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    Introduction To Insurance Industry

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    Dhananjay Kumar
    The document provides an overview of the Indian insurance sector, including life insurance, general insurance, major players, policies, and trends. It discusses the history and development of insurance in India, key principles of insurance, the liberalization of the insurance industry after 1999, and examples of major types of insurance policies such as life, health, fire, and motor vehicle policies. It aims to introduce students to the fundamental concepts of insurance.

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    Introduction To Insurance Industry

    Uploaded by

    Dhananjay Kumar
    9K views64 pages
    The document provides an overview of the Indian insurance sector, including life insurance, general insurance, major players, policies, and trends. It discusses the history and development of insurance in India, key principles of insurance, the liberalization of the insurance industry after 1999, and examples of major types of insurance policies such as life, health, fire, and motor vehicle policies. It aims to introduce students to the fundamental concepts of insurance.

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    this is made by a MBA student for MBA students............ Best of luck

    Original Title

    Introduction to Insurance Industry

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    The document provides an overview of the Indian insurance sector, including life insurance, general insurance, major players, policies, and trends. It discusses the history and development of insurance in India, key principles of insurance, the liberalization of the insurance industry after 1999, and examples of major types of insurance policies such as life, health, fire, and motor vehicle policies. It aims to introduce students to the fundamental concepts of insurance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    9K views64 pages

    Introduction To Insurance Industry

    Uploaded by

    Dhananjay Kumar
    The document provides an overview of the Indian insurance sector, including life insurance, general insurance, major players, policies, and trends. It discusses the history and development of insurance in India, key principles of insurance, the liberalization of the insurance industry after 1999, and examples of major types of insurance policies such as life, health, fire, and motor vehicle policies. It aims to introduce students to the fundamental concepts of insurance.

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    Introduction

    to
    Insurance Sector
    Presented By-
    Dhananjay kumar
    1 Jaipuria institute of Management, Noida
    Contents:-

     Lifeinsurance
     General insurance
     Insurance market scenario
     Emerging trends in insurance
     Jobs in insurance
     Insurance websites
     Insurance glossary

    2
    Learning
    Insurance

     What Is Insurance
    Insurance is concerned with protection of
    economic value of assets.Tangible assets are
    human beings, house, furniture, motor cycle
    etc.Intangible assets are liabilities

    3
    History of Insurance

     Itstarted from Lloyd’s coffee house London


     First policy issued in England in 1583
     In India first policy issued in 1870

    4
    History of Insurance

     LIC of India formed in 1956 after


    nationalization of life insurance
    Business of 245 private insurance
    companies
     General insurance business of 107

    insurance companies was


    nationalized in 1972 & four public sector
    General Insurance Companies were formed
    5
    Classes of
    Insurance

    A. Life insurance
    B. General insurance
    General insurance is further
    classified:-
    1.Fire insurance
    2.Marine insurance
    3.Miscellaneous insurance

    6
    Miscellaneous Insurances:-

    1.Motor insurance
    2.Mediclaim insurance
    3.Householders insurance
    4.Shopkeepers insurance
    5.Engineering insurances
    etc.

    7
    Fundamental
    Principles of Insurance

    1.Insurable interest- Means financial interest

    2.Utmost good faith- Greater duties of faith


    on proposer & insurer

    3.Indemnity- Actual compensation of loss.


    not applicable in life policies

    8
    Fundamental Principles of
    Insurance

    4.Subrogation-Transfer of rights of insured to


    insurer.Not applicable in life policies.
    5.Contribution-Sharing of loss by all
    insurers.Not applicable in life policies.

    9
    Market Scenario before Irda Act
    1999

    Life insurance company


    1. LIC of India
    General insurance companies
    1.National insurance company ltd
    2.New India assurance company ltd
    3.Oriental insurance company ltd
    4.United India insurance company ltd

    10
    Market Scenario after Irda Act 1999

    Stage of
    Liberalization,
    Privatization &
    Globalization
    (Competition between public sector & private sector)

    11
    Life Insurance Companies

    1.Bajaj Allianz Life Insurance Company Ltd

    2.Birla Sun Life Insurance Company Ltd

    3.HDFC Standard Life Insurance Company Ltd

    4.ICICI Prudential Life Insurance Company Ltd

    5.ING Vysya Life Insurance Company Ltd

    12
    Life Insurance Companies

    6.Max New York Life Insurance Company Ltd


    7.Met Life India Insurance Company Ltd
    8.Kotak Mahindra Old Mutual Life Insurance
    Company Ltd
    9.SBI Life Insurance Company Ltd

    13
    Life Insurance Companies

    10.Tata AIG Life Insurance Company Ltd

    11.Reliance Life Insurance Company Ltd

    12.Aviva Life Insurance Company Ltd

    13.Sahara India Life Insurance


    Company Ltd

    14
    Life Insurance Companies

    14.Shriram Life Insurance Company


    Ltd
    15.Bharti Axa Life Insurance Company
    Ltd
    16.Life Insurance Corporation Of
    India

    17.Future Generali India Life Insurance


    Company Ltd.

    15
    Life Insurance Companies

    18. IDBI Fortis Life Insurance Company


    Ltd.
    19.Canara HSBC Oriental Bank of
    Commerce Life Insurance Company Ltd.
    20.Aegon Religare Life Insurance
    Company Limited.
    21. DLF Pramerica Life Insurance Co. Ltd.

    16
    General Insurance Companies

    1.Bajaj Allianz General Insurance Company Ltd


    2.Icici Lombard General Insurance Company
    Ltd
    3.Iffco Tokio General Insurance Company Ltd
    4.Reliance General Insurance Company Ltd
    5.Royal Sundaram Alliance Insurance
    Company Ltd

    17
    General Insurance Companies

    6.Tata AIG General Insurance Company Ltd


    7.Cholamandalam Ms General Insurance
    Company Ltd
    8.HDFC-Chubb General Insurance Company
    Ltd
    9.Star Health & Allied Insurance Company Ltd

    18
    General Insurance Companies

    10.Export Credit Guarantee Corporation Ltd


    11.Agriculture Insurance
    Company Of India Ltd
    12.National Insurance Company
    Ltd
    13.New India Assurance Company
    Ltd
    19
    General Insurance Companies

    14.Oriental Insurance Company


    Ltd

    15.United India Insurance Company


    Ltd

    16. Apollo DKV Insurance Company Ltd

    20
    General Insurance Companies

    17.Future General India Insurance Company


    Ltd
    18. Universal Sompo General Insurance Co.
    Ltd.
    19.Shriram General Insurance Company
    Limited
    20.Bharti AXA General Insurance Company ltd.

    21
    Market Intermediaries

    Who procure the


    insurance business:-
     Agents
     Corporate agents
     Insurance brokers
     Banks (Bancassurance)

    22
    Basic Life Insurance Policies

    Term assurance policy


     Provides death cover only
    during policy period
     Premium is low
     No refund of premium
     Sum assured paid on death

    23
    Whole Life Policy

     Death cover only


     Period is not specified
     Premium is low & paid
    during life time
     No refund of premium
     Sum assured paid on death

    24
    Endowment Assurance Plan

     Covers death & survival


    benefits
     Sum assured paid on death
    or on maturity of policy
     Period of policy at the option
    of proposer
     Most common plan

    25
    Money Back Policy

     Available for different periods

     Covers death & survival benefits

     Lump sum paid periodically

     Full sum assured paid on death

    26
    Unit Linked Insurance Policies
    (ULIP)

     Each premium split into units and risk


    premium for life cover
     Units are priced as per current

    market value
     Sum assured & current value of units paid
    on death as per policy condition
     Current value of units paid on maturity

    27
    Annuity (Pension)
    Plans

     These are pension plans


     Immediate annuity or deferred annuity starts
    at specified age periodically
     Single premium paid for immediate annuity
     Premium in installments paid

    for deferred annuity


     Life cover simultaneously

    28
    Important aspects of Life Insurance
    Policies

     Policies available with bonus or without


    bonus
     Death due to accidents can be covered for
    additional S.A.
     Policies available exclusively for women &
    children
     Additional cover for major diseases available
     Guaranteed bonus policies available

    29
    Important aspects of Life Insurance
    Policies

     Policies available for limited period premium


    payment & risk for longer policy period
     Premium can be paid in monthly, quarterly,
    half yearly, yearly installments

    30
    Important aspects of Life Insurance Policies

     Loans are available on policies


     Lapsed policies can be revived
     Policy can be surrendered after three years
     Nomination & assignment can be done

    31
    General Insurance Policies

     Fire policies
     Marine policies
     Motor vehicle policies
     Personal line policies
     Health insurances
     Liability insurances
     Rural insurance policies
     Engineering insurances

    32
    Fire Policies

    Standard fire policy-


    Common policy for buildings, shops,offices,
    Industrial & manufacturing risks

    33
    FIRE POLICIES-SPECIAL POLICIES

    Industrial & Manufacturing


    clients
     Floater policy
     Declaration policy
     Floater declaration policy
     Reinstatement value policy
     Industrial all risk policy
     Consequential loss policy

    34
    Marine Policy

    Marine Cargo Policy


     Policy insures physical loss or damage to the
    goods in transit by road, rail, air, water caused due
    to accidents, fire etc.
    Marine Hull Policy
     Policy insures marine ships,steamers etc.

    35
    Special Marine Cargo Policies

    For business, industries,


    importers and exporters
     Annual policy
     Special declaration policy
     Open cover
     Open policy

    36
    Motor Vehicle Policies

    Liability only motor policy


    Mandatory motor vehicle policy
    Package motor policy
    Motor policy additionally insures loss and
    damage of the motor vehicle due to theft and
    accidents along with third party risk is called
    a package motor policy.

    37
    Personal Line Insurances

     House holders policy


     Shop keepers policy
     Personal accident policy
     Group personal accident policy
     Fidelity guarantee policy

    38
    Health Insurance

     Medi claim policy


     Overseas medi claim policy
     Videsh yatra mitra policy
     Corporate frequent travelers policy
     Employment & study policy
     Group medi claim policy
     Cancer policy

    39
    Liability Insurances

     Compulsory public liability policy


     Public liability policy
     Products liability policy
     Professional indemnity policy
     Lift (third party) policy
     Director’s liability policy
     Employer’s liability policy

    40
    Rural Insurance Policies

     Cattle policy

     Poultry policy

     Agricultural pump set


    policy

     Crop insurance
    41
    Engineering Insurances

     Machinery Breakdown Insurance


     Loss of Profits (Machinery
    Breakdown) Insurance
     Electronic Equipment Insurance
     Erection All Risk Insurance (EAR)
     Storage cum Erection Insurance
    (SCE)

    42
    Engineering Insurances

     Contractors All Risk Insurance (CAR)


     Contractors Plant and Machinery Insurance (CPM)
     Boiler and Pressure Plant Insurance
     Loss of Profits (Boiler Explosion) Insurance
     Deterioration of Stocks Insurance.

    43
    Insurance Law

     The Insurance Act 1938


    (amended)
     Insurance Regulatory & Development
    Authority Act 1999

    44
    IRDA

     Insurance Regulatory & Development


    Authority is the controlling and regulatory
    apex body in the country for insurance sector
    and its chairman and members are appointed
    by Government of India. IRDA’s HQ is
    located at Hyderabad

    45
    Insurance Regulations
    (powers and functions of IRDA)

     issue to the applicant a certificate of registration, renew, modify,


    withdraw, suspend or cancel such registration.
     specifying requisite qualifications, code of conduct and
    practical training for intermediary or insurance intermediaries
    and agents.
     specifying the code of conduct for surveyors and loss
    assessors.
     promoting efficiency in the conduct of insurance business
     promoting and regulating professional organizations
    connected with the insurance and re-insurance business.
     levying fees and other charges for carrying out the purposes of
    this Act.
    46
    Insurance Regulations
    (powers and functions of IRDA)

     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.
     regulating investment of funds by insurance companies.
     regulating maintenance of margin of solvency.
     adjudication of disputes between insurers and intermediaries
    or insurance intermediaries
     supervising the functioning of the Tariff Advisory Committee.
     Other.

    47
    Economic Growth
    GDP 8.7 % in 2007-08

    Sector Growth % of GDP


    Agriculture 2.6 17.5
    Industry 8.9 26.8
    Services 10.7 55.7
    (Fin.& 11.7 14.7
    Insurance)

    48
    Growth of Insurance Business

     LifeInsurance Premium from Rs.400 crores


    in 1956 to Rs.156042 crores in 2006-07 with
    47 % growth
     General Insurance Premium from Rs.200
    crores in 1972 to Rs.24905 crores in 2006-07
    with 22 % growth

    49
    Emerging Trends

     Detariffing in General Insurance from


    1.1.2007 leading to greater price war & new
    products in future
     Banks entering insurance market through
    joint ventures with foreign finance majors

    50
    Emerging Trends

    Increasing Role of
     Insurance Brokers
     Banc assurance
     Corporate Agency
     IT intervention & uses

    51
    Emerging Trends

    Greater Job Opportunities


     For thousands of Insurance

    Managers, IT Professionals
     For lacs of Insurance Advisors
     For Insurance Professionals
     For Risk Managers
     For Underwriters
     For claim Settlements

    52
    Emerging Trends

     Increasing No. of Insurance companies &


    Intermediaries
     Increasing Awareness about Insurance
     Growth in GDP
     Increasing No. of Middle Class

    53
    Emerging Trends

     Increasing awareness about Health


    Insurance
     Increasing awareness about Personal Line
    Insurance like House, Shop, Personal
    Accident
     Market flooded with new insurance products

    54
    Jobs

    In

    Insurance

    55
    Job Opportunities

     45 lakh people employed

     27 lakh people required by 2012

    5 lakh people supply by 2012

    3 % constitute executive cadre

    56
    Job Positions

     Agency Manager
     Sales Manager
     Sales Executive
     Branch Manager
     Executive Underwriting
     Executive Claims
     Executive Bancassurance

    57
    Job Description

     To recruit the insurance agents


     To train the agents
     To supervise the agents
     To develop the business
     Supervise underwriting
     Supervise claim settlement
     Customer relationship management
     Bancassurance

    58
    Job Specification

     Team leader
     Team driving capability
     Team management
     Communication
     Frustration tolerance
     Insurance knowledge
     Contacts

    59
    Job Specification

     Knowledge of company
     Fluency in English & local language
     Customer service
     Computer friendly
     Team goals
     Financial consultant
     Networking skills

    60
    THE BUSINESS IDEA

    61
    1st Business Idea

    Insurance for the consumer durables


     Example – TV, refrigerator, washing
    machine, air conditioner, cooler (water, air)
    etc.
     Tie up with the companies

    62
    Advantages

    To the customer
    2. Durability of the product
    3. Long-run cost efficiency
    4. Better service of the product
    To the companies
    6. Increase in sales
    7. Customer satisfaction
    8. Strategic advantage
    9. Automatic removal of local-product competitors
    10. Revenue
    To the Insurance Company
    All benefits which is lies with any insurance company
    63
    1. Insurance for the EDUCATION LOAN
    2. Insurance for lower class people.
    Example- small/daily premium insurance

    64

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