Floyd.saunders@yahoo.com.
hi frnd this a pdf version of my own created file containing the history of insurance in world and in India..moreover there is a brief description of LIC is given.i think it wl b veru useful for u.and kindly mail me if u have ne prob ao if u wanna me to do ne correction.....
thanx
This document provides information about insurance and the insurance sector in India. It discusses that insurance involves compensation for potential future losses in exchange for periodic payments. It also outlines the objectives of insurance companies to provide protection and invest policyholder funds. The document summarizes the history and growth of the insurance sector in India, including the liberalization of the sector in 2000 that allowed private companies. It provides details on major life and non-life insurance companies in India.
A project report on customer perception towards insuranceProjects Kart
The document provides an introduction and overview of the insurance industry in India. It discusses the history and evolution of insurance from ancient times to its nationalization in India in the 1950s. It also summarizes the key types of insurance like life and non-life insurance. The insurance industry in India is categorized into public and private sector for both life and non-life insurance. It provides a breakdown of the major players in both life and non-life insurance sectors in India.
General insurance companies provide financial protection against losses from events like fire, floods or theft. They earn income from premiums paid by policyholders and investment returns. Premiums cover costs like claims payments, expenses and dividends. Investment returns depend on market conditions and vary yearly. Reliance General Insurance offers over 80 insurance products across categories like personal accident, fire, marine, motor, health and travel. It aims to make insurance accessible through branches across India and online services. The company follows quality standards and received ISO 9001:2000 certification.
The document discusses Birla Sun Life Insurance and provides information about the company. It acknowledges the guidance received for the project report. It then discusses the fundamental principles of insurance such as indemnity, utmost good faith, insurable interest, and others. Finally, it provides details about Birla Sun Life Insurance such as its vision, mission and values, company profile, products offered and funds managed.
EFU-GENERAL INSURANCE COMPANY was formed in 1932 to provide leadership to Pakistan's emerging insurance industry. It has since become the largest private sector insurer in Pakistan, offering a wide range of insurance products including Fire, Marine, Motor, Engineering, Miscellaneous covers, and Life insurance. The document provides details on EFU's history and growth over the decades as it expanded its services and established offices across Pakistan.
The document summarizes information about the National Insurance Company Limited (NICL), which is Pakistan's largest government-owned insurance company. It provides details about NICL's establishment, ownership, capitalization, board of directors, management team, objectives, products and services, clients, and network of offices. NICL aims to provide affordable insurance coverage to government organizations and develop the insurance sector in Pakistan. It offers various insurance products like fire, marine, motor, and agriculture insurance. The company has a widespread network across Pakistan and plans to expand further by opening new branches.
This document discusses the recruitment of advisors and sales of financial products through advisors in the life insurance industry in India. It provides background on the history and development of the life insurance sector in India. It describes how advisors, also known as agents, are critical to the distribution and sales process, as they are the primary channel through which insurance companies can explain policies and benefits to customers. The success of insurance companies depends on having an adequate network of agents to capture market share.
This document provides an overview of life insurance. It begins with definitions of life insurance and discusses the history of life insurance in India. It then outlines common reasons for purchasing life insurance and describes various types of life insurance policies like term life, endowment, whole/permanent life, money back, and unit linked plans. The document uses LIC as a case study, discussing its mission, objectives, products offered, and the process for filing claims.
This document discusses various topics related to insurance in the Philippines, including life insurance, non-life insurance, investment of insurance funds, the Insurance Commission as the regulatory body, key provisions of the Insurance Code of the Philippines, and the organizational structure and functions of the Insurance Commission. The summaries provide an overview of the high-level information covered.
The document discusses general insurance concepts including basic terminology, requirements for insurable risk, and principles of insurance. It defines key terms like insurance, insurer, insured, premium, policy, risk, peril, and hazard. The six requirements for a risk to be insurable are outlined. The seven principles of insurance are explained in detail, including indemnity, insurable interest, utmost good faith, contribution, average, subrogation, and proximate cause. Finally, the document categorizes insurance into life, general, fire, health, motor, and marine types.
1. The document discusses the history and development of the insurance sector in India. It traces insurance in India back to 1818 and discusses key developments like nationalization of insurance in 1956 and privatization in 1999.
2. The roles, types (life, general, health etc.), and major players (both public and private) of insurance are described. It also compares the market share and business of public sector giant LIC versus private insurers.
3. Benefits of insurance planning and investment opportunities in insurance are highlighted. Laws and regulations governing the insurance sector in India are also briefly outlined.
Insurance companies face various risks including technical risk from inaccurate risk assessment, credit risk from policyholder loans, market risk from investments, and operational risks. They assess and mitigate risks through techniques like reinsurance, hedging, controlling large losses, and smoothing results. Regulations require controls for higher risk customers and transactions to prevent money laundering and terrorism financing. Risk management aims to allocate capital proportionate to risks for consistent returns.
This document provides an overview of insurance. It defines insurance as a form of risk management used to hedge against uncertain losses. It describes how insurance works by pooling premiums from many individuals to pay out claims. Insurers make money through underwriting processes to select risks and premium levels, and by investing premiums. The document traces the evolution of insurance and provides key details on the insurance industry in India such as major players, policies, and market statistics. It concludes by discussing strategic policies and a SWOT analysis of the insurance sector in India.
The document outlines information about National Insurance Company (NIC), the largest insurance company in Palestine. It provides details on NIC's vision, financial position, types of insurance offered including vehicles, fire, life, and more. NIC has grown significantly since starting in 1992 with $5 million in capital to an estimated $80 million in assets by 2013. It maintains a high integrity score and strong reinsurance relationships. The company aims to provide innovative insurance services while maintaining stability and benefiting the local economy.
The document is a report on an insurance company prepared for Sir Mumtaz Hassan. It provides an overview of the insurance company, including its vision, mission, financial statements, and the various insurance services it offers such as marine, aviation, home, and fire insurance. It also discusses the history and introduction of EFU General Insurance and the functions of its accounting department.
This document provides an overview of the life insurance sector in India. It discusses the history and development of life insurance in India, including the establishment of the Life Insurance Corporation of India (LIC) in 1956 and the entry of private players after reforms allowed it in 2000. It summarizes some of the major life insurance companies in India, both public sector (LIC) and private sector (SBI Life Insurance, Tata AIG Life Insurance, Bajaj Allianz Life Insurance). It also discusses the role of the Insurance Regulatory and Development Authority established in 1999 to regulate the insurance industry.
This research proposal aims to study customer perception towards purchasing general insurance in Ahmedabad. The study will analyze factors that influence customers' selection of general insurance companies and policies. The objectives are to build a model for determining the key factors that impact policyholders' decisions. This study will help insurance companies understand customer preferences to develop competitive insurance products tailored to customer needs.
Insurance as a investment tool @ icici bank project report mba financeBabasab Patil
This document provides an overview of insurance as an investment tool with regards to ULIPs at ICICI Prudential Life Insurance Company Ltd in Hubli. It discusses the objectives of studying ULIPs, introduces ICICI Prudential and the importance of insurance in the Indian financial system. It also provides background on the history and regulations of insurance in India, including the role and functions of the Insurance Regulatory and Development Authority.
Insurance sector in India:challenges and opportunitiessumanjeetkaurgill
1) The document discusses the insurance sector in India, including its history and evolution from the 19th century to present day.
2) It covers the major players like LIC, GIC, and IRDA, and types of insurance policies including life, health, fire, and motor insurance.
3) The current insurance landscape in India is growing rapidly but there remains significant potential for further expansion, as over 75% of the population still lacks insurance coverage.
The document summarizes a study on people's perceptions of insurance in Chennai, India. It outlines the objectives to understand public awareness and preferences regarding insurance policies. The study found that most people were unaware of insurance benefits but preferred saving money in banks. It also identified safety as the most important criteria for investments and suggested insurance companies improve awareness of policies and payment options.
The document discusses the history and development of insurance in India. It provides definitions of insurance and describes different types of insurance like life, health, automobile, fire insurance. It summarizes the key players in the insurance sector including LIC, private insurers, and the regulatory body IRDA. It also outlines the products offered by LIC and investment policies of insurance companies.
Internship Report on EFU life Assurance LtdArshad Abbasi
This document provides background information on EFU Life Assurance Ltd., including its history and operations. It discusses that EFU was the first insurance company in India owned by Muslims and after independence moved to Pakistan. In 1992, when Pakistan opened up the life insurance sector to private companies, EFU was reorganized as EFU Life Assurance Ltd., becoming the first private life insurance company in Pakistan. The document also outlines some key terms related to insurance.
This document is a project report on studying claim management in life insurance. It includes an introduction that provides background on insurance, life insurance, and claim management processes. It then outlines the report structure which includes chapters on introduction, case study, research methodology, data analysis, findings, suggestions, and references. The objectives are to study claim management in life insurance and understand problems with taking out policies and settling claims. It assumes most customers are aware of claim management processes.
The document provides an overview of the insurance industry in India. It discusses that insurance is a promise of compensation for potential future losses in exchange for periodic payments. It outlines the origin and growth of the insurance sector in India, including the liberalization of the industry in 2000 that allowed private players to enter. It lists the top life and non-life insurance companies currently operating in India. Finally, it discusses why insurance is important by protecting assets and one's family from unexpected losses.
The document discusses how building strong digital brands is becoming increasingly important as online opportunities continue to grow. It argues that most current online advertising is of poor quality and does more harm than good to brands. To be successful online, companies need to focus on managing the entire consumer experience on their websites from first visit through purchase and beyond, as positive or negative online experiences directly influence consumer perceptions of a brand. The document proposes that to build strong digital brands, companies need to align their brand promises made to consumers, the website design to deliver on those promises, and an economic model to be profitable.
The document discusses the history and concepts of quality control. It begins by introducing W. Edwards Deming, an American management consultant who helped revive the Japanese economy after WWII by emphasizing quality control systems that solved problems through worker-management cooperation. It then defines key quality control terms and concepts, including control, quality, and quality control. It describes the stages of quality control including receiving, inspection, storage, production, and design. It outlines the advantages of quality control for both buyers and sellers. Finally, it discusses factors that affect quality like markets, costs, management, and technology, and principles for enhancing quality like having a customer focus, leadership, and involving employees.
EFU-GENERAL INSURANCE COMPANY was formed in 1932 to provide leadership to Pakistan's emerging insurance industry. It has since become the largest private sector insurer in Pakistan, offering a wide range of insurance products including Fire, Marine, Motor, Engineering, Miscellaneous covers, and Life insurance. The document provides details on EFU's history and growth over the decades as it expanded its services and established offices across Pakistan.
The document summarizes information about the National Insurance Company Limited (NICL), which is Pakistan's largest government-owned insurance company. It provides details about NICL's establishment, ownership, capitalization, board of directors, management team, objectives, products and services, clients, and network of offices. NICL aims to provide affordable insurance coverage to government organizations and develop the insurance sector in Pakistan. It offers various insurance products like fire, marine, motor, and agriculture insurance. The company has a widespread network across Pakistan and plans to expand further by opening new branches.
This document discusses the recruitment of advisors and sales of financial products through advisors in the life insurance industry in India. It provides background on the history and development of the life insurance sector in India. It describes how advisors, also known as agents, are critical to the distribution and sales process, as they are the primary channel through which insurance companies can explain policies and benefits to customers. The success of insurance companies depends on having an adequate network of agents to capture market share.
This document provides an overview of life insurance. It begins with definitions of life insurance and discusses the history of life insurance in India. It then outlines common reasons for purchasing life insurance and describes various types of life insurance policies like term life, endowment, whole/permanent life, money back, and unit linked plans. The document uses LIC as a case study, discussing its mission, objectives, products offered, and the process for filing claims.
This document discusses various topics related to insurance in the Philippines, including life insurance, non-life insurance, investment of insurance funds, the Insurance Commission as the regulatory body, key provisions of the Insurance Code of the Philippines, and the organizational structure and functions of the Insurance Commission. The summaries provide an overview of the high-level information covered.
The document discusses general insurance concepts including basic terminology, requirements for insurable risk, and principles of insurance. It defines key terms like insurance, insurer, insured, premium, policy, risk, peril, and hazard. The six requirements for a risk to be insurable are outlined. The seven principles of insurance are explained in detail, including indemnity, insurable interest, utmost good faith, contribution, average, subrogation, and proximate cause. Finally, the document categorizes insurance into life, general, fire, health, motor, and marine types.
1. The document discusses the history and development of the insurance sector in India. It traces insurance in India back to 1818 and discusses key developments like nationalization of insurance in 1956 and privatization in 1999.
2. The roles, types (life, general, health etc.), and major players (both public and private) of insurance are described. It also compares the market share and business of public sector giant LIC versus private insurers.
3. Benefits of insurance planning and investment opportunities in insurance are highlighted. Laws and regulations governing the insurance sector in India are also briefly outlined.
Insurance companies face various risks including technical risk from inaccurate risk assessment, credit risk from policyholder loans, market risk from investments, and operational risks. They assess and mitigate risks through techniques like reinsurance, hedging, controlling large losses, and smoothing results. Regulations require controls for higher risk customers and transactions to prevent money laundering and terrorism financing. Risk management aims to allocate capital proportionate to risks for consistent returns.
