...Insurance is not the sale of products, but servicing customers. It is a system, by which the losses suffered by a few are spread over many, Exposed to similar risks. Insurance is a protection against financial loss arising: on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. The very fundamental principle of spreading of the risk is actually practiced by the insurance companies by reinsuring the risks that they have insured. The opening up of the Insurance Sector to Private Companies, has made available more products and world class service to Indian Customer. This project has been made with an objective to give an insight into various facts of General Insurance sector in India. An attempt has been made to explain the apex body of General Insurance. i.e. General Insurance Corporation of India, its structure, products and subsidiaries. Also the review of latest entrants into insurance sector via private players like TATA AIG General Insurance Company, Reliance General Insurance Company limited, Bajaj Allianz General Insurance Company, IFFCO Tokio General Insurance Company, Royal Sundaram General Insurance Company limited and ICICI Lombard General Insurance Company have been described in brief, Due to the growth in the technological sector of the country, the insurance companies...
Words: 319 - Pages: 2
...Q1) How is the insurance market in India changing? Why is india an attractive market for investment Before 2000 the Life Insurance Corporation (LIC) had monopoly in India. The next big company was General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. The insurance sector went through a lot of phases from being unregulated to completely regulate and then currently being partly deregulated. It is governed by a number of acts. The Insurance Act of 1938 was the first legislation, and then was the General Insurance Business Act of 1972. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited. Indian insurance industry has witnessed an interesting decade when it was open to foreign players for the first time (with a cap of 26%). Prudential, Allianz, Standard Life, New York, AIG and SunLife were some of the earliest entrants, followed by New York Life, Metlife, Aviva, AXA, etc.By 2012 Indian Insurance is a US$41 billion industry. However, only two million people (0.2% of the total population of 1 billion) are covered under Mediclaim...
Words: 669 - Pages: 3
...Insurance System in India - An Overview History of Insurance Sector - The oldest existing insurance company in India is the National Insurance Company , which was founded in 1906, and is still in business. The largest life-insurance company in India, Life Insurance Corporation of India is still owned by the government and carries a sovereign guarantee for all insurance policies issued by it. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Government of India issued an Ordinance on 19 January 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on 1 January 1973. Insurance Repository On 16th September 2013, IRDA launched 'Insurance Repository' services in India. It is a unique concept and first to be introduced in India. This system enables policy holders to buy and keep insurance policies in dematerialized or electronic form. Policy holders can hold all his insurance policies in an electronic format in a single account called electronic insurance account (eIA). Insurance Regulatory and Development Authority has issued licenses to five entities to act as Insurance Repository: NSDL Database Management Limited, Central Insurance Repository Limited ( CIRL ), SHCIL Projects Limited, Karvy Insurance repository Limited...
Words: 641 - Pages: 3
...------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA * INTRODUCTION * NATURE AND CHARACTER OF INSURANCE * NEED FOR INSURANCE * FUNCTIONS OF INSURANCE * HISTORICAL BACKGROUND OF INSURANCE * TYPES OF INSURANCE * HISTORY OF INSURANCE IN INDIA * Formation of Insurance Industry in India * Nationalization of Insurance Business in India * Privatization of Insurance Industry * LEGISLATIONS REGULATING THE INSURANCE SECTOR IN INDIA ------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA INTRODUCTION Insurance is a practice by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment. Insurance is a social device, to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risks, which can be insured against include fire, the peril of sea, death, incident, & burglary. The aim of insurance is to protect the owner from a variety of risks which he anticipates. Insurance is actually a contract between two parties. A contract of insurance is a contract where one person undertakes to pay another person, a sum of money or its equivalent on the happening of a specified event. And there is an agreed consideration for such undertaking. The person who seeks this protection...
Words: 5317 - Pages: 22
...INTRODUCTION INSURANCE SECTOR IN INDIA 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 per cent annually. Together with banking services, it adds about 7 per cent to the country's GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation "Malhotra Committee" was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the...
Words: 1784 - Pages: 8
...Privatisation On Life Insurance Corporation Of India Economics Essay With the advent of new players in the field of Life insurance sector, the degree of competition has increased multifold. The private insurance companies are launching new innovative insurance plans for their survival and growth. At the same time, Life Insurance Corporation of India has upgraded their quality of service to retain, maintain and attract new business. An attempt has been made to study the impact of privatization on LIC. The Development Officers were contacted to know their observations about the impact of privatization on their life insurance business and their views as how their life insurance business has been influenced by the opening of the sector. LIC has made a lot of changes in its operation and latest technology is being used to serve the customer. The customer grievances are properly attended and all maturity claims are settled to the entire satisfaction of the policyholders. The privatization of the sector has brought lot of opportunities for all the players. Under such situation, fittest of the fit will survive and the rest will vanish over a period of time. In the year 2000, when the insurance sector was privatized, many companies entered into the insurance sector and as a result competition has increased multifold. Initially, most of the private life insurance companies spent huge amount of money on advertisement. The purpose of the advertisement was to inform the public about their...
