Final2 Insurance

The Study Of Indian Insurance Sector
EXECUTIVE SUMMARY
What is your life without your family and what would be the plight of your family without you? Here comes the role of Insurance. After all what it is? This is studied in depth in this project. Starting with you you can insure yourself or any part of yours with !arious companies a!ailable in the mar"et. A glance of these companies is depicted in this project. And your assets you can insure your !ariables with any company dealing in #eneral Insurance $usiness and register under the Act. This %roject also deals about general insurance and the companies dealing in #eneral Insurance $usiness in India. To be brief and specific this project deals all about Insurance & #eneral and 'ife. There are !arious players as far as mar"et for life insurance is concerned. So in the final segment of this project comparati!e analyses of some of the major companies are pro!ided to ensure their e(istence and their mar"et share in 'ife Insurance $usiness. The methodology followed to collect information is !arious !isits to companies dealing in 'ife Insurance $usiness %ersonal )eetings to snatch )a(imum information.
Insurance is the Subject )atter Of Solicitation
OBJECTIVE
There can be more than one aim of preparing this project. +ollowing are the objecti!es of this project,
- To apprehend and predict the industry.
- To e(press the need of Insurance in busy .is"/0ontented life of people.
- To "now the strength and wea"ness of !arious companies.
HEAD START
Insurance may be described as a social de!ice to reduce or eliminate ris" of loss to life and property. 2nder the plan of insurance a large number of people associate themsel!es by sharing ris"s attached to indi!iduals. The ris"s which can be insured against include fire the perils of sea death and accidents and burglary. Any ris" contingent upon these may be insured against at a premium commensurate with the ris" in!ol!ed. Thus collecti!e bearing of ris" is insurance.
%eople generally regard insurance as a scheme when and where you ha!e to lose a lot to gain a little. 3e!ertheless insurance is still the most reliable tool an indi!idual can use to plan for his future.
Throughout our li!ing e(istence we are faced by numerous ris"s / failing health financial losses accidents and e!en fatalities. Insurance addresses all these uncertainties on financial terms.
The insurance industry in particular has been subjected to numerous changes in the last few decades since the need for insurance is more e!ident now than earlier. %eople4s spending patterns are changing and more 5 more resources are needed for immediate consumption. In fact it is recommended that you re!iew your needs and insurance portfolio from time to time say e!ery 1/6 years.
What exactly is insu ance!

Insurance plays an important role in the business acti!ities as well as in the personal li!es. Insurance can be e(plained with the following e(amples as mentioned below,
What will happen to a family7s finance if home will be destroyed by fire or earth8ua"e etc? What would be the financial situation of the family and dependence if there is a premature death of the main earner of the family? These e!ents occur somewhere e!eryday or in fact e!ery minute all o!er the world. %ro!iding protection against such ris"s is necessary and it is pro!ided by the insurance to indi!iduals families and businessmen.
)odern life is full of ris"s and uncertainties. Human life is also subject to ris"s and uncertainties. The same is the case with the goods raw materials and other types of properties. .is"s and uncertainties are more in the field of business therefore it is rightly said 9ris" thy the name of business:. To o!ercome or to minimi;e the ris" there is the insurance. The term <I3S2.A30=7 mean co!er or protection against possible ris" of loss in future.
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TH= =?T.A0T,/
9I3S2.A30= IS A +O.) O+ A 0O3T.A0T O. A#.==)=3T 23@=. WHI0H O3= %A.TA A#.==S TO %AA I3 .=T2.3 O+ 0O3SI@=.ATIO3 A3 A#.==@ A)O23T O+ )O3=A TO A3OTH=. %A.TA TO )AB= #OO@ TH= 'OSS @A)A#= O. I3C2.A @2= TO SO)= 230=.TAI3 =D=3T I3 WHI0H TH= I3S2.=@ Ethe person which is insuredF HAS I3T=.=ST:
De"initi#ns$%
#eneral @efinition
In the words of Cohn )agee 9Insurance is a plan by which large number of people associate themsel!es and transfer to the shoulders of all ris"s that attach to indi!iduals.:
+undamental @efinition
In the words of @.S. Hansell 9Insurance may be defined as a social de!ice pro!iding financial compensation for the effects of misfortune the payment being made from the accumulated contributions of all parties participating in the scheme.:
0ontractual @efinition
In the words of justice Tindall 9Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer7s incurring the ris" of paying a large sum upon a gi!en contingency.:
Insu ance Sect# & O i'in ( De)el#*+ent

Insurance in the modern form originated in the )editerranean during *6H*>th century. The earliest references to insurance ha!e been found in $abylonia the #ree"s and the .omans. The use of insurance appeared in the account of 3orth Italian mercantile ban"s who then dominated the international trade in =urope at that time. )arine insurance is the oldest form of insurance followed by life insurance and fire insurance. The patterns that ha!e been used in =ngland followed in other countries also in these "inds of insurance. The origin and growth of )arine Insurance 'ife Insurance +ire Insurance and miscellaneous insurance are e(plained latter on this project.
,RI-CI,.ES O/ I-SURA-CE
I3S2.A30= AS A SO0IA' S=02.ITA TOO' has gathered much significance today along with safety and sa!ing which acts as the future pro!isions are the main aims of insurance. Howe!er insurance is the special type of contract. It in!ol!es the following principles,
1. UTMOST GOOD FAITH: - 2tmost good faith is one basic and primary
principle for insurance. It states that the insurance contract must be made in absolute good faith on the part of both the parties. It means both the parties &insurer and insured must ha!e the faith on each other. +or this both the parties to the contract must disclose all the facts relating to the subject matter of insurance. $ut it is more on the insured as he is in possession of the subject matter to be insured. It is necessary to disclose all the important material fact about the contract to each other in full and trustfully. This principle is more important in life insurance because the information disclosed will affect the judgment of an insurance company to accept or reject the proposal. This principle is also applicable to general insurance.
2. INSURABLE INTEREST: - Insurable interest means the interest in the

e(istence of the subject matter and not in the destruction. The insured must ha!e insurable interest in the life article and goods etcJ which are insured. It means the relationship of the person who insures and the life or article insured. A person can assure in his own life and e!ery part of it and can insure for any sum whatsoe!er as he li"es. Similarly a wife has an insurable interest in her husband and !ice/!ersa. Howe!er mere natural lo!e and affection is not sufficient to constitute an insurable interest. It must be shown that the person affecting an assurance on the life of another is so related to that other person as to ha!e a claim for support. +O. =.#., An owner has insurable interest in his house and in his personal assets. A person has insurable interest in his own life 5 wife nears 5 dears.
The Study Of Indian Insurance Sector This type of insurable interest must be a!ailable at the time of ta"ing policy as well as at the time of happening loss. This principle is applicable to both to life and general insurance.
3. PRINCIPLE OF INDEMNITY: - To indemnify means to ma"e good the loss.

This principle is the controlling principle of insurance. It means the insured is eligible to get an amount e8ual to the actual loss suffered by him. He cannot ma"e out the profit out of the insurance company due to this principle. +O. =.#., if a person insures his property against fire for .s.GL LLLH/ and when the property is burnt completely and its !al!e is found .s. >L LLLH/ then insured will get >L LLLH/ or if property is of GL LLLH/ but after loss its !al!e is found IL LLLH/ then the insured will get GL LLLH/ and not more.
4. PRINCIPLE OF SUBROGATION:- This principle is also applicable only to

general insurance. It is nothing but the continuation of indemnity principle. If the insured is not con!inced or satisfied with the principle of indemnity then only this principle is followed. According to this principle the claim is settled by the insurer up to the amount of the policy and insured has to transfer the possession and ownership of the subject matter to the insurer. +O. = #. , A car owner has insured his car for .s.G LL LLLH/ against ris" of loss due to accidents and suppose further that his car meets with an accident he will claim .s.G LL LLLH/ from the insurance company but the company will not pay .s.G LL LLLH/ it will pay the amount e8ual to the actual loss. The real loss is 6 LL LLLH/ because the undestroyed part of the car can be sold at .s.1 LL LLLH/. Therefore if the car owner want .s.G LL LLLH/ then he has to transfer the possession and ownership of the car to the insurance company.
All the abo!e four principles are applicable to fire insurance and marine insurance but indemnity and subrogation are not applicable to life insurance.
0EY TERMS USED I- I-SURA-CE

1. INSURER OR ASSURER: - The person or the party who gi!es assurance
to the other party for getting compensation of the loss is "nown as insurer or assurer.
2. INSURED OR ASSURED: -
The person or party who get the assurance
from the insurer for the compensation of loss is "nown as insured or assured.
3. PROPOSAL [Appli !"i#$ %#&'(:- A proposal is a re8uest by a proposed

Nwho is interested in ta"ing policyO against some loss or damage. The proposal can be made in writing in the form of letter. The Insurance 0ompany issues a printed proposal form to be filled in and signed by the proposed insured.
4. POLICY: -
It is a document containing the contract. The policy is not a
contract but it is only an e!idence of the contract .The policy shows the terms and conditions of the insurance contract which are binding on both insurer and insured. The policy is a stamped and sealed document. It is a !aluable document and by gi!ing the security of the policy the loan can be obtained from the ban" or from the insurance company.
5. PREMIUM: - %remium is the amount which policyholder has to pay regularly

to insurance company according to the contract. If the premium is not paid regularly the contract will come to an end the compensation will not be paid the company is case of loss or damage. The amount of the premium depends up to !arious factors li"e age ris" in!ol!ed and time period. %remiums paid on life insurance are refundable whereas of general insurance are non/refundable.
6. CLAIM: - 0laim is the demand made by the policy holder with the insurance
company to pay the compensation for the loss or damage to the property or goods by specific reason. In case of life insurance claim can be made after the maturity of the life policy or at the time of death whiche!er is earlier. In general insurance the claim can be made only in the e!ent of loss.
7. DOUBLE INSURANCE: - @ouble insurance means ta"ing more than one

policy to co!er the same ris". Any interested person can insure his goods with more than one company. $ut these are contracts if indemnity i.e. the insured will get the amount of actual loss or the amount of policy whiche!er is less. He cannot ma"e profits by ta"ing @ouble Insurance. In case of life Insurance @ouble Insurance becomes beneficial because Insurable interest is not limited to any specific amount as !al!e of human life cannot be measured. So a person can buy number of policies if he can pay the premium. He or his nominees will get amount of all the policies on maturity or death whiche!er is earlier.
8. RE-INSURANCE: -
.=/insurance is an agreement by which an Insurance
company agrees to accept a portion of the ris" already ta"en by another insurance company. The original company may insure the goods at higher rate of premium and may re/insure with some other company at a lower rate of premium. Therefore .=/insurance is a contract between two insurance companies. Sometimes the insurance companies feel that it has underta"en a big ris" under the policy which is beyond its capacity. Then the company can transfer a part of ris" to another company by insuring the same subject matter. So when one insurance company insures with other insurance company the same subject matter than it is called re/insurance
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/U-CTIO-S O/ I-SURA-CE
1. SPREADING OF RIS): - 'ife and property of person are subject to a number
of uncertain ris"s. Thus the loss that a few may suffer is spread o!er to a number of people who ha!e insured against the same ris". The premium paid by a large number of persons are used to compensate the loss that a few may suffer i.e. insurance company ne!er ta"es the ris"J it co!ers the ris" and immediately spreads the ris" among many insured7s. $ecause the premiums for insurance are paid by large number of insured7s whereas the loss is suffered by few insured7s. Thus from the premiums collected the compensation are paid to the sufferers.
2. PROTECTION: - %rotection is the main function of insurance. 'ife insurance is a

