A Synopsis Submitted To Sydenham College of Commerce and Economics, Mumbai For The Degree of Bachelors of Banking and Insurance

Challenges And Opportunities Faced By Insurance Industry
In India
A synopsis submitted to Sydenham College of Commerce and

Economics,
Mumbai
For the Degree of Bachelors of Banking and Insurance
Submitted By
Kirti. Anil. Jadhav
32/A
Submitted To
Dr. Anil. R. Chougule
M.A., M.Phill, NET, Ph.D
Assistant Professor,
Dept. of Economics
Sydenham College of Commerce and Economics, Mumbai

Introduction:-
Insurance Industry in India is one of the booming sector of the economy and is
growing at the rate of 15-20 per cent per annum. Together with banking services, it
contributes to about 7 per cent to the country’s GDP. The origin of life insurance in
India can be traced back to 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta. It was conceived as a means to provide for English widow. In
those day a higher premium was charged for Indian lives then the non-Indian lives as
Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance
Society that started its business in 1870 was the first company to charged same
premium for both Indian and non-Indian lives. In 1912, Insurance Regulation
formally began with the passing of Life Insurance Companies Act and the Provident
Fund Act.
By 1938, there were 176 insurance companies in India. But a number of frauds during
1920s and 1930s tainted the image of insurance industries in India. In 1938, the first
comprehensive legislation regarding insurance was introduced with the passing of
Insurance Act of 1938 that provided strict State Control over insurance business.
Insurance sector in India grew at a faster pace after independence. In 1956,
Government of India brought together to 45 Indian and Foreign insurers and provident
societies under one nationalised monopoly corporation and formed Life Insurance
Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore.
Insurance industry, earlier comprised of only two state insurers:-
1. Life Insurance Corporation of India (LIC)-

2. General Insurance Corporation of India (GIC)-
Life Insurance Corporation of India is a coverage that pays out a certain amount of
money.
General Insurance Corporation of India is basically an insurance policy that protects

you against losses and damages other than those covered by life insurance.
Significance of Study:-
The study has been conducted to review the insurance sector value and sustainable
growth after its liberalisation and to find out the growth of the insurance sector.
Insurance sector has shown a phenomenal growth after its liberalisation and it has
increased after the private sectors entry. Insurance sector in India is the most trusted
sector and has insured Indians leads to protect them from the uncertainties and sudden
disasters. Insurance sector is working in all the facts of human life. The study
basically talks about the changes in the sector regulation and the impacts on the
growth.
Rational Behind Selecting the Project Topic:-
 To study the concept of insurance industry in India.

 To know the various insurance policies provides by the insurance sector.
 To goes into considerable detail on insurance industry in India.
Objectives of the Study:-
 To study growth of Insurance Industry in India.

 To study Role of Regulatory frame work to IRDA.
 To study Market Potential for Insurance Business.
 To study emerging Challenges and Opportunities in Insurance Industry.
 To study how insurance helps to industry.
 To study various function of industrial insurance business.
Research Methodology:-
Data Collection:-The objectives of the project are such that both primary and
secondary data is required to achieve them. So both primary and secondary data was
used for the project. The mode of collecting primary data is questionnaire mode and
source of secondary data are various magazines, books, newspapers, & websites etc.
Primary Data:-The primary data will be collected through questionnaire prepared

that will be circulated within a sample of 50 respondents that will be randomly
selected.
Secondary Data:- The secondary data on the other hand will be collected through
various published books, magazines, articles, newspapers etc.
Data Analysis:- The data collected through questionnaire will be analysed by

techniques like mean, median, mode, standard deviation which will then be presented
tabular form and by graphs such as histogram, bar graph, pie chart etc.
Sample Size:- 50 random respondents from Mumbai city.
Scope and Limitation:-
 Scope of the project is limited up to Insurance industry.
 Duration is up to last five year.
 Survey of the project is limited to Mumbai city.
 We have limited secondary data to study the challenges and opportunity faced
by insurance industry in India.
Review of Literature:-
Nagaraja Rao, K., Challenges in Designing Need Based Products in Life

Insurance for Inclusive Growth in India (2010)1:- This article explain about the
analyses of the challenges faced by the insurers in designing need-based products in
insurance for inclusive growth, and concludes that the policies of life insurance
companies are still not rural-centric, catering to the specific needs of the people. With
a view to popularizing life insurance, he recommends that the consumers need to
study the rural market, analyse the specific needs of each segment and design
innovative products, to suit the requests of the people to the objective of inclusive
growth.
Dragos, S. L. (2014)2:- This article explains about the different effects of the
previously mentioned factors for life and non-life sector. We used the econometrics of
panel data on 17 emerging economies from Asia and Europe over a 10-year period.
We showed that urbanisation influenced significantly the life insurance demand in
Asia, but not in Europe. Also, education was found to be significant only for the non-
life sector in both regions and income was non-significant in Asia for non-life sector.
Sonika Chaudhary, Priti Kiran, Life Insurance Industry in India - Current