This document provides an overview of insurance. It defines insurance as a form of risk management used to hedge against uncertain losses. It describes how insurance works by pooling premiums from many individuals to pay out claims. Insurers make money through underwriting processes to select risks and premium levels, and by investing premiums. The document traces the evolution of insurance and provides key details on the insurance industry in India such as major players, policies, and market statistics. It concludes by discussing strategic policies and a SWOT analysis of the insurance sector in India.
The document outlines information about National Insurance Company (NIC), the largest insurance company in Palestine. It provides details on NIC's vision, financial position, types of insurance offered including vehicles, fire, life, and more. NIC has grown significantly since starting in 1992 with $5 million in capital to an estimated $80 million in assets by 2013. It maintains a high integrity score and strong reinsurance relationships. The company aims to provide innovative insurance services while maintaining stability and benefiting the local economy.
The document is a report on an insurance company prepared for Sir Mumtaz Hassan. It provides an overview of the insurance company, including its vision, mission, financial statements, and the various insurance services it offers such as marine, aviation, home, and fire insurance. It also discusses the history and introduction of EFU General Insurance and the functions of its accounting department.
This document provides an overview of the life insurance sector in India. It discusses the history and development of life insurance in India, including the establishment of the Life Insurance Corporation of India (LIC) in 1956 and the entry of private players after reforms allowed it in 2000. It summarizes some of the major life insurance companies in India, both public sector (LIC) and private sector (SBI Life Insurance, Tata AIG Life Insurance, Bajaj Allianz Life Insurance). It also discusses the role of the Insurance Regulatory and Development Authority established in 1999 to regulate the insurance industry.
This research proposal aims to study customer perception towards purchasing general insurance in Ahmedabad. The study will analyze factors that influence customers' selection of general insurance companies and policies. The objectives are to build a model for determining the key factors that impact policyholders' decisions. This study will help insurance companies understand customer preferences to develop competitive insurance products tailored to customer needs.
Insurance as a investment tool @ icici bank project report mba financeBabasab Patil
This document provides an overview of insurance as an investment tool with regards to ULIPs at ICICI Prudential Life Insurance Company Ltd in Hubli. It discusses the objectives of studying ULIPs, introduces ICICI Prudential and the importance of insurance in the Indian financial system. It also provides background on the history and regulations of insurance in India, including the role and functions of the Insurance Regulatory and Development Authority.
Insurance sector in India:challenges and opportunitiessumanjeetkaurgill
1) The document discusses the insurance sector in India, including its history and evolution from the 19th century to present day.
2) It covers the major players like LIC, GIC, and IRDA, and types of insurance policies including life, health, fire, and motor insurance.
3) The current insurance landscape in India is growing rapidly but there remains significant potential for further expansion, as over 75% of the population still lacks insurance coverage.
The document summarizes a study on people's perceptions of insurance in Chennai, India. It outlines the objectives to understand public awareness and preferences regarding insurance policies. The study found that most people were unaware of insurance benefits but preferred saving money in banks. It also identified safety as the most important criteria for investments and suggested insurance companies improve awareness of policies and payment options.
The document discusses the history and development of insurance in India. It provides definitions of insurance and describes different types of insurance like life, health, automobile, fire insurance. It summarizes the key players in the insurance sector including LIC, private insurers, and the regulatory body IRDA. It also outlines the products offered by LIC and investment policies of insurance companies.
Internship Report on EFU life Assurance LtdArshad Abbasi
This document provides background information on EFU Life Assurance Ltd., including its history and operations. It discusses that EFU was the first insurance company in India owned by Muslims and after independence moved to Pakistan. In 1992, when Pakistan opened up the life insurance sector to private companies, EFU was reorganized as EFU Life Assurance Ltd., becoming the first private life insurance company in Pakistan. The document also outlines some key terms related to insurance.
This document is a project report on studying claim management in life insurance. It includes an introduction that provides background on insurance, life insurance, and claim management processes. It then outlines the report structure which includes chapters on introduction, case study, research methodology, data analysis, findings, suggestions, and references. The objectives are to study claim management in life insurance and understand problems with taking out policies and settling claims. It assumes most customers are aware of claim management processes.
The document provides an overview of the insurance industry in India. It discusses that insurance is a promise of compensation for potential future losses in exchange for periodic payments. It outlines the origin and growth of the insurance sector in India, including the liberalization of the industry in 2000 that allowed private players to enter. It lists the top life and non-life insurance companies currently operating in India. Finally, it discusses why insurance is important by protecting assets and one's family from unexpected losses.
The document discusses how building strong digital brands is becoming increasingly important as online opportunities continue to grow. It argues that most current online advertising is of poor quality and does more harm than good to brands. To be successful online, companies need to focus on managing the entire consumer experience on their websites from first visit through purchase and beyond, as positive or negative online experiences directly influence consumer perceptions of a brand. The document proposes that to build strong digital brands, companies need to align their brand promises made to consumers, the website design to deliver on those promises, and an economic model to be profitable.
The document discusses the history and concepts of quality control. It begins by introducing W. Edwards Deming, an American management consultant who helped revive the Japanese economy after WWII by emphasizing quality control systems that solved problems through worker-management cooperation. It then defines key quality control terms and concepts, including control, quality, and quality control. It describes the stages of quality control including receiving, inspection, storage, production, and design. It outlines the advantages of quality control for both buyers and sellers. Finally, it discusses factors that affect quality like markets, costs, management, and technology, and principles for enhancing quality like having a customer focus, leadership, and involving employees.
This document is a project report submitted by Kamlesh I. Parekh for their Bachelor of Management Studies program. It provides details about the project such as the title "Supply Chain and Logistics Management", the student and college information, dates of submission, declarations by the student and certification by the principal. It also includes an acknowledgement section thanking those who helped with the project and an executive summary that overviews the objectives, methodology, and constraints of the project focused on understanding supply chain and logistics management concepts.
The document discusses the rise of private sector participation in healthcare in India and the need for professionally trained hospital administrators. It notes an increasing demand for healthcare services, willingness to pay for services, and an entrepreneurial spirit has led to growth in the healthcare industry. However, there is currently not a large enough pool of trained hospital administrators. The document proposes strategies for developing this new type of skilled professional, including promotion programs and creating administrator positions and acceptance of their roles in hospitals.
This document provides an overview of the aviation industry and two major aircraft manufacturers, Boeing and Airbus. It discusses the recent boom in aircraft orders, fueled by discounted pricing from manufacturers and leasing companies placing a growing number of orders. While this has led to a backlog, it may result in a downturn as the new aircraft enter service. It also profiles the Boeing 787 Dreamliner and Airbus A380, describing their passenger capacity and range. Finally, it provides a detailed history and overview of operations for the airline Virgin Atlantic.
This document provides an overview of newspapers in India, with a focus on comparing Times of India and Daily News and Analysis (DNA). It discusses the history and criticisms of Times of India, the introduction and ownership structure of DNA, and the competition between the two newspapers in Mumbai. DNA was launched in 2005 as a joint venture between Dainik Bhaskar Group and Zee TV to target younger readers. It outlines the editorial boards and sections of each newspaper.
This document summarizes key concepts from the 1981 book "Positioning: The Battle for your Mind" by Al Ries and Jack Trout. It discusses how positioning involves claiming a unique position for a product in the consumer's mind. First movers have an advantage, so a non-first product must find an unoccupied position. Leaders should reinforce their status without boasting and introduce related brands. Followers must find unique positions rather than trying to appeal to everyone. Repositioning competitors or changing perceptions of them can also be effective strategies. The name of a brand is very important in shaping consumer perceptions.
This document provides an overview of key concepts in tourism, including definitions of tourism and tourists. It discusses different types of tourism users and how to segment tourism markets. Some key points:
1. Tourism is defined as temporary, short-term travel for purposes like leisure, business, health, or visiting friends/family.
2. There are different categories of tourism users, from non-users to potential, actual, occasional, and habitual users.
3. Tourism markets can be segmented based on factors like lifestyles, holidays, purposes of travel, demographics, geography, and socioeconomics.
4. Understanding the behavioral profiles of different user segments is important for effective tourism marketing.
- The document discusses the role of executive search firms in corporate hiring. It provides background on recruitment processes and sources.
- Executive search firms are specialized recruitment consultancies that help companies find top and middle management talent. They perform in-depth searches, assessments, and screening to identify the best candidates.
- The document uses Maxima Global Executive Search as a case study to analyze the services executive search firms provide and how they add value in corporate hiring.
This document provides an overview of insurance in India, including the main types of insurance policies, how insurance works, and its importance. It discusses life, health, car, education, home, and general insurance policies. It explains elements of an insurance contract, how insurance protects against uncertainties, and how the insurance sector contributes to economic growth by providing stability and savings opportunities. Insurance allows individuals and businesses to protect themselves from financial losses from various risks through a system where premiums from many are used to compensate the few who suffer losses.
BSLI was the first company to introduce
the concept of an assistant. The assistant is a
dedicated resource to help the policyholder with any
queries or service needs.
3.
Online Purchase: BSLI was the first company to
offer online purchase of life insurance policies.
4.
Pure Term Plan: BSLI launched the first pure term
plan in the Indian market.
5.
Unit Linked Plans: BSLI pioneered the launch of
unit linked plans in India.
19
Birla Sun Life Insurance
6.
Bancassurance: BSLI was the first private player to
sell policies through the bancassurance route.
The document discusses the significance of insurance. It provides 3 key points:
1. Insurance provides safety and security against sudden losses by offering financial support. It reduces uncertainties in business and life.
2. Insurance generates financial resources by collecting premiums which are invested and used for economic development, creating employment opportunities and capital formation.
3. Life insurance encourages savings by enabling systematic savings through regular premium payments and providing an investment option. The insured receives a lump sum at maturity.
A project report_on_consumer_perception towards life insuranceSANJAYBT
The document discusses the history and current state of the insurance industry in India. It provides background on the origins and development of insurance globally and in India, including how the industry transitioned from being privately-owned to nationalized and then liberalized again. It also outlines the key players and segments in the current Indian insurance landscape.
Birla sun-life-insurance-product-portfolio-project-reportHardeep Malik
This document provides a summer training project report on studying the product portfolio of Birla Sun Life Insurance Co. Ltd. It includes an introduction to insurance concepts, the objectives of studying Birla Sun Life's plans, a description of the company's vision, mission and values, an overview of their products including Flexi Plans, Classic Life Premier, Gold Plus II, Supreme Life and Platinum Plus plans, and conclusions and recommendations from the study. Key information on Birla Sun Life's funds is also presented. The document contains acknowledgments and is submitted in partial fulfillment of requirements for a Bachelor's degree in Business Administration.
The document discusses a life long pension plan that allows individuals to save and accumulate funds for retirement needs. The plan offers tax benefits on contributions up to Rs. 100,000 annually, guaranteed minimum returns of 4% annually on savings, and flexibility to choose contribution amounts, payment modes, retirement age, and pension start date. The plan aims to help individuals save adequately and reliably for their post-retirement financial needs through pension payments.
This document discusses insurance, including its definition, history in Nepal, types of insurance, and effects on daily life. It begins by defining insurance as a legal contract between three parties that distributes risks by having the insurer assume the risk of loss in exchange for premiums from the insured. The document then covers the historical development of insurance in Nepal starting in 2004, describes the main types of insurance like life, marine, fire, and miscellaneous, and explains how insurance works by sharing losses among many. It concludes by discussing the positive effects insurance has on families, business, employment, the economy, and society by providing compensation against losses and encouraging risk-taking.
Stress management project report @ icici bank Babasab Patil
This document provides a table of contents for a report on consumer behavior towards insurance products with ICICI Prudential as a case study. The executive summary introduces the topics to be covered, including the need for insurance, company profile of ICICI Prudential, vision and products offered, stress management, findings and suggestions. The introduction section provides background on life insurance including its origin and development in India. It outlines the key regulations established by the Insurance Regulatory and Development Authority.
PPT on insurance for students. I have explained main types of insurance in this PPT. Hope you will find it beneficial and Useful. If you like my presentation then do comment. I will make more PPT's for you like this. Thank You.
This document appears to be a student project report analyzing the ratio analysis of LIC and ICICI Prudential Life Insurance companies. It includes sections on introduction to life insurance, unit linked insurance plans of ICICI Prudential, objectives of the study, contents table, and chapters on the companies, ratio analysis, calculations of ratios, and conclusion. The objective of the study is to analyze the growth, penetration, and returns of ICICI Prudential compared to its competitors over a 10 year period from 2000-2001 to 2009-2010.
Raja Babu Verma completed a summer internship project at Insta Policy Insurance in Indore, India to fulfill requirements for an MBA degree. The project report includes acknowledgements, a declaration, an introduction to insurance concepts, details about motor and vehicle insurance, features of policies, types of motor insurance like car and commercial vehicles, and add-on covers. Key highlights are that motor insurance is mandatory in India, comprehensive policies cover damage to one's own vehicle, and add-on covers provide extra protection for things like engine damage and accidental death of the owner.
The document is a summer internship project report submitted by Suraj Kumar for their MBA degree. It includes an introduction to insurance, company profile of CARE Health Insurance, and details of the CARE Health Family Optima Plan product. The report contains sections on SWOT analysis, objectives, policy documents, and conclusions from the internship project analyzing the health insurance product.
Insurance is a contract between two parties where one party (the insured) undertakes a risk and the other party (the insurer) promises to compensate the insured if a specified uncertain event occurs. There are two parties to an insurance contract - the agent or insured, and the insurer who takes out the policy. General insurance provides coverage for property, health, accidents, legal liabilities, and more. It is offered by general insurance companies to protect individuals, businesses, and their assets and legal liabilities. The General Insurance Corporation of India (GIC) was formed as a public sector company to control and operate general insurance in India.
