Presentation On

Insurance Schemes
 Contents
1. Introduction 9. Non-Life Insurance
2. Principles
Health Insurance
3. Importance
4. Types Motor Insurance
5. Life Insurance Property Insurance
6. Types of Life Insurance Travel Insurance
Whole Life Insurance 10. Non- Life Insurance
Term Life Insurance Companies in India
Unit linked Insurance Plans 11. Kotak General Insurance
Endowment Life Insurance
12. Conclusion
7. Life Insurance Companies in India
8. Life Insurance Corporation (LIC)
 Introduction
Insurance is a financial product that provides protection
against potential losses or risks by transferring the risk from an
individual or entity to an insurance company. By paying a
premium, policyholders receive coverage for specific events,
such as accidents, health issues, or property damage, outlined
in a legal contract known as a policy. This arrangement allows
individuals and businesses to manage their financial exposure
to unforeseen circumstances, ensuring that they have support
in times of crisis.
 principles
Nature of contract Double Insurance

Proximate cause Insurable Intrest

Indemntiy Subrogation

Good Faith
 Importance
1) Financial Protection
2) Risk Management
3) Peace of Mind
4) Legal Requirement
5) Support for Recovery
6) Liability Coverage
7) Access to Resources
8) Protection of Assets
9) Encouragement of Savings and Investment
10) Enhances Creditworthiness
 Types of Insurance

Life Insurance Non-life Insurance

Whole life Insurance Health Insurance

Term life Insurance Motor Insurance
Unit linked Insurance Plans Property Insurance

Endowment life Insurance Travel Insurance

 Life Insurance
Life insurance is a financial contract between an individual (the
policyholder) and an insurance company, wherein the insurer
agrees to pay a specified amount of money (the death benefit)
to designated beneficiaries upon the policyholder's death, in
exchange for regular premium payments. It serves to provide
financial protection for the policyholder's dependents, covering
expenses such as funeral costs, debts, and ongoing living
expenses, thereby ensuring their financial security in the event
of the policyholder's passing.
 Types of life Insurance
1) Whole Life Insurance
Whole life insurance is a type of permanent life insurance that provides lifelong
coverage for the policyholder, as long as premiums are paid. It features both a
death benefit and a cash value component, which grows over time at a guaranteed
rate set by the insurer.
Features :
Lifetime Coverage: As long as you keep paying your premiums, the policy remains in
force until your death.
Cash Value Accumulation: A portion of the premium goes toward building cash
value, which can be borrowed against or withdrawn during the policyholder's
lifetime. This cash value grows tax-deferred.
Fixed Premiums: Premiums are generally level and remain constant throughout the
life of the policy.
Death Benefit: Upon the insured's death, the beneficiaries receive a death benefit
that is generally tax-free.
Dividends: Some whole life policies may pay dividends if the insurer performs well
financially, which can be used to reduce premiums, purchase additional coverage, or
be taken as cash.

Documents Required
Application Form Financial Information
Proof of Identity Beneficiary Information
Medical Records Existing Insurance Policies
Income Verification
 Benefits Drawbacks

Higher Premiums
Financial Security
Cash Value Access Complexity

Estate Planning Slower Cash Value Growth

Tax Advantages Potential for Reduced Death Benefit

Stable Premiums
2) Term Life Insurance
Term life insurance is a type of life insurance that provides coverage for a specified
period, or "term," typically ranging from 10 to 30 years. If the insured individual
passes away during this term, the policy pays a death benefit to the designated
beneficiaries. If the term expires and the insured is still alive, there is no payout, and
the coverage ends unless renewed or converted to a permanent policy.

Features
Coverage Duration: Provides protection for a set number of years, with options
to renew or convert to permanent insurance at the end of the term.
Lower Premiums: Generally more affordable than permanent life insurance (like
whole life), making it accessible for many individuals.
Simplicity: Typically straightforward with no cash value component, making it
easy to understand.
Death Benefit: Pays a specified amount to beneficiaries if the insured dies during
the term.

