Hello ...The ppt gives a brief intro of insurance industry in India and also gives information about various insurance companies india.

1. Practice of Banking and Insurance
GROUP 3
 Kshitiz Dhinda - 1310909
 Harsha Vardhan – 1310911
 S.P. Sagar – 1310912
 Jessica Simon - 1310928
 Sohani Mohapatra – 1310929
 Megna Jain – 1310931
 Twinkle Sharma – 1310941
 Kavyaa G - 1310977

2. History of Insurance
 Insurance in various forms has been mentioned in the
writings of Manusmrithi, Dharmashastra
and Arthashastra.
 Its history dating back until 1818, when Oriental Life
Insurance Company was started by Anita Bhavsar
in Kolkata to cater to the needs of European community.
 The pre-independence era in India saw discrimination
between the lives of foreigners (English) and Indians
with higher premiums being charged for the latter. In
1870, Bombay Mutual Life Assurance Society became
the first Indian insurer.
 The Government of India issued an Ordinance on 19
January 1956 nationalising the Life Insurance sector.

3. Present state of Insurance in
India
1) Life Insurance Corporation of India (LIC)
 Corporate Office – Mumbai, Maharashtra
Employees - 115900+
 Business – Financial services
 Establishment – 1956
 Website – www.licindia.in
 Details – Best Insurance Company in India
dominating the market since then it established
in market. In other word, It is the synonyms of
Insurance in India, most important they have
best settlement ratio.

4. 2) SBI Life Insurance
 Corporate Office – Mumbai, Maharashtra
 Employees – 7300+
 Business – Insurance
 Establishment – 2001
 Website -www.sbilife.co.in
 Details -State bank of India life insurance is a
joint venture between BNP Paribas Cardif
holding 74:26 ratios. It has great hold in Indian
market as far as concern of Finance and banking
sector, best in insurance sector after LIC

5. 3) Birla Sunlife Insurance
 Employees – 133000+
 Business – Financial services
 Establishment – 2000
 Website -www.birlasunlife.com
 Details - It is financial and Insurance company, a
Joint venture of Aditya Birla and Sun life
Insurance. Company offers life insurance
products including health, wealth and retrial
plans.

6. 4) Reliance Life Insurance
(RLIC)
 Corporate Office – Navi
Mumbai,Maharashtra
 Employees – 1000+
 Business – Insurance
 Establishment – 2001
 Website -www.reliancelife.com
 Details – Company is group company of
Reliance, among of top insurance company
in India. In year 2011 Nippon life insurance,
Japan acquired 26% share in this company.

7. 5) ICICI Prudential Life
Insurance
 Corporate Office – United Kingdom
 Employees – 15000+
 Business – Life Insurance
 Establishment – 2000
 Website -www.iciciprulife.com
 Details – ICICI prudential is a joint venture
between ICICI and prudential Plc, United
kingdom. ICICI Prudential offers wide range of
Insurance Products including health, wealth, life
insurance, medical insurance and retrial
solutions.

8. General Insurance
Companies:
 Oriental Insurance Company Ltd
 United India Insurance Company Ltd
 New India Assurance Company Ltd
 National Insurance Company
 Agriculture Insurance Company of
India Ltd
 The Motor Assurance India Company
Ltd

9. United India Insurance Company
Ltd
 One of the top general insurers in Asia
 Net worth of Rs 5631crores as on the financial year 2013-14
 Merger of 22 different non life insurance companies
 Headquartered at 24,Whites Road, Chennai
 Founded in 1938 , employees 17322
 Products:
1) Personal policies: Householder,personal accident,
mediclaim,unimedicare,Bhavisya arogya.
2) Commercial policies:Fire insurance,marine
insurance,motor insurance,industrial insurance,l iability
insurance.

10. The New India Assurance Company
Ltd
 Founded by Sri Dorabji Tata in
1919,nationalized in 1973
 Headquatered in Mumbai
 Recently collaborated with SBI ,Central
bank of India and Corporation bank.
 Presence in 22 different companies
 Teamed with TCS to provide a core
insurance platform:
Centralized Web based Insurance System
Solution

11. National Insurance Company
Ltd
 Founded in 1906,nationalized in 1972
 Headquatered in Kolkata
 Products:
 Personal insurance:medical insurance,accident,property
and auto insurance coverage
 Rural insurance:protection against natural and climatic
disasters for agricultural and rural businesses
 Industrial insurance:coverage for
projects.construction,contracts,fire,equipment loss etc.
 Commercial insurance:protection against loss or damage
of property during transportation

12. Export Credit Guarantee
Corporation of India
 Established in 30 July 1957
 Objective to provide insurance
coverage to risks in export trade
 Headquatered in Mumbai
 Product :credit insurance

13. Life Insurance Companies
 Life insurance corporation in India
 Employee’s state insurance
corporation

14. Life Insurance Corporation of
India
 Founded in 1956
 Headquatered in Mumbai
 Merger of 245 insurance companies and provident societies
 Products:
i. insurance plans
ii. pension plans
iii. unit-linked plans
iv. special plans
v. group schemes
vi. health insurance
vii. investment management’
viii. mutual fund

15. General Insurance Corporation
of India
 Founded in nov 22 ,1972
 Headquatered in Mumbai
 Serves worldwide
 Product: reinsurance
 Sole reinsurance company in the
India insurance market

16. Opportunities of Insurance
 opportunities are based on a survey.
 Are classified on the basis of:
a) Cost competitiveness
b) Customer Reach
c) Stakeholder’s confidence
d) Operational Agility

17. Based on Cost Competitiveness
• Re-optimizing capital structure
• Improved Distribution and Product
Development

18. Based on stakeholder’s confidence
• Effective Enterprise Wide – risk
Governance
 Promoting fair outcomes for
customers.

