Chandrabhan Sharma College of Arts, Science & Commerce

Adi Shankaracharya Marg, Powai Vihar Complex,

Powai, Mumbai – 400076

Project on:

AWARENESS OF INSURANCE IN INDIA

Submitted to

University of Mumbai

In partial fulfillment of requirement for the award of degree

Of

Bachelor of Commerce (BANKING & INSURANCE)

Submitted

SAYYED HUDA AFSAR

T.Y.B.COM (Banking & Insurance) (VI SEMESTER)

Academic Year: 2018 – 2019

Under the proper guidance of

Prof. Sharlet
 CHANDRABHAN SHARMA COLLEGE OF ARTS, SCIENCE &
COMMERCE

DECLARATION

I, SAYYED HUDA AFSAR student of CHANDRABHAN SHARMA COLLEGE OF ARTS,

SCIENCE & COMMERCE, T.Y.B.COM (Banking & Insurance), Semester – VI (2018 –
2019), hereby declare that I have completed the project work titled “AWARENESS
INSURANCE IN INDIA” as part of my academic fulfillment. The information contained in
this Project work is true and original to the best my knowledge and belief.

Place: Mumbai
Date: Signature of the Student
 CHANDRABHAN SHARMA COLLEGE OF ARTS, SCIENCE &
COMMERCE

ACKNOWLEDGEMENT

I express my sincere thanks to, The Principal Dr. CHITRA NATARAJAN of Chandrabhan
Sharma college of Arts, Science & Commerce for her valuable suggestions that helped me to
prepare this project.

I wish to take this opportunity to express my heartfelt gratitude to my project guide.

Prof Sharlet , for her valuable support to accomplished the project. I also thank her for the
valuable and timely guidance in my project work.

I express my deep sense of gratitude to my family members and friends for offering me
suggestion & help in successfully completing my project report.

Finally, it is my at most duty to thank all Library Staff and Non-Teaching Staff who helped
me to provide Books, Magazines & Newspapers to prepare this report.

Signature of the Student

 CHANDRABHAN SHARMA COLLEGE OF ARTS, SCIENCE &
COMMERCE

CERTIFICATE

This is to certify that SAYYED HUDA AFSAR student of T.Y.B.COM (Banking & Insurance)
(2018-2019) has Prepared a project report on “AWARENESS OF INSURANCE IN INDIA”
as a part of the academic fulfillment of T.Y.B.COM (Banking & Insurance) degree under my
guidance. The information contained in this Project Work is true and original to the best of our
knowledge and belief.

Signature of Project Guide Signature of Principal

Signature of Examiner
 INDEX
SR.NO PARTICULAR PAGE NO

INTRODUCTION
1}
IMPORTANCE OF INSURANCE
2}
INDIAN LIFE INSURANCE OVERVIEW
3]
HISTORY OF INSURANCE SECTOR
4}

IMPORTANT MILESTONES IN INDIAN LIFE INSURANCE

5} BUSINESS

INSURANCE AWARENESS PRESENT SCENARIO

6}

INDUSTRY REFORMS
7}

STATE INSURANCE CONTINUE TO DOMINATE

8}

INSURANCE COMPANIES IN INDIA

9}
LIFE INSURANCE CORPORATION OF INDIA
10}
MARKET SHARE OF INDIA INSURANCE INDUSTRY
11}
PLAYERS IN THE INSURANCE MARKET
12}

RECENT SECNARIO OF INSURANCE INDUSTRY

13}
KEYMAN INSURANCE
14}
INFORMATION AND AWARNESS OF MAJOR INSURANCE
15} POLICY
 BACK GROUND
16}

BURGLARY INSURANCE
17}
MOTOR INSURANCE
18}
GENERAL INSURANCE
19}
SURVEY OF INSURANCE AWARENESS IN INDIA
20}
QUESTIONNAIRE
21}

CONCLUSION
22}

BIBLOGRAPHY
23}
INSURANCE AWARENESS IN INDIA

INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,
Insurance Regulatory and development authority (IRDA) Act, 1999 and other related Acts.
With such a large population and the untapped market area of this population Insurance
happens to be a very big opportunity in India. Today it stands as a business growing at the
rate of 15-20 percent annually.

Together with banking services, it adds about 7% to the country’s GDP. In spite of all this
growth the statistic of the penetration of the Insurance in the country is poor. Nearly 80% of
India population are without Life Insurance cover and the Health Insurance, This is an
indicator that growth potential for the Insurance sector is immense of India, It was due to this
immense growth that the regulation were introduced in the insurance sector and
communication “Malhotra Committee” was constitute by the government in 1993 to examine
the various aspects of the industry. The key element of the reform process was participation
overseas Insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the ecomony was the main idea behind thus
reform,

Since then the insurance industry has gone through many sea changes. The competition LIC
started facing from these companies were creating to the existence of LIC. Since the
liberalization of the industry the insurance has never looked back and today stand as the one
of the most competitive and industry in India. The entry of the private players and the
increased use of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scop of industry in the longer run.
OBJECTIVES
 To enhance the participants understanding of the miscellaneous portfolio.
 To acquaint then with various aspect of health and liability insurance in
context with the current scenario.
 Help them explore the potential of rural insurance in line with the regulatory
guidance.
 To emphasize the importance of and explore the potential of personal line of
business under miscellaneous portfolio.
 To study present insurance Scenario in India.

RESEARCH METHODOLOGY
 Primary data
 Secondary data

Exploratory Research methodology is used here to analyse the data. Data was collected
from multiple source such as books, journals to understand the Life insurance industry. In
this paper, I have referred previous research articles. Apart from this, I have visited
different websites and professional magazines.
IMPORTANCE OF INSURANCE

Life insurance is generally considered a mean of protecting one’s family against the
unforeseeable circumstance of the death of an earning member. However, there are a number
of other benefits that are not apparent. Some benefits accrue to the individuals and their
families, while others assist economic development. For instance, an insurance company
takes the risk of large and uncertain losses in exchange for small premiums. This gives a
sense of confidence and security to the insured individual through the protection of insurance
in the event of an unfortunate incident. In large sized commercial and industrial
organization, it facilities operations as many of the risks are transferred to the insurer.
Insurance, particularly life insurance, is one of the ways of providing for the future. A life
insurance policy which gives an annuity is a combination of protection and investment. It
increases the creditworthiness of the assured person because it can provide funds for
repayment in the event of death. It also reduces losses owing to theft ,robbery, fire, accidents,
etc. In addition, it serves as a solution to social problems. For instance, while compensation is
available to victims of industrial injuries and road accidents, financial difficulties on account
of old age, disability or death is minimized. Investment of accumulated resource by the
insurer facilities the overall development of the country. Capital is usually risk averse, but if
insurers provide protection against risks, then several investors would come forward to invest
their funds.