protection to the dependents of the insured in case of premature death and if the insured sur!i!es up to the maturity of the policy then the old age of the insured is protected. Therefore insurance creates a sense of security in the life of an indi!idual and protection against loss. The protection is always in terms of money i.e. financial protection.
3. INCREASES SA*INGS: - This function is performed only by life insurance. It

is creating the habit of sa!ing among the people because in life insurance it is compulsory to pay the premiums regularly otherwise the contract becomes in!alid. Thus the sa!ings goes on increasing year after year and insured gets the large amount on the maturity of the policy by which he can e(ecute his future plans.
4. IT CREATES FUNDS FOR IN*ESTMENT: - Insurance companies collect

money by way of premium from large number of insured which becomes large sum and this fund is made a!ailable for long term in!estment in industries companies and go!ernment departments with the intention of de!elopment of the country. Insurance companies also use the premiums collected for underwriting the shares and debentures of joint stoc" companies. Thus insurance plays an important role in economic de!elopment of the country.
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-EED O/ I-SURA-CE
AQ Assets are insured because they are li"ely to be destroyed or made non/functional through an accidental occurrence. Such possible occurrences are called perils. +ire floods brea"downs lightning earth8ua"es etc are perils. The damage that these perils may cause the asset is the ris" that the asset is e(posed to.
$Q The ris" only means that there is a possibility of loss or damage. It may or may not happen. There has to be an uncertainty about the ris" .Insurance is done against the contingency that it may happen. Insurance is rele!ant only if there are uncertainties. If there is no uncertainty about the occurrence of an e!ent it cannot be insured against.
0Q conceptually the mechanism of insurance is !ery simple. %eople who are e(posed to the same ris"s come together and agree that if any one of the <members7 suffers a loss the others will share the loss and ma"e good to the person who lost. All people who send goods by ship are e(posed to the same ris" related to water damage ship sin"ing piracy etc. Those owning factories are not e(posed to these ris"s but they are e(posed to different "inds of ris"s li"e fire hailstorms earth8ua"es lightning burglary etc. 'i"e this different "inds of ris"s can be identified and separate groups made including those e(posed to such ris"s. $y this method the ris" is spread among the community and the li"ely big impact on one is reduced to smaller manageable impacts on all.
@Q A human life is also an income generating asset. This asset also can be lost through une(pectedly early death or made non/functional through sic"ness and disabilities caused by accidents. Accidents may or may not happen. @eath will happen but the timing is uncertain. If it happens around the time of one7s retirement when it could be e(pected
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The Study Of Indian Insurance Sector that the income will normally cease the person concerned could ha!e made some other arrangement to meet the continuing needs. $ut if it happens much earlier when the alternate arrangements are not in place insurance is necessary to help those dependent on the income.
=Q In the case of a human being he may ha!e made arrangements for his needs after his retirement. These would ha!e been made on the basis of some e(pectations li"e he may li!e for another *G years or that his children will loo" after him. If any of these e(pectations do not become inade8uate and there could be difficulties. 'i!ing too long can be as much a problem as dying too young. These are ris"s which need to be safeguarded against. Insurance ta"es care. +Q Insurance does not protect the asset. It does not pre!ent its loss due to the peril. The peril cannot be a!oided through insurance. The peril can sometimes be a!oided through better safety and damage control management. Insurance only tries to reduce the impact of the ris" on the owner of the asset and those who depend on that asset. It compensates may not be fully the losses. Only economic or financial losses can be compensated. #Q The concept of insurance has been e(tended beyond the co!erage of tangible assets. =(porters run the ris" of the importers in the other country defaulting as well as losses due to sudden changes in currency e(change rates economic policies or political disturbances. These ris"s are now insured. @octors run the ris" of being charged with negligence and subse8uent liability for damages. The amounts in 8uestion can be fairly large beyond the capacity of indi!iduals to bear. In some countries the !oice of a singer or the legs of a dancer may be insured e!en though the ad!antage of spread may not be a!ailable in these cases. HQ Satisfaction of economic needs re8uires generation of income from some source. If the property which is the source of such income is lost fully or partially permanently or temporarily the income too would stop. The purpose of insurance is to safeguard against
Insurance is the Subject )atter Of Solicitation *6
The Study Of Indian Insurance Sector such misfortunes by ma"ing good the losses of the unfortunate few through the help of the fortunate many who were e(posed to the same ris" but sa!ed from the misfortune. Thus the essence of insurance is to share losses and substitute certainty by uncertainty.
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Insu ance in In1ia

Insurance is a .s.>LL billion business in India and yet its spread in the country is relati!ely thin. Insurance as a concept has not been able to ma"e headway in India. Till !ery recent past 'I0 enjoyed a monopoly in life insurance business while #I0 followed suit in the general insurance business. There ha!e been !ery little options before the consumer to decide the insurer.
Successful passages of the I.A $ill ha!e cleared the way for pri!ate sector operators in collaboration with their o!erseas partner. It is li"ely to bring in a more professional and focused approach. )oreo!er the foreign players would bring sophisticated actuarial techni8ues with them which would facilitate the insurer to effecti!ely price the product. It is !ery important that trained mar"eting professionals who are able to communicate specific features of the policy should sell the policy. In the ne(t millennium all these acti!ities would play a crucial role in the o!erall de!elopment and maturity of the insurance industry.
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SCO,E OR 0I-DS O/ I-SURA-CE
INSURANCE
GENERAL
LIFE
FIRE
MARINE
MISCELLANEOUS
$roadly insurance may be classified into the following categories,
*O 0lassification from business point of !iew 1O 0lassification from ris" point of !iew
1. Cl!++i%i !"i#$ %&#' ,-+i$.++ p#i$" #% /i.0

+rom the business point of !iew insurance may be the following types, *. 1. 'ife insurance. #eneral insurance.
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2. Cl!++i%i !"i#$ %&#' &i+1 p#i$" #% /i.0

+rom ris" point of !iew insurance can be classified into four categories, *. %ersonal insurance 1. %roperty insurance 6. 'iability insurance >. +idelity guarantee insurance
1. P.&+#$!l i$+-&!$ .
%ersonal insurance refers the loss to life by accident or sic"ness to indi!idual which is co!ered by the policy. The insurer underta"es to pay the sum insured on the happening of certain e!ent or on maturity of the period of insurance. The insurable sum is determined at the time of affecting the policy and include life insurance accident insurance and sic"ness insurance. 'ife insurance contains the element of in!estment and protection while the accidental sic"ness or health insurance contains the element of indemnity only.
2. P&#p.&"2 i$+-&!$ .
0ontract of property insurance is a contract of indemnity. %roof by the assured of loss is an essential element of property insurance. The policies of insurance against burglary home brea"ing or theft etc. fall under this category. The assured is re8uired to protect the insured property. After the loss has ta"en place the assured usually re8uired notifying the police as to losses.
3. Li!,ili"2 i$+-&!$ .
'iability insurance is the major field of #eneral insurance whereby the insurer promises to pay the damage of property or to compensate the losses to a third party. The amount of compensation is paid directly to third party. The fields of liability insurance include, wor"men compensation insurance third party motor insurance professional indemnity insurance. There may be !arious reasons for the arising of liability !i;. accident of a
Insurance is the Subject )atter Of Solicitation *K
The Study Of Indian Insurance Sector wor"er at the wor"place defecti!e goods e(plosion in the factory during the process of production and formation of poisonous gas within the factory due to the uses of chemicals and other such substances in the manufacturing process.
4. Fi3.li"2 4-!&!$".. i$+-&!$ .

In this type of insurance the insurer underta"es to indemnify the assured NemployerO in consideration of certain premium for losses arising out of fraud or embe;;lement on the part of the employees. This "ind of insurance is fre8uently adopted as a precautionary measure in cases where new and untrained employees are gi!en position of trust and confidence.
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2E-ERA. I-SURA-CE
#eneral insurance business refers to fire marine and miscellaneous insurance business whether carried on singly or in combination with one or more of them but does not include capital redemption business and annuity certain business. In India #eneral Insurance business started )arine Insurance started on the later part of the *Kth century. $efore nationali;ation in *P>K we ha!e *>K insurance companies foreign and Indian both. $ut during nationali;ation in *PK6 we ha!e *LK companies that merge into four companies i.e. ta"en o!er by #o!ernment. #eneral Insurance 0orporation of India N#I0O was set up in *PK6 as a holding company with four subsidiary operating companies / 3ational Insurance co. 'td. 3ew India Assurance 0o. 'td. 3ew India Assurance 0o. 'td. oriental Insurance co. 'td. and 2nited India Insurance 0o. 'td. with a clear cut mission as set out in the Act.
1. Fire insurance:+ire insurance is a form of general insurance pro!iding protection against ris" of loss due to fire. It is a contract of indemnity. The insurance company underta"es to ma"e good the loss arising due to fire. The claim should satisfy two conditions .+irstly there must be a loss due to actual fire and secondly the fire should be accidental. i.e. it should not be intentional. It is a contract of indemnity not against accident but against loss caused by accident. It is becoming !ery common in fire insurance policies to insert a condition called the a!erage clause. This calls upon the insured to bear a portion of the loss himself. The main object of this clause is to chec" under/insurance and to encourage full insurance. It
Insurance is the Subject )atter Of Solicitation *P
The Study Of Indian Insurance Sector stresses upon the property/owner for the need of ha!ing his property accurately !alued before insurance. The rate of premium !aries to the degree of ha;ard or ris" in!ol!ed.
History of Fire Insurance