Documents Required

Application Form Income Verification

Proof of Identity Beneficiary Information
Medical Records Existing Insurance Policies
Lifestyle Details
 Benefits Drawbacks

Affordability Temporary Coverage

Simplicity No Cash Value

Flexibility in Coverage Renewal Premiums

Focus on Financial Responsibilities Limited Payout

Conversion Options Health Changes

3) Unit Linked Insurance Policy
A Unit Linked Insurance Policy (ULIP) is a type of insurance product that combines
life insurance coverage with investment options. In a ULIP, part of the premium paid
by the policyholder is allocated to provide life cover, while the remaining portion is
invested in various funds, such as equity, debt, or balanced funds, depending on the
policyholder's risk appetite.

Features
Life Cover: Provides financial protection to the policyholder's beneficiaries in case
of death.
Investment Component: Offers the opportunity to invest in market-linked funds,
allowing for potential wealth creation.
Flexibility: Policyholders can switch between different funds based on market
performance and personal financial goals.
Lock-in Period: Typically, ULIPs have a mandatory lock-in period (usually five years)
during which the investment cannot be withdrawn.
Charges: ULIPs may have various charges, including premium allocation charges,
policy administration fees, and fund management fees.

Documents required
Identity Proof Photographs
Address Proof KYC Documents
Age Proof Medical Reports (if applicable)
Income Proof
 Benefits Drawbacks

Dual Benefit High Charges

Flexibility Lock-in Period

Market Linked Returns Complexity

Tax Benefits Lower Returns in Initial Years

Transparency Not Ideal for Short-Term Goals

4) Endowment life Insurance
Endowment life insurance is a type of life insurance policy that provides both a
death benefit and a savings component. It is designed to pay a lump sum to the
policyholder upon maturity or to the beneficiaries in the event of the policyholder's
death during the policy term.

Features
Death Benefit: If the policyholder dies during the policy term, the nominated
beneficiaries receive the sum assured along with any bonuses.
Maturity Benefit: If the policyholder survives the policy term, they receive the sum
assured plus any accumulated bonuses.
Fixed Term: Endowment policies usually have a specified term (e.g., 10, 20, or 25
years).
Savings Element: Part of the premium goes towards building cash value over time,
which can be accessed or borrowed against in some policies

Premium Payment: Premiums can be paid as a lump sum or in installments,

depending on the policy terms.
 Benefits Drawbacks

Dual Benefit Lower Returns

Maturity Payout High Premium

Financial Discipline Complexity

Tax Benefits Surrender Charges

Bonus Potential Inflation Risk

Life Insurance Companies in India
 Life Insurance Corporation
Life Insurance Corporation of India (LIC) is an Indian multinational public sector life
insurance company headquartered in Mumbai. It is India's largest insurance
company as well as the largest institutional investor with total assets under
management worth ₹52.52 trillion (US$630 billion) as of March 2024.

Insurance Schemes :
1) LIC Jeevan Anand
Endowment plan
Combines both savings and life protection.
Bonus benefits and death benefits even after policy maturity.
2) LIC Jeevan Umang
Whole life plan
 Offers annual survival benefits after the premium payment term,
until age 100.
Provides lump sum payment on death or at policy maturity.

3) LIC Jeevan Amar

Term insurance plan
Pure protection plan, offering financial security to the policyholder's
family in case of untimely death.
Offers death benefits either as a lump sum or in installments (over 5,
10, or 15 years).
Entry age 18-65 years, maximum maturity age of 80 years, policy
term 10-40 years.
4) LIC SIIP ULIP Plan

Provides both life insurance coverage and investment opportunities through

market-linked funds.

The minimum annual premium is INR 30,000 for regular or limited premium
policies.