In many developed countries, citizens are to a certain extent protected by social security
schemes provided by the government. These schemes offer financial aid to citizens who are
eligible on grounds of unemployment, old age, sickness, disability, etc. The social security
scenario in India is quite different, having traditionally been the responsibility of the family
or community. However, with industrialization, urbanization, breakup of the joint family
system and weakening of family bondage, it has become necessary to provide social security
arrangements that are institutionalized and regulated by the state rather than the society.
Issues relating to social security are listed in the directive principle of state policy. While
social security and insurance, employment and unemployment form Item 23 of the concurrent
list, the welfare of labour including conditions of work, provident fund, employee’s liability,
Workmen’s compensation invalidity and old age pension and maternity benefits from Item
24, also of the concurrent list. During the initial years of development planning, it was
believed that with the process of development, a greater number of workers would join the
organized sector and eventually get covered by formal social security arrangements.

However, the actual experience has proved otherwise. There is now almost a stagnation of
employment in the organized sector with increase in the inflow of workers into the informal
sector. The unorganized workforce is characterized by scattered and fragmented areas of
employment, seasonality, lack of job security and low legislative protection.
INDIAN LIFE INSURANCE INDUSTRY OVERVIEW

All life insurance companies in India have to comply with the strict regulations laid out by
Insurance Regulatory and Development Authority of India (IRDA). Therefore there is no
risk in going in for private insurance players. In terms of being rated for financial strength
like international players, only ICICI Prudential is rated by Fitch India at National Insurer
Financial Strength Rating of AAA(Ind)with stable outlook indicating the highest claims
paying ability rating.

Life Insurance Corporation of India (LIC), the state owned behemoth ,remains by far the
largest player in the market. Among the private sector players, ICICI Prudential Life
Insurance(JV between ICICI Bank and Prudential PLC) is the largest followed by Bajaj
Allianz Life Insurance Company Limited (JV between Bajaj Group and Allianz).Among
others, Kotak Life Insurance emerging as a one of the best product provider in the current
market It has been estimated that customer growth of Kotak Life Insurance is better than
any private insurance company in India. The private companies are coming out with better
products which are more beneficial to the customer. Among such products are the ULIPs or
the Unit Linked Investment Plans which offer both life cover as well as scope for savings or
investment options as the customer desires .Further, these type of plans are subject to a
minimum lock-in period of three years to prevent misuse of the significant tax benefits
offered to such plans under the income tax act. Hence, comparison of such funds would be
erroneous.
HISTORY OF INSURANCE SECTOR

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). The writings
talk in terms of pooling of resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of insurance in the form of marine
trade loans and carriers’ contracts. Insurance in India has evolved over time heavily drawing
from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In
1829, the Madras Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades
of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India
(1897) were started in the Bombay Residency. This foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London
Globe Insurance and the Indian offices were up for hard competition from the foreign
companies.

In 1914, the Government of India started publishing returns of Insurance Companies

in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to
regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938, with
a view to protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.
 The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were
a large number of insurance companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector
and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154
Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and
the consequent growth of sea-faring trade and commerce in the 17th century. It came to India
as a legacy of British occupation. General Insurance in India has its roots in the establishment
of Triton Insurance Company Ltd., in the year

1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up.
This was the first company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton
of India. The General Insurance Council framed a code of conduct for ensuring fair conduct
and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd.,
the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United
India Insurance Company Ltd. The General Insurance Corporation of India was incorporated
as a company in 1971 and it commence business on January 1sst 1973.
 This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process of re-opening of the sector had begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to complement the
reforms initiated in the financial sector. The committee submitted its report in 1994 wherein ,
among other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body
in April, 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders’ interests.
  IMPORTANT MILESTONES IN THE INDIA LIFE INSURANCE
BUSINESS

The growth of the Federation in its multi-faceted activities is traced in separate chapters. The
important milestones during the fifty years are now identified

 1912: The India life Insurance assurance companies act come into force for regulating
the life insurance business
 1928: The earlier legislation consolidated the insurance Act with the aim of
safeguarding the interests of the insuring public.
 1956: 245 Indian and foreign insurers and provident societies were taken over by the
central government and they got nationalized. LIC was formed by Act of parliament,
viz. LIC Act, 1956. It started off with a capital of Rs 5crore and that too from the
government of india.

The history of general insurance business in india can be traced back to Triton
insurance company Lt. (the first general insurance company) Which was formed in
the year 1850in Kolkata by the British.

 IMPORTANT MILESTONES IN THE INDIAN GENERAL

INSURANCE BUSINESS

 1907: The Indian mercantile Insurance Ltd. set up- the first company to transact all
classes of General Insurance business..

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up

1972: The General Insurance business in India (Nationalisation) Act 1972 nationalized the
general insurance in India. It was with effect from 1st January 1973.
INSURANCE AWARENESS PRESENT SCENARIO

The insurance industry of India consists of 55 insurance companies of which 24 are in life
insurance business and 31 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national
reinsurer, namely, General Insurance Corporation of India. Other stakeholders in Indian
Insurance market include agents (individual and corporate), brokers, surveyors and third
party administrators servicing health insurance claims. Out of 31 non-life insurance
companies, five private sector insurers are registered to underwrite 263 | P a g e policies
exclusively in health, personal accident and travel insurance segments. They are Star Health
and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max
Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna
TTK Health Insurance Company Ltd. There are two more specialized insurers belonging to
public sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance. India's life insurance sector is the
biggest in the world with about 36 crore policies which are expected to increase at a
compound annual growth rate (CAGR) of 12-15 per cent over the next five years. The
insurance industry plans to hike penetration levels to five per cent by 2020, and could top the
US$ 1 trillion mark in the next seven years. The total market size of India's insurance sector
is projected to touch US$ 350-400 billion by 2020 from US$ 66.4 billion in FY13.The
general insurance business in India is currently at Rs 77,000 crore (US$ 12.41 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent. The Rs 12,606
crore (US$ 2.03 billion) domestic health insurance business accounts for about a quarter of
the total non-life insurance business in the country. Investment corpus in India's pension
sector is anticipated to cross US$ 1 trillion by 2025, following the passage of the Pension
Fund Regulatory and Development Authority (PFRDA) Act 2013, according to a joint report
by CII-EY on Pensions Business in India. Indian insurance companies are expected to spend
Rs 117 billion (US$ 1.88 billion) on IT products and services in 2014, an increase of five per
cent from 2013, as per Gartner Inc. Also, insurance companies in the country could spend Rs
4.1 billion (US$ 66.11 million) on mobile devices in 2014, a rise of 35 per cent from 2013.
INDUSTRY REFORMS:

Reforms in the insurance sector were initiated with the passage of the IRDA a bill in
parliament in December 1999. The IRDA since its incorporation as a statutory body in April
2000has fastidiously stuck to its schedule of framing regulation and registering the private
sector insurance companies. Since being set up as an independent statutory body the IRDA
has put in the framework of globally compatible regulations.

The order decision taken simultaneously to provide the supporting system to the insurance
sector and in particular the life insurance companies was the launch of IRDA online serviced
for issue of renewal of licence to agents. The approval of institutions of imparting training to
agent has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell there products.

WHY AWARENESS IS IMPERATIVE:

The growing need for financial education for the families to take better financial decision and
to increase their economic security has been widely recognized. It is felt that well informed
and well educated customers can create economic ripples. They make better financial
decisions for themselves and their families, increasing their economic security and wellbeing.
Secured families are more involved in their communities as home owners and voters. They
are more involved as parents with their children’s schools and teachers, enabling better
educational and economic outcomes for their children. They contribute to vital, thriving
communities, further fostering community economic development. Thus, being financially
literate is not only important to the individual household and family, it is also important to
communities and societies. Insurance companies can address the problem of financial
illiteracy of consumers by educating them. This point was corroborated by the Max Life–
NCAER survey (NCAER, 2015-16) which showed that even though a majority of Indian
households are good savers, they do not undertake financial planning and are financially at
risk. Households need to understand the risk of both ‘living too long’ and ‘dying too young’.
Further, in urban India and amongst the salaried class, insurance is largely used as a tax
saving tool, rather than for protection against risk. There is need to reorient the consumer
about the benefits of life insurance for both financial protection as well as for long-term
wealth creation. The importance of insurance is unquestionable in modern economies as it
serves a broad public interest and is vital to individuals’ security. Advocacy of insurance and
risk issues is an important tool that complements the insurance regulatory and supervisory
framework. This is particularly so given: (i) households’ growing risk exposures and
responsibility for covering them; (ii) increasing diversity and complexity of insurance
products; and (iii) heterogeneity of insurance providers and distribution channels. Advocacy
can typically: (i) heighten individuals’ awareness and responsibility towards potential risks;
(ii) 264 | P a g e enhance understanding of insurance mechanisms that can cover these risks;
and (iii) enable the development of consumers’ knowledge and capacity in order to make
informed decisions as regards insurance matters. Private insurers have introduced many
innovative products and offer incentives on policies in order to woo consumers. The market
share of private insurers has increased steadily on the basis of total premium from 14.25 per
cent in 2010–11 to 29.90 per cent in 2014–15. In today’s context, though the customer has a
variety of products to choose from, wise choices are possible only with requisite awareness.
Besides, it is not enough for the customer to have knowledge only of the various policies
available. It is possible that a customer has problems with a particular policy and should
ideally be aware of organizations that look into grievances and make prompt payment of
claims. The customer must also be informed about the lapse of policies, revival of policies,
and the value of a policy in case of surrender. Hence, the customer must not only choose a
product which is suitable, but also engage with a company in which the agents provide
correct information. The results of the Max Life– NCAER Survey on India Financial
Protection (NCAER, 2015-16) indicates that awareness of life insurance stands at a high of
78 per cent on an allIndia level with more urban households (90%) aware of it than rural
households (73%). The level of awareness has increased with education, age and income
levels. However, ownership of insurance products was low at only 24 per cent. Further, it was
the salaried class that tended to buy insurance the most, followed by businessmen. Also, as
compared to others married people are more likely to buy insurance.
STATE INSURANCE CONTINUE TO DOMINATE:

There may be room for many more player in a large underinsured market life India with a
population of over one billion. But the reality is that the intense competition in the last five
years has made it difficult for new entrants keep pace with the leaders and thereby on failing
to make any impact in the market.

Also as the private sector controls over 26 .18% of the life insurance market and over 26.53%
of the non-life market, the public sector companies still call the shoots.

The country’s larger life insurance, LIFE INSURANCE CORPORATION OF INDIA (LIC),
had a share of 74.82% in new business prmium income in November 2005.

Similarly, the four public-sector non-life insurance- New India Assurance, National Insurance
Oriental insurance and united India Insurance-had a combined market share of 73.47% as of
October 2005. ICICI prudential life insurance company continues to lead the private sector
with a 7.26% market share in terms of fresh premium, were as ICICI Lombard General
insurance company id the leader among the private non-life player with a 8.11% market
share. ICICI Lambord has foused on growing the market for general insurance products and
increasing penetration within exiting customer through product and innovation and
distribution

Reaching out to customer- no doubt. The customer profile in the insurance industry in
changing with the introduction of large number of divergent intermadiaries such as brokers,
corporate agents, and bancassurance.

Intense competition- In ade-tariffed environment competition will manifest itself in prices,

Products, underwriting criteria, innovative sales methods and creditworthiness insurance
Compines will vie with each other to capture market share thought better oricing and client
Segmentation.

The battle has so fought in the big urban cities, but in the next few years, increased
Competition will drive insurers to rural nd semi-urban markets.
Global Standards- while the world is eyeing India for growth and expansion. Indian
companies are becoming increasingly world class. Take the case of LIC, Which has set its
sight on becoming a major global player following a Rs 280 crore investment from the
Indian government. The company now soon start operation in Saudi Arebia. It also plane to
venture into African and Aisa –Pacific region in 2006.

The year 2005 was a testing phase for the genera insurance industry with a series of
catastrophes hitting the India sub continent.