Words: 314 - Pages: 2
...Vol.2 Issue 7, July 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT OF INDIA MONALISA GHOSAL* ABSTRACT The economic development of India was dominated by socialist –influenced policies, stateowner sector, and red tape and extensive regulations, collectively known as ‘License Raj’. The Indian economic development got a boost through its Economic reforms in 1991 and again through its renewal in the 2000. Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. Insurance contribution materially to economic growth by improving the investment climate and promoting a more efficient mix of activities then would be undertaken, in the absence of risk management instrument. Insurance sector in India is one of the most booming sectors of the economy and is growing at the rate of 15-20 percent per annum. In India, insurance is a flourishing industry, with several national and international players competing with each others and growing at rapid rates. Indian insurance companies offer a comprehensive range of insurance plans, a range that is growing as the economy matures and the wealth of the middle classes increases. Due to the growing demand for insurance, more and more companies are now emerging in the Indian insurance sector. The economy of India is the eleventh largest in the world by nominal GDP and the forth largest by Purchasing Power Parity...
Words: 3208 - Pages: 13
...com/blogs Insurance Digest for LIC AAO 2016 Exam Dear readers, This Insurance Digest is complete Information of important terms and plan & Policies and history. The Insurance Digest is important and relevant for all Insurance exams like - LIC AAO 2016 Exam, NICL, NIACL, Insurance and other Insurance Exams. What is Insurance? - Insurance is defined as a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party called insured a fixed amount of money after happening of a certain event. According to the Indian Contract Act 1872, “A Contract may be defined as an agreement between two or more parties to do or to abstain from doing an act, with an intention to create a legally binding relationship.” Benefits of Insurance – It safeguards your money. It ensures growth of money. Life insurance policies are broadly categorized into 2 types – Traditional Plans and Unit Linked Insurance Plans (ULIPs). History-of-Life-Insurance-Corporation (LIC) - Life Insurance Corporation (India) (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation. The Life Insurance Companies...
Words: 3163 - Pages: 13
...SUMMER INTERNSHIP PROGRAM-2012 A Report On Brand Equity of IDBI Federal Life Insurance Co Ltd. Submitted by: Chetan Paranjpe 11BSPHH010239 Project Report On Brand Equity of IDBI Federal Life Insurance Co Ltd SUBMITTED TO Faculty Guide: Company Guide: Prof. G Radha Krishna Mrs. Shanthi Yagyanath IBS Hyderabad Assistant Branch Head IDBI Federal AUTHORIZATION This project has been prepared under the guidance of Mrs. Shanthi Yagyanath, Assistant Branch Head, IDBI federal Life Insurance and Dr. Radha Krishna, Faculty Guide, IBS Hyderabad. This Report is been submitted as a partial fulfillment of MBA program of IBS Hyderabad ACKNOWLEDGEMENT I would like to take an opportunity to thanks all those who have made working on this project feasible for me. I would like to thank IDBI federal for providing me with the opportunity to work for them and giving me the taste of my first corporate and professional world. It gave me an opportunity to understand real life situation and implement those things which I had earlier come across only in textbooks as a part of my course. I would like to extend my sincere gratitude to Mrs. Shanthi Yagyanath for allowing me to work...
Words: 4695 - Pages: 19
...“The effects of FDI on the Indian Insurance Industry” Abstract Chapter-1 1.1 Introduction In the world of increased competition and rapid technological changes, globalization has played a complimentary role over the past years. Globalization has encouraged more and more multinationals to adopt FDI. According to Charles W.L. Hill (1998) “FDI occurs when a firm invests directly in facilities to produce and market a product in a foreign country”. The growth of FDI is more than the growth of world trade and world output so role played by FDI in world economics is very vital. Patterson, N. and Montanjees, M. (2004) say that FDI is the most favoured form of external finance for the reason that it is non-debt creating, non- volatile and the outcome depends upon the projects performance initiated by investors. FDI is advantageous because it facilitates international trade and transfer of technology, knowledge and skills. The purpose of this study is to investigate factors that attract FDI. De Mello (1999) asserts that scope for business in a country, opportunities for expansion, market size etc are some of the factors that attract FDI. Growth rate of a company or an industry leads to magnetism of more and more investment as investors know that their investment is safe enough. According to Dunning, J. (1981) Availability of valuable and unique resources in an industry such as cheap production capacity, cheap skilled labour and advanced technology which are necessary for running...
