About Indian Insurance

7/29/2019 About Indian Insurance

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AmiGargi PandeySanjana PandyaDevanshi ShahJinal PatelShriti Bhatt

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WE WOULD LIKE TO THANK OUR PROFESSOR SAMIRTUNGARE FOR GIVING US THIS TOPIC SO THAT WECOULD LEARN SOMETHING RELATED TO THE TOPIC AND FOR ALL THEGUIDANCE AND SUPPORT.


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INDIAN INSURANCE

SECTOR


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What is InsuranInsurance is a form of contract or agreementunder one party agrees in return of a consideration

to pay an agreed amount of money to another partyto make goods for a loss, damage, injury tosomething of value Insurance, in law and economics,

is a form of risk management primarily used tohedge against the risk of a contingent loss.Insurance is defined as the equitable transfer ofthe risk of a potential loss, from one entity to

another, in exchange for a premium. Insurance rateis a factor used to determine the amount, calledthe premium, to be charged for a certain amount ofinsurance coverage Risk management, the practiceof appraising and controlling risk, has evolved as adiscrete field of study and practice


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evolution India 1818 - Oriental Life Insurance Company 1st InsuranceCompany. 1870 - Bombay Mutual Life Assurance Society 1st LifeInsurance Company. 1912 - The Indian Life Assurance Companies Act enacted the1st Law to Regulate the Life Insurance Business.

1928 - The Indian Insurance Companies Act enacted to enablethe government to collect statistical information about bothlife & non-life insurance businesses. 1938: Earlier legislation consolidated & amended the InsuranceAct with the objective of protecting the interests of the

insuring public. 1956: 245 Indian & foreign insurers & provident societies aretaken over by the central government & nationalized.LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 crore from theGovernment of India. The first General Insurance Companyestablished in the year 1850 in Calcutta by the British.


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The US$ 41-billion Indian life insurance industry is considered thefifth largest life insurance market, and growing at a rapid pace of 32-34 per cent annually, according to the Life Insurance Council. Sincethe opening up of the insurance sector in India, the industry hasreceived FDI to the tune of US$ 525.6 million. The government islikely to reintroduce the Insurance Bill which proposes to increase theFDI cap in private sector insurance companies from 26 per cent to 49per cent.

Indian Insurance Sector


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Milestones of Indian Business

1912:The Indian Life Assurance Companies Act cameinto force for regulating the life insurance business.1928:The Indian Insurance Companies Act wasenacted for enabling the Government to collectstatistical information on both life and non- life

insurance business1938:The earlier legislation consolidated the InsuranceAct with aim of safeguarding interests of insuringpublic.

The history of General Insurance of India can betraced by to Triton Insurance Company ltd. which wasformed in the year 1850 in Kolkata by British


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Providing protection The elementary purpose ofinsurance is to allow security against future risk,accidents and uncertainty. Insurance cannot arrest therisk from taking place, but can for sure allow for thelosses arising with the risk.

Collective risk bearing Insurance is an instrument toshare the financial loss. It is a medium through whichfew losses are divided among larger number of people.All the insured add the premiums towards a fund andout of which the persons facing a specific risk is paid.

Evaluating risk Insurance fixes the likely volume ofrisk by assessing diverse factors that give rise to risk.Risk is the basis for ascertaining the premium rate aswell. Provide

CertaintyInsurance is a device, which assists inchanging uncertainty to certainty.

Primary Functions


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SecondaryFunctionsPreventing losses Insurance warns individuals and businessmento embrace appropriate device to prevent unfortunateaftermaths of risk by observing safety instructions;

installation of automatic sparkler etc.Covering larger risks with small capital Insurance assuages thebusinessmen from security investments. This is done bypaying small amount of premium against larger risks anddubiety.Helps in the development of larger industries Insurance provides anopportunity to develop to those larger industries which havemore risks in their setting up


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Spread Life Insurance widely and in particular tothe rural areas and to the socially andeconomically backward classes with a view toreaching all insurable persons in the country and

providing them adequate financial cover againstdeath at a reasonable cost. Maximize mobilization of people's savings bymaking insurance-linked savings adequately

attractive. Conduct business with utmost economy and withthe full realization that the moneys belong to thepolicyholders. Act as trustees of the insured

Objectives of LIC


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THE GLOBAL

PLAYERS in Lifeinsurance


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Aviva Life Insurance Bajaj Allianz Life Insurance Birla Sun Life Insurance HDFC Standard Life Insurance ING Vysya Life Insurance Life Insurance Corporation Max New York Life Insurance MetLife Insurance Om Kotak Mahindra Life Insurance Reliance Life Insurance Sahara India Life Insurance SBI Life Insurance Tata AIG Life Insurance

Insurance Companies I


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We live in the information age. People are becoming more aware of the importance ofinsurance in their life. Today, natural disasters on a large scale occur regularly and even terrorism isincreasing day by day. Specialized software is used in actuarial science to accurately

predict life expectancy and mortality. But natural disasters are difficult to predict. Even today after 50 years, the core value of social commitment has not changed.What have changed in recent times are customers expectations and the environmentin which the life insurance sector operates.

WHY INSURANCE IN INDIA?


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Investment by LICs :-

Official figures have confirmed

that life insurance companies fromacross the country have managed toinject into equity markets about50% of the total amount invested by

foreign institutional investors (FII)over the first nine months of theongoing financial year.


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The potential of the Indianinsurance industry is huge. It has an annualgrowth rate of 15-20% & the largest

number of life insurance policies in force. Total value ofthe Indian insurance market (2004-05) is

at Rs. 450 billion (US$10 billion). Insurance & Banking Services contribution to the

country's gross domestic product (GDP) is 7% The funds available with the state-owned Life

Insurance Corporation (LIC) for investments are 8% ofGDP.


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Documents

About Indian Insurance