However, with robust reinsurance programmes in place, insurance have successfully

managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance premium being
0.65% of GDP, the opportunities in the Indian market place is immense, The next five years
will be challenging but those that can build scale and market share will survive and prosper
INSURANCE COMPANIES IN INDIA

IRDA has till now provided registration to 12 private life insurance companies and 9 general
insurance companies. If the existing public sector insrance companies are considered then
there are presently 13 insurance companies in the life side and 13 companies functioning
insurance business. General insurance corporation has been sanctioned as the” India
reinsurer” for underwriting only reinsurance business.

Insurers:

Insurance industry, as on 1.4.2000, comprised mainly to players the state insurers.

Life insurers:

 Life insurance corporation of India (LIC)

General insurers:

 General insurance corporation of India (GIC) (with effect from dec’2000, a national
Reinsurer)

GIC had subsidiary companies namely (with effect from dec’2000, these subsidiaries have
been de-linked from the parent company and make as independent Insurance companies.

 The oriental insurance company limited

 The new India Assurance company limited
 National India insurance company limited
 INSURANCE INDUSTRY
INSURANCE INDUSTRY IN
IN INDIA
INDIA

LIFE INSURANCE
NON-LIFE INSURANCE / GENERAL
INSURANCE

MOTOR FIRE HEALTH MARINE

INSURANCE INSURANCE INSURANCE INSURANCE

LIFE OF INSURANCE COMPANIES OF IN INDIA

LIFE INSURERS WEBSITE

Public Sector s
Life Insurance corporation WWW.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company WWW.allianbajaj.com
Limited

Birla sun-Life Insurance Company WWW.birlasunlife.com

HDFC Standard Life Insurance Co. Limited WWW.hdfcinsurance.com
ICICI prudential Life Insurance Co .Limited WWW.iciciprulife.com
ING Vysya Life Insurance Company Limited WWW.ingvysayalife.com
Max New York Life Insurance Co. Limited WWW.maxnewyorklife.com
MetLife Insurance Company Limited WWW.metlife.com
LIFE INSURANCE CORPORATION OF INDIA

Life Insurance Corporation of India (LIC) was formed in September 1956 by an Act of
Parliament, viz, Life Insurance Corporation Act 1956, with capital contribution from the
Government of India. The then Finance Minister, Shree C.D, Deshmukh. While piloting the
bill, outlined the objective of LIC thus: to conduct the business with the utmost economy .In a
spirit of trusteeship; to invest the funds for obtaining maximum yield for the policy holder
consistent with safety of the capital; to render prompt an efficient service to policy holder,
thereby making insurance widely popular

Since nationalisation, LIC has built up a vast natwork of 2,048 branches, 100 divisions and 7
zonal offices spread over the country. The Life Insurance Corporation of India also transacts
business abroad and has offices in Fiji, Mauritius and United kingdom. LIC is aasociated with
joint venture abroad in the field of insurance, namely, Ken-India assurance company limited,
Nairobi; United oriental assurance company limited, Kuala Lumpur and life Insurance
corporation (International) E. C. Bahrain. The corporation has registered a joint venture
company in26 December 2000in Kathmandu, Nepal by the name of Life Insurance
corporation (Nepal) Limited in collaboration with Vishal group Limited, a local industrial
group. An off-shore company LIC (Mauritius) of – shore limited has also been set up in 2001
to tap the African Insurance market.

SOME AREAS OF FUTURE GROWTH AND AWARENESS

Life Insurance

The traditional life Insurance business foe the LIC has been a little more than a savings
policy. Term life (where the insurance company pays a predetermined amount if the
policyholder dies within a given time but it pays nothing if the policyholder does not die) has
accounted for less than 2% of the insurance premium of LIC (Mitra and Nayak,2001). For the
new life Insurance companies, term life policies would be the main line of business.

Health Insurance

Health insurance expenditure in India is roughly 6% of GDP, much higher than most other
countries with the same level of economic development Of that, 4.7% is private and the rest
is public what is even more striking is that 45% are out of pocket expenditure (berman,1996).
There has been an almost total failure of the public health care system in india. This creates
an opportunity for the new insurance companies thus, private insurance companies will the
able to sell health insurance to a vast number of families who would like to have health carev
cover but do not have it.

Pension

The pension system in India is in its infancy. There are generally there form of planes
provided funds, gratuities and pension funds. Most of the pension schemes are confined to e
government employees (and some large companies)The vast majority of workers are in
informal sector. As a result, most worker do not any retirement benefit to fall back on after
retirement. Total assets of all the pension planes in India amount to less than USD 40 billion.

Therefore, there is a huge scope for the development of pension funds in India the finance
minister of India has repeatedly asserted that a Latin American style reform of the privatized
pension system in India would be welcome (Roy, 1997).Given all the pros and cons,it is not
clear whether such as wholesaler privatization would really benefit India or not (Sinha,2000).
MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The insurance industry of India consists of 57 insurance companies of which are in the life
insurance business and 33 are non-life insurers. Among the life insurers. Life insurance
corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, general insurance corporation of India (GIC Re). Other stakeholders in India
Insurance market include agents (individual and corporate), brokers, surveyors and third
party administration servicing health insurance claims.

Out of 33 non-life insurance companies, five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance segments.
They are Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance
Company Ltd, Max Bupa Health Insurance Company Ltd, Religare Health Insurance
Company Ltd and Cigna TTK Health Insurance Company Ltd. There are two more
specialised insurers belonging to public sector, namely, Export Credit Guarantee Corporation
of India for Credit Insurance and Agriculture Insurance Company Ltd for crop insurance.
Government’s policy of insuring the unisured has gradually pushed insurance penetration in
the country and proliferation of insurance schemes are expected to catapult this key ratio
beyond 4% mark by the end of this year, reveals the ASSOCHAM latest paper.

The number of lives covered under Health Insurance policies during 2015-16 was 36 crore
which is approximately 30 per cent of India’s of India total population. The number has seen
an increase every subsequent year as 28.80 crore people had the policy in the previous fiscal.