In case of the policyholder's death during the policy term, the nominee
receives the highest of the sum assured or fund value, subject to a
minimum of 105% of total premiums paid.
Partial withdrawals are allowed after a lock-in period of 5 years.
 Non-Life Insurance
Non-life insurance, also known as general insurance,
encompasses a wide range of insurance products that provide
financial protection against risks other than life, such as
property damage, health expenses, and liability. The primary
objective of non-life insurance is to mitigate the financial
impact of unforeseen events, offering policyholders peace of
mind and financial stability. This sector is critical for
businesses and individuals alike, as it helps manage risks
associated with everyday life and unexpected incidents, thus
promoting economic stability and growth .
 Types of Non-life insurance
1) Health insurance
Health insurance is a type of insurance coverage that pays for medical and surgical
expenses incurred by the insured. It can also provide benefits for preventive care,
mental health services, and prescription medications. Health insurance can help
protect individuals and families from high healthcare costs by covering a portion of
their medical bills.
Features:
1. Premiums
A regular payment (monthly, quarterly, or annually) that policyholders make to
maintain their insurance coverage.
2. Coverage
The medical services and treatments that the insurance policy will pay for, which
usually include hospital stays, doctor visits, prescription drugs, preventive services.
3. Deductible
The amount policyholders must pay out-of-pocket before the insurance company starts
covering medical expenses. For example, if the deductible is $1,000, the insured must pay that
amount before coverage kicks in.
4. Co-payment (Co-pay)
A fixed fee that policyholders pay for certain medical services (e.g., $30 for a doctor’s visit),
while the insurance covers the rest of the cost.
5. Co-insurance
After meeting the deductible, the insured often pays a percentage of covered medical costs,
while the insurance covers the rest. For example, if co-insurance is 20%, the insured pays 20% of
the bill, and the insurer pays 80%.
Documents required
1. Identity Proof 4. Income Proof
2. Address Proof 5. Medical Records (if applicable)
3. Proof of Age
 Benefits Drawbacks

Financial Protection High Premiums

Customized Plans Exclusions and Waiting Periods

Preventive Care Limited Coverage

Access to Quality Healthcare

Tax Benefits
2) Motor Insurance
Motor insurance, also known as auto insurance or vehicle insurance, provides
financial protection against risks associated with owning and operating a vehicle. It
covers damages to the vehicle, personal injuries, and liability for harm caused to
others in the event of accidents, theft, or other incidents. Motor insurance is
usually required by law in many countries.
Features:
1. Types of Coverage
Third-Party Liability Insurance(Mandatory in most countries)
Covers damages or injuries caused to other people (third parties) or their property in
an accident where the insured is at fault.
Does not cover the insured’s own vehicle or personal injuries.
Comprehensive Insurance
Provides wider protection, covering both third-party liability and damage to the
insured’s own vehicle due to accidents, theft, fire, natural disasters, or vandalism.
May also cover personal injuries of the driver and passengers.
2. Premiums
A periodic payment (monthly, quarterly, or annually) that the policyholder makes to
keep the insurance active. The premium is determined based on factors like the type of
vehicle, age, driving history, location, and the coverage chosen.
3. Policyholder’s Liability
In case of an accident, the insurance company covers the costs of damages or injuries
up to the policy limits. The policyholder may still have to pay certain out-of-pocket
costs, like deductibles.
Documents required
1. Vehicle Registration Certificate (RC)
2. Proof of Identity
3. Proof of Address
4. Driving License

5. Vehicle Invoice (for New Cars)

 Benefits Drawbacks

Financial Protection Against Accidents High Premiums

Protection Against Theft or Total Loss Limited Coverage in Basic

Policies
Coverage for Personal Injuries
Claim Rejections
Compliance with Legal Requirements Lower Compensation for
Older Vehicles
3) Property Insurance
Property insurance provides financial protection to homeowners, landlords, and
businesses against potential risks or losses related to their property. It generally
covers damage or loss caused by events such as fires, theft, natural disasters, and
accidents.
Features
1. Coverage for Property Damage
Property insurance primarily covers damages to the structure and contents of a
property caused by events like fire, theft, or natural disasters (depending on
policy specifics).