+ire insurance has its origin in #ermany where it was introduced in municipalities for pro!iding 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 "nown as the 4#reat +ire4 in 'ondon which had destroyed se!eral buildings. It drew the attention of the public and the first fire insurance commercially transacted in *IIK. The Industrial .e!olution N*K1L/*MGLO ga!e much impetus to fire insurance. The 3ineteenth century mar"ed the de!elopment of fire insurance.
2. Marine Insurance
)arine insurance is the oldest form of insurance. )arine insurance is a contract under which the insurance company agrees to pay the compensation against the loss if it arises due to marine perils of. )arine perils also "nown as perils of the seas means the perils conse8uent on or incidental to the na!igation of the sea or the perils of the seas such as fire war perils pirates ro!ers thie!es captures Cettisons barratry and any other perils which are either of the li"e "ind or may be designed by the policy It is a type of general insurance which co!ers the ris" generally up to one year on which the premium is paid once that also in ad!ance.
)arine insurance is di!ided into three types namelyJ cargo insurance hull insurance and freight insurance. Insurance is the Subject )atter Of Solicitation 1L
There are different types of marine policies "nown by different names according to the manner of their e(ecution or the ris" they co!er. They are, Doyage policy time policy mi(ed policy !alued policy un!alued policy floating policy.
History of Marine Insurance
The oldest and the earliest records of marine policy relates to a )editerranean !oyage in *6>K. In the year *>LL a boo" written by a merchant of +lorence indicates premium rates charged for the shipments by sea from 'ondon to %isa. )arine Insurance spread from Italy to trading routes in other countries of =urope. 'ater on in the year *GGI %hilip II made marine insurance regulations for Spain and in *GI6 for Antwerp NAmericaO insured three ships on a !oyage from Hawaii to 0entral America.
In *GKG during the reign of Rueen =li;abeth * open the 0hamber of Assurance in the .oyal =(change for the registration of marine parcels. +ollowing this an proceed of parliament was passed in *IL* to deal with disputes relating to marine insurance. @uring the period *K1L/*M1> the two 0harted companies !i;. 'ondon Assurance and .oyal =(change Assurance enjoyed dominant position in the field of marine insurance. With the introduction of steamship and growth of international trade speciali;ed marine ser!ices were introduced. +ollowing this the 'loyd7s Association founded in *IP1 and originated from coffeehouse run by =dward 'loyd became the major center of marine insurance.
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3. Miscellaneous insurance
The process of fast de!elopment in the society ga!e rise to a number of ris"s or ha;ards. To pro!ide security against such ha;ards many other types of insurance also ha!e been de!eloped. The important among them are, NiO Dehicle insurance on buses truc"s motorcycles etc.
NiiO %ersonal accident insurance Nby paying an annual premium of .s. *1H/ %olicy worth .s. *1LLLH/ can be insured.O
NiiiO $urglary insurance / Nagainst theft dacoity etc.O Ni!O 'egal liability insurance Ninsurance whereby the assured is liable to pay the damages to property or to compensate the loss of personal injury or death. This is in the form of fidelity guarantee insurance auto mobile insurance and machines etc.O N!O 0rop insurance Ncrops are insured against losses due to hea!y rain and floods cyclone draughts crop diseases etc.O N!iO 0attle insurance / Ninsurance for indemnity against the loss of castles from !arious "inds of diseasesO In addition to the abo!e insurance policies are a!ailable against crime medical insurance bulloc" cart insurance jewelry insurance cycle ric"shaw insurance radio/T.D. insurance etc.
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The #)e all scena i# in the insu ance +a 3et in In1ia a"te nati#nali4ati#n
#I0 and its subsidiaries function through a !ast country / wide networ" of around >*LL offices spread across the length and breadth of the country #I0 has ta"en the benefit of insurance to almost e!ery district across hilly terrain and often inaccessible areas of the country. The customer/ interface is made easy through a networ" of agents de!elopment officers and employees at $ranch @i!isional and .egional offices as well as at the corporate le!el.
The #I0 and its subsidiaries ha!e a wor"force of appro(imately MI LLL in *PK6 tainted at !arious le!els through in house training institutions. 3ow the total number of employees went up. The industry has also promoted the 3ational Insurance Academy N3IAO which is the premier training institute in insurance catering not only to Indian nationals but also to select foreign nationals. The industry issues around 16 million documents and settles 1 million claims e!ery year. 0ountrywide computeri;ation in the recently past has made the tas" of policy / holder4s ser!icing easier and rapid. At the same time profitable lines and premium components increases and we became a in!estment company.
Whe e 1#es In1ian Insu ance sect# stan1 c#+*a e1 t# Inte nati#nal Insu ance Sect# !
Technologically Indian insurance sector is 8uite comparable with the international sector. The !ast resources of s"illed and technical manpower huge mar"et potentiality and technical "now/how / all are comparable with the international mar"et. $ut lac"ing in the process of computeri;ation and in pricing Npremium rateO are also seen. In product India has demand in less because lac" of awareness for ade8uate insurance co!er with insuring public. India7s mar"eting strategies are not !ery modern. $ut India is trying to rectify both these NTechnology and )ar"etingO areas.
What are the problems faced by Indian Insurance Sector today

The main problems are/ 'ac" of awareness for insurance needs.
'ac" of penetration due to inade8uate mar"etingHdeli!ery system.
Total computeri;ation still in the process of implementation.
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The Study Of Indian Insurance Sector Sophisticated co!ers do not ha!e ade8uate demands because of general attitude to insurance in India.
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R#le #" 2ene al Insu ance In1ust y in the 2 #5th #" Ec#n#+y #" the C#unt y
The #eneral Insurance Industry has an en!iable trac" record among public sector units. It has a consistent profit and di!idend paying record accompanied by a steady growth in its financial resources. Through in!estments in the #o!ernment sector and socially/ oriented sectors the Industry has contributed immensely to the nation4s de!elopment. The industry is recogni;ed as one of the largest financial Institutions in the country. The !entures initiated by the industry in the areas of )utual +und Housing +inance ha!e done e(ceedingly well in recent years.
To protect the country4s foreign e(change reser!es the reinsurance arrangement are so organi;ed that ma(imum retention is made possible within the country while at the same time protecting interests of the policy holders. The #I07S inwards reinsurance wing called the SWI+T ma(imi;es the foreign e(change balance by acting as an international insurer accepting ris"s from all o!er the globe.
Insurance is the Subject )atter Of Solicitation 1I
2IC6S Inte nati#nal #*e ati#n
#I04S international operations span o!er 6* countries around the globe. The reinsurance e(pertise built o!er a long period has made the Indian Insurance Industry a globally ac"nowledged reinsurer of repute #I04S ris" management s"ill has been bac"ed by specialists with a !ast insurance e(perience. Thus the technical and underwriting s"ills ha!e been ac"nowledged in the international mar"et. The corporation operates in *K countries through branches and agencies whereas in another *> countries it has subsidiaries and associate companies. The #I0 has a subsidiary company "nown as SIndia International %!t. 'td.4 operating in Singapore and a joint/!enture company SBenindia Insurance co. 'td. in Benya.
Insurance is the Subject )atter Of Solicitation 1K
2E-ERA. I-SURA-CE COR,ORATIO!he "e# India $ssurance %ompany &td.

The 3ew India can claim to be the largest non/life insurer not only in India but also in the whole Afro/Asia region e(cluding Capan. The 3ew India was incorporated on 16rd October *P*P. There was hardly any Indian insurance company of significance till that time. Sir @orab Tata is the +ounder 0hairman of the company. The go!ernment of India too" o!er the management of the company along with that of all other non/life insurers in the country. 3ew India was subse8uently reconstituted ta"ing o!er 16 companies under the Scheme of )erger following the nationali;ation of #eneral Insurance $usiness in *PK6.
"ational Insurance %ompany &td.
Since incorporation in the year *PLI 3ational Insurance 0ompany has been carrying out general insurance business under pri!ate management until *PK1 the year of its nationalisation. In the same year 11 foreign and ** Indian Insurance 0ompanies were amalgamated with 3ational Insurance 0ompany 'imited as a subsidiary company of #eneral Insurance 0orporation of India.
Insurance is the Subject )atter Of Solicitation 1M
The Study Of Indian Insurance Sector Head8uartered in 0alcutta it has an organisational networ" of o!er PI> offices with around 1L LKK trained wor"forces. The company also has operations in Hong Bong and 3epal and ran"s among the top global business insurers.
!he 'riental Insurance %ompany &td.
The Oriental Insurance 0ompany 'td. NOI0'O is one of the four general Insurance companies in India under the aegis of the #eneral Insurance 0orporation N#I0O of India. It is one of the oldest Insurance companies and was established in the year *P>K. The 0ompany head8uartered in 3ew @elhi transacts all "inds of general insurance business ranging from !ery big projects to small rural insurance co!ers. The 0ompany has 1* .egional Offices 6** @i!isional Offices and I6G $ranch offices. It speciali;es in de!ising special co!ers for large projects li"e %ower %lants %etro/ chemical Steel %lants and chemical plants. The %remium Income of the 0ompany has gone up to .s. 1*II.GG 0rores in *PPP/1LLL from .s. *PIP.MM 0rores for the pre!ious year registering a reasonable growth of around *LT. 'i"ewise In!estment Income has increased to .s. 6IK.G6 0rores from .s. 6>*.11 0rores. On the other hand 0apital and .eser!e +unds of the 0ompany showed an increase of *L.I1T i.e. .s. *II.>6 0rores bringing the total to .s. *K66.IM 0rores.
Insurance is the Subject )atter Of Solicitation 1P
(nited India Insurance %ompany &td.

2nited India / one of the four subsidiaries of #eneral Insurance 0orporation with its head8uarters at 0hennai is the second largest Insurer by si;e of premium and mar"et share of the entire #eneral Insurance business transacted throughout India under the stewardship of )r. B 3 $handari. The company7s major thrust areas are +ire )arine )otor and miscellaneous. To reali;e the corporate objecti!e of carrying the message of insurance to the masses 2nited India has countrywide presence through **16 offices. This !ast networ" includes 1* regional offices 6*6 di!isional offices and KMP branch offices. Ser!ice to its large clientele is done through 6M1L officers 61KG de!elopment officers **KKK super!isory and clerical staff and 1IP6 subordinate staff.
Insurance is the Subject )atter Of Solicitation 6L
-EW E-TRA-TS I- THE BUSI-ESS
Tata AI# #eneral Insurance 0ompany 'td and Tata AI# 'ife Insurance 0ompany 'td. Ncollecti!ely UTata AI#UO are joint !enture companies between the Tata group India4s most trusted industrial house and American International #roup Inc. NAI#O the leading 2. S. based international insurance and financial ser!ices organi;ation.
$oth promoters ha!e a deep and abiding interest in India4s insurance sector. %rior to nationali;ation the Tatas pioneered pri!ate insurance in India when Sir @orab Tata set up 3ew India Assurance in *P*P. $y *PK6 when #eneral Insurance was nationali;ed the Tata company had a global presence with GI o!erseas offices. AI# too has always considered the Indian insurance sector to be of significance. The AI# companies entered India in *P>G and had offices in se!eral Indian cities prior to nationali;ation.
Insurance is the Subject )atter Of Solicitation 6*
The Study Of Indian Insurance Sector AI# is the leading 2.S. / based international insurance and financial ser!ices organi;ation and the largest underwriter of commercial and industrial insurance in the 2nited States. Its member companies write a wide range of commercial personal and life insurance products through a !ariety of distribution channels in appro(imately *6L countries and jurisdictions throughout the world. AI#4s global businesses also include financial ser!ices and asset management including aircraft leasing financial products trading and mar"et ma"ing consumer finance institutional retail and direct in!estment fund asset management real estate in!estment management and retirement sa!ings products. American International #roup Inc.4s common stoc" is listed on the 3ew Aor" Stoc" =(change as well as the stoc" e(changes in 'ondon %aris Swit;erland and To"yo.
Today AI#4s operations e(tend across *6L countries and jurisdictions throughout the world. AI# is ran"ed VM in +orbes 1LLL Usuper *LLU ran"ing of all 2S corporations. AI# is ran"ed VM in +ortune GLL ran"ing of top 2S corporations and ran"ed V* in the property and casualty business.
The Tata #roup is the most respected industrial conglomerate in India with re!enues of more than 2S W M billion. The #roup has long been a mar"et leader in steel commercial !ehicles electric power generation in the pri!ate sector and computer software. In recent times it has promoted se!eral new !entures in high growth areas of the economy such as financial ser!ices telecommunications information technology auto components oil field ser!ices and process management systems. The #roup has had a long association with India4s insurance sector ha!ing been the largest insurance company in India prior to the nationali;ation of insurance.
$ajaj Allian; #eneral Insurance 0ompany 'imited is a joint !enture between $ajaj Auto 'imited and Allian; A# of #ermany. $oth enjoy a reputation of e(pertise stability and strength. Incorporated on *Pth September 1LLL $ajaj Allian; #eneral Insurance 0ompany recei!ed the Insurance .egulatory and @e!elopment Authority NI.@AO certificate of .egistration N.6O on )ay 1nd 1LL* to conduct #eneral Insurance business Nincluding Health Insurance businessO in India. The 0ompany has an authori;ed and paid up capital of .s **L crores
Allianz
O!er the past century Allian; has become one of the world4s leading insurance companies. The #roup4s multilocal structure guarantees its worldwide presence while pro!iding the highest possible le!el of ser!ice appropriate to the mar"et in each country. $ajaj Allian; intends to offer the majority of products a!ailable in India and internationally. The 0ompany currently offers the following products, Tariff %roducts +ire Insurance
The Study Of Indian Insurance Sector 0onse8uential 'oss N+ireO Insurance Industrial All .is" )otor Nincludes pri!ate cars two wheelers and commercial !ehiclesO Wor"men7s 0ompensation =ngineering Nincludes 0ontractors %lant and )achinery =lectronic e8uipment )achinery 'oss of %rofits )achinery $oiler =(plosion )achinery $rea"down @eterioration of stoc"O
3on/Tariff products %ersonal Accident $urglary )oney %late #lass %ublic 'iability House Holders Shop"eepers Ncoming shortlyO O!erseas Tra!el Ncoming shortlyO
.is" )anagement Ser!ices They also offer a gamut of ris" management ser!ices that include, .is" Analysis .is" #rading 5 .is" 0ontrol Ha;ard and Operability Studies Safety Audit
Insurance is the Subject )atter Of Solicitation 6>
The Study Of Indian Insurance Sector @isaster )anagement %lanning .is" )anagement Training @e!elopment and )onitoring of .is" )anagement programmes Accident In!estigations Insurance portfolio analysis
.I/E I-SURA-CE
'ife insurance may be defined as a contract in which the insurer in consideration of a certain premium either in a lump sum or by other periodical payments agrees to pay to the assured or to the person for whose benefit the policy is ta"en the assured sum of money on the happening of a specified e!ent contingent on the human life.
A contract of life insurance as in other forms of insurance re8uires that the assured must ha!e at the time of the contract an insurable interest in his life upon which the insurance is effected. In a contract of life insurance unli"e other insurance interest has only to be pro!ed at the date of the contract and not necessarily present at the time when the policy falls due.
History of life insurance