Premium income of the life insurance segment had increased 14.04 percent in FY17 to Rs
4.18 trillion (US$ 64.92 billion). In August 2017, the insurance industry reported a 24 per
cent growth in overall annualised equivalent with the help of both private players and Life
Insurance Corporation.
PLAYERS IN THE INSURANCE MARKET
Insurance business:

Insurance business is divided into four classes:

1) Life Insurance
2) Fire Insurance
3) Marine Insurance
4) Miscellaneous insurance

Life insurance transact life insurance business; general insures transact the rest. No
composites are permitted as per low. Legislation (as on 1.4.2000):Insurance is a federal
subject in India. The primary legislation that deals with insurance business in India:

 Insurance Act 1938 and insurance regulatory and development authority

Act, 1999

Life Insurance

Popular products: Endoment assurance (participating), and money back (participating) More
than 80% of the life insurance business is from these products.

General Insurance

Fire and miscellaneous insurance business are predominate motor vehicles insurance is
compulsory.

Tariff advisory committee (TAC) lays down tariff rates for some of general insurance product
(please visit web side of GIC for details).

Information

About the insurance industry, the following document may be helpful:

 Malhotra committee report (the report of then committee on reform in the

insurance sector);
IRDA’s first Annual Report-2000
CUSTOMER PROTECTION AND AWARENESS

Insurance Industry has Ombudsmen in 12 cities. Each ombudsman is empowered to redress

customer grievance in respect of insurance contracts on personal lines where the insured
amount is less than Rs 20 lakhs, in accordance with the ombudsman scheme .Address can be
obtained fro the offices of LIC and other insurers.

PROTECTION OF INTREST OF POLICY HOLDER:

IRDAI has notified Protection of Policyholders Interest Regulations 2001 to provide for:
policy proposal documents in easily understandable language; claims procedure in both life
and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and
policyholders’ servicing. The Regulation also provides for payment of interest by insurers for
the delay in settlement of claim.

The insurers are required to set up proper grievance redress machinery in their head office
and at other office.

The authority takes place with the insurers any complaint received from the policy holder in
connection with service provided by them under the insurance contract.
RECENT SCENARIO OF INSURANCE INDUSTRY

Globally, the share of life insurance business in total premium was 56.2%.However; the share
of life insurance business for India was very high at 79.6% while the share of non –life
insurance business was small at 20.4%.

In life insurance business, India is ranked 11th among the 88 countries, for which data is
published by Swiss Re. India’s share in global life insurance market was 2.00% during
2013.However, during 2013, the life insurance premium in India declined by 0.5 % ( inflation
adjusted ) when global insurance premium increased by 0.7%
The Indian non- life insurance sector witnessed a growth of 4.1 % (inflation adjusted) during
2013.During the same period, the growth in global non-life premium was 2.3 %. However,
the share of Indian non-life premium in global non-life insurance premium was small at
0.66% and India ranks 21st in global non-life insurance markets.

To put it in short, the insurance sector had only government owned entities till a decade
back. LIC (Life Insurance Corporation of India) was the only life insurance provider. In the
general insurance space there were players like National Insurance, New India Assurance,
Oriental Insurance and United India Insurance which offered solutions. All this changed in
the year 2000 when private players were allowed to start operations. A host of private players
entered this market and have been aggressive ever since. As of now we have 23 life insurance
companies and 24 general insurance companies. There are a number of new players who are
awaiting regulatory clearances and approvals to start their business in India in both the life
and general insurance sectors.

India with about 200 million middle household shows a large untapped potential for player
in the insurance.
Insurance industry saturttation of markets in many developed economies has made the India
market even more attractive for global insurance major. The insurance sector in India has
come to a position of very high potential and competitiveness in the market. India have
always seen life insurance as a tax saving device, are now suddenly turning to the private that
are providing them products and varity of their choice.
The rural consumer is now exhibiting an increasing propensity for insurance products. A
research conducted exihibition that the rural consumer are willing for to dole out anything
between Rs 3,500 and Rs 2900 as premium each year. In the insurance the awareness level
for life insurance is the highest in rural India but the consumers also aware about motor.
Accidents and cattle insurance. In a study conduct by MART the results showed the hat
nearly one third said that they had purchased some kind of insurance with the maximum
penetration skewed in favour of life insurance.

The study also pointed out the private companies have huge task of play increating
awareness and credibility among the rural populance. The perceived benefits of buying a life
policy range from security of income bulk return in future daughter’s marriage, children’s
education and good return on saving, in that order.
APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE
SECTOR TO MAKE PEOPLE AWARE:

There is an evolutionary change in the technology that the has revolutionized the entire
insurance sector. Insurance industry is a data- rich industry, and thus there is a need to need
to use the data for trend analysis and personalisation.

With increase competition among insurers, service has become a key issue. More, over
customer are getting increasingly sophisticated and tax-savvy. People today don’t want to
accept the current value proposition. They want personalised interactions and they look for
more and more features and add ones and better service.

The insurance companies today must meet the need of the hour for more and more
personalised approach for handling the customer. Today managing the customer intelligently
is very critical for the insurers specially in the very competitive environment. Companies
need to apply different set of rules and treatment strategies to different customer segment.
However, to personalised interaction, insurers are required to capture customer information in
a integrated system.

With the explosion of web-side and greater access to direct product or policy information,
there is a need to developing better technique to give customers a truly. Personalised
experience. Personalisation helps organisation to reach their customers with more impact and
to generate are receiving personalized information, many organisation are incorporating
knowledge database-repositories of content that typically include a search engine and lets the
customer locate the all document and information related to their queries of request for
services. Customer can hereby use the knowledge database to manage their products or the
company information and invoices, claim records, and histories of the service industry. These
products also may be able to learn from the customers previous knowledge database and to
use their information when determining the relevance to the customer search request.
WHAT IS LIFE INSURANCE IN INDIA ?

Life insurance made its debut in India well over 100 years ago. Its salient features are not as
widely understood in our country as they ought to be. What follows is an attempt to acquaint
readers with some of the concepts of life insurance, with special reference to life insurance. It
should, however, be clearly understood that the following narrations by no means an
exhaustive description of the term and conditions of the life insurance policy or its benefits or
privileges. For more details, please contact our branch or divisional Office. Any life
insurance agent will be glad to help you choose the life insurance plane to meet your needs,
and render policy servicing.

Life insurance sector is the fastest growing sector in India since 2000when the Government
allowed Private player and FDI (Foreign Direct Investment) up to 26%. Life insurance in
India was nationalised by incorporating Life insurance Corporation (LIC) in 1956. All
private life Insurance companies at that time were taken over by LIC.