Words: 1808 - Pages: 8
...RISK MANAGEMENT AND INSURANCE BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE PILANI PROJECT REPORT ON Insurance Regulations in India SUBMITTED TO Dr.UDAYAN CHANDA & Dr.IMLAK SHAIKH I/C RISK MANAGEMENT AND INSURANCE, DEPT OF MANAGEMENT, BITS PILANI. BY Group-I | Aditya Sharma | 2013H149253P | DarvinXeona | 2013H149266P | DibyaRanjanMaharana | 2013H149239P | Ravali Bhogaraju | 2013H149287P | What is insurance? Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party ON happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to similar risks makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. An insurer is a company...
Words: 2748 - Pages: 11
...History of Insurance development in India: Insurance in its modern form first arrived in India through a British company called the Oriental Life Insurance Company in 1818, followed by the Bombay Assurance Company in 1823, and the Madras Equitable Life Insurance Society in 1829. They insured the lives of Europeans living in India. The first company that sold policies to Indians with “fair value” was the Bombay Mutual Life Assurance Society starting in 1871.The first general insurance company, Triton Insurance Company Limited, was established in 1850. For the next hundred years, both life and non-life insurance were confined mostly to the wealthy living in larg metropolitans. Indian Insurance Market: With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players’ significantly enhancing product awareness and promoting consumer education and information. The strong growth potential of the country has also made international players to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance players, according to "Booming Insurance Market in India (2008-2011)”...
Words: 2355 - Pages: 10
...COLLEGE OF COMMERCE & ECONOMICS G. R. KARE ROAD, MARGAO - GOA INSURANCE SECTOR IN INDIA: THE PARADIGM SHIFT Meenakshi Bawa Lecturer, Department of Economics, M.E.S. College of Arts & Commerce, Zuarinagar, Goa The rapidly growing economic scene, the political attitude, cultural patterns, social values and rapid development in the Information Technology sector have brought about a significant transformation in the lifestyles in the urban and rural areas of our economy. These changes have introduced an element of uncertainty in the possible developments in all sectors; at the same time, the insurance sector also cannot remain untouched. In the present era of globalization, insurance companies face a dynamic global business environment. Radical changes are taking place due to the internationalization of activities, the appearance of new risks, new types of covers to match these new risk situations and innovative ideas on customer service. The low growth rates in developed markets, changing customer needs and the highly uncertain economic conditions in the developing world have been exerting pressure on insurers’ resources while testing their ability to survive. The globalization process has opened up new service markets to provide developing nations with opportunities for the expansion of trade and economic growth. Insurance has always been a politically sensitive subject in India. In fact, until 2000, the insurance industry was a government monopoly. But thereafter it has been...
Words: 3631 - Pages: 15
...SUMMER INTERNSHIP PROJECT REPORT ON Business development and market research on Kotak life insurance products and services suitable for different market segmentation. Submitted to: Department of management in the partial fulfillment for the MBA SUBMITTED BY: VICTOR MONDAL REG NO: 1420233 Under the guidance of Dr. Kamal Kishore Assistant Professor Institute of Management Christ University, Bangalore MBA 2014-2016 CERTIFICATE This is to certify that the Summer Internship Project submitted by Mr. Victor Mondal on the title Business development and market research on Kotak life insurance products and services suitable for different market segmentation, Kolkata is a record of project work done by him during the academic year 2015–16 under my guidance and supervision in partial fulfillment of Master of Business Administration. This Summer Internship Project has not been submitted for the award of any degree, diploma, associate ship or fellowship or any other title in this University or any other University. Place: Bangalore (Name & Signature of the Guide) Date: Dr. Kamal Kishore ...
Words: 9430 - Pages: 38
...lock in period of 5 years .later it has to be brought down to 15% within 12 year from that onwards. The NOFHC will be registered as Non - banking finance company with RBI while the bank will be governed by the prudential regulations by RBI. NOFHC and bank shall not have any exposure to the promoter group. The bank shall not invest in the equity /debt capital instrument of any financial entities held by the NOFHC. However RBI put a stricter condition of having 25% of its branches in unbanked rural area. with population upto 9999 . New banks should achieve priority sector lending target of 40%. Foreign share holding in the new bank does not exceed 49% for the first five years after which it can be extended as per policy norms. In India 60% of population is away from banking services, the steps to give more license to private sector banks, will become a mile stone for financial inclusion, financial literacy and Poverty...
Words: 328 - Pages: 2
