What is INSURANCE?

IRDA

• IRDA became a statutory body in April 2000

• The key objective of IRDA

LIC & GICInsurance in India

Life insuranceNon-life insurance / General

insurance

Motor Fire Marine Health OtherTerm life

insurance

Permanent life

insurance

Need for insurance

• Tax relief• Helps in financial planning• Helps during retirement – acts as a pension• Savings instruments• Improves credit rating – considered as a

financial asset• Contribution towards sustaining a standard

of living when one contributing partner dies• Cover against risk

Scope of insurance sector

• Higher disposable income• Introduction of policy portability• Changing demographics• Increase in insurance companies &

intermediaries (agents)• Growth of GDP• Increase in number of middle class• 24 life insurance companies and 26 non-life

insurance companies are in Indian market

Growth of insurance sector

Private sector vs Public sector

• Owned• Objective• Formation• Term savings• Operations

Market share

Major players of private sector

Major players of Public Sector

Contribution to GDP