In 2000, the legislation amending the insurance Act of 1938 and legislating the insurance
Regulatory and development Authority Act of 2000 was passed, here in the newly appointed
insurance regulator –Insurance Regulatory and development Authority (IRDA) started to
issue licenses to private life insurers.

What s Life Insurance?

Life Insurance is a contract for payment of a sum of money to the person assured (or failing
him/her, to the person entitled receive the same) on the happening of the event insured
against. Usually the contract provide for the payment of an account on the date of maturity or
at specified dates at periodic intervals or at unfortunate death, if it occurs earlier. Among
other things, the contract also provides for the payment of premium periodically to the
Corporation by the assured. Life insurance is uncertainty acknowledged to be an institution is
which eliminates ‘risk’ substituting certainty for uncertainty and comes to the timely aid of
the family in the unfortunate event of death of breadwinner . By and large, life insurance is
civilisation’s partial solution to the problem caused by death . Life insurance, in short, is
concerned with two hazards that stand across the life –path of every person: that of dying
prematurely leaving a dependent family to fend for itself and that of living to old age without
visible means of support.
Liquidity: Loans can be raised on the sole security of the policy which has acquired loan
value. Besides, a life insurance policy is also generally accepted as security for even a
commercial loan.

Text Relief: Tax relief income tax and wealth tax is available for amount paid by way of
premium for life insurance subject to income Tax rate in force .Assesses can avail
themselves of provision in the law for tax relief. In such cases the assured in effect pays a
lower premium for him insurance then he would have to pay otherwise.

Money When you Need It: A suitable insurance plan or a combination of different plans can
be taken out to meet specific needs that are likely to arise in future, such as children’s
education, start-in-life or marriage provision or even periodical need s for cash over a stretch
of time. Alternatively, policy moneys can be arranged to be made available at the time of
one’s retirement from policy moneys can be used for any specific purpose, such as for the
purchase of the house or for other investments. Subject to certain conditions, loans are
granted to policy holder for house building or for purchase of flats.
KEYMAN INSURANCE
Keyman insurance is taken by a business firm on the life of the key employee (s) o project the
firm against the finance loss which may offer due to the premature demise of the keyman.

Life insurance is the fastest growing sector in /India since 2000 as Government allowed
Private player and FDI upto 26% Life insurance in India was nationalised by incorporating
Life Insurance Corporation (LIC) in 1956. All private Life insurance companies at that time
were taken over by LIC.

In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down
a road map of privatisation of Life Insurance sector.

While the committee submitted its report in 1994, it took another six years before the
enabling legislating was passed in the year 2000, legislation amending the insurance Act of
1938 and legislation the insurance Regulatory and Development authority Act of 2000. The
same year that the newly appointed insurance regulator-Insurance Regulatory and
Development Authority IDRDA-started issuing licenses to private life insurance.

Life of life insurance (as Of September2008)

Apart from Life insurance Corporation, the public sector life insurer, there are 20 other
private sector Life insurance, most of them joint venture between India groups and global
insurance giants.

Life insurer in public sector

1. SBI Life Insurance

2. Metlife India Life Insurance
3. ICICI Prudential Life Insurance
4. Bajaj Allianz Life
5. Max New York Life Insurance
6. Sahara Life Insurance
7. Tata AIG Life
8. HDFC Standard Life
 9. Birla Sunlife
10. Kotak Life Insurance
11. Aviva Life Insurance
12. Reliance Life Insurance Company Limited – Formerly known as AMP Sanmar LIC
13. ING Vysya Life Insurance
14. Shriram Life Insurance
15. Bharti AXA Life Insurance Co Ltd
16. Future Generali Life Insurance Co Ltd
17. IDBI Fortis Life Insurance
18. AEGON Religare Life Insurance
19. DIF Pramerica Life Insurance
20. CANARA HSBC Oriental Bank of Commerce Life Insurance

Foreign Direct Investment (FDI) Policy in Insurance sector

As per the current (march 06) FDI norms. Foreign participation in an Indian Insurance
company is restricted to 26.0% of its equity/ ordinary shar capital. The Union budget for
fiscal 2005 had recommended that the ceiling on foreign holding be increased to 49.0%.

The Government approved the much –awaited comprehensive Insurance Bill that seeks to
raise foreign direct investment (FDI) cap in private sector to 49%.
INFORMATION AND AWARENESS OF MAJOR INSURANCE POLICY:
Miscellaneous Insurance exit to help people gain a good understanding of the various kinds
of the insurance coverage’s than are available to people today. Insurance has become a very
important part of many people’s leaves as they realize the need to provide protection for
different areas off there everyday life. There is a variety of types of insurance coverage
available today.

The dictionary defines insurance as “coverage by contract whereby one party undertakes to
indemnify or guarantee another against loss by a specified contingency or paril’’.?This means
that an individual inters into an agreement with an insurance company that will pay a set
amount of money in case of a loss in a specified area. There are a number of inclusion and
exclusion involve in each insurance policy with all kinds of variables that must be taken into
consideration before purchasing the policy.

One of the most important things to remember is that an insurance policy is a contract
between the insurance company and there customer. The insurance company agrees sto pay
certain amounts of money in case of loss and the customer agrees to pay the insurance
premiums that are required to keep the policy in place. If the customer fails to pay the
premiums due, the insurance any be work, Leaving the customer vulnerable.

The contract specifically makes the insurance company liable to pay for any loss then id
specifically stated in the insurance policy. Most policies will accurately descried the type of
losses covered and the amount of money that the company will pay for those losses.

With the increase in public awareness an d the consequent thurst for the insurance industry in
the areas of the Health Insurance, liability insurance and other personal lines of insurance, the
miscellaneous portfolio of insurance is poised to be sunrise portfolio of general Insurance.
BACKGROUND:
With the increase in public awareness and consequent thrust of the Insurance Industry in the
areas of Health Insurance, Liability Insurance and other personal lines of Insurance, the
miscellaneous portfolio of Insurance is poised to be the sunrise portfolio of general Insurance
business. This programme had been designed keeping in mind these developments in the
market and attempts to address to need for increased awareness of the multimensional
miscellaneous portfolio.
Contents
 Analysis of the miscellaneous insurance products
 Health Care Management- Indian and Global Perspective
 TPA’s an Effective service provider
 Legal framework and Liability Insurance Products
 Rural and social sector-regulations, product and marketing
 Personal line products-potential and marketing, distribution channels
 Scope and Coverage of New Products
 Credit Defaulter Cover
 Bankers indemnity Insurance / Jewellers Block Covers, Stock Brokers/ Insurance
Brokers indemnity
 Packaging and product Development
 Special Contingency Covers.
PARTICIPANTS’ PROFILE
Executives handling Technical Department and Office In-charge of operating offices of
General Insurance Companies.