2. Liability Coverage
It protects the policyholder if someone is injured on the insured property or if
the policyholder causes damage to someone else's property.
3. Personal Property Protection
Property insurance typically covers personal belongings inside the property,
such as furniture, electronics, and appliances.

4. Additional Living Expenses (ALE)

If the property becomes uninhabitable due to a covered event, the policy may
cover additional living expenses (ALE), such as hotel stays, meals, and other
costs incurred while the property is being repaired.

Documents Required
1. Proof of Identity (For the Policyholder)
2. Proof of Property Ownership
3. Property Valuation Documents
4. Photographs of the Property
5. No Objection Certificate (NOC) from Society or Authority
 Benefits Drawbacks

Financial Protection Against Loss High Premium Costs

Liability Coverage Exclusions and Limitations

Protection of Personal Belongings Complex Claims Process

Additional Living Expenses (ALE) Underinsurance Risk

4.Travel insurance
Travel insurance is a type of insurance policy designed to cover the costs and losses
associated with traveling. It protects travelers from unforeseen events or emergencies
that might occur before or during a trip.

Features
1. Trip Cancellation Coverage
Reimbursement for prepaid travel expenses if your trip is canceled for
reasons such as illness, injury, death of a family member, or natural disasters.

2. Trip Interruption Coverage

Reimbursement for unused portions of the trip and additional costs to
return home early due to unforeseen events.
3. Emergency Medical Coverage
Covers medical expenses for injuries or illnesses that occur while traveling,
including doctor visits, hospital stays, surgeries, and medication.

4. Medical Evacuation and Repatriation

Pays for emergency transportation to the nearest appropriate medical

facility or back to your home country if necessary.

Documents Required
Passport
Travel Itinerary
Personal Information
Medical History
Payment Information
Visa (if applicable)
 Benefits Drawbacks

Medical Coverage Cost

Trip Cancellation/Interruption Exclusions
Lost or Delayed Luggage Complex Terms
Emergency Assistance Claim Process
Peace of Mind Not Always Necessary
Non-Life Insurance Companies in India
 Kotak General Insurance
Kotak General Insurance Company is an Indian general insurance company
headquartered in Mumbai. It offers non-life insurance products like motor, health,
home and others. It is 70% owned by Swiss insurance company Zurich Insurance.

Insurance Schemes :
1. Motor Insurance
Private Car Insurance: Covers damages to your vehicle from accidents, theft,
and natural disasters, along with third-party liability.
Two-Wheeler Insurance: Similar to car insurance, this policy protects against
damages to your two-wheeler and third-party liabilities.
2. Health Insurance
Individual Health Insurance: Provides coverage for medical expenses,
hospitalization, and treatments for individuals.
Critical Illness Insurance: Offers a lump-sum payout upon diagnosis of
specific critical illnesses, helping cover treatment costs and financial
implications.
3. Travel Insurance
Offers coverage for trip cancellations, medical emergencies, loss of baggage,
and other travel-related risks, ensuring peace of mind while traveling
domestically or internationally.
4. Home Insurance
Provides coverage for the structure of the home and personal belongings
against risks like fire, theft, and natural disasters, as well as liability for
accidents occurring on the property.
 Conclusion
In conclusion, insurance schemes, whether life, health, or property-related,
play a critical role in providing financial protection against a wide range of
risks. They help individuals and businesses safeguard their assets, health,
and income from unforeseen events such as accidents, illnesses, or natural
disasters. Insurance policies are designed to offer peace of mind by reducing
the financial burden associated with these risks, while also ensuring that
policyholders are able to recover financially in times of need. The choice of
an insurance scheme depends on individual or business needs, with
customizable options available to tailor coverage appropriately. However, it
is essential to review policy terms, exclusions, and premiums to make
informed decisions and ensure adequate coverage.
Thank You

Presented By:
Amisha Karna
23/CS/07
Sakshi
23/CS/57
Aina Chahar
23/CS/04