Scenario (2011)3:- This article discussed that life insurance in India’s trend from the
year 2005-06 to 2010- 2011. During the study period this sector moved upwards from
the factors like number of offices, number of agents, new business policies, premium
income etc. Further, many new products like ULIPs, pension plans etc. and riders
were provided by the life insurers to suit the requirements of various customers.
However, the new business of such companies was more skewed in favour of selected
states and union territories. This paper concludes that Private life insurers used the
new business channels of marketing to a great extent when compared with LIC.
Savita Jindal, article on Ethical Issue in Insurance Companies (2014)4:- This

article explain about the Challenge for Indian Insurance Sector has attempted to find
out various ethical issue of insurance companies in India by examining a sample of 50
people from insuring public were interviewed with insurance policies of life insurance
to find out the ethical ways in settlement of claims. Finally the paper concludes that
insurance companies have recognized the moral dilemma in claims settlement; they
understand that if claims are not settled in ethical manner it will result in bad
consequence for company image which will fall back on the insured or the
beneficiary. Finally the research stated that insurance business sector has many areas
for improvement and development.
G. Chandrayya, article on Opportunities and Challenges of Insurance Industry

(2015)5:- This article explains that the Insurance sector plays an important role in the
financial sector of a country. The marketing strategy should be lead out in such a
manner that it includes the requirement from the launching policy till the final stage
when it reaches in the hand of customer, means the service provided to the policy
holders or the end users. It should be plan accordingly, suiting the Indian society,
because it is a diversified one from high income growth of the low one. The new
entrants in the insurance business sector should take pains and understand peoples
demand and needs and transform their policies as per their choice. They should be
designed to provide the facilities to customers as to give the customers full reliance
and satisfaction.
Chapter Scheme:-
Tentative Chapter Schemes is as follows-
Chapters Particulars
I. Introduction and Research Design

II. Development of insurance Industry in
India
III. Comparative Analysis of Life
Insurance Corporation and General
Insurance Corporation
IV. Data Analysis
V. Observations, Suggestions, and
Conclusion
Submitted By Submitted To
Kirti. Anil. Jadhav Dr.Anil. R. Chougule
32/A
Bachelors of Banking and Insurance Project Guide

Reference:-
http://en.wikipedia.org/wiki/Rigveda
http://www.irda.gov.in/
http://quick books.intuit.com
www.timesofindia.com
https://www.ibef.org/industry/insurance-
Articles:
1. Nagaraja Rao, K., Challenges in Designing Need Based Products in Life

Insurance for Inclusive Growth in India (2010):
http://euroasiapub.org/wp-content/uploads/2016/09/1FMMarch-3008-1.pdf
2. Dragos, S. L. (2014):
https://scholar.google.com/citations?user=0B6EpT8AAAAJ&hl=en
3. Sonika Chaudhary, Priti Kiran, Life Insurance Industry in India - Current

Scenario (2011):
http://www.ijmbs.com/13/priti.pdf
4. Savita Jindal, article on Ethical Issue in Insurance Companies (2014):
http://www.ijcsms.com/journals/Volume%2014,%20Issue%2001,%20September%202
014_IJCSMSSeptember2014_7_13_Savita.pdf
5. G. Chandrayya, article on Opportunities and Challenges of Insurance Industry

(2015):
http://ijar.org.in/stuff/issues/v2-i2(3)/v2-i2(3)-a002.pdf

A Synopsis Submitted To Sydenham College of Commerce and Economics, Mumbai For The Degree of Bachelors of Banking and Insurance

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Challenges And Opportunities Faced By Insurance Industry

A synopsis submitted to Sydenham College of Commerce and

For the Degree of Bachelors of Banking and Insurance

Kirti. Anil. Jadhav

Dr. Anil. R. Chougule

M.A., M.Phill, NET, Ph.D

Sydenham College of Commerce and Economics, Mumbai

Insurance industry, earlier comprised of only two state insurers:-

1. Life Insurance Corporation of India (LIC)-

General Insurance Corporation of India is basically an insurance policy that protects

Rational Behind Selecting the Project Topic:-

 To study the concept of insurance industry in India.

Objectives of the Study:-

 To study growth of Insurance Industry in India.

Primary Data:-The primary data will be collected through questionnaire prepared

Data Analysis:- The data collected through questionnaire will be analysed by

Sample Size:- 50 random respondents from Mumbai city.

Scope and Limitation:-

 Scope of the project is limited up to Insurance industry.

 Duration is up to last five year.

 Survey of the project is limited to Mumbai city.

Nagaraja Rao, K., Challenges in Designing Need Based Products in Life

Sonika Chaudhary, Priti Kiran, Life Insurance Industry in India - Current

Savita Jindal, article on Ethical Issue in Insurance Companies (2014)4:- This

G. Chandrayya, article on Opportunities and Challenges of Insurance Industry

Tentative Chapter Schemes is as follows-

I. Introduction and Research Design

Kirti. Anil. Jadhav Dr.Anil. R. Chougule

Bachelors of Banking and Insurance Project Guide

1. Nagaraja Rao, K., Challenges in Designing Need Based Products in Life

3. Sonika Chaudhary, Priti Kiran, Life Insurance Industry in India - Current

4. Savita Jindal, article on Ethical Issue in Insurance Companies (2014):

5. G. Chandrayya, article on Opportunities and Challenges of Insurance Industry

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