 Accidental Insurance
Accident Insurance provides a cash cover to policyholder when she suffers injuries as a result
of accident. While Insurance helps a policyholder pay off hospital and medical bills in case of
accident injuries, it provides cash benefits to family members if the policyholder dies in the
accident. This insurance, applicable 24 hours a day, 365 days a year, is also commonly
referred to as personal accident Insurance.

 Types of personal accident insurance

Under personal accident insurance, the policyholder, if injured, receives cash benefits every
month, just like income, for as long as she is unable to work due to the accidental injuries.
This income in non-taxable and does not exceed the policyholder’s after-tax earning minus
the state benefit she can claim. In case of death of the policyholder due the accident, the
family receives a specific lump-sum amount.

THERE ARE EIGHT COMMON TYPES OF PERSONAL ACCIDENT INSURANCE

POLICIES:

 Individual: This policy can be taken by any individual. The benefit usually enclose
partners and children. Since several activities and excluded from this policy, it is not
as useful for people who love adventures sports, like mountaineering and rock
climbing.
 Children: The purpose of policy is to provide financial help to parent if they are
unable to work or if they incur expenses as a result of an accident.
 Group: This policy is used by companies to cover employees for expenses related to
accidents.
 Self-employed: Since self employed individual are not eligible for employee
benefits, they worse of when injured in an accident.
 Term: Through a team accident insurance policy, organizers can seek cover for all
member of a sports team.
  Professional: The policy is specifically for self employed professional such as
sportsperson, actor, lower or doctor to have special requirement.
 Over 50: This policy targets people over 50 years of age, as accident can cause more
grievous injuries to them.
 Travel accident: This policy offers benefits in case the policyholder meets with an
accident while travelling.

There are varied accident insurance policies to suit different needs. On should understand and
choose the policy with utmost care.

BURGLARY INSURANCE:

With the increase in the materialistic wealth and booming economy, the chances of burglary
in business premises are also increasing. To counteract the situation and protect the hard
earned wealth of business person, many insurance companies have come up with attraction
insurance plans that promise to provide cover against the rise or damage in the business
premises, due to burglary. In India, a burglary insurance (business premises) policy generally
covers contents of business premises, against the risk of loss or damage by burglary and
housebreaking. It is very important to know the basic clause of the insurance planes, although
they may very from company to company. In this article, we have provided the basic
information that you need to know, before opting for a burglary insurance plane.

BURGLARY INSURANCE POLICY

 The loss of materialistic wealth in a business organisation, due to burglary, is

reimbursed by a burglary insurance policy.
 The insurance company provide insurance against nothing but burglary, in the
business premises.
 The property insured is covered on the if loss or damage place, while contained in the
insured premises and not in any other premises.
 Loss of or damage to deeds, bonds, bills of exchange, promissory notes, cash, treasury
notes and bank notes, cheque, securities for money stamps, stamps collection, books
 of account, document of any kind, manuscripts, medals and coins motor vehicles, and
live stocks cannot be claimed under office burglary insurance in india.
 Damage to property by burglars is covered only when the insured is made good. In
other words damage to own premises are not covered.
 With regard to cash looked safe, the key to the safe or strong room should not be left
in the premises over night or at least anywhere near the safe.
 Applications need to submit the proposal form furnishing detailed information on the
location of risk and claims history.
 Often inspection of the premises and its neighbourhood is carried out by agents or
brokers or marketing officers of the insurance company.
 Premises located in isolated areas or the adjoining premises are those, which are not
occupied in the right. This may include educational institution or a place of worship,
which usually do not find favour with the police.
 In order to substantiate a burglary insurance claim, one must produced the FIR and
non-detection report from the police.
 The insurer will depute and obtain a survey report even on the stolen goods, to
determined the proximate cause of the loss and the quantum.
 Stock books and other account are also verified before furnishing the insurance cover.
 In some insurance plans, the theft is not valid, if it has been conduct by an internal
staff, or a person who didn’t break into the business premium.
MOTOR INSURANCE
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is
insurance purchase for cars, trucks, and other vehicles. The primary use to provide protection
against losses incurred as a results of traffic accidents and against liability that could be
incurred in an accident.

Legally, on motor vehicle is allowed to be driven on the road without valid insurance. Hence,
it is obligatory to get vehicles insured. Motor insurance policies covered against any loss or
damage to get the vehicles orits accessories due to the following natural and man made
calamities.

Natural calamities: Fire, explosion, self-ignition or lightning, earthquake, flood typhoon,

hurricane storm tempest, inundation, cyclone, hailstorm, forest, landslide, road slide.

Man made calamities: Burglary, theft, riot strike, malicious act, accident by external means,
terrorist activity, any damage in transit by road, rail, inland water way, lift, elevator or air.

Motor insurance provides compulsory personal accident cover for individual owners of the
vehicle while driving. One can also opt for a personal accident cover for passengers and third
party legal liability.

Third party legal liability protect against legal liability arising due to accidental damages. In
includes any permant injury/death of a person and damage cause to the property.

The vehicle are incurred at a fixed value called they insured’s declared value (IDV): IDV is
calculated on the basis of the manufacture’s listed selling price of the vehicle (plus the listed
price of any accessories) after deduction the depreciation for every year as per the schedule
provided by the Indian Motor Tariff. If the price of any electrical and /or electronic item
installed in the vehicle is not included in the manufacture’s listed selling price, than the actual
value (after depreciation) of this item can be added to the sum insured over and above the
IDV.

In case the vehicle is fitted with CGN/LPG, the CNG/LPG kit fitted to the vehicle is not to be
insured separately at an additional premium.
GENERAL INSURANCE

WHAT IS GENERAL INSURANCE?

Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General
Insurance comprises of insurance of property against fire, burglary ect, personal insurance
such as Accident and Health Insurance and liability insurance which cover legal liabilities.
There also other covers such as Errors and Omissions insurance for professionals, credit
insurance etc.

Non-life Insurance companies have products that cover property against fire and allied perlis,
flood storm and inundation, earthquake and so on. There are products that cover property
against burglary, theft etc. The non-life companies, also offered policies covering machinery
against breakdown, there are policies that cover hull of sheep and so on. A Marine Cargo
policy cover goods in transit including by sea, air and road. Further, Insurance of motor
vehicles against damages and thift forms a major chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual value
of the property to avoid being imposed a penalty should there be a claim. Were a property is
undervalued for the purposes of insurance, the insured will have to bear a rateable proportion
of the loss. For instance if the value of property is Rs100 and it is insured for Rs50/- in the
event of a loss to the extant of say Rs50/-, the maximum claim amount payable would be
Rs25/- (50% of the loss being borne by the insured for underinsuring the property by 50%)

 The concept is quite often not understood by most insured. Personal insurance covers
include policies for accident, Health etc. Products offering Personal accident cover are
benefit policies. Health insurance cover offered by non-life insurance are mainly
hospitalisations cover either on reimbursement or cashless basis. The cashless service
is offered through third party administrators who have arrangements with various
providers, i.e. hospitals. The third party administrator also provide service for
reimbursement claims. Sometimes the insurers themselves process reimbursement
claims.
Accident and health insurance policies are available for individual as well as groups. A group
could be a group of employees of an organisation or holder of credit cards or deposit holder
in a bank etc. Normally when a group is covered, insurers offer group discounts.

Liability insurance cover such as motor third party liability insurance, workmen’s
Compensation Policy etc offer cover against legal liabilities that arise under the respective
statutes Motor Vehicles Act, The Workmen’s Compensation Act etc. Some of the cover such
as the foregoing (Motor Third Party and workmen’s compensation policy) are compulsory by
statute. Liability insurance not compulsory by statue is also gaining popularity these days.
Many Industries insure against public liability. There are liability covers available for products
as well.

There are general insurance product that are in the nature of package policies offering a
combination of the covers mentioned above. For instance, there are package policies available
for householders, shopkeepers and also for professional such a doctor charted accounted etc.
Apart from offering standard cover, insurers also customised or tailor- made once.

Suitable general insurance cover are necessary for every family. It is important to protect one’s
property, which one might have accurate from one’s hard earned income. A loss or damage to
one’s property can leave on shattered. Losses created by catastrophes such as tsunami,
earthquakes, cyclones etc have left many homeless and penniless. Such losses can be
devastating but insurance could help mitigate than. Property can be covered, so also the people
against Personal Accident. A Health Insurance policy can provide financial relief to a person
undergoing medical treatment weather due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance cover to protect there
building, machinery, stocks etc. They need to cover that liability as well. Financiers insist on
insurance. So, most industries or business that are finance by bank and other institution do
obtain covers. But are they obtaining the right covers? And organisation or industries that are
self-finance should insure that they are protected by insurance. Most general insurance are
covers are annual contracts. However, there are few product there are long-term it is important
for proposers to read and understand the terms and condition of a policy before the enter into
an insurance contract. The proposal from needs to be filled in completely and correctly by an
proposer to insure that the cover is adequate and the right one.
SURVEY OF INSURANCE AWARENESS IN INDIA

1) Following pie-chart shows, How many people know about the insurance?

Yes 85%

No 15%

15%

85%

Yes No
2) Following pie-chart shows, How many people have taken policy?

Yes 83.3%
No 16.6%

16.60%

83.30%

Yes No
3) Following charts shown, which type of insurance people have taken ?

Yes 53.3%

No 46.6%

46.60%

53.30%

Yes No
4) Following pie charts shown, how many people have knowledge about policy?

Yes 50%

No 50%

50% 50%

Yes No

\
5) Following pie-charts shown, how many people know about the insurance bonus of the
policy?

Yes 53.3%
No 46.6%

46.60%

53.30%

Yes No
QUESTIONNAIRE:

NAME:

AGE:

1) Do you know about the insurance?

Yes

No

2) How do you know about the Insurance?

Ans

3) What are the different type of Insurance?

Ans

4) Have you taken any policy?

Yes

No

5) Which type of insurance you have taken?

Life Insurance

General Insurance

6) How you come to know about the policy?

Ans

7) Do you have the knowledge about this policy?

Ans

8) Are you aware about the insurance bonus of the policies?

Yes

No
9) Are you Aware of joint venture between HDFC bank with Standard Life Policy of UK to
form a Private sector insurance company called HDFC STANDARD LIFE?

Yes

No

10) Are you Aware with the new unit link plane in the market?

Yes

No
CONCLUSION:

Insurance is a tool by which fatalities of a small number are compensated out of funds
collected from plenteous. Insurance is a safeguard against uncertain events that may occur in
the future. Company image is the highly important criteria that consumers consider before
taking up a life insurance. This is mainly because people expert safety and secure for their
money which they invest, followed by the factor Premium which we pay to the insurer and
then Bonus and Interest paid by the company, services etc LIC dominates the Indian
insurance industry. In today’s competitive world, customer satisfaction has become an
important aspect to retain the customer, not only to grow but also to serve. Increased
competition, wide range of product offerings and multiple distribution channels cause
companies to value satisfied and highly profitable customers. Customer service is the critical
success factor in a company and providing top notch customer service differentiates great
customer service from indifferent customer service. The entry of private sector insurance
companies into the Indian insurance sector triggered off a service of change in the industry.
Even with the stiff competition in the market place, it is evident from the study that products
offered by the LIC are creative innovative and of the liking of the customer, moreover they
are satisfied by the true knowledge provided by the company or agents and they are easily
accessible, Flexible payment schemes with no hidden cost, there is no undue delay in claims
settlement, customer are highly satisfied by the grievance redressal mechanism, and in the
near future if they will go for the policy they will stuck to LIC of India, which shows the
great faith and positive perception of the customer towards LIC of India.
BIBLIOGRAPHY

www.wikipidia.com

www.scribd.com

www.goole.com

www.irdaindia.org

www.licindia.com

TEXT BOOKS:

 Principle of insurance law- DR. Avatar Singh

 Marketing Management- Philip Kotler