A Complete Picture of Insurance Industry Analysis
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A complete picture of insurance industry analysis
Successful companies in todays global insurance industry need a greater technicalunderstanding and capability than ever before. At the same time, the pace of corporatedevelopments has never been quicker. Insuranceday.com provides a single source ofinformation for all your needs: news, interpretation, statistical details, legal reporting, lossestimates, regulatory & accounting initiatives, people moves, and mergers & acquisitions.
Insurance Day provides insurance professionals with a completepicture of the most recent trends and developments in the global insurance industry. The editorialstaff is very knowledgeable and we turn to Insurance Day as a daily source of high-quality andrelevant information and news.
Milan Simic, Managing Director, AIR Worldwide Ltd, UK
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Brief history of insurance sector
The insurance sector in India has completed all the facets of competition from being an opencompetitive market to being nationalized and then getting back to the form of a liberalizedmarket once again. The history of the insurance sector in India reveals that it has witnessedcomplete dynamism for the past two centuries approximately.
With the establishment of the Oriental Life Insurance Company in Kolkata, the business of
Indian life insurance started in the year 1818.
Important milestones in the Indian life insurance business
y 1912: The Indian Life Assurance Companies Act came into force for regulating the lifeinsurance business.
y 1928: The Indian Insurance Companies Act was enacted for enabling the government tocollect statistical information on both life and non-life insurance businesses.
y 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguardingthe interests of the insuring public.
y 1956: 245 Indian and foreign insurers and provident societies were taken over by thecentral government and they got nationalized. LIC was formed by an Act of Parliament,viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from theGovernment of India.
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The history of general insurance business in India can be traced back to Triton InsuranceCompany Ltd. (the first general insurance company) which was formed in the year 1850 inKolkata by the British.
Important milestones in the Indian general insurance business
y 1907: The Indian Mercantile Insurance Ltd. was set up which was the first company of itstype to transact all general insurance business.
y 1957: General Insurance Council, an arm of the Insurance Association of India, framed acode of conduct for guaranteeing fair conduct and sound business patterns.
y 1968: The Insurance Act improved for regulating investments and set minimal solvencylevels and the Tariff Advisory Committee was set up.
y 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized thegeneral insurance business in India. It was with effect from 1st January 1973.
107 insurers integrated and grouped into four companies viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and theUnited India Insurance Company Ltd. GIC was incorporated as a company.
Insurance companies in India
IRDA has till now provided registration to 12 private life insurance companies and 9 generalinsurance companies. If the existing public sector insurance companies are considered then thereare presently 13 insurance companies in the life side and 13 companies functioning in generalinsurance business. General Insurance Corporation has been sanctioned as the "Indian reinsurer"for underwriting only reinsurance business.
List of Insurance companies in India
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited 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
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Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.comDabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com
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How to Choose an Insurance Policy
Choosing the right insurance policy for family and for oneself has become crucial in the times ofturbulent financial markets and various other unexpected events. It not only determines the
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concern that we get when our physical wellbeing takes a wrong turn, but is also very helpful fordesigning a well-structured fiscal plan.
An insurance cover offers many advantages ranging from monetary assistance at the time ofunanticipated demise of a major income earner of the family to offering sound monetary futureto the family.
Tips for Choosing an Insurance Policy
y While selecting the right insurance cover, one should always consider her/his presentearnings and the estimated competence to forfeit the insurance premiums at the allotteddates besides the age factor, future fiscal strategies, medical condition, etc.
y Other factors which needs to be taken into consideration while selecting the rightinsurance policy are the policy's cost-benefit ratio and guaranteeing that the insurance
envelops all your