The early de!elopments of life insurance were closely lin"ed 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 too" the nature of policies for a short period
Insurance is the Subject )atter Of Solicitation 6G
The Study Of Indian Insurance Sector only. The underwriters issued annuities and pension for a fi(ed period or for life to pro!ide relief to widows on the death of their husbands. The first life insurance policy was issued on *Mth Cune *GM6 on the life of William #ibbons for a period of *1 months. It was in the eighteenth century societies began to be formed for issuing life insurance policies. Among such societies the Amicable Society N*KLGO The =8uitable 'ife Assurance Society N*KI1O the West )inister Society N*KP1O were the important societies. The premium rates were !aried in !iew of reputation and the health condition of the insured. @uring the early years of nineteenth century a large number of life insurance companies were formed in India. Some of these companies preferred to amalgamate their business with other companies and a good number failed to function effecti!ely. In order to stabili;e and strengthen the insurance business 'ife insurance 0ompanies ActJ *P16 was passed and later amended it in *P>I *PGM and *PIK.
Insurance is the Subject )atter Of Solicitation 6I
O)e )ie5
With largest number of life insurance policies in force in the world Insurance happens to be a mega opportunity in India. It7s a business growing at the rate of *G/1L per cent annually and presently is of the order of .s >GL billion. Together with ban"ing ser!ices it adds about K per cent to the country7s #@%. #ross premium collection is nearly 1 per cent of #@% and funds a!ailable with 'I0 for in!estments are M per cent of #@%.
Aet nearly ML per cent of Indian population is without life insurance co!er health insurance and non/life insurance continue to be below international standards. And this part of the population is also subject to wea" social security and pension systems with hardly any old age income security. This is an indicator that growth potential for the insurance sector is immense.
A well/de!eloped and e!ol!ed insurance sector is needed for economic de!elopment as it pro!ides long term funds for infrastructure de!elopment and at the same time strengthens the ris" ta"ing ability. It is estimated that o!er the ne(t ten years India would re8uire in!estments of the order of one trillion 2S dollar. The Insurance sector to some e(tent can enable in!estments in infrastructure de!elopment to sustain economic growth of the country.
Insurance is the Subject )atter Of Solicitation 6K
The Study Of Indian Insurance Sector With a large capital outlay and long gestation periods infrastructure projects are fraught with a multitude of ris"s throughout the de!elopment construction and operation stages. These include ris"s associated with project implementation including geological ris"s maintenance commercial and political ris"s. Without co!ering these ris"s the financial institutions are not willing to commit funds to the sector especially because the financing of most pri!ate projects is on a limited or non/ recourse basis.
Insurance companies not only pro!ide ris" co!er to infrastructure projects they also contribute long/term funds. In fact insurance companies are an ideal source of long term debt and e8uity for infrastructure projects. With long term liability they get a good asset/ liability match by in!esting their funds in such projects.
I.@A regulations re8uire insurance companies to in!est not less than *G percent of their funds in infrastructure and social sectors. International Insurance companies also in!est their funds in such projects.
Insurance is a federal subject in India. There are two legislations that go!ern the sector/ The Insurance Act/ *P6M and the I.@A Act/ *PPP.
Insurance is the Subject )atter Of Solicitation 6M
.I/E I-SURA-CE I- I-DIA

The $ritish companies started life insurance business in India by issuing policies e(clusi!ely on the li!es of =uropean soldiers and ci!ilians. They sometimes issued policies on the li!es of Indian7s by charging e(tra. @ifferent insurance companies li"e $ombay Insurance 0ompany 'T@. N*KP6O and Oriental 'ife Assurance 0ompany N*M*MO was formed to issue life assurance policies in India. #radually the first Indian 0ompany named as $ombay )utual 'ife Insurance Society 'td. was formed in @ec. *MKL. $y *PK* the total numbers of companies wor"ing in India were *G out of which K were Indian and the remaining were $ritish companies.
@uring the period from *MKL to *PLL a large number of Indian companies were formed under the Indian 0ompanies Act *MII. The business was confined to few communities and occupations only. @uring the period from *PLL to *P*1 the insurance business attracted attention among middle class people. As a result #o!ernment of India passed the Insurance Act on the model of $ritish Assurance Act. @uring the period from *P*1/ *P6L the insurance business witnessed a set bac". After se!eral changes ha!e been made for the period from *P6L to *P6M the #o!ernment of India passed Insurance Act *P6M. The act still applies to all "inds of insurance business by instituting necessary amendments from time to time.
Insurance is the Subject )atter Of Solicitation 6P
, esent Scena i#
The #o!ernment of India liberali;ed the insurance sector in )arch 1LLL with the passage of the Insurance .egulatory and @e!elopment Authority NI.@AO $ill lifting all entry restrictions for pri!ate players and allowing foreign players to enter the mar"et with some limits on direct foreign ownership. 2nder the current guidelines there is a 1I percent e8uity cap for foreign partners in an insurance company. There is a proposal to increase this limit to >P percent. %remium rates of most general insurance policies come under the pur!iew of the go!ernment appointed Tariff Ad!isory 0ommittee.
Insurance is the Subject )atter Of Solicitation >L
.i"e Insu ance Vs Othe ty*es #" In)est+ents