The document provides an overview of insurance and summarizes key types of life insurance policies. It discusses the history of insurance beginning in ancient times and its evolution over centuries. It then defines what a life insurance policy is and its basic purpose of providing financial protection to families. The major types of life insurance policies covered are term insurance, whole life, endowment, money back, and ULIPs (unit-linked insurance plans). Each type is concisely described in 1-2 sentences.
This document summarizes Amit Das's six-week industry training project report on the insurance industry and Birla Sun Life Insurance. The report discusses the history of insurance, provides an introduction to different types of insurance policies, and explains how insurance works through risk pooling and premium payments. It also introduces Birla Sun Life Insurance, including key leadership, competitors, and a SWOT analysis. The report details Birla Sun Life's sales procedures and various insurance products and plans offered. The summary concludes with Amit Das gaining insight into the insurance world and comprehensive insurance options currently available in the market through the training experience.
The document provides an overview of how insurance works. It explains that insurance involves individuals pooling funds through premium payments to cover losses experienced by a few. When many individuals face the same risks, insurance allows for losses to be shared across the community in a manageable way for all. Premiums collected are invested, and surpluses are used to pay future claims or returned to policyholders. Examples illustrate how insurance protects against risks of fire or death by having many share the costs of losses affecting a few.
This document provides an overview of life insurance and SBI Life Insurance Company. It discusses the role and importance of life insurance, including as an investment, risk cover, tax planning, financial planning, and for economic development. It then provides details about SBI Life Insurance, which is a joint venture between State Bank of India and Cardif SA. SBI Life aims to offer a comprehensive range of life insurance and pension products at competitive prices with high customer satisfaction. It leverages SBI's large banking network for distribution. The document outlines SBI Life's mission and growth plans to become a leading life insurer in India.
This document provides an overview of insurance, including:
1. Insurance protects against economic losses by spreading risk across many policyholders who pay premiums into a common fund. It aims to ensure continuity of financial benefits when losses occur.
2. Insurance provides security, supports pensions and savings/investments, acts as collateral for loans, and offers tax benefits.
3. Insurance evaluates and prices risks, shares risks collectively, prevents losses by encouraging safety, and allows larger risks to be covered with smaller capital investments.
The document summarizes Amit Das's six-week industry training project at Birla Sun Life Insurance. It includes an introduction to the insurance industry, an overview of the training experience, and appendices that provide details of the project scope, bonafide certificate, and acknowledgements. The training provided insight into the insurance world and covered various Birla Sun Life insurance plans and their features. It concluded with the author gaining knowledge of the insurance sales procedure and pioneering features of Birla Sun Life Insurance.
The document provides an overview of the history and principles of insurance. It discusses:
- Insurance involves the transfer of risk from an individual to an insurer in exchange for premium payments.
- Key principles of insurance include utmost good faith, insurable interest, indemnity, subrogation, contribution, and proximate cause.
- It outlines the history of insurance regulation in India including the establishment of IRDA and liberalization of the insurance industry.
- A brief global history of insurance is also presented, noting some of the earliest forms of property and credit insurance dating back thousands of years.
The document defines and provides details on banking and other financial services that are subject to service tax in India. Key services include financial leasing, credit cards, merchant banking, asset management, custodial and depository services, and advisory services. The value of taxable services includes fees, interest charges, and commissions. Certain exemptions apply for agreements signed prior to the July 2001 introduction of the service tax on banking and financial services.
1) The document is a dissertation analyzing the competitive strategies of three major domestic airlines in India: Indian Airlines, Jet Airways, and Sahara Airlines.
2) It includes sections on research methodology, an introduction to the Indian aviation industry, profiles of the three airlines, a comparison of their marketing strategies, an analysis of customer perceptions and preferences, and conclusions and recommendations.
3) Primary research was conducted through a customer response questionnaire and interviews with airline staff, while secondary sources included airline literature and pamphlets.
The author acknowledges Amity Business School for providing the opportunity to write a dissertation on global branding. They thank their advisor Dr. ATK Raman for guidance throughout the research. They also thank the librarian and computer lab staff for assistance during the project. The research paper helped the author learn about considerations for global branding and how it can be achieved.
This document summarizes a market research report submitted to Nokia India Pvt. Ltd. evaluating the potential of end-user services on India's 3G/WCDMA platform and possible revenue models. The report assesses which 3G services Indian consumers are interested in and willing to pay for. It identifies the main services consumers want and the preferred tariff plans through surveys and statistical analysis. The goal is to help Nokia convince mobile operators to adopt 3G/WCDMA technology by demonstrating which applications will be accepted by Indian users.
This document is a project report submitted by Kamlesh Gautam to fulfill requirements for an MBA degree. The report details a summer training project conducted at National Thermal Power Corporation Limited's Rihand Super Thermal Power Project.
The report includes certificates from Gautam's university and project supervisor validating the work. It then covers the objectives, methodology, findings and recommendations of a study analyzing the financial concurrence process for contract awards at NTPC Rihand. Key findings include the average time taken for financial concurrence of awards being 31 days and proposals for reducing this lead time and saving money.
identifying distribution gap and planning for route effiumesh yadav
This document appears to be a student project report on identifying distribution gaps and planning route efficiency for Hindustan Coca-Cola Beverages in Varanasi, India. It includes certificates, acknowledgements, prefaces, and sections on distribution, direct marketing, and objectives at the firm, brand, and product line levels. The student conducted surveys of dealers and retailers to analyze distribution gaps and issues with route efficiency, such as shortages of certain bottle sizes and improper retailer visits. The goal was to identify problems and opportunities to improve Coca-Cola's distribution in the assigned areas.
This document provides an overview of a project report submitted for a Master's degree. It includes an executive summary that outlines the objectives and key findings of the research project conducted during a summer training. The research examined various aspects of the soft drink market in Ghaziabad, including the use of merchandising assets by retailers, demand for different brands, availability of brands, and packaging preferences. The document also includes sections on acknowledgements, company profile, introduction, methodology, analysis, limitations, recommendations, and conclusions.
comparative market analysis through each dealer survey aumesh yadav
This document provides a history of the soft drink industry from the late 1700s to the 1960s. It describes how carbonated water became popular for its perceived health benefits and how flavors were then added, leading to the development of early soft drinks in the late 1800s like Coca-Cola, Dr Pepper, and Moxie. The soft drink industry grew in the early 1900s with new brands but faced challenges during World Wars I and II as well as the Depression. The 1960s saw the rise of diet soft drinks as saccharin and cyclamate sweeteners were introduced.
The document provides a history of Pepsi Cola from its origins in 1893 when Caleb Bradham, a pharmacist from North Carolina, began experimenting with soft drink formulations. One of his creations was called "Brad's Drink" which was later renamed Pepsi-Cola in 1898. Pepsi-Cola received its first logo that year and continued to grow, receiving trademark protection in 1903. The company established early bottling franchises and saw increasing sales throughout the 1900s while undergoing several logo changes as the brand developed.
This document provides a summary of the marketing strategies of Coca-Cola based on a research project report. It discusses Coca-Cola's history and operations in India. Coca-Cola acquired several popular Indian brands in 1993 which helped rapidly introduce its international brands. The document outlines Coca-Cola's 3A strategy to increase availability, acceptability, and awareness among consumers. It also describes some of Coca-Cola's major brands like Coca-Cola, Diet Coke, Fanta, Limca, Maaza, Sprite, and Thumps Up and the company's commitments to the Indian brands. The creative advertisements of some brands focusing on their unique tastes and personalities are also highlighted.
This document provides an overview and history of Cadbury India Ltd. It discusses Cadbury's origins in 1824 when John Cadbury opened a grocery shop in Birmingham, England. It then summarizes Cadbury's growth over the decades as it introduced new chocolate products like Dairy Milk chocolate in 1905. The document also includes sections on Cadbury's organizational structure, research methodology used for projects, and the design and development of some of its iconic chocolate brands like Dairy Milk and Milk Tray.
This document provides an overview of the casual wear market in India and the consumer decision making process for casual wear purchases. It discusses the objectives of the research project, which are to study the consumer decision making process and factors influencing purchase decisions for casual wear among 15-25 year olds in Delhi. It then provides context on the size and growth of the casual wear market in India. The document summarizes the various types of casual wear, and outlines the current market scenario, including competitive and fashion trends that influence consumers. It also gives a brief overview of the textiles industry in India.
The document is a market research report submitted by a group of students to their professor. It includes an introduction, objectives, methodology, analysis, limitations, recommendations, and conclusion regarding a survey of consumer preferences for beer in Delhi, India. The methodology section describes how the survey was conducted using standard marketing research practices on a sample of 476 households. The analysis section summarizes the findings of the report and includes cross tabulation analysis. The report aims to provide useful insights into consumer preferences to help beer companies with marketing decisions.
Working capital management is important for short-term financial decisions and liquidity. It involves managing current assets like cash, inventory, and receivables, as well as current liabilities. Inadequate working capital can cause business failure, while excessive working capital leads to idle funds. The objectives of working capital management are to determine optimal investment levels in current assets, maintain sufficient liquidity to meet obligations, and locate appropriate short-term financing sources. Efficient working capital management is vital for business solvency and continuous operations.
working capitalmgmnt. in air port authorityumesh yadav
This document is a project report submitted by Manoj S. Hule for the Master of Business Administration program at Tilak Maharashtra University. The project examines the working capital management of Airports Authority of India. It includes certificates from the university and Airports Authority of India confirming the project work. The table of contents outlines chapters on the rationale for the study, objectives, company profile, theoretical framework, research methodology, data analysis, findings, limitations and expected contributions. The report aims to analyze the working capital management practices at Airports Authority of India and identify areas for improvement.
This document provides an overview of the two-wheeler industry in India. It begins with an introduction to the industry, historical development, and current state. The major players are identified as Bajaj Auto, Hero Honda, Kinetic, LML and TVS Motors. In recent years, the motorcycle segment has grown most rapidly, increasing its market share from 37% to nearly 70% currently. The objectives and parameters of the project are outlined, focusing on analyzing industry structure, major players, and their strategies through areas of management. An executive summary provides high-level details on industry trends, including increased competition leading to pricing pressures and reduced margins unless offset by volume growth.
This document provides guidance on how to better manage one's time by reducing wasted time and improving scheduling and planning. It discusses identifying responsibilities and priorities, distinguishing between urgent and important tasks, different types of tasks, and setting goals. Ways to assess current time management habits and do better include understanding what needs to be done, having a positive attitude, and starting to plan time right away. Taking the time to properly organize, prioritize and schedule tasks is presented as key to making the most effective use of the limited time available.
The document discusses the history and evolution of placement as a professional practice in rehabilitation counseling. It traces the origins of placement services to early 20th century legislation providing vocational education and rehabilitation for disabled veterans and workers. Over time, placement emerged as a distinct specialization within the field, with its own professional competencies and standards. A key development was the formation in 1964 of the Job Placement Division within the National Rehabilitation Association, recognizing placement as a unique profession. The role and importance of placement services has continued to adapt to changes in legislation, consumer expectations, and the rehabilitation field.
This document discusses the "glass ceiling effect", which refers to invisible barriers that prevent women from rising to senior leadership positions. It provides background on the origins of the term in the 1980s and examines different levels of barriers - at the apprenticeship level, within the leadership pipeline, and at the executive level where advancement seems impossible. The document explores whether barriers truly exist or if women's choices are more responsible for the lack of representation in top roles. It ultimately aims to determine if the glass ceiling is fiction or truth.
Supply chain management involves coordinating the flow of materials and information between suppliers, manufacturers, warehouses, and stores. The document discusses the key components of supply chain management including planning, sourcing, production, delivery, and returns. It also outlines the strategic and operational decisions involved in areas like location, production, inventory, and transportation that are important for managing the supply chain effectively. Overall, supply chain management is a strategic tool that can improve customer service and competitiveness by efficiently integrating all parts of the supply chain.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
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The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
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1. DECLARATION
I, Arun S Kaimal , studying in TY BMS of SIES COLLEGE OF ARTS,
SCIENCE & COMMERCE, NERUL hereby declare that I have completed
this project on “LIFE INSURANCE SECTOR IN INDIA” in the academic
year 2003-04 as per the requirements of the MUMBAI UNIVERSITY as a
part of BACHELOR IN MANAGEMENT STUDIES (BMS) programme .
The information presented through this project is true and original to the best
of my knowledge.
Arun S Kaimal
TYBMS
SIES NERUL
1
2. CERTIFICATE
I, Venkat S Iyer , hereby certify that Arun S Kaimal , of SIES COLLEGE
OF ARTS, SCIENCE & COMMERCE, NERUL has completed this project
on “LIFE INSURANCE SECTOR IN INDIA” in the academic year 2003-
04. The information submitted in this project is true and original to the best
of my knowledge.