19. Based on Customer Reach
• Growth in emerging markets.
• Personalization of medicine and
insurance policies.
• Rise of social media tools.

20. Based on operational Agility
• Shifting sales to accommodate changing
customer needs.
• Exponential growth of experimental data
and tools.
• Impact of Global demographic changes

21. Challenges faced in Insurance Markets
1. Industry Challenges
 (i) Commoditization in personal line products.
 (ii) Shifting consumer requirements( everyone
wants products tailored to them, customization)
 (iii) Heightened competition.
 (iv) Global economic meltdown.

22. 2. Business Challenges
 The key business challenge for most of the
insurers is to reduce the turnaround time and
improve their speed to market their products.
 Distribution Channel pressures and emerging
consumer demands for mass customization and
hybrid products are moving rapid product
development from being a competitive
advantage to a necessity.

23. 3. Process Challenges
 Lack of stream lined processes, change
management, automated processes, central
repository.
Solutions
 1. New approaches and technology are needed
to manage and develop insurance products
which reduces the cost and time to market.
 2. Speed, quality, efficiency and capacity are
different dimensions to counter the above
challenges.

24. 3. Product Solutions
 Deliver new products/product customizations
efficiently, quickly and in a flexible manner.
 Making change to existing products quickly.
 Meeting demand for combination products i.e
developing products that encompass multiple features
in today's products.
 Speed to match the competition (If market embraces a
particular product feature launched by the competitor,
other insurer tend to quickly follow suit to meet
competition. Example: Conservative LIC introduced
Unit Linked Plans to meet competition.
 Real time underwriting based on customer
segmentation.

25. 4. Technology Solutions
 Quickly respond to business needs by deploying
new technologies and applications.
5) Organisational Solutions
 For robust performance and growth empower
front-line staff and equip them with multiple
skills.

26. Indian Contract Act, 1872
 All law relating to contracts contained in the Indian
Contract Act, 1872
 Prior to Indian Contract Act, the English Law was
applied into the Presidency towns of Madras,
Bombay and Calcutta by the Charter granted in 1726
by King George I to the East India Company.
 Came into force on September 1st 1872
 Applicable for the whole of India except Jammu
AND Kashmir.

27. Indian Contract Act
 Currently the act can be divided into
two parts
1 : Deals with general principles 2: Deals with special kinds of
contract such
of law of contract which applies as indemnity, guarantee ,
bailment &
to all types of contracts pledge, agency etc.
irrespective of their nature.

28. What is a contract?
A contract is an agreement
enforceable by law.
Two basic elements :
 Agreement
 Enforceable at law

29. Insurance Policy
The insurance policy is a contract
(generally a standard form contract) between
the insurer and the insured, known as the
policyholder, which determines the claims
which the insurer is legally required to pay.
In exchange for an initial payment, known
as the premium, the insurer promises to pay
for loss caused by perils covered under the
policy language.

30. 1. What is an agreement
 Every promise or set of promises forming the
consideration for each other
 Includes two parties : Individual who makes
an proposal and the individual to whom the
proposal is being made to.
 What is a promise? A proposal once
accepted is called a promise
AGREEMENT = OFFER +
ACCEPTANCE

31. 2. Enforceable by law
 Must give rise to legal obligation and legal relations.
 No social or domestic agreements
eg : Agreement to attend dinner at a friends
house.
Therefore, an contract = agreement + enforceability at law
 All contracts are agreements but not all agreements are
contracts.

32. Parts of an insurance contract
DECLARATIONS- identifies who is an insured, the insured's
address, the insuring company, what risks or property are
covered, the policy limits (amount of insurance), any applicable
deductibles, the policy period and premium amount.
DEFINITIONS - define important terms used in the policy
language.
INSURING AGREEMENT - describes the risks assumed, or
nature of coverage. It summarizes the major promises of the
insurance company, as well as stating what is covered.
EXCLUSIONS - take coverage away from the Insuring
Agreement by describing property, perils, hazards or losses
arising from specific causes which are not covered by the policy.

33. Parts of an insurance contract
 CONDITIONS - provisions, rules of conduct,
duties and obligations required for coverage. If
policy conditions are not met, the insurer can deny
the claim.
 POLICY RIDERS - A policy rider is used to convey
the terms of a policy amendment and the
amendment thereby becomes part of the policy.
Riders are dated and numbered so that both insurer
and policyholder can determine provisions and the
benefit level. Common riders to group medical
plans involve name changes, change to eligible
classes of employees, change in level of benefits.

34. Thank You!!