)ost in!estment options ma"e your money wor" harder but there are no substitutes to life insurance. $ecause only a life insurance policy gi!es you both / ris" co!er against your life as well as returns on your money in!ested.
'ife insurance allows long tem sa!ings to be made in a relati!ely painless manner because of the low and con!enient in!estments made through premiums. )oreo!er it encourages 4forced thrift4 which means the insured is made to pay premiums and sa!e money which heHshe may not do in the regular course of life.
Should you re8uire loans say for building a house it can be easily obtained against a life insurance policy. Amongst the most "nown benefits of 'ife Insurance is the sa!ings on your income ta(es.
'ife insurance cannot be compared with any other form of in!estment as life insurance gi!es you a life long benefit and returns on your money when it is most re8uired.
Insurance is the Subject )atter Of Solicitation >*
Insurance premiums are lin"ed to age of the life insured and the earlier you buy the lower are the premium re8uirements. $esides the money stays in!ested for a longer time and thereby ma(imi;ing your returns through the power of rupee compounding.
So a life insurance policy is an ideal tool to gain security and ensure sa!ings. )ost importantly it pro!ides you with that uni8ue sense of security and peace of mind that no other form of in!estment pro!ides.
The 'ife Insurance 0orporation N'I0O was established about >> years ago with a !iew to pro!ide an insurance co!er against !arious ris"s in life. A monolith then the corporation enjoyed a monopoly status and became synonymous with life insurance. Its main asset is its staff strength of *.1> la"h employees and 1 L>M branches and o!er si(/la"h agency force. 'I0 has hundred di!isional offices and has established e(tensi!e training facilities at all le!els. At the ape( is the )anagement @e!elopment Institute se!en Xonal Training 0entres and 6G Sales Training 0entres. At the industry le!el along with the #o!ernment and the #I0 it has helped establish the 3ational Insurance Academy. It presently transacts indi!idual life insurance businesses group insurance businesses social security schemes and pensions grants housing loans through its subsidiaryJ and mar"ets sa!ings and in!estment products through its mutual fund. It pays off about .s I LLL crores annually to G.I million policyholders.
Insurance is the Subject )atter Of Solicitation >1
'b)ecti*es of &I%
Spread 'ife Insurance much more widely and in particular to the rural areas and to the socially and economically bac"ward classes with a !iew to reaching all insurable persons in the country and pro!iding them ade8uate financial co!er against death at a reasonable cost.
)a(imi;e mobili;ation of people4s sa!ings by ma"ing insurance/lin"ed sa!ings ade8uately attracti!e. $ear in mind in the in!estment of funds the primary obligation to its policyholders whose money it holds in trust without losing sight of the interest of the community as a wholeJ the funds to be deployed to the best ad!antage of the in!estors as well as the community as a whole "eeping in !iew national priorities and obligations of attracti!e return.
0onduct business with utmost economy and with the full reali;ation that the moneys belong to the policyholders.
Act as trustees of the insured public in their indi!idual and collecti!e capacities.
)eet the !arious life insurance needs of the community that would arise in the changing social and economic en!ironment.
Insurance is the Subject )atter Of Solicitation >6
In!ol!e all people wor"ing in the 0orporation to the best of their capability in furthering the interests of the insured public by pro!iding efficient ser!ice with courtesy.
%romote amongst all agents and employees of the 0orporation a sense of participation pride and job satisfaction through discharge of their duties with dedication towards achie!ement of 0orporate Objecti!e.
Insurance is the Subject )atter Of Solicitation >>
I0I0I %rudential 'ife Insurance is a joint !enture between the I0I0I #roup and %rudential plc of the 2B. I0I0I started off its operations in *PGG with pro!iding finance for industrial de!elopment and since then it has di!ersified into housing finance consumer finance mutual funds to being a Dirtual 2ni!ersal $an" and its latest !enture 'ife Insurance. I0I0I %rudential 'ife Insurance 0ompany 'imited was incorporated on Culy 1L 1LLL. The authori;ed and paid up capital of the 0ompany is .s. *GLL )illion. The 0ompany is a joint !enture of I0I0I NK>TO and prudential plc 2B N1ITO. The 0ompany was granted 0ertificate of .egistration for carrying out 'ife Insurance business by the Insurance .egulatory and @e!elopment Authority on 3o!ember 1> 1LLL. It commenced commercial operations on @ecember *P 1LLL becoming one of the first few pri!ate sector players to enter the liberali;ed arena. The 0ompany is now operational in )umbai 3ew @elhi %une 0hennai Bol"ata $angalore and 0handigarh. @uring this short period till )arch 6* 1LL* the 0ompany has issued I6MK polices translating into a %remium Income .s. GP.K )illion and a sum assured of o!er .s.*LLL )illion. The company recogni;es that the dri!ing force for gaining sustainable competiti!e ad!antage in this business is superior customer e(perience and in!estment behind the brand. The 0ompany aims to achie!e this by stri!ing to pro!ide world/class ser!ice
Insurance is the Subject )atter Of Solicitation >G
The Study Of Indian Insurance Sector le!els through constant inno!ation in products distribution channels and technology based deli!ery. The 0ompany has already ta"en significant steps to achie!e this goal.
Sponsors
I0I0I 'td was established in *PGG by the World $an" the #o!ernment of India and the Indian Industry to promote industrial de!elopment of India by pro!iding project and corporate finance to Indian industry.
Since inception I0I0I has grown from a de!elopment ban" to a financial conglomerate and has become one of the largest public financial institutions in India. I0I0I has financed all major sectors of the economy co!ering I M>M companies and *I MG* projects. In the fiscal year 1LLL/1LL* I0I0I had disbursed a total of .s 6*P.IG billion. I0I0I has now de!eloped a whole range of acti!ities to become a 2ni!ersal $an". I0I0I is listed on the Indian Stoc" =(changes and on the 3ew Aor" Stoc" =(change N3AS=O. On September 11 *PPP it became the first Indian company to be listed on the 3AS= Nsymbol, I0 and I0.@O. This has been followed by the listing of I0I0I $an" on 3AS= Nsymbol, I$3O on )arch 1M 1LLL.
+rudential plc
%rudential plc was founded in *M>M. Since then it has grown to become one of the largest pro!iders of a wide range of sa!ings products for the indi!idual including life insurance pensions annuities unit trusts and personal ban"ing. It has a presence in o!er *G countries and caters to the financial needs of o!er *L million customers. It manages assets of o!er 2SW 1GP billion N.upees ** 6P ILL crores appro(.O as of @ecember 6* *PPP. %rudential plc. has had its presence in Asia for the past KG years catering to o!er * Insurance is the Subject )atter Of Solicitation >I
The Study Of Indian Insurance Sector million customers across ** Asian countries.
%rudential is the largest life insurance company in the 2nited Bingdom NSource, S5%4s 2B 'ife +inancial @igest *PPMO. Asia has always been an important region for %rudential and it has had a presence in Asia for o!er KG years. In fact %rudential4s first o!erseas operation was in India way bac" in *P16 to establish 'ife and #eneral $ranch agencies. In the 2S %rudential owns Cac"son 3ational 'ife one of the leading life insurance companies. %rudential controls appro(imately >T of all the listed shares on the second largest stoc" e(change in the world the 'ondon Stoc" =(change ma"ing it one of the largest institutional in!estors in the 2B. %rudential is focused on the internet generation and is one of the first financial ser!ice organisations to use the internet on a fully integrated basis. In October *PPM %rudential launched a UbranchlessU ban" based on the Internet. 2nusually titled as 9egg,: The ban" has in a short span of its e(istence become a leading ban"ing ser!ice pro!ider in the 2B. Infect in the first si( months of its e(istence it garnered o!er Y G billion N2SW M billionO in deposits from o!er GLL LLL customers. @e!elopment of superior products and ser!ices that offer !alue for money and security while producing superior financial returns enables %rudential to ma(imi;e the !alue of its shareholder4s in!estment and to establish lasting relationships with customers and policy holders. I0I0I and %rudential came together in *PP6 to pro!ide mutual fund products in India and today are the largest pri!ate sector mutual fund company in India. The two companies bring together two of the strongest financial ser!ice brands in Asia "nown for their professionalism e(cellent 8uality of ser!ice and long term commitment to the public.
Insurance is the Subject )atter Of Solicitation >K
)a( 3ew Aor" 'ife Insurance 0ompany 'imited is a joint !enture that has been formed by the coming together of two large forces / )a( India 'imited a multi/business corporate together with 3ew Aor" 'ife International Inc. a global leader who is long e(perienced in that uni8ue business called life insurance.
Speciali;ing solely in the business of life insurance )a( 3ew Aor" 'ife is a company that is transparent and financially responsible to its customers. Our gamut of fle(ible products are dri!en by a set of professionally/trained agents who don4t just sell insurance but rather listen and offer you solutions to meet your specific need. This is because we are highly customer/sensiti;ed a fact that is all the more reflected through our focused fle(ible !alue/added ser!ices.
SPONSORS
Ma, India
)a( India 'imited is a multi/business corporation that has business interests in telecom ser!ices bul" pharmaceuticals electronic components and specialty products. it is also the ser!ice/oriented businesses of healthcare life insurance and information technology.
Insurance is the Subject )atter Of Solicitation >M
"e# -or. &ife

3ew Aor" 'ife has grown to be a +ortune *LL company and an e(pert in life insurance. It was the first insurance company to offer cash di!idends to policy owners. In *MP> 3ew Aor" 'ife pioneered the then unheard/of concept of insuring women at the same rate as men. Thereafter it continued to introduce a series of firsts / a disability benefit clause in *P1L unemployment insurance in *PP1 and complete customer care on the Web in *PPM. Today 3ew Aor" 'ife has o!er 2S billion in assets under management and o!er 6L LLL agents and employees worldwide. The October 1LLL +ortune Sur!ey named 3ew Aor" 'ife amongst the top three most admired life and health insurance companies worldwide. With o!er 6 million policyholders 3ew Aor" 'ife is a leading pro!ider of insurance in a host of countries worldwide.
Insurance is the Subject )atter Of Solicitation >P
H@+0 Standard 'ife Insurance H@+0 Standard 'ife Insurance 0ompany is a joint !enture between India4s largest housing finance pro!ider H@+0 and =urope4s largest mutual life assurance company / The Standard 'ife Assurance 0ompany N2. BO. H@+0 Standard 'ife Insurance 0ompany 'imited is the +irst %ri!ate Sector 'ife Insurance 0ompany to be granted a license.
!he +artnership
H@+0 and Standard 'ife first came together for a possible joint !enture to enter the 'ife Insurance mar"et in Canuary *PPG. It was clear from the outset that both companies shared similar !alues and beliefs and a strong relationship 8uic"ly formed. In October *PPG the companies signed a 6/year joint !enture agreement. Around this time Standard 'ife purchased a GT sta"e in H@+0 further strengthening the relationship. The ne(t three years were filled with uncertainty due to changes in go!ernment and ongoing delays in getting the I.@A NInsurance .egulatory and @e!elopment authorityO Act passed in parliament. @espite this both companies remained firmly committed to the !enture. In October *PPM the joint !enture agreement was renewed and additional resource made a!ailable. Around this time Standard 'ife purchased 1T of Infrastructure @e!elopment
Insurance is the Subject )atter Of Solicitation GL
The Study Of Indian Insurance Sector +inance 0ompany 'td. NI@+0O. Standard 'ife also started to use the ser!ices of the H@+0 Treasury department to ad!ise them upon their in!estments in India. Towards the end of *PPP the opening of the mar"et loo"ed !ery promising and both companies agreed the time was right to mo!e the operation to the ne(t le!el. Therefore in Canuary 1LLL an e(pert team from the 2B joined a hand pic"ed team from H@+0 to form the core project team based in )umbai. Around this time Standard 'ife purchased a further GT sta"e in H@+0 and a GT sta"e in H@+0 $an". In a further de!elopment Standard 'ife agreed to participate in the Asset )anagement 0ompany promoted by H@+0 to enter the mutual fund mar"et. The )utual +und was launched on 1Lth Culy 1LLL. Incorporation of H@+0 Standard 'ife Insurance 0ompany 'imited The company was incorporated on *>th August 1LLL under the name of H@+0 Standard 'ife Insurance 0ompany 'imited. The company7s ambition from as far bac" as October *PPG was to be the first pri!ate company to re/enter the life insurance mar"et in India. On the 16rd of October 1LLL this ambition was reali;ed when H@+0 Standard 'ife was the only life company to be granted a certificate of registration. H@+0 are the main shareholders in H@+0 Standard 'ife with M*.>T while Standard 'ife owns *M.IT. #i!en Standard 'ife4s e(isting in!estment in the H@+0 #roup this is the ma(imum in!estment allowed under current regulations. H@+0 and Standard 'ife ha!e a long and close relationship built upon shared !alues and trust. The ambition of H@+0 Standard 'ife is to mirror the success of the parent
Insurance is the Subject )atter Of Solicitation G*
The Study Of Indian Insurance Sector companies and be the yardstic" by which all other insurance companies in India are measured.
Forei/n +artner: Standard &ife0 (1