Prof Venkat S Iyer Smitha Ramakrishna ProfG.V.Subramaniam
Project Guide BMS Cordinator Principal
2
3. ACKNOWLEDGEMENTS
This project is the culmination of a study into the wide gamut of activities carried on in
the domain of Insurance especially LIFE INSURANCE in India. This project would just
not have been complete without the valuable contributions from various people whom I
have interacted with in the course of its completion. I would like to express my sincere
gratitude to all those people who have in their own sweet ways helped me complete this
project. I begin by thanking my Project Guide and my Guru, Professor Venkat S Iyer,
the treasure trove of information who has rallied strongly behind me to see me
complete this project. Without him this project would have remained just an idea,
without form or content. My parents who have always stood by me as solid as a rock; it
is their faith in me that has seen me complete this project on time. My brother who
helped me in whatever small ways possible .The list goes on ……………
I wish to thank all those people who have lent me a helping hand in finishing this project
, whose names are too numerous to be mentioned here. I am also grateful to our
Principal Prof G. V. Subramaniam and our BMS Coordinator Mrs. Smita Ramakrishna who
have always been my guiding lights .
3
4. INDEX
TOPIC PAGES
Executive Summary 01
What is Insurance 02-03
Principles of Insurance 04-05
History of Insurance 06-09
Types of Insurance 10-11
Kind of Products 12-16
Overview of the Life Insurance
Sector in India 17-18
IRDA-The Watch Dog 19-21
Players in the Indian Market 22-44
Insurance Marketing 45-47
Range Of Products 48-54
The Market Scenario 55-56
The Road Ahead 57-63
Some Important Concepts 64-67
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5. EXECUTIVE SUMMARY
This project is aimed to be an eye opener for the layman of my country. The huge and ever rising
population levels in our country provides an attractive opportunity for the global insurance majors to
seek their fortunes here. This is the reason why we find so many private players today competing with
Life Insurance Corporation of India (LIC) the only life insurer prior to liberalisation of our economy ,
for insuring Indian Lives. Inspite of the loud noises made by the various companys vying for a slice of
the large Indian Insurance Pie , the irony is that even today not more than 20% of the populace of our
country is aware about the very basic concepts regarding life insurance. This is precisely the reason
why we see a mandatory tag today with every advertisement that advertises for an Insurance product ,
that goes “INSURANCE IS THE SUBJECT MATTER OF SOLICITATION”. The Insurance
Regulatory Development Authority of India (IRDA) is aware of the fact that many Indian consumers
5
6. can be taken for a ride by fly by night operators who could seek to sell insurance as a pure investment
instrument and make good with their hard earned money, promising them huge returns.
This project seeks to throw light on the functioning of the insurance industry in India. Further this
project also aims to clear most of the doubts that may be clouding the minds of an average Indian,
regarding the LIFE INSURANCE SECTOR IN INDIA .
However this project has its own limitations as it is an effort by a 19 year old to understand the
working of an industry that has existed for many hundreds of years and is now poised to take a giant
leap forward, affecting the lives, livelihood and fortunes of millions and millions of our countrymen.
What Is Insurance?
Insurance is not necessarily an investment from which one expects to get one's money back. Nor is it
gambling. A gambler takes risks, while insurance offers protection against risks that already exist.
Insurance is a way to share risk with others. Since ancient times, communities have pooled some of
their resources to help individuals who suffer loss.
"Insurance is a contract between two parties whereby one party called
insurer undertakes in exchange for a fixed sum called premiums, to pay
6
7. the other party called insured a fixed amount of money on the
happening of a certain event."
“Insurance is a protection against financial loss arising on the happening
of an unexpected event. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the premiums
collected from the insuring public and the Insurance Companies act as
trustees to the amount collected.”
For example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person
receives a fixed compensation on the death of the insured. Similarly, in a car insurance, in the event of
the car meeting with an accident, the insured receives the compensation to the extent of damage. It is a
system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance
is desired to safeguard oneself and one's family against possible losses on account of risks and perils.
It provides financial compensation for the losses suffered due to the happening of any unforeseen
events. By taking life insurance a person can have peace of mind and need not worry about the
financial consequences in case of any untimely death.
7
8. Certain Insurance contracts are also made compulsory by legislation. For example, Motor Vehicles
Act 1988, stipulates that a person driving a vehicle in a public place should hold a valid insurance
policy covering " Act" risks. Another example of compulsory insurance pertains to the Environmental
Protection Act, wherein a person using or carrying hazardous substances (as defined in the Act) must
hold a valid Public Liability (Act) Policy.
Principles of Insurance
Insurance is a 'risk transfer mechanism' - it transfers the financial risks of everyday life from you to an
insurance company. But only in terms of the financial consequences of risk. Without insurance, if you
car was damaged, it would cost you a lot of money to fix it or to buy another one. It could cost you
even more to pay for compensation to someone else involved in an accident. Insurance protects your
financial interests. It cannot alleviate the emotional consequences of an accident. It cannot provide for
humanitarian ideals. It can't help you with sentimental losses. But properly used, it will protect your
financial investment in your car and your legal obligations should you have an accident.
8
9. Insurable Interest
Before you can insure anything, you must have a legally recognised financial interest in what you are
insuring. For motor insurance, you can't take out an insurance policy on the car driven by the latest
film star in the hope that it will crash and you can claim. That is nothing more than gambling. You
have no financial interest in the well being of the object insured and would gain by its destruction. But
you can insure the car you own, or drive. You would suffer financially if it is damaged or stolen and
benefit from its continued existence.
Indemnity
This word is used to describe the type of payment you would receive. A motor policy and a household
policy are both a contract of indemnity. It means, subject to the terms of the contract, you are entitled
to be put back in the same financial position after a loss as you were in before the loss. In terms of a
'new for old' policy the measure of indemnity is agreed at the point of sale rather than the time of
claim. The term is also sometime used to indicate if your insurer will meet the claim at all. A refusal to
indemnify is a refusal to pay the claim.
Contribution
If there is more than one policy in force that you could claim on, you can't get payment from them
both that would exceed the value of your loss. So each policy would contribute a portion of the loss.
You would receive the full value of the loss but no more and the two policies would only bear part of
it each.
Subrogation
9
10. This is the right that your insurer has to recover from someone else where you are entitled to do so.
For example, if another driver causes damage to your car, and your insurers pay for it, subrogation
gives them the legal right to 'stand in your shoes' and reclaim their outlay from the responsible driver.
Proximate Cause
When you seek to claim from your insurers for a property or financial loss you must show that the loss
was caused as a result of a peril covered by the policy. There must be a direct relationship of cause and
effect, the cause must be proximate in efficiency but not necessarily in point of time. There might for
example, be a chain of causes in which each cause is the natural result of the preceding cause. It is the
immediate and not the remote cause which must be considered. The full and classic definition of this
principle is given in case law called 'Pawsey V Scottish Union and National Insurance Co (1908)'
History of Insurance
Insurance has been around since ancient times. The Babylonians and Phoenicians had ocean marine
insurance to protect a merchant against losses incurred when a ship did not reach its intended
destination with its load of goods or did not return with payment. This form of insurance, called
respondentia, evolved because the goods on board often were used as collateral for a loan. The lender
charged the borrower interest on the loan and levied an additional sum, the premium, to cover the cost
of the respondentia contract. If the ship reached its destination and returned, the merchant received
payment for the goods and in turn paid the moneylender. If the ship failed to return, the debt was
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11. cancelled. This system was profitable to lenders because many respondentia contracts were sold, and
debts were paid more often than cancelled.
In ancient Rome, associations had a form of insurance for their members. Each member made regular
payments to the association in return for coverage of funeral expenses or for assistance to family
members who were injured or ill.
Insurance also existed in 17th-century England, which was then one of the world's principal maritime
powers. Those seeking marine insurance would post a list of their cargo and voyages in a London
coffee house owned by Edward Lloyd. Private investors would examine the list and sign their name by
the entries they were willing to guarantee for a fee. These private investors were the first insurance
underwriters, and the coffee house became the world center of marine insurance. Today the
organization is known as Lloyds of London, and it brings together individuals, most often working in
syndicates, who write all types of insurance.
Insurance in the modern form originated in the Mediterranean during 14th century. The earliest
references to insurance have been found in Babylonia, the Greeks and the Romans. The use of insurance
appeared in the account of North Italian merchant banks who then dominated the international trade in
Europe at that time. Marine insurance is the oldest form of insurance followed by life insurance and fire
insurance. The patterns that have been used in England followed in other countries also in these kinds of
insurance
The oldest and the earliest records of marine policy relates to a Mediterranean voyage in 1347. In the
year 1400, a book written by a merchant of Florence, indicates premium rates charged for the shipments
by sea from London to Pisa. Marine Insurance spread from Italy to trading routes in other countries of
Europe.
11
12. Fire insurance has its origin in Germany where it was introduced in municipalities for providing
compensation to owners of the property, in return for an annual contribution, based on the rent of those
premises. The fire insurance in its present form started after the most disastrous fire in human history
known as the 'Great Fire' in London, which had destroyed several buildings. It drew the attention of the
public and the first fire insurance commercially transacted in 1667. The Industrial Revolution (1720-
1850) gave much impetus to fire insurance. The Nineteenth century marked the development of fire
insurance.
Due to the increasing demands of the time, different forms of insurance have been developed. Industrial
Revolution of 19th century had facilitated the development of accidental insurance, theft and dacoity,
fidelity insurance, etc. In 20th century, many types of social insurance started operating, viz.,
unemployment insurance, crop insurance, cattle insurance, etc. This way the business of insurance
developed simultaneously with human and social development. Today, the use of computers in the field
of insurance is frequently increasing. Insurance becomes an inseparable part of human development.
The early developments of life insurance were closely linked with that of marine insurance. The first
insurers of life were the marine insurance underwriters who started issuing life insurance policies on the
life of master and crew of the ship, and the merchants. The early insurance contracts took the nature of
policies for a short period only. The underwriters issued annuities and pension for a fixed period or for
life to provide relief to widows on the death of their husbands. The first life insurance policy was issued
on 18th
June 1583, on the life of William Gibbons for a period of 12 months.
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for Indian
lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The Bombay
12
13. Mutual Life Insurance Society started its business in 1870. It was the first company to charge same
premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in
1880. The first general insurance company- Tital Insurance Company Limited, was established in
1850. Till the end of nineteenth century insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of
1912 and the Provident Fund Act of 1912. Several frauds during 20's and 30's sullied insurance
business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation
was introduced with the Insurance Act of 1938 that provided strict State Control over insurance
business. The insurance business grew at a faster pace after independence. Indian companies
strengthened their hold on this business but despite the growth that was witnessed, insurance remained
an urban phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalised monopoly corporation and LIC was born. Nationalisation was
justified on the grounds that it would create much needed funds for rapid industrialization. This was in
conformity with the Government's chosen path of State- led planning and development.
The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their
operations were restricted to organised trade and industry in large cities. The general insurance
industry was nationalised in 1972. With this, nearly 107 insurers were amalgamated and grouped into
four companies- National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. These were subsidiaries
of the General Insurance Coororation of India (GIC)
13
14. TYPES OF INSURANCE
General insurance
The basis for general insurance is "transfer of risk".
This means that the insurer agrees to compensate you if you suffer a loss. Without the insurance you
would have to pay for that loss yourself. Obviously this contract is made on the basis that the
insurance company calculates the risk that you, or the total number of people buying insurance, will
cost more in payouts than what is received in premiums. This is determined by the use of statistics and
the information you disclose on your application for insurance.
14
15. This includes:
Home contents. It can either be "defined event" i.e. the policy covers loss or damage from a list of
"defined" events, e.g. storm or fire; or "accidental loss or damage" i.e. all accidental loss with some
exclusions.
Motor vehicle. It can either be "comprehensive" i.e. it covers any damage to your car as well as
damage to the other car or another person's property; "third party property" i.e. it covers damage
caused by your car to another person's property. This type of insurance will not cover you for the cost
of repairs to your own car; "third party fire and theft i.e. it covers damage partly for damage caused by
your car to another person's property, and restricted cover for damage to your car cause by theft or fire.
Income protection. With this type of insurance the insurer agrees to pay you a specified amount of
money, usually in monthly payments, in the event that you become disabled and unable to work.
Along the same lines you an purchase "trauma insurance" to cover a medical trauma such as a heart
attack.
Also in the modern day world a number of utility specific insurance policies are being
launched by the various players in the insurance market in an effort to stay one step ahead of their
competitors. Hence to make the Definition of General Insurance more broad based and inclusive we
can say that all the policies which do not fall under “Life Insurance “ category fall under the General
Insurance category.
15
16. Life Insurance
Life insurance is insurance that will protect your family and/or specified dependents in the event of the
policy holder’s death. In general, it is an essential component in planning for the future.
There are many options with coverage, depending on your situation. And there are three main
categories of life insurance: term life, universal life, and whole life insurance.
Term life is the simplest and least expensive type of policy. It's pure insurance with no cash value
account. A term life policy has only one function: to pay a specific lump sum to whoever you've
designated, upon a specific event, your death.
Whole life insurance provides permanent protection for your dependents while building a cash value
account. With this type of insurance, the insurance company manages the policies various accounts.
Universal life insurance provides permanent protection for your dependents and is more flexible than
whole or variable life.
KINDS OF LIFE INSURANCE PRODUCTS
Term Life Insurance
Term life insurance is the easiest form of life insurance. It simply provides insurance protection for a
period of time and only pays a benefit during that period. Since term life insurance has no cash value,
the amount of protection in this policy is equal to its death benefit. There are three basic forms of term
life insurance: level term, decreasing term, and increasing term.
Level Term Life Insurance
Level term life insurance provides an equal amount of protection for a period of time. For example a
Rs 150,000 ten-year level term life insurance policy pays out Rs 150,000 of coverage until the ten
16
17. years are over. At the end of the ten years this level term life insurance policy would expire, and would
pay out no benefits.