Standard 'ife 2B founded in *M1G has been at the forefront of the 2B insurance industry for *KG years by combining sound financial judgment with integrity and reliability. It is the 'argest )utual 'ife company in =urope and has total assets of .s. G GL LLL crore. It is one of the !ery few insurance companies in the world to ha!e recei!ed 4AAA4 rating from two of the leading international credit rating agencies )oody4s and Standard 5 %oor4s. Standard 'ife was recently !oted 40ompany of the @ecade4 in 2.B. by the Independent $ro"ers called I+As.
Insurance is the Subject )atter Of Solicitation G1
$irla Sun 'ife Insurance is the coming together of the Aditya $irla group and Sun 'ife +inancial of 0anada to enter the Indian insurance sector. The Aditya $irla #roup a multinational conglomerate has o!er KG business units in India and o!erseas with operations in 0anada 2SA 2B Thailand Indonesia %hilippines )alaysia and =gypt to name a few. Is has its presence in o!er *6L countries and jurisdictions around the world. Insurance is not about something going wrong. It4s often about things going right. One of the wonders of human nature is that we ne!er belie!e anything can actually go wrong. Surely life has its share of ifs. At $irla Sun 'ife howe!er we belie!e it has its e8ually pleasant share of buts as well. $irla Sun 'ife stands committed to helping you reali;e those happy moments which ma"e a life. $e it li!ing the same lifestyle in your post retirement days or pro!iding a secure future for your lo!ed ones in case something happens to you. Here the Aditya $irla #roup contributes its "nowledge of the Indian mar"et and Sun 'ife +inancial contributes global e(pertise in the areas of protection and wealth management. The cornerstones of the partnership are respect for each other integrity and customer focus. The joint !enture companies are engaged in the acti!ities of life insurance asset management retail distribution and stoc" bro"ing.
Insurance is the Subject )atter Of Solicitation G6
Financial Mar.ets
As far as the +inancial )ar"ets are concerned no matter where the news happens how it happens and why it happens you will hear it first. $ecause $irla Sun 'ife belie!es that you ha!e a right to "now. And uphold your right to "nowledge. $ecause ci!ili;ations thri!e and prosper on "nowledge and the world re!ol!es on information. So ne(t time you want to hear the What How When Where and Why just come to the +inancial )ar"et. And all you ha!e to do is clic".
Forei/n +artner
Sun 'ife Assurance Sun 'ife +inancials primary insurance business has e(cellent ratings with the world4s top rating agencies. With assets under management as on September 6L 1LLL totaling more than 0@3 billion it ran"s amongst the largest international financial ser!ices organi;ations in the world. Today the Sun 'ife +inancial #roup of companies and partners are represented globally in 0anada the 2nited States the %hilippines Capan Indonesia India and $ermuda.
Insurance is the Subject )atter Of Solicitation G>
S$I 'ife Insurance 0o. 'td. is a joint !enture between State $an" of India and 0ardiff S.A. of +rance. We are a registered life insurance company.
S$I is a household name and it stands as the last word for financial strength and security in the country. S$I4s illustrious bac"ground dates bac" to the year *MLI when it started business as a presidency ban" "nown as $an" of $engal. O!er the long journey it has learnt to combine the best of ban"ing practices handed down from the imperial management with the more dynamic ways of doing ban"ing in the modern India. It has grown as a responsible giant in the ban"ing field o!er the years. Today it has a branch networ" of o!er PLLL branches an aggregate deposit base of nearly .s*PIM1* crore N2SW>G *1*mmO and a total balance sheet si;e of .s.1I*GL> crore N2SGP PGL mmO. Together with its K Associate $an"s S$I commands about 6LT of the mar"et share in ban"ing. S$I is the strongest and most profitable ban" in the country. It has a tangible net worth of .s.*1*>I crore N2SW1 KM>mmO as at )arch 1LLL and it earned a pre/ta( profit of .s.1LG* crore N2SW>KL mmO for the fiscal ending that date. 0ardiff is a wholly owned subsidiary of $3% %aribas which is one of the top *L ban"s in the world and the third largest in =urope. $3% is one of the oldest foreign ban"s with a presence in India dating bac" to *MIL. It has P branches in major metros in the country. 0ardiff came into being in *PK6. It has grown o!er the years into a !ibrant insurance Insurance is the Subject )atter Of Solicitation GG
The Study Of Indian Insurance Sector company speciali;ing in personal lines such as long/term sa!ings protection products and creditor insurance. 0ardiff had a premium income of o!er 2SW > billion in *PPP and more than 2SW 16 billion of funds under its management. 0ardiff has been speciali;ing in the art of selling insurance products through commercial ban"s in +rance and 16 other countries. +rance is the mother of banc assurance in the world. O!er IGT of life insurance business is done through ban"s and financial institutions4 counters in +rance and the trend is rapidly catching up in other countries. It operates joint !entures in de!eloped as well as de!eloping countries such as $ra;il 0hile and the 0;ech .epublic. S$I 'ife Insurance 0ompany 'td is registered as a life insurance company with the Insurance .egulator. The 0ompany4s authori;ed capital is .s.1GL crore and the paid/up capital S$I owns at K>T of present the total is e8uity and .s.*1G 0ardiff the crore. balance 1IT.
Insurance is the Subject )atter Of Solicitation GI
=stablished in *PMG as Bota" 0apital )anagement +inance promoted by 2day Bota" the company has come a long way since its entry into corporate finance. It has dabbled in leasing auto finance hire purchase in!estment ban"ing consumer finance bro"ing etc. The company got its name Bota" )ahindra as industrialists Harish )ahindra and Anand )ahindra pic"ed a sta"e in the company. Bota" )ahindra is today one of India4s leading +inancial Institutions.
'ld Mutual
Old )utual plc is an international financial ser!ices group based in 'ondon with e(panding operations in life assurance asset management ban"ing and general insurance. Old )utual is listed on the 'ondon Stoc" =(change Nwhere it is included on the +TS= *LL Inde(O and also on the South African 3amibian )alawi and Ximbabwe stoc" e(changes. It has *GI years of e(perience in the life insurance business.
Insurance is the Subject )atter Of Solicitation GK
At I3# Dysya 'ife the one thing that is hold in the highest esteem is human life itself. This simple philosophy endows it with a degree of sensiti!ity and dedication that it feel ma"es it that much more special to the customers. As a premier pro!ider of insurance products and ser!ices they belie!e that they ha!e a significant role to play in society. I3# DASAA 'ife Insurance is a joint !enture between three pioneers in their own right & I3# #roup. The Dysya $an" and #). #roup.
I"2 2roup
O!er the last *GL years I3# #roup has grown to become one of the largest life
insurance organisations in the world . Today it touches the li!es of o!er GL million people across IG countries. It offers a range of financial ser!ices including insurance. pensions ban"ing and asset management. In the year 1LLL total assets of the group stood at o!er I3. 1M >1 LLL crores . I3# #roup has wide and deep e(perience in setting up companies in new mar"ets which re8uire substantial in!estments underlining I3#7s long term commitment. In the last 1L years I3# #roup has established successful life insurance companies in *G countries contributing to the de!elopment of insurance ser!ices in these countries .
Insurance is the Subject )atter Of Solicitation GM
!he 3ysya 4an.

It is one of India7s premier pri!ate sector ban"s with a heritage of o!er KL years. With *.G million customers >ML outlets and ILLL employees it is "nown for its inno!ati!e ban"ing ser!ices and for pioneering se!eral products and ser!ices. The Dysya $an" has a long/standing relationship with its customers and deep understanding of the Indian mar"et.
2M5 2roup
It has a solid trac" record of o!er two decades of growth and has wide ranging interests in fields such as power generation infrastructure manufacturing software and ban"ing. #). group has an e(cellent reputation of being able to successfully de!elop !entures from scratch.
Insurance is the Subject )atter Of Solicitation GP
Tata AI# 'ife Insurance 0ompany 'td and Tata AI# #eneral Insurance 0ompany 'td. Ncollecti!ely UTata AI#UO are joint !enture companies between the Tata group India4s most trusted industrial house and American International #roup Inc. NAI#O the leading 2. S. based international insurance and financial ser!ices organi;ation. The Tata #roup is the most respected industrial conglomerate in India with re!enues of more than 2S W M billion. The #roup has long been a mar"et leader in steel commercial !ehicles electric power generation in the pri!ate sector and computer software. In recent times it has promoted se!eral new !entures in high growth areas of the economy such as financial ser!ices telecommunications information technology auto components oil field ser!ices and process management systems. The #roup has had a long association with India4s insurance sector ha!ing been the largest insurance company in India prior to the nationali;ation of insurance.
AI#4s 'ife Insurance operations comprise of the most e(tensi!e worldwide networ" of any life insurer. AI#4s global businesses include financial ser!ices and asset management including aircraft leasing financial products trading and mar"et ma"ing consumer finance institutional retail and direct in!estment fund asset management real estate in!estment management and retirement sa!ings products.
Insurance is the Subject )atter Of Solicitation IL
With o!er *6K years of e(perience the )et'ife companies ser!e millions of customers in the Americas and Asia with one goal in mind & to build financial freedom for e!eryone. The )et'ife companies are a leader in group benefits that ser!e MM of the top one hundred +O.T23= GLLZ[ companies and pro!ide benefits to 6K million employees and family members through its plans sponsors in the 2.S. The )et'ife companies are also ran"ed V* in group life and V* in commercial dental in the 2.S. The )et'ife companies are the number one life insurer in the 2.S. with appro(imately 2S W1.M trillion of life insurance in force.
In India )et'ife was incorporated in 1LL* and aims to differentiate itself through customi;ed need based selling simple and inno!ati!e products and technology/bac"ed ser!ice e(perience to tread its path to build financial freedom for e!eryone. all through leadership in pro!iding financial ad!ice and building long/term relationships through inno!ati!e protection accumulation and retirement products robust underwriting processes and creating world/class customer ser!ice e(perience for our customers. We want to pro!ide customers in India with world/class solutions for financial security and in the process add significant !alue to our shareholders associates and society.
%orporate partners
As the !ital channel for )et'ife7s products we ha!e chosen some e(emplary ban"s and financial institutions. These will ser!e as the interface between our customers and us to aid us understand the uni8ue needs and aspirations of e!ery Indian. And update our products with features that form the cornerstones of financial freedom.
Insurance is the Subject )atter Of Solicitation I*
56) B!$1 The C5B $an" 'td. incorporated on October *st *P6M commenced its business on Culy >th *P6P. The ban" now has a networ" of >>L branches spread o!er the length and breadth of the country. A significant contributing factor for this fast growth is the solid founding principles that are dedicated to the cause of transforming the $an" not only as a financial heart but also the social heart of the community. The C5B $an" is the first state owned ban" of the country and G6T of e8uity is held by the #o!t. of C5B. The ban" has a consistent trac" record of growth and profitability. It has a uni8ue distinction of being ban"er to the C5B State #o!t. and has also been appointed by .$I as its agency in C5B responsible for carrying general ban"ing business of the 0entral #o!t. and collection of ta(es pertaining to the 0entral $oard of @irect Ta(es.
D7!$!l!1+7'i B!$1 The @hanala"shmi $an" 'imited N@'$O head8uartered at Thrissur in Berala was started se!en decades bac" at a time when ban"ing was less "nown to the people. In a high literate state of Berala the ban" grew in strength o!er the years. And today it has *G6 branches spread o!er Berala Tamil 3adu Barnata"a Andhra )aharashtra #ujarat West $engal NBol"ataO and 3ew @elhi. The ban" has ambitious plans for growth in branches total business and profits. All the *G6 branches are classified as 3.I branches and are computeri;ed and in the process of implementing Wide Area 3etwor" AT)4s Any $ranch $an"ing and 0ash )anagement Ser!ices Teleban"ing and Internet $an"ing.
Insurance is the Subject )atter Of Solicitation I1
The Study Of Indian Insurance Sector )!&$!"!1! B!$1 The Barnata"a $an" 'td. a premier pri!ate sector ban" of the country was incorporated on +ebruary *Mth *P1> at )angalore a coastal town in South Banara a district of Barnata"a state which has attained renown as the 0radle of Indian $an"ing. Today it is one of the leading pri!ate sector ban"s in the country "nown for its steady and disciplined growth and cordial customer ser!ice. The $an" has a strong national presence through a widespread networ" of 6GM branches. The ban" has 16L branches whollyHpartially computeri;ed as of now. %lans are underway to put in place additional products to enhance customer satisfaction and to increase income stream with the help of upgraded technology. The ban" has already put in place an elaborate ris" monitoring and asset liability management system.
Insurance is the Subject )atter Of Solicitation I6
A Coint !enture combining A)%4s life Insurance e(pertise and Sanmar4s Indian $usiness =(pertise. A)% Sanmar offers a comprehensi!e range of 'ife Insurance %roducts that will enhance your sa!ings and pro!ide financial security to people who need your support. A)% is a leading international financial ser!ices group with o!er *GL years with core business in Insurance Asset )anagement and +inancial %lanning. Sanmar #roup The Sanmar #roup is a leading industrial group in South India and one of the top corporations in the country that helped pioneer industriali;ation in India for o!er si( decades. $oth A)% and Sanmar are deeply committed to this 'ife Insurance joint !enture and to create a long/term relationship with the customer. A)% A)% is a leading wealth management company. The company operates primarily in Australia and 3ew Xealand and is a wealth manager with more than AWKP billion in assets under management.
Its core businesses include:
retirement sa!ings and income in!estments financial planning insurance ban"ing
Insurance is the Subject )atter Of Solicitation I>
A!i!a %lc is 2B7s largest and the world7s si(th largest insurance #roup. It is one of the leading pro!iders of life and pensions products to =urope and has substantial businesses elsewhere around the world. With a history dating bac" to *IPI A!i!a has a 6L million/ customer base worldwide. It has more than \1K6 billion of assets under management. In India A!i!a has a long history dating bac" to *M6>. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the #o!ernment of India. A!i!a was also the first foreign insurance company in India to set up its representati!e office in *PPG. In India A!i!a has a joint !enture with @abur one of India4s oldest and largest #roup of companies. A professionally managed company @abur is the country4s leading producer of traditional healthcare products. In accordance with the go!ernment regulations A!i!a holds a 1I per cent sta"e in the joint !enture and the @abur group holds the balance K> per cent share. With a strong sales force of o!er GLLL +inancial %lanning Ad!isers N+%AsO A!i!a has initiated an inno!ati!e and differentiated sales approach to the business. Through the 9+inancial Health 0hec": N+H0O A!i!a7s sales force has been able to establish its credibility in the mar"et. The +H0 is a free ser!ice administered by the +%As for a need/ based analysis of the customer7s long/term sa!ings and insurance needs. @epending on the life stage and earnings of the customer the +H0 assesses and recommends the right insurance product for them. A!i!a pioneered the concept of $ancassurance in India and has le!eraged its global e(pertise in $ancassurance successfully in India. 0urrently A!i!a has $ancassurance tie/ ups with A$3 Amro $an" American =(press $an" 0anara $an" The 'a"shmi Dilas $an" 'td. and %unjab 5 Sind $an".
Insurance is the Subject )atter Of Solicitation IG
When A!i!a entered the mar"et most companies were offering traditional life products. A!i!a started by offering the more modern 2nit 'in"ed and 2nitised With %rofit products to the customers creating a uni8ue differentiation. A!i!a7s products ha!e been designed in a manner to pro!ide customers fle(ibility transparency and !alue for money. It has been among the first companies to introduce the more modern 2nit 'in"ed products in the mar"et.
Insurance is the Subject )atter Of Solicitation II
%ostal 'ife Insurance is **K years young. It was started in *MM> as a welfare measure for the employees of %osts 5 Telegraphs @epartment under #o!ernment of India dispatch 3o. 1PP dated *M/*L/*MM1 to the Secretary of State. @ue to popularity of its schemes !arious departments of 0entral and State #o!ernments were e(tended its benefits. 3ow %ostal 'ife Insurance is open for employees of all 0entral and State #o!ernment @epartments 3ationali;ed $an"s %ublic Sector 2nderta"ings +inancial Institutions 'ocal $odies li"e )unicipalities and Xila %arisads =ducational Institutions aided by the #o!ernment etc
5ural +ostal &ife Insurance