Decreasing Term Life Insurance
Decreasing term life insurance is a policy where the benefit amount decreases gradually over the term
of the protection. A 30 year Rs 200,000 decreasing term policy, for example, wound pay a Rs 200,000
benefit at the beginning of the policy. This amount would gradually decline over the 30-year term and
would pay out Rs 0 at the end of the term. This type of term life insurance is good when the need for
protection declines over the years. For instance, if you just took out a Rs 200,000 30-year mortgage on
your home, the insurance would pay off the mortgage if the insured should pass away during the
mortgage term.
Increasing Term Life Insurance
Increasing term life insurance policies provide a payout benefit that gradually increases at periodic
intervals. These increase amounts are usually a percentage of the original amount. Increasing term life
insurance is usually sold as a protection against the effects of inflation. Therefore this type of
insurance is usually sold along with another form of life insurance.
Most forms of term life insurance allow you the option to renew. This allows the policy owner to
renew the term policy before its termination date. The benefit of this is that you usually do not have to
qualify again for the policy. The term life insurance rate, however, for the new period would be higher
than the initial period. The one-year renewable term is the most common type of these renewable term
life insurance policies. This provides coverage for one year and allows the policy owner to renew his
or her coverage each year, even if the policy owner becomes uninsurable.
Another option for term life insurance policies is the option to convert. This allows the insured to
exchange the term life insurance plan for a whole life plan, even if the owner becomes uninsurable.
17
18. When changing the policy, your premium term life insurance rates are based on either your current
age, or the age when you originally took out the policy. Depending on how your policy is set up, you
could be paying much lower interest rates that you would have normally qualified for.
Whole Life Insurance
Whole life insurance is a popular life insurance plan because it provides permanent protection,
provided premiums are paid. The advantages of whole life insurance plans are cash values, maturity at
age 100, and living benefits. Also the policy's premiums and benefits remain constant throughout the
policy's life.
Unlike term life insurance, which provides only death protection, whole life insurance combines
insurance protection with savings benefit. The cash value of this type of insurance builds over the life
of the policy. This is because whole life insurance plans are given a certain guaranteed interest rate.
The interest gained is credited onto the policy and grows over time. This cash value is also the amount
of money the policy owner will receive if the policy is ever canceled. The whole life insurance cash
value is generally figured out based on the face value of the policy, the duration and amount of
payments, and how old the policy is.
Another benefit of whole life insurance policies is that they are designed to mature at the age of 100.
The premium rate for a whole life insurance is based on the assumption that the insured would be
paying premiums until the age of 100. This means that at age 100, the cash value of the policy has
come to the point when it equals the face amount of the policy. At this point the policy has completely
matured, no more premiums are owned, and the policy is completely paid out to the policy owner.
The living benefits of a whole life insurance policy is, through the cash value accumulation build-up in
the policy, that a policy owner has a ready source of funds that may be borrowed against. These funds
18
19. could be used for anything from an emergency, to pay off a mortgage, or for your child's education. In
addition, because life insurance is considered property with a cash value, it may be used as collateral
for loans. However, if a loan is outstanding at the time the insured passes away, the amount of the loan
plus any interest will be subtracted from the death benefit before it is paid.
Premiums for a generic straight whole life insurance plan provide level protection with level
premiums, from the time the policy is taken out until the age of 100. Even though whole life premiums
are calculated as if they are payable to age 100, they don't have to be paid that way. There are several
types of whole life insurance that have been developed to accommodate a variety different people.
Limited pay whole life insurance is one of these many types of whole life insurance. This type of
insurance has level premiums that are paid until a certain period of time. For instance, a 30 year
limited pay whole life insurance policy is one in which premiums are paid for the duration of 30 years,
after which no premiums would be paid. Even though you wouldn't be paying premiums after the 30
years, your life insurance protection and cash value are calculated to the age of 100.
Universal Life Insurance
Universal life insurance is a variation of whole and term life insurance, with added flexibility and
transparency. This added flexibility allows the policy owner to determine the amount and frequency of
premium payments and to adjust the benefit payout amount up or down to reflect changes in needs.
Universal life insurance also provides a type of transparency, in that the life insurance policy is broken
down into its protection, savings, and expense components. Each month a mortality charge is deducted
from the policy's cash value for the cost of the insurance protection, then interest is added to the
remaining cash value. When the policy owner pays a premium, the insurance company takes out an
expense charge and then adds the remainder to the cash value.
19
20. Universal life insurance policies remain in force as long as there enough cash value to pay the monthly
mortality expenses, regardless of whether or not the policy owner pays the premium. Therefore, if the
premium payments made aren't large enough or frequent enough to generate sufficient cash values, the
policy would terminate.
At stated times the policy owner can increase or decrease the face value of a universal life insurance
policy. This allows the owner to change their policy based on their current needs. An increase or
decrease in premium payment is not required, as long as the cash values can cover the mortality
charges. With a universal life insurance you can also elect to put more into the policy, adding to the
cash value.
Your cash values on a universal life insurance policy are calculated out by using guaranteed and
current interest rates. Universal life insurance policies always guarantee a minimum interest rate along
with maximum mortality and expense charges. The company is obligated to pay only its guaranteed
values, even though they usually pay out higher interest rates depending on current rates.
With a universal life insurance policy the money in the cash value account is readily available to you.
You can not only borrow against it, but you can withdrawal the entire amount or withdraw part of it.
However, your death benefit is reduced by the amount you withdraw, and you cannot restore the
original benefit by simply repaying the amount withdrawn. You would have to put money back into
your policy, which is subjected to expense charges. Plus if it is a large increase in your benefit you
may have to prove that you are still in good health.
The transparency of your universal life insurance allows you to choose your premiums. Some insurers
may require you to pay a minimum premium, which are usually still lower than the mortality and other
charges. You should be prepared to pay a decently large premium to keep your policy in effect incase
interest rates fall or expenses rise. Universal life insurance works best if you select a reasonably large
20
21. premium, compared to what you might pay for a traditional whole life plan. This limits your risk from
possible future premium increases.
OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA
With largest number of life insurance policies in force in the world, Insurance happens to be a mega
opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of
the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s
GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.
21
22. Yet, nearly 80 per cent of Indian population are without life insurance cover, health insurance and
non-life insurance continue to be below international standards. And this part of the population is also
subject to weak social security and pension systems with hardly any old age income security. This
itself is an indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is needed for economic development as it provides
long term funds for infrastructure development and at the same time strengthens the risk taking ability.
It is estimated that over the next ten years India would require investments of the order of one trillion
US dollars. The Insurance sector, to some extent, can enable investments in infrastructure
development to sustain economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure projects are fraught with a
multitude of risks throughout the development, construction and operation stages. These include risks
associated with project implementaion, including geological risks, maintenance, commercial and
political risks. Without covering these risks the financial institutions are not willing to commit funds to
the sector, especially because the financing of most private projects is on a limited or non- recourse
basis.
Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-
term funds. In fact, insurance companies are an ideal source of long term debt and equity for
infrastructure projects. With long term liability, they get a good asset- liability match by investing their
funds in such projects.
22
23. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in
infrastructure and social sectors. International Insurance companies also invest their funds in such
projects.
Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance
Act- 1938 and the IRDA Act- 1999. The Government of India liberalised the insurance sector in
March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter the market with
some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap
for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent.
Premium rates of most general insurance policies come under the purview of the government
appointed Tariff Advisory Committee.
The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and
this may also include restructuring and revitalising of the public sector companies. A host of private
insurance companies operating in both life and non-life segments have started selling their insurance
policies since 2001.
Insurance Regulatory and Development Authority –The Watch Dog
On 19th April 2000, the Authority has been notified in the Gazette of India in terms of Insurance
Regulatory and Development Authority Act, 1999 (IRDA Bill). The Authority has also been
constituted.
23
24. Mission:To protect the interests of the policyholders, to regulate, promote and ensure orderly growth
of the insurance industry and for matters connected therewith or incidental thereto
DUTIES, POWERS AND FUNCTIONS OF AUTHORITY
AS per the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
ACT ,1999
• 14(1) Subject to the provisions of this Act and any other law for the time being
in force, the Authority shall have the duty to regulate, promote and ensure orderly
growth of the insurance business and re-insurance business.
• 14(2) Without prejudice to the generality of the provisions contained in sub-
section (1), the powers and functions of the Authority shall include,--
a. issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration;
b. protection of the interests of the policy-holders in matters concerning assigning
of policy, nomination by policy-holders, insurable interest, settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts of
insurance;
c. specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
d. specifying the code of conduct for surveyors and loss assessors;
24
25. e. promoting efficiency in the conduct of insurance business;
f. promoting and regulating professional organization connected with the
insurance and re-insurance business;
g. levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;
h. control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and of
1938 regulated by the Tariff Advisory committee under section 64U of the
Insurance Act, 1938;
i. specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries;
j. regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
k. adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
l. supervising the functioning of the Tariff Advisory committee;
25
26. m. supervising the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organization referred to in clause (f);
n. specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
o. exercising such other powers as may be prescribed.
The founder chairman of IRDA was Mr. N.Rangachary. It was under his stewardship that the Indian
Insurace industry really opened up.
Chairman: Mr. C. S. Rao
The IRDA is located at
3rd Floor, Parisrama Bhavanam
5-9-58/B, Fateh Maidan Road
Basheerbagh
Hyderabad - 500 004
Ph : 040-55820964
040-55789768
Fax: 55823334
26
27. THE PLAYERS IN THE INDIAN LIFE INSURANCE MARKET
• Allianz Bajaj Life Insurance Co. Ltd.
• AMP Sanmar Assurance Company Limited
• Birla Sun Life Insurance Co. Ltd.
• Dabur CGU Life Insurance Company Pvt. Ltd
• HDFC Standard Life Insurance Co. Ltd.
• ICICI Prudential Life Insurance Co Ltd.
• ING Vysya Life Insurance Co. Pvt. Ltd.
• Life Insurance Corporation of India
• Max NewYork Life Insurance Co. Ltd.
• MetLife India Insurance Company
• OM Kotak Mahindra Life Insurance Co. Ltd.
• SBI Life Insurance Company Ltd.
• Tata AIG Life Insurance Co. Ltd.
27
28. LIFE INSURANCE CORPORATION OF INDIA
LIC was formed on 1-9-1956 by Government of India by nationalizing the then existing private
insurance companies. At that time the objective of nationalization of the life insurance business was
to canalize the funds of LIC for the benefit of the people of India. LIC invests not less than 75% of its
funds in Central Government Securities, State Government Securities and the balance is invested by
LIC in the private sector.
The central office of LIC is located at Mumbai. There are 7 zonal offices and about 200 divisional
offices in LIC spread all over the country. The zonal office in LIC controls between 3 to 7 divisional
offices. In turn divisional offices monitor, guide and control the branch offices. Most of the
functioning of LIC like issuing policies, collecting premiums and payments of maturity and death
claims is done at branch office level, only cases which fall beyond the financial powers of branch
offices are referred to divisional offices for approval.
LIC also has another wing called "Pension and Group Insurance", whose accounts are maintained
seperately and are also shown seperately in the detailed financial highlights of LIC. The group
insurance business and servicing is handled separately by Pension & Group Schemes Department of
LIC at Divisional Office level. LIC follows the usual practice of closing its accounts on 31st March of
28
29. every year. LIC being a giant, takes about 4 to 6 months to finalise its financial performance. More
over the detailed accounts of LIC have to be submitted to Parliament every year.
As the accounts of the LIC are finalised some time during Aug. - Sept. the bonus rates on with profit
policies are declared only in October(usually). Till 1996 LIC was following a uniform bonus rates for
Endowment and Whole Life Policies. But it is observed that LIC has changed its earlier policy and
from 1996 onwards it is declaring different rates of bonuses depending on the term/policy etc.
Corporate Office:
Yogakshema Jeevan Bima Marg,
Post Box No. 19953,
Mumbai 400 021.
Telephone Number: 2021383/2022151
WebSite : www.licindia.com
29
30. FINANCIAL PERFORMANCE of LIC( RS in Crores )
1997-98 1998-99 1999-2000
PREMIUM INCOME 19,252.07 22,805.80 27,461.71
OTHER INCOME
INCOME FROM
INVESTMENTS
OTHER RECEIPTS
11,296.32
184.21
13,183.92
362.87
16,056.62
1,211.28
TOTAL INCOME 30,732.60 36,352.59 44,729.61
EXPENSES
COMMISSION
OTHER EXPENSES
1,706.55
2,246.67
2,001.94
2,667.56
2,506.02
3304.84
TOTAL EXPENSES 3,953.22 4,669.50 5,810.86
CLAIMS FOR THE
YEAR (INCLUDING
BONUS)
BY DEATH
BY MATURITY
1,165.17
5,507.90
1,378.36
6,237.42
1,637.70
7,628.55
LIFE INSURANCE
FUND AT THE END
1,05,832.89 1,27,389.06 1,54,043.73
30
31. OF THE YEAR
TOTAL ASSETS 1,09,954.38 1,32,764.39 1,60,935.76
Claims Settlement Operations
Claims Intimated
Claims settled during the
year
Claims outstanding
(including claims written
back) at the end of the
year
Year
Number
(in lakh)
Amount
(Rs. in crore)
Number
(in lakh)
Amount
(Rs. in crore)
Number
(in lakh)
Amount
(Rs. in crore)
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
41.90
49.42
56.51
60.07
66.19
4594.69
5722.38
6673.07
7615.78
9266.25
41.67
49.49
56.52
59.83
66.42
4532.22
5691.49
6677.04
7583.18
9211.30
1.67
1.60
1.59
1.83
1.60
288.70
319.59
315.62
348.22
403.17
31
32. Birla Sun Life Insurance Company Limited
The company is the result of a joint venture between The Aditya Birla Group and Sun Life Financial, a
leading international financial services organization. The Aditya Birla Group is the second largest
business house in India, with a turnover exceeding Rs 260 billion and an asset base in excess of Rs
180 billion. The group's market capitalization is approximately Rs 150 billion. It has 7 lakh investors
and employs around 72,000 people. It is a multinational conglomerate in it's own right, with 75
diversified business units in India and overseas, including operations in Canada, USA, UK, Thailand,
Indonesia, Philippines, Malaysia and Egypt.
Sun Life Financial has evolved from a single mutual fund life insurance company into one of the most
highly rated insurance and wealth management institutions in the world. Sun Life Financial group
offers a wide range of financial solutions to individuals and corporates and these are in the areas of
life, health and disability; pension funds and plans; investment management; annuities and savings;
trust, brokerage and banking. Sun Life Assurance Company of Canada, Sun Life's primary insurance
arm, is among the largest international financial services organizations in the world, with assets under
management of over US$ 201 billion.
The two groups have had a partnership in India for a long time in the areas of asset management, retail
distribution and stock broking. It was natural therefore that when the insurance sector was opened up
in India, the partnership was extended to life insurance. Thus was born Birla Sun Life Insurance
Company Ltd.
32
33. The company has set for itself the following Business Management Philosophy:
Vision
To be a world class provider of financial services to individuals over their lifetime
Mission
To be the first preference of their customers as a leading Integrated Insurance Provider of insurance
solutions through superior value creation and technology.
Core Values
• Operating with integrity to the very highest standards of business conduct.
• Always working with the customer's needs in mind.
• Relentlessly pursuing excellence through the people they employ and the work they do.
• Providing products and services that add value for customers, channel partners and build value
for the shareholders.
.
Corporate Office:
1st Floor, Ahura Centre,
'B' Wing, Mahakali Caves Road,
Andheri(East),
Mumbai 400 093.
Telephone Number: 022-6928300
WebSite : www.birlasunlife.com
33
34. HDFC Standard Life Insurance Company Limited
HDFC Standard Life first came together for a possible joint venture, to enter the Life Insurance
market, in January 1995. It was clear from the outset that both companies shared similar values and
beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint
venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship.
The next three years were filled with uncertainty, due to changes in government and ongoing delays in
getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament.
Despite this both companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional resource made available.
Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd.
(IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both companies agreed
the time was right to move the operation to the next level. Therefore, in January 2000 an expert team
from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. .
In a further development Standard Life agreed to participate in the Asset Management Company
promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th
July2000.
34
35. The company was incorporated on 14th August 2000 under the name of HDFC Standard Life
Insurance Company Limited.
Their ambition from the beginning was to be the first private company to re-enter the life insurance
market in India. On the 23rd of October 2000, this ambition was realised when HDFC Standard Life
was the first life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns
18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum
investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values and trust. The
ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick
by which all other insurance companies in India are measured.
Corporate Office:
IL&FS Financial Centre,
Plot C22 - G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai 400 051.
Telephone Number: 6932666
Website : www.hdfcinsurance.com
35
36. ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized
capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is
a joint venture of ICICI (74%) and Prudential plc UK (26%).
The Company was granted Certificate of Registration for carrying out Life Insurance business, by the
Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial
operations on December 19, 2000, becoming one of the first few private sector players to enter the
liberalized arena.
Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of
around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.
The Company recognizes that the driving force for gaining sustainable competitive advantage in this
business is superior customer experience and investment behind the brand. The Company aims to
achieve this by striving to provide world class service levels through constant innovation in products,
distribution channels and technology based delivery. The Company has already taken significant steps
to achieve this goal..
36
37. ICICI Ltd was established in 1955 by the World Bank, the Government of India and the Indian
Industry, to promote industrial development of India by providing project and corporate finance to
Indian industry.
Since inception, ICICI has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI has financed all major sectors of
the economy, covering 6,848 companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had
disbursed a total of Rs 319.65 billion.
Prudential plc:
Prudential plc was founded in 1848. Since then it has grown to become one of the largest providers of
a wide range of savings products for the individual including life insurance, pensions, annuities, unit
trusts and personal banking. It has a presence in over 15 countries, and caters to the financial needs of
over 10 million customers. It manages assets of over US$ 259 billion (Rupees 11,39,600 crores
approx.) as of December 31, 1999. Prudential plc. has had its presence in Asia for the past 75 years
catering to over 1 million customers across 11 Asian countries.
.
Corporate Office:
ICCI Prulife Towers,
1089, Appasahab Marathe Marg,
Prabhadevi,
Mumbai 400 025.
Telephone Number: 022-462 1600
Website : http://www.iciciprulife.com/
37
38. ING Vysya Life Insurance Company Pvt. Ltd.
ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance Vysya Bank and
GMR Group.
ING Group
Over the last 150 years, ING Group has grown to become one of the largest life insurance
organisations in the world. Today it touches the lives of over 50 million people across 65 countries. It
offers a range of financial services including insurance, pensions, banking and asset management. In
the year 2000, total assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and
deep experience in setting up companies in new markets, which require substantial investments
underlining ING's long-term commitment. In the last 20 years, ING Group has established successful
life insurance companies in 15 countries contributing to the development of insurance services in these
countries.
The Vysya Bank Limited
It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million
customers, 480 outlets and 6000 employees it is known for its innovative banking services and for
pioneering several products and services. The Vysya Bank has a long-standing relationship with its
customers and deep understanding of the Indian market.
38
39. GMR Group
It has a solid track record of over two decades of growth and has wide-ranging interests in fields such
as power generation, infrastructure, manufacturing, software and banking. GMR group has an
excellent reputation of being able to successfully develop ventures from scratch.
Corporate Office:
14, Sankey Road,
Sadashivanag,
Bangalore 560 006.
Telephone Number: 080-3318300-312
Website : www.ingvysyalife.com
39
40. Max New York Life Insurance Company Ltd
Max New York Life Insurance Company Limited is a joint venture that brings together two large
forces - Max India Limited, a multi-business corporate, together with New York Life International, a
global leader who is long experienced in that unique business called life insurance.
Max India Limited
Max India Limited is a multi-business corporate, focused on the Knowledge, People, and Service
oriented businesses of Healthcare, Life Insurance, and Information Technology. Max also has business
interests in Clinical Research, Telecom, Electronic Component distribution, Bulk Pharmaceuticals,
and Speciality Products businesses. Max India is led by a skilled team of professional managers and is
widely acknowledged for its presence in commercially viable manufacturing and service delivery
businesses. Max has been able to form and strengthen international alliances.
About New York Life
New York Life Insurance Company, a Fortune 100 company, is one of the largest providers of life
insurance coverage in America. Founded in 1845, the Company has over $178 billion in assets under
management and more than $25 billion in annual revenues. The mission of New York Life is to
maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate
'humanity' by treating its customers, agents and employees with compassion, consideration and
respect.
40
41. New York Life Insurance Company has been among the highest rated companies by leading
independent rating agencies including - A.M. Best Company (A++), Fitch (formerly Duff & Phelps)
(AAA), Moody's Investors Service (Aa1) and Standard & Poor's (AA+)
The company has its headquarters in New York City and has operations in the United States,
Argentina, Hong Kong, India, Indonesia, Mexico, The Philippines, South Korea, Thailand and
Taiwan. The company maintains representative offices in the People's Republic of China and Vietnam.
The company caters to millions of policyholders through a network of over 30,000 employees and
agents around the world.
For the last 47 years, New York Life has had the highest number of agents who qualify as members of
the 'Million-Dollar Round Table'. The MDRT is the world's most prestigious organisation of insurance
sales professionals
.
Corporate Office:
11th Floor, DLF Square,
Jacaranada Marg, DLF City,
Phase - II,
Gaugaon 122 002.
Telephone Number: 0124 - 6561717
Website : www.maxnewyorklife.com
41
42. MetLife India Insurance Company Pvt. Ltd.
MetLife India Insurance Company Private Limited was incorporated in India on April 11, 2001 as a
joint venture between MetLife International Holdings Inc., The Jammu and Kashmir Bank, M. Pallonji
and Co Private Limited and other private investors.
The Metropolitan Life Insurance Company (MetLife ) is the number one insurer in the U.S. based on
over US$2 trillion of life insurance in force. MetLife serves approximately 9 million individual
households in the U.S. as well as 87 of the Fortune 100 companies. MetLife's institutional clients have
approximately 33 million employees and members.
Headquartered in New York, MetLife through its affiliates, subsidiaries and representative offices
operates in 15 countries throughout the Americas, Europe and Asia. MetLife India inherits its parent
company's over-130-year-old reputation of helping build financial independence for its customers.
MetLife India has developed and distributes a range of life insurance products in India. MetLife India
benefits from its parent company's global presence in the field of insurance, track record of establishing
successful insurance operations in emerging markets and the unique strengths of its other Indian
promoters. Drawing from these experiences, MetLife India hopes to be able to address the needs of the
Indian customer. MetLife India aspires to build on MetLife's history of meeting policy holder and
contract obligations and the ability to withstand the impact of adverse economic factors.
42
43. The MetLife brand, known for empowering people to feel protected, guided and hopeful about their
lives, will it is hoped do the same for its Indian customers.
Headquartered in Bangalore, MetLife India hopes to deliver value and world-class service to customers
through its financial advisors and corporate sales representatives. The mission of MetLife India
Insurance is to build financial freedom for all.
Corporate Office:
Brigade Sashmahal,
No.5, Vani Vilas Road,
Basarangudi,
Bangalore 560004.
Telephone Number: 080-6678617/18
WebSite : http://www.metlife.com/
43
44. OM Kotak Mahindra Life Insurance Company Ltd.
OM Kotak Mahindra Life Insurance Company Limited (OMKM) is a joint venture between Kotak
Mahindra Finance Ltd., and Old Mutual plc aims to help customers take important financial decisions
at every stage in life by offering them a wide range of innovative life insurance products, to make
them financially independent. Jeene Ki Azaadi...
Kotak Mahindra Finance Ltd
Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions
that encompass every sphere of life. From Banking, to Stock Broking, to Mutual Funds, to Life
Insurance, to Investment Banking, the company caters to the financial needs of individuals and
corporates.
Kotak has a group net worth of around Rs.1,400 crore and currently employs over 2,000 dedicated
employees in its various businesses. With a presence in about 50 locations in India and offices in New
York, London, Dubai and Mauritius, the group currently services a customer base of over 5,00,000.
The group has international partnerships with Goldman Sachs (one of the world's largest investment
banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers)
and Old Mutual (a large insurance, banking and asset management conglomerate).
Old Mutual
Old Mutual, a company with over 157 years of experience in life insurance business, has the largest
financial services business in South Africa, through its life assurance, asset management, banking and
44
45. general insurance operations. Being listed on the London Stock Exchange and included in FTSE 100
list of companies, Old Mutual’s assets under management are worth $208 billion (as on Dec 31st,
2001).
In the USA, Old Mutual is one of the top ten fixed annuity businesses, following its purchase during
2001 of Fidelity & Guaranty Life Insurance Company, and its multi-style asset management business
offers an array of specialist asset management skills. In the UK, Old Mutual focuses on wealth
management. Gerrard, its largest UK operation, is one of the leading private client stockbroking
businesses in the country.
Old Mutual has made significant progress through, continued development of core business and
focused acquisitions. It has established a strong foundation, to build the future business for customer
and shareholder value.
The company has the ability to cater to a variety of consumer market segments, and offers a
comprehensive and innovative product range catering for all income groups.
Corporate Office:
OM Kotak Mahindra Life Insurance Co. Ltd.
Address: Peninsula Chambers,
Peninsula Corporate Park,6th floor,
Ganpatrao Kadam Marg,
Lower Parel, Mumbai 400 013.
Tel: 91-22-56635000
Fax: 91-22-56635111
Website: www.omkotakmahindra.com
45
46. SBI Life Insurance Company Limited
SBI Life Insurance Co. Ltd. is a joint venture between State Bank of India and Cardif S.A. of France.
We are a registered life insurance company.SBI is a household name, and it stands as the last word for
financial strength and security in the country.
SBI's illustrious background dates back to the year 1806 when it started business as a presidency bank
known as Bank of Bengal. Over the long journey, it has learnt to combine the best of banking practices
handed down from the imperial management with the more dynamic ways of doing banking in the
modern India.
It has grown as a responsible giant in the banking field over the years. Today, it has a branch network
of over 9000 branches, an aggregate deposit base of nearly Rs196821 crore (US$45,121mm) and a
total balance sheet size of Rs.261504 crore (US59,950 mm). Together with its 7 Associate Banks, SBI
commands about 30% of the market share in banking.
SBI is the strongest and most profitable bank in the country. It has a tangible net worth of Rs.12146
crore (US$2,784mm) as at March 2000, and it earned a pre-tax profit of Rs.2051 crore (US$470 mm)
for the fiscal ending that date.
Cardif is a wholly owned subsidiary of BNP Paribas, which is one of the top 10 banks in the world,
and the third largest in Europe. BNP is one of the oldest foreign banks with a presence in India dating
back to 1860. It has 9 branches in major metros in the country.
46
47. Cardif came into being in 1973. It has grown over the years into a vibrant insurance company
specialising in personal lines such as long-term savings, protection products and creditor insurance.
Cardif had a premium income of over US$ 4 billion in 1999, and more than US$ 23 billion of funds
under its management.
Cardif has been specialising in the art of selling insurance products through commercial banks in
France and 23 other countries. France is the mother of bancassurance in the world. Over 65% of life
insurance business is done through banks and financial institutions' counters in France, and the trend is
rapidly catching up in other countries. It operates joint ventures in developed as well as developing
countries, such as Brazil, Chile and the Czech Republic.
SBI Life Insurance Company Ltd is registered as a life insurance company with the Insurance
Regulator. The Company's authorised capital is Rs.250 crore, and the paid-up capital at present is
Rs.125 crore.
SBI owns 74% of the total equity, and Cardif the balance 26%.
Corporate Office:
2nd Floor, APEEJAY House,
3 Dinsha Vachha Road,
Churchgate,
Mumbai 400 020.
Telephone Number: 022 - 2351000 to 1007
Website :www.sbilife.co.in
47
48. Tata AIG Life Insurance Company
Tata AIG General Insurance Company Ltd, and Tata AIG Life Insurance Company Ltd., (collectively
"Tata AIG") are joint venture companies between the Tata group India's most trusted industrial house
and American International Group, Inc. (AIG), the leading U. S. based international insurance and
financial services organisation.
Both promoters have a deep and abiding interest in India's insurance sector. Prior to nationalisation,
the Tatas pioneered private insurance in India when Sir Dorab Tata set up New India Assurance in
1919. By 1973, when General Insurance was nationalised the Tata company had a global presence
with 56 overseas offices. AIG too, has always considered the Indian insurance sector to be of
significance. The AIG companies entered India in 1945 and had offices in several Indian cities prior to
nationalisation.
AIG is the leading U.S. - based international insurance and financial services organisation and the
largest underwriter of commercial and industrial insurance in the United States. Its member companies
write a wide range of commercial, personal and life insurance products through a variety of
distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's
global businesses also include financial services and asset management, including aircraft leasing,
financial products, trading and market making, consumer finance, institutional, retail and direct
investment fund asset management, real estate investment management, and retirement savings
products. American International Group, Inc.'s common stock is listed on the New York Stock
Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
48
49. Today, AIG's operations extend across 130 countries and jurisdictions throughout the world. AIG is
ranked #8 in Forbes 2000 "super 100" ranking of all US corporations. AIG is ranked #8 in Fortune 500
ranking of top US corporations, and ranked #1 in the property and casualty business.
AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer.
AIG's global businesses include financial services and asset management, including aircraft leasing,
financial products, trading and market making, consumer finance, institutional, retail and direct
investment fund asset management, real estate investment management, and retirement savings
products.
The Tata Group is the most respected industrial conglomerate in India, with revenues of more than US
$ 8 billion. The Group has long been a market leader in steel, commercial vehicles, electric power
generation in the private sector and computer software. In recent times, it has promoted several new
ventures in high growth areas of the economy such as financial services, telecommunications,
information technology, auto components, oil field services and process management systems. The
Group has had a long association with India's insurance sector having been the largest insurance
company in India prior to the nationalisation of insurance.
Corporate Office:
Ahura Centre, 4th Floor,
82, Mahakali Caves Road,
Andheri(East),
Mumbai 400093.
Telephone Number: 022 – 6930000
WebSite :www.tata-aig.com
49
50. INSURANCE MARKETING
Insurance Agents
As Life insurance is a personalized service, personal selling plays an important role in promoting the
same. Place and promotion are being highlighted here since the agents and development officer who
form the pillars of Life Insurance market structure discharge these two important functions. Agents are
PR men of insurance companies at the grassroot level. The role in building up good customer relation is
crucial. They work under the guidance and direct supervision of development officers. They together
sell the right type of policies suitable to the needs of clients for the right amount at the right time (age).
The agents render various other services and also play a vital role in policy servicing. The Development
Officers under each Branch office beside guiding and supervising activities of the agents are also
responsible for their recruitment and training so as to develop a stable agency force. They activate the
existing agents and motivate the new ones. Also they render all such services to the policyholders as will
produce better policies. Agents and development officers, as the intermediaries in the distribution
system of the whole, develop and increase the Life Insurance business in a planned way.
For promoting Life Insurance business, sales promotion activities are also carried out by the agents.
Calendars, bags, diaries, etc. are also given to the policyholders as a token of gifts. The insurance
companies also trains their agents, as they do not tend to increase or update their knowledge regularly
so as to serve better to their customers. Special training programs are held for them.
50
51. Corporate Houses and Financial Institutions:
This is a distribution network that ha shot into prominence after the opening up of the Insurance sector.
Large corporate houses and financial institutions have now entered into the business of selling life
insurance.These institutions have employed special employees who are trained to sell insurance.These
employees are told to then told to target the existing customers of the corporate houses or financial
institutions. They also have a help desk / promotion desk at the places where the customer comes into
contact with the company. These centers are the effective centers where the sales pitch is made to the
prospective customers. Also sometimes the company may use marketing tactics like sending direct
mailers to the various clients or telemarketing. This form of distribution is slowly but surely gaining
prominence.
Bancassurance
With the opening up of the insurance sector and with so many players entering the Indian
insurance industry, it is required by the insurance companies to come up with innovative products,
create more consumer awareness about their products and offer them at a competitive price. New
entrants in the insurance sector had no difficulty in matching their products with the customers' needs
and offering them at a price acceptable to the customer. But, insurance not being an off the shelf
product and one which requiring personal counseling and persuasion, distribution posed a major
challenge for the insurance companies. Further insurable population of over 1 billion spread all over
the country has made the traditional channels of the insurance companies costlier. Also due to heavy
competition, insurers do not enjoy the flexibility of incurring heavy distribution expenses and passing
them to the customer in the form of high prices.With these developments and increased pressures in
51
52. combating competition, companies are forced to come up with innovative techniques to market their
products and services. At this juncture, banking sector with it's far and wide reach, was thought of as a
potential distribution channel, useful for the insurance companies. This union of the two sectors is
what is known as Bancassurance. What is Bancassurance? Bancassurance is the distribution of
insurance products through the bank's distribution channel. It is a phenomenon wherein insurance
products are offered through the distribution channels of the banking services along with a complete
range of banking and investment products and services. To put it simply, Bancassurance, tries to
exploit synergies between both the insurance companies and banks.Bancassurance if taken in right
spirit and implemented properly can be win-win situation for the all the participants' viz., banks,
insurers and the customer.
52
53. The wide range of Life Insurance products on offer in India :
MONEY BACK
Jeevan Chhaya(LIC)
Jeevan Surabhi(LIC)
Money Back Policy(LIC)
Jeevan Rekha(LIC)
Jeevan Samriddhi(LIC)
Money Back(HDFC)
Flexi Cash Flow
(Birla Sun Life)
ICICI Pru CashBak
(ICICI Pru)
KotakMoney Back Plan
(OM Kotak)
Money Saver Plan (TATA-AIG)
Cash Care(Allianz-Bajaj)
Maximizing Life Money Back Plan (ING Vysya)
Dhana Shree (AMP Sanmar)
Met Sukh (MetLife)
Met Junior MB(MetLife)
MULTIPLE COVERS
Double Endowment(LIC)
Jeevan Mitra (Double) (LIC)
Jeevan Mitra (Triple) (LIC)
53
54. PURE RISK COVERS
New Bima Kiran(LIC)
Bima Sandesh(LIC)
Convertible Term Assurance(LIC)
Convertible Whole Life(LIC)
Ltd. Payment Whole Life Plan(LIC)
Whole Life Plan(LIC)
Anmol Jeevan(LIC)
Flexi Life Line(Birla Sun Life)
Birla Sun Life Term Plan(Birla Sun Life)
Premium Back Term Plan (Birla Sun Life)
ICICI Pru Life Guard
(ICICI Pru)
Whole life Plan(Max New York Life)
Level Term Policy (Max New York Life)
5 year term renewable and convertible Insurance(Max New York Life)
15 Year Lifeline (with Return of Premiums) Plan(TATA-AIG)
Assure Lifeline Plans(TATA-AIG)
Mahalife(TATA-AIG)
Term Assurance Plan(HDFC )
Risk Care(Allianz-Bajaj)
Term Care(Allianz-Bajaj)
Lifetime Care(Allianz-Bajaj)
Kotak Term Assurance Plan(OM Kotak)
Kotak Preferred Term Plan(OM Kotak)
Fulfilling Life Anticipated Whole Life Plan (ING Vysya)
Rewarding Life (ING Vysya)
Conquering Life(ING Vysya)
Nitya Shree (AMP Sanmar)
Raksha Shree (AMP Sanmar)
MET 100 Gold (Participating Limited Pay Whole Life) (MetLife)
54
55. MET 100 Platinum (Participating Limited Pay Whole Life) (MetLife)
Met 100 (Non Participating Limited Pay Whole Life) (MetLife)
LifeLong (Aviva Life)
Secure life (Aviva Life)
LifeShield (Aviva Life)
RISK COVER + SURVIVAL BENEFITS
Bhavishya Jeevan(LIC)
Endowment Assurance Policy(LIC)
Endowment Ltd Assurance Policy(LIC)
Jeevan Anand(LIC)
New Janaraksha(LIC)
Endowment(HDFC)
Endowment Plan(Max New York)
Endowment to Age 60 Policy(Max New York)
Flexi Save Plus(Birla Sun Life)
ICICI PRU Save 'n' protect (ICICI Pru)
Kotak Endowment Plan
(OM Kotak)
Kotak Capital Multiplier Plan (OM Kotak)
Sudarshan(SBI Life)
Security and Growth Plans (TATA-AIG)
Save Care(Allianz Bajaj)
Invest Gain Plan(Allianz Bajaj)
Endowment Assurance Policy(ING Vysya)
Subha Shree (AMP Sanmar)
MetLife Platinum (Participating Endowment Assurance)(MetLife)
MetLife Gold (Participating Endowment Assurance)(MetLife)
MetLife Platinum (Non- Participating Endowment Assurance)(MetLife)
MetLife Gold (Non-Participating Endowment Assurance)(MetLife)
55
56. MET Junior - Participating EA(MetLife)
MET Junior Non Participating Juvenile EA(MetLife)
Easy Lifeplus(Aviva Life)
LifeSaver(Aviva Life)
FOR WOMEN ONLY
Jeevan Bharati(LIC)
FOR YOU AND YOUR SPOUSE
Jeevan Saathi(LIC)
Jeevan Saritha(LIC)
Joint Life Plans(LIC)
FOR DISABLED DEPENDANTS
Jeevan Aadhar(LIC)
Jeevan Vishwas(LIC)
FOR YOUR HOME
Mortgage Redemption Plan(LIC)
Loan Cover Term Assurance (HDFC)
Mortgage Redemption Plan (MetLife)
RURAL LIFE
Bima Kavach Yojana(Birla Sunlife)
Kotak Gramin Bima Yojana (OM Kotak)
ULIP
Unit Linked Insurance Plan
GROUP LIFE SCHEMES
Group Gratuity Scheme(LIC)
56
57. Group Insurance Scheme(LIC)
Group Savings Linked Scheme(LIC)
Group Superannuation Scheme(LIC)
Development Insurance Plan(HDFC)
Group Term Insurance(HDFC)
Kotak Term Group Plan (OM Kotak)
Kotak Credit Term Group Plan(OM Kotak)
Group Gratuity Plan (OM Kotak)
Group Protection Solutions (Birla Sun Life)
Group Superannuation Plan(Birla Sun Life)
Group Gratuity Plan(Birla Sun Life)
Super Suraksha & Swarna Ganga (SBI Life)
Group Risk Care Plan Employer - Employee(Allianz Bajaj)
Group Risk Care Plan - Non Employer - Employee(Allianz Bajaj )
Group Credit Care Plan - Employer - Employee(Allianz Bajaj)
Group Credit Care Plan Non Employer - Employee(Allianz Bajaj )
Group Gratuity Plan
(ICICI Pru Life)
Group Term Assurance(ICICI Pru Life)
Group Term Assurance AMP Sanmar
Creditplus(Aviva Life)
FOR CHILDREN
General Plans
Children's Deferred Assurance Plan(LIC)
Jeevan Baalya(LIC)
Jeevan Kishore(LIC)
New Children's Deferred Assurance Plan(LIC)
Komal Jeevan(LIC)
SBI-Scholar(SBI Life)
ICICI Pru Smart Kid (ICICI Pru)
57
58. Kotak Child advantage plan (OM Kotak)
Children's Endowment Policy(Max New York)
Yuva Shree(AMP Sanmar)
Children's Plan(HDFC)
GIRLS ONLY
Jeevan Sukanya(LIC)
FOR RETIREMENT
Bima Nivesh Triple Cover (LIC)
New Jeevan Akshay I(LIC)
New Jeevan Dhara 1(LIC)
New Jeevan Suraksha 1(LIC)
ICICI PRU Forever Life(ICICI Pru)
Sanjeevan(SBI Life)
Kotak Retirement Income Plan(OM Kotak)
Nirvana Pension Plan (Tata-AIG)
Life Long Pensions (SBI Life)
Bhagya Shree (AMP Sanmar)
Easy Life Retirement (Participating) Plan (Max NewYork)
Flexi Securelife Retirement Plan(Birla SunLife)
Pensionplus (Aviva Life)
SPECIALPLANS
Jeevan Asha(LIC)
Major Illness (LIC)
ICICI Pru Life Time(ICICI Pru)
HealthFirst(Tata AIG)
58
59. INVESTMENT PLANS
Bima Plus(LIC)
ICICI PRU Assure Invest (ICICI PRU)
ICICI PRU Life Link(ICICI Pru)
ICICI Pru ReAssure(ICICI Pru)
Kotak Insurance Bond (OM Kotak)
Young Sanjeevan (SBI Life)
Flexible Bond(HDFC)
Single premium insurance bond (Max New York Life)
Single Premium Bond (Birla Sun Life)
LifeBond(Aviva Life)
THE PRESENT MARKET SCENARIO
MARKET SHARE OF LIC TO THE PRIVATE PLAYERS
59
61. MARKET SHARE OF PRIVATE LTD. COMPANIES
61
27%
13%
9%
38%
13%
ICICI Pru
BirlaSun life
HDFC Std
Max New York
Others
62. THE ROAD AHEAD
Individual life insurance Coverage Index, 1994
Country (No. Of policies per 100
persons)
Indonesia 2.0
Philippines 5.6
India 12.4
Thailand 14.7
Malaysia 35.5
Hong Kong
69.4
South Korea 70.5
Taiwan 75.2
Singapore 112.6
Japan 198.4
62
63. The Life Insurance market in India is an underdeveloped market that was only tapped by the state
owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent
of the total 400 million of the insurable population.The state owned LIC sold insurance as a tax
instrument, not as a product giving protection. Most customers were under- insured with no flexibility
or transparency in the products. With the entry of the private insurers the rules of the game have
changed.
The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the
market in terms of premium income. The new business premiums of the 12 private players has tripled
to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has
fallen.
Innovative products, smart marketing and aggressive distribution. That's the triple whammy
combination that has enabled fledgling private insurance companies to sign up Indian customers faster
than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are
now suddenly turning to the private sector and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways. They are coining money in new
niches that they have introduced. The state owned companies still dominate segments like
endowments and money back policies. But in the annuity or pension products business, the private
insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance
schemes they have a virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading people to take out
bigger policies. For instance, the avaerage size of a life insurance policy before privatisation was
63
64. around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game
and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry
average.
The insurance market is likely to witness a sea change in the marketing mix, that is product, price,
place (distribution channel) and promotion. The customer-driven market will result in lot of
flexibilities and innovations in product, pricing, distribution channels and communication
mechanisms. The IRDA, with its developmental and regulatory guidelines, is likely to promote
competition, fairness, and reliability, and, at the same time, protect insurance against excessive,
inadequate or unfairly discriminatory rates.
While efforts to strengthen the distribution channels and make them more effective will continue, the
introduction of intermediaries, such as insurance brokers, bancassurance, the electronic media and the
Internet, would call for new strategies. Communication to create greater and demand for insurance
products will continue to be important. At the same time, unfair or misleading advertisements will be
discouraged, and the necessary checks and controls will be in place.
Formulating a marketing strategy is more a process than an event. Environmental factors such as
macro-economic parameters, regulatory norms and themes, technology, infrastructure, legal set-up,
competition by way of new entry and the degree of globalisation need be considered in framing the
strategy. For instance, whether a company would adopt a strategy for market penetration, market
development or product development, or would go in for diversification could be determined by
analysing all the relevant data in terms of the product-market scope.
64
65. The experience of the public sector Life insurance industry in India shows that the distinction between
market development and product development is often blurred.. The product development experience
with the Suhana Safar policy highlights the problems in bundling existing products and marketing
them without reliable, real-time market research back-up. In addition, political proclamations led to
products that customers rejected completely. On paper, the Lfe insurance industry has 90 products; at
best, 15 of them have currency in the market.
It is only after a thorough, continuous and pragmatic SWOT analysis and appropriate financial
implications review that a company should identify the generic strategy. Achieving cost leadership and
differentiation simultaneously has an element of inconsistency because differentiation is usually
costly. Moreover, every generic strategy has a definite risk. The reality is that barriers to imitation are
never insurmountable. Therefore, the strategy needs a constant evaluation and monitoring.
The marketing strategy cannot be taken up in isolation. All the major elements of the organisation --
structure, systems, processes, staff, skills, managerial styles and shared value -- should be
appropriately integrated into the implementation of the strategy. The basic tool for pinpointing
competitive advantage and finding ways to enhance it is the value chain, which divides the a company
into the discrete functions of designing, producing, marketing and distributing.
For, in the ultimate understanding, the marketing strategy is an integral part of the business value of
the company. A business value design is the totality of how a company selects its customers,
differentiates its offerings, defines the tasks it will perform itself and those it will outsource,
configures its resources, goes to the market, creates utility for customers and finally, captures profit. It
is the entire system for delivering utility to customers and earning profits from that activity.
65
66. Today the Indian consumers are are increasingly becoming more aware and are actively managing
their financial affairs. Today, while boundaries between various financial products are blurring, people
are increasingly looking not just at products, but at integrated financial solutions that can offer stability
of returns along with total protection.
To satisfy these myriad needs of products, insurance products will need to be customized. Insurance
today has emerged as an attractive and stable investment alternatively that offers total protection -
Life, Health and Wealth. In terms of returns, insurance products today offer competitive returns
ranging from 7% to 9%. Besides returns, what really increases the appeal of insurance is the benefit of
life protection from insurance products along with health cover benefits.
Consumers today also seek products that offering flexible options, preferring products with benefits
unbundled and customizable to suit their diverse needs. While sales of traditional life insurance
products like individual, whole life and term will remain popular, sale of new products like single
premium, investment linked, retirement products, variable life and annuity products are also set to rise.
Firms will need to constantly innovate in terms of product development to meet ever-changing
consumer needs. However, product innovations are quickly and easily cloned. Pricing will also not
vary significantly, with most product premiums hovering around a narrow band.
In this competitive scenario, a key difference will be the customer experience that each insurance
player can offer in terms of quality of advice on product choice, along with policy servicing and
settlement of claims. Service should focus on enhancing the customer experience and maximizing
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67. customer convenience. Long-term growth in the business will greatly depend on the distribution
network, where the emphasis must evolve from merely selling insurance to acting as financial
advisors, helping customer's plan their finances depending on personal requirements. This calls for a
strong focus on training of the distribution force to act as financial consultants and build a long lasting
relationship with the customer. This would help create sustainable competitive advantage not easily
matched.
The main reason why the leading insurance companies in the world and the leading corporate groupS
in India have shown a keen interest in the insurance sector, is the vast potential for future business.
Restricted, as the market has been, through the operations of the two monopolies (LIC and GIC), it is
generally felt that the sector can grow exponentially if it is opened up. The decade 1987-97 has
witnessed a compounded growth rate of marginally more than 10% in life insurance business. LIC
predicts for itself that its business has potential to grow by 16.27% p.a. in a decade 1997-2007 (LIC,
1997). If we take a look at insurance coverage index for the age group of 20-59 years a considerable
gap between India and other countries in Asia can be observed. In this scenario, naturally insurance
companies see a vast potential.
“When winds of change blow some seek shelter, while some develop windmills” the
quote can be nailed to all the Insurance companies no matter nationalized or private. Every company is
gearing up and pulling up their socks to tap the maximum chunk of population, which is uninsured.
(Statistically, it is 96.5% of population is uninsured only 35 millions or 3.5% of the total population
are insured).
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68. The battle has started for the spoil with companies stepping out with innovative insurance products
and resorted to aggressive marketing to have a biggest bite on the insurance cherry, which is estimated
to grow to US $ 25 billion within a decade.
The purpose of the insurance sector is to cover maximum possible potential policyholders. Spotting
opportunities at the right time is essential to influence the target market. It is quite natural that the
needs and requirements of different users living in different segments, regions are not identical. The
needs and requirements of the rural sector would be different from the needs and requirements of the
urban sector.In the Indian perspective where we find a large number of users living in the rural areas,
the importance of the rural sector can’t be negated. In order to increase their market share insurance
organizations need to succeed in informing, sensing and persuading the different segments where
potential users are available. It is not productive to concentrate only on one segment. It is important to
do business in all segments, rural and urban, men and women, agricultural and industrial etc. Crop and
cattle insurance are important for furthering the interests of the agricultural sector.
Whether the insurer is old or new, private or public, expanding the market will
present multitude of challenges and opportunities. But the key issues, possible
trends, opportunities and challenges that insurance sector will have still remains
under the realms of the possibilities and speculation.
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69. SOME IMPORTANT CONCEPTS
Annuitant is the person who receives certain amounts at yearly / half-yearly / quarterly / monthly
intervals.
Assignee is the person to whom the benefits under a life policy are assigned.
Assignor is the person who holds the right/title under the policy and who can make a valid
assignment.
Bonus is the amount added to the basic sum assured under a with-profit life insurance policy.
Claim Amount is the amount payable by the insurer under a policy on a claim arising
Dating Back or Back Dating is an option to the life assured to get the advantage of lower age wherein
the policy is commenced from a date earlier than the date of signing of proposal form. However back
dating is limited to one year
.
DeferredAnnuity is an annuity plan where the first annuity payment becomes payable after a chosen
period that exceeds one year.
Deferment date is the date on which the deferment period ends.
Deferment period is the period from the date of commencement of the policy to the date of
commencement of risk on the child's life under a Children's Deferred Endowment
Assurancepolicy.
EPDB
Extended Permanent Disability Benefit
Female lives
Category I: Women with income earned by
• virtue of their employment in any reputed organisation or institution eligible for Non Medical
Special Schemes.
• Professions such as Medicine, Law, Charted Accountancy etc. and lady career agents of LIC.
Category II: Women with unearned income attracting payment on income tax or women holding
sizeable personal properties/investments yielding income attracting assessment for income tax.
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70. First Class Life
An Individual is categorised as First Class Life if is eligible to have insurance coverage at normal rates
of premium.
First Unpaid Premium (FUP)
First unpaid premium refers to the first default in paying premium by the policy holder. On payment of
the due premium a receipt is issued and this receipt indicates the date of next due. If this due premium
is not paid that date becomes the date of FUP.
Guaranteed Insurance Sum (GIS)
Guaranteed Insurance Sum is equal to purchase price paid for a pension along with final Jeevan
Akshay Bonus.
Gross Insurance Value Element (GIVE)
Gross Insurance value element is the amount payable on death of a policy holder under a Jeevan Dhara
Policy.
Guaranteed Additions are calculated at a rate per every thousand of sum assured. They are added to
the basic sum assured and are payable on admittance of claim. This benefit is allowed only for each
year for which premiums are paid.
Life Assured refers to the person whose life is being insured.
Last Birth Day (L.B.D)
Age at last Birthday
Lien
In some cases extra risk is expected to decrease over a period of time. In such cases proposal is
considered and accepted with lien. Lien operates through out the period, on a decreasing basis.In the
event of death during the lien period full sum assured is not payable.
Eg: If 25% decreasing lien is imposed for 5 years. It is understood that in first year risk cover(sum
assured payable) is only upto 75%, second year-80%, third year-85%, fourth year 90%, fifth year 95%,
and from sixth year onwards lien is not operative.
Loyalty Additions
Under certain life policies loyalty additions are given as an additional benefit to the policyholder. The
rate of addition depends on the LIC's performance and is allowed only if the policy is in full force.
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71. Moral Hazard is said to exist in the case where we notice the absence of a genuine need for a life
insurance or when a proposal for insurance is submitted by an individual beyond his means.
Near Birth Day (N.B.D)
Age on nearest birthday
Nominee
Nominee is the person who is nominated to receive the amount under a policy and to give a valid
discharge to the insurer on settlement of claim under a life insurance policy.
Non-Standard Life
Any individual, who cannot be granted a policy under normal rates of premiums but can be granted
with an extra premium over normal rates of premium, is considered as a Non-Standard Life.
Paidup value is the reduced amount of sum assured paid by the insurer in case of discontinuation of
the payment of premiums after paying the full premiums for the first three years.
PDB
Permanent Disability Benefit
Premium is the amount paid to secure an insurance policy.
Proposal Form
It is a form which is to be completed for securing an insurance policy.
Proposer is a person who proposes the insurance policy.
Premium Waiver Benefit (PWB) are the benefits which can be availed under children's policies,
wherein the future premiums payable upto vesting date are waived in the event of death of the
proposer.
Sum assured is the amount that an insurer agrees to pay on the occurance of an event.
Surrender value is the amount payable to the policy holder on his surrendering his right under a
policy and terminating the contract of insurance.
Target pension is the amount of pension which one wishes to receive under a pension policy.
Term is the period for which insurance coverage is given.
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72. Vesting Date
This is the date from which the life assured ie., child becomes the absolute owner of the policy.
Vesting Bonus
It is the Bonus, which the insurer declares after evaluating its assets and liabilities, and that is added to
the sum assured under a policy.
Waiting Period
It is the period starting from date of commencement of a policy to the date of commencement of risk
under a Jeevan Kishore Policy.
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