On 1>th )arch *PPG the benefits of %ostal 'ife Insurance were e(tended to rural populace of the country under the banner of .ural %ostal 'ife Insurance. In all the States or %ostal 0ircles there is an administrati!e and operational unit in the office of 0hief %ostmaster #eneral. The %'I operation in the concerned state is loo"ed after by @i!isional )anager N%'IO assisted by @eputy @i!isional )anager and Assistant @i!isional )anagers. Similarly in .ural %ostal 'ife Insurance its operations are loo"ed after by %ostmaster #eneral assisted by Assistant @i!isional )anager. It has *M> @e!elopment Officers and 6GI +ield Officers all o!er India to pro!ide door to door ser!ice. Aou can contact any Head %ost Office for assistance. +or .ural %ostal 'ife Insurance you can contact the $ranch %ostmaster of your !illage.
Insurance is the Subject )atter Of Solicitation IK
COM,ARATIVE A-A.YSIS
1. 6ndo#ment plans:=ndowment %olicies are basically for ma"ing pro!isions for the family of the life assured in the e!ent of his early death but assure a lump sum at any desired age. The amount assured becomes payable at the end of the endowment term if it has not already been paid by reason of his earlier death. %remiums are payable for a period e8ual to the endowment term or until death if earlier. The companies are also offering the choices of paying premium either in Aearly Half/ yearly or Ruarterly )odes. %remiums may be limited to a shorter term of years if desired. The companies normally are adopting the following procedure for ta"ing the endowment plans,/ )inimum sum assured should be of .s. *L LLLH/ )inimum age at entry should be *1 years. )a(imum age at entry should be IG years. )a(imum age at maturity should be KG years.
Howe!er 'ife Insurance 0orporation ]'I0Q of I3@IA is also offering the =ndowment %lan at with profit ETable no.*>F and also at without profit ETable no.**F.
Insurance is the Subject )atter Of Solicitation IM
Insurer H@+0 $I.'A S23'I+= I0I0I %.2@=3TIA' 'I0 O) BOTAB
%lan name =ndowment Assurance %lan =ndowment Assurance %lan I0I0I7s %ru 'ifeguard The =ndowment Assurance policy Bota" =ndowment %lan
%remium .ates for age 6L .s > M6G .s G LL> .s > >M> .s > MPI .s > I>L
+or age 6G .s > PPM .s G *>M .s > GKG .s G L1I .s > KLL
The abo!e table suggests the companies dealing in =ndowment %lans along with their premium rates. 0riteria for comparision, *. Se(/)ale 1. Term/ 1L years 6. Sum Assured/ * LL LLL. >. Age/ 6L 5 6G years .es.
%'M+$5ISI'"
Insurance is the Subject )atter Of Solicitation IP
0omparision is made ta"ing into consideration a 6L/year old )ale Healthy Indi!idual person opting for =ndowment assurance plan.
If we start from the e(treme He will obser!e that the %rudential I0I0I7s endowment assurance plan will wor" out to be the cheapest at .s. > >M>H/ as compared to other plans of !arious companies offered in the mar"et. The ne(t cheapest plan for him would be O) BOTAB )ahindra7s Bota" endowment assurance plan at .s. > I>LH/. While all the other companies offering =ndowment Assurance %lan in the open mar"et ha!e assurance bit costly %remium rates as compared to these two companies. Howe!er if the same indi!idual opts for riders such as 0ritical Illness E0IF .iders Accident @eath $enefitEA@$F .ider Wai!er of premiumEwopF .ider or @ouble Sum Assured E@SAF .ider he will find that the same two companies will be the cheapest again.
The only difference he will find that only 'ife Insurance 0orporation ]'I0Q of India is not charging any amount of e(tra premium in case of Accident @eath $enefit. That means if a person dies in accident his family will get @ouble the Sum Assured at no e(tra cost i.e. He will not ha!e to pay to 'I0 in case of accident @eath $enefit. 3ow let7s increase the age to 6G/years to the same )ale Healthy Indi!idual opting for life insurance co!er. If we start from the bottom he will find again %rudential I0I0I7s =ndowment Assurance %lan is showing the cheapest figures at .s. > GKGH/ in fa!our of an indi!idual. This product of %ru/I0I0I7s is co!ering the mar"et !ery rapidly by offering !ery less premiums as compared to other companies which are present in the mar"et. He will find that the ne(t cheapest for him at age 6G would be O) Bota" )ahindraJs =ndowment Assurance %lan at .s.> KLLH/. Bota" is also co!ering mar"et at moderate
Insurance is the Subject )atter Of Solicitation KL
The Study Of Indian Insurance Sector speed by creating Awareness in the mar"et through Ad!ertising in T.D. 3ewspapers and )aga;ines etc.
$ut with the same methodology 'I0 with no e(tra premium for Accident @eath $enefit .ider will be the cheapest and !ice !ersa. The =ndowment %lan of 'I0 &The Insurance #iant is also selling !ery fast in the mar"et due to +aith of the people in 'I0 and also its Wor" =(perience which will determine an e(tra amount of $onus to be paid Ein certain plansF called as 'oyalty Addition. The strength of 'I0 with o!er si( la"h Agents who are selling life insurance products for 'I0 across India is also helping this cause in a big way.
2. Money 4ac. +lans:-
Insurance is the Subject )atter Of Solicitation K*
The Study Of Indian Insurance Sector This is a !ery popular form of fi(ed term policy. It is especially suitable for $usinessman since certain amount of money is recei!ed bac" during the term of policy with continuation of the ris" for full sum assured. In case of death during the term of policy the nominee will recei!e full sum assured along with accrued $onus till that period. On sur!i!al of the 'ife Assured during the term he will recei!e the sur!i!al of benefits as under, )oney .ecei!ed After G yrs *L yrs *G yrs 1L yrs Term of %olicy 1L year term 1LT 1LT 1LT >LT ^ $onus / 1G year term *GT *GT *GT *GT >LT ^ $onus
1G yrs
N [ The abo!e table suggests just the e(ample of the method followed by 'I0 it may not be the same in case of other companiesO.
It is an insurance plan that offers the following features, %ayment of cash lump sums each of which is a proportion of the basic sum assured at G year inter!als during the term of the policy. Insurance is the Subject )atter Of Solicitation K1
The Study Of Indian Insurance Sector On the sur!i!al up to maturity a payment e8ual to the basic sum assured plus bonus additions less the cash lump sums paid earlier is pro!ided. In case of the unfortunate death of the life assured within the term of the policy the basic sun assured plus any bonus additions is pro!ided. This is o!er and abo!e the earlier payouts.
Insurer H@+0 $I.'A S23'I+= I0I0I %.2@=3TIA' 'I0 O) BOTAB
%lan name )oney $ac" %lan )oney $ac" %lan I0I0I7s 0ash $ac" The )oney $ac" %lan Bota" )oney $ac" %lan
%remium .ates for age 6L .s K GMG .s G MGI .s I GP1 .s I 6ML .s K *1L
+or age6G .s K K6G .s I LLL .s I IM6 .s I GI> .s K 6LL
%'M+$5ISI'"
0omparision is made ta"ing into consideration a 6L/year old )ale Healthy Indi!idual person opting for money bac" plan. 0riteria for comparision, Insurance is the Subject )atter Of Solicitation K6
The Study Of Indian Insurance Sector *. Se(/)ale 1. Term/ 1L years 6. Sum Assured/ * LL LLL. >. Age/ 6L 5 6G years .es. 'et7s start from the bottom if a person goes for )oney $ac" %lan for his choice as for life insurance. The cheapest premium a!ailable for him at age 6L is of .s. G MGIH/ which is offered by $irla Sun life Insurance7s )oney $ac" %lan. In this product then ha!e ta"en an initiati!e in selecting the lowest premiums for indi!iduals in the whole mar"et. 0ompared to other plans which are offered in the open mar"et $irla Sun life7s plan wor"s out to be best and the cheapest. +ollowing in the slot of the premiums the ne(t lowest premium offered to him is of I 6MLH/ which is of 'I0 / the state owned Insurance 0ompany. The @ouble accident benefit is also a!ailable for him with 'I0J that means he need not ha!e to pay e(tra amount of premium for opting this benefit. If he selects the )oney $ac" %lan offered to him by $irla Sun life Insurance he will ha!e to pay e(tra premium in case he is opting for @ouble Sum Assured $enefit .ider. The result of that will be add to the total cost of premium which is to be paid by him to $irla Sun life Insurance 0ompany for getting this benefit. So in that case 'I0 would wor" out for him to be the cheapest as compared to other companies acting in the mar"et. #radually if the age is increased to 6G years he will find that $irla Sun life is the leader in the mar"et again by offering the lowest premiums as compared to !arious other companies. @ue to this offering in the mar"et they are selling the )oney $ac" %olicies !ery easily. The ne(t cheapest for him in the mar"et at the age of 6G would again wor" out to be 'I0 at .s. I GI>H/. 'I0 / the Insurance #iant has a lot of !arieties in their selling is the leader
Insurance is the Subject )atter Of Solicitation K>
The Study Of Indian Insurance Sector in today7s mar"et by capturing PMT of the total insurance mar"et of India. 'I0 today is showing the sale of )oney $ac" %olicies rather than the =ndowment %olicies. Again the strength of 'I0 is depicted with o!er si( la"h Agents across the country which is showing the great future for India in insurance business.
3. !65M I"S(5$"%6 +&$"S:With 'ife insurance corporation of India too joining the term insurance war it7s now time to ta"e a fresh loo" at term policies in the mar"et and find the best one which is best suited to an indi!idual. While some policies may be cheap for indi!iduals below 6L they may pro!e e(pensi!e for older people. On the other hand some policies may appear for shorter terms but are e(pensi!e if ta"en for a longer term.
Insurance is the Subject )atter Of Solicitation KG
Term policies co!er the ris" only during the selected period. If the policy holder sur!i!es the term the ris" co!er ends. If a person die e!en a day after the policy e(pires your family doesn7t get thing. Also there is no surrender !al!e loan or paid up !al!es granted under these policies because reser!es are not accumulated. These policies are called %ure Term %olicies. Term policies are a!ailable for tenures of G/1G years and are designed to meet the needs of people who are unable to pay the larger premium re8uired for a whole life or an endowment assurances policy but they hope to be able to pay for such a policy in near future. Howe!er while ta"ing a term policy it is to go for the highest a!ailable policy. Since they are so simple term life policies can be easily compared on the basis of price since e!en if the policy holder sur!i!es the term no amount is payable on maturity. The factors determining the premiums in case of a term policy are age and the term itself. I3S2.=. H@+0 $I.'A S23'I+= I0I0I %.2@=3TIA' 'I0 O) BOTAB %'A3 3A)= Term assurance +le(i Term 'ifeguard/ 'e!el Term Anmol Cee!an Term Assurance *L/A=A. T=.) 1L/A=A. T=.) 6L/A. O'@ 6G/A. O'@ 6L/A. O'@ 6G/A. O'@ 1 M1L 6 IGL 1 GL> 1 L6K 6 >LL 6 LGL > L*L 1 P1G 1 P*L > 1LL 1 P1L 6 K*L 1 IML 1 M*6 6 KLL 6 GML > GLL 6 GM1 > 6*K G LLL
%'M+$5ISI'"
0omparison between !arious plans is made ta"ing into consideration a 6L year old as well as a 6G/ year old healthy male loo"ing for a .s. *L/la"h co!er for a *L/year term and a 1L/year term. to get a complete picture. The cheapest policy for a 6L/year old male for a *L/year term is 'I07S Anmol jee!an with the annual premium for a .s *L/la"h policy wor"ing out to .s 1 L6K. 'I07S Anmol jee!an is a!ailable for indi!iduals between *M
Insurance is the Subject )atter Of Solicitation KI
The Study Of Indian Insurance Sector years and GL years of age. The policy term can be ta"en for *L *G or 1L years. The sum assured can be either for .s G la"h or .s *L la"h only. 3ow if the same indi!idual aged 6L years opts for a 1L/year term then I0I0I %rudential7s 'ifeguard le!el term wor"s out to be the cheapest with an annual premium outgo of .s 1 IML. 'e!el term is open for indi!iduals of *M/GL years. The minimum term of the policy is G years while the ma(imum term is 1G years subject to ma(imum of IG years of age. 'I07S Anmol Cee!an for a similar term would cost .s 1 M*6. $esides 'I0 and I0I0I %rudential all the other policies wor" out much e(pensi!e for a 6L/year old indi!idual be it for *L or 1L years. +urther if the age increases to 6G years and there is a change in the results. Then the cheapest policy for a 6G year old for a *L year term again wor"s out to be 'I07S Anmol jee!an with the premium for a .s *L la"h policy wor"ing out to .s 1 P*L. Howe!er when the term is increased to 1L years for the same 6G/year old indi!idual 'I0 no longer scores and is pushed to the third place. The cheapest plan for a 6G/year old for a 1L/year term wor"s out to be H@+0 Standard life7s term Assurance %lan. The premium on it7s .s *L la"h policy wor"s out to .s 6 GML. This too is a!ailable for indi!iduals between *M years and IG years of age. The ne(t cheapest policy is again I0I0I %rudential7s 'e!el Term with just .s 1 more at .s 6 GM1. 'I07S Anmol Cee!an comes third here with a premium of .s > 6*K.
All the abo!e policies are a!ailable with add/ons such as accident death benefitJ disability benefit and critical illness benefit which can be a!ailed of when ta"ing the plan.
Insurance is the Subject )atter Of Solicitation KK
7. $%%I86"! 86$!H 46"6FI! 5I865S:In this conte(t of comparati!e analysis comparison of the companies is made on the basis of accident death benefit riders. $y large an accident death benefit rider can ease the pain of unprecedented death or dis/ability.
Insurance is the Subject )atter Of Solicitation KM
The Study Of Indian Insurance Sector Here we ta"e a loo" at some of the accidental riders and term riders. An accident resulting in death or dis/ability can pro!e to be shattering for the dependents in the e!ent of any liabilities. It7s during these times that accident riders come and handy. .I@=.S A@$ H @A$ A@@$ 5 Accident @is/ability benefit H=%@$. )A? 3=W AO.B 'I+= $I.'A S23 'I+= O) BOTAB H@+0 I0I0I %.2 I3# A''IA3X $ACAC S$I 'I+= TATA/ AI# )=T 'I+= A)% SA3)A. 'I0 An accident death benefit NA@$O rider pro!ides for an additional amount e8ui!alent to the sun assured NSAO to the beneficiary in the case of the insured7s death due to accident. This rider can be ta"en along with the basic plan on payment of a nominal premium. 'et7s say a 6L/ year/old male ta"es a 1L/year Om Bota" =ndowment plan for .s * la"h and also opts for an ad; rider. $esides paying an annual premium of .s > I>L he would just ha!e to shell an e(tra nominal premium of .s. ML. The rider can be ta"en for an amount e8ual to the basic SA in case of O) Bota" subject to a limit of .s *L la"h. This amount can be !ary across !arious players. In the case of )=T 'I+= the A@$ rider can be ta"en subject to a ma(imum of SA or .s G la"hJ whiche!er is lower if death occurs due to accident before the age of IL. T=.) .I@=.
Insurance is the Subject )atter Of Solicitation KP
Another !ariant of the accident rider is the Accidental @eath @is/ability and dismembermentJ the beneficiary would recei!e a percentage of the SA. The percentage of this would !ary according to !arious companies. $irla I3# and TATA/AI# are the only players offering this rider. In the case of I3# A@@$ rider can be the !alue of Nor less thanO the SA while not e(ceeding .s.1L la"h Nit can be e8ual to 1L la"hO 'et7s say the insured has an accident and suffers from loss of speech and GL T of the remaining amount for loss of use of any one limb. The total amount of benefit payable under this rider shall not e(ceed *LL T of the SA. To re/capitulate riders shield one against the di!erse unfortunate e!ents by enhancing the basic co!er at the nominal cost.
CO-C.USIO The s"etch of India suggests that the Insurance Industry is catching up fast. Howe!er the industry should be gi!en a +ull/+ledged status in India to prosper in a better way.
Insurance is the Subject )atter Of Solicitation ML
The Study Of Indian Insurance Sector The )ajor ad!antage that India will deri!e is the introduction of !arious companies into the mar"et. These companies with their =fforts and @edication will gi!e out their $=ST. O!erall it is beneficial for India.
Technology has made a difference in Insurance Industry also. 3ow %remium %ayment can be done through O3/line and one can get hisHher premium rate through hisHher )obile %hone. The new entrants should ha!e their Websites to combat the competition from its .i!als. What probably the ne(t step for the I & companies ]3ewQ is to penetrate into the rural mar"et to their earliest.
To the concluding remar"s & This project on 9Study On Indian Insurance Sector : was li"e a @.=A) to me. +inally )y @ream Is 0ome True With The 0onclusion Of This %roject. After analy;ing the whole project in depth I came to the conclusion that this industry is going to be 9TH= @AW3 I3@2ST.A: for India.
BIB.IO2RA,HY
4''1S:Organisation Of 0ommerce
W64SI!6S:-
Insurance is the Subject )atter Of Solicitation M*
The Study Of Indian Insurance Sector www.indiainfoline.com www.bimaonline.com www.hdfclife.com www.iciciprulife.com www.birlasunlife.com www.om"ota"mahindra.com www.sbilife.com www.ing!yasa.com www.licindia.com www.indiapost.com www.metlife.com www.a!i!alife.com www.bajajallian;.com www.ma(newyor"life.com www.ampsanmar.com
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The Study Of Indian Insurance Sector

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

- To apprehend and predict the industry.

- To e(press the need of Insurance in busy .is"/0ontented life of people.

- To "now the strength and wea"ness of !arious companies.

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

What exactly is insu ance!

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

Insu ance Sect# & O i'in ( De)el#*+ent

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

2. INSURABLE INTEREST: - Insurable interest means the interest in the

Insurance is the Subject )atter Of Solicitation

3. PRINCIPLE OF INDEMNITY: - To indemnify means to ma"e good the loss.

4. PRINCIPLE OF SUBROGATION:- This principle is also applicable only to

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

0EY TERMS USED I- I-SURA-CE

The person or party who get the assurance

3. PROPOSAL [Appli !"i#$ %#&'(:- A proposal is a re8uest by a proposed

It is a document containing the contract. The policy is not a

5. PREMIUM: - %remium is the amount which policyholder has to pay regularly

Insurance is the Subject )atter Of Solicitation

The Study Of Indian Insurance Sector

7. DOUBLE INSURANCE: - @ouble insurance means ta"ing more than one

.=/insurance is an agreement by which an Insurance

Insurance is the Subject )atter Of Solicitation *L

The Study Of Indian Insurance Sector

2. PROTECTION: - %rotection is the main function of insurance. 'ife insurance is a

3. INCREASES SA*INGS: - This function is performed only by life insurance. It

4. IT CREATES FUNDS FOR IN*ESTMENT: - Insurance companies collect

Insurance is the Subject )atter Of Solicitation **

The Study Of Indian Insurance Sector

Insurance is the Subject )atter Of Solicitation *1

Insurance is the Subject )atter Of Solicitation *6

Insurance is the Subject )atter Of Solicitation *>

The Study Of Indian Insurance Sector

Insu ance in In1ia

Insurance is the Subject )atter Of Solicitation *G

The Study Of Indian Insurance Sector

SCO,E OR 0I-DS O/ I-SURA-CE

$roadly insurance may be classified into the following categories,

1. Cl!++i%i !"i#$ %&#' ,-+i$.++ p#i$" #% /i.0

Insurance is the Subject )atter Of Solicitation *I

The Study Of Indian Insurance Sector

2. Cl!++i%i !"i#$ %&#' &i+1 p#i$" #% /i.0

Insurance is the Subject )atter Of Solicitation *K

4. Fi3.li"2 4-!&!$".. i$+-&!$ .

Insurance is the Subject )atter Of Solicitation *M

The Study Of Indian Insurance Sector

Insurance is the Subject )atter Of Solicitation *P

History of Fire Insurance

The Study Of Indian Insurance Sector

History of Marine Insurance

Insurance is the Subject )atter Of Solicitation 1*

The Study Of Indian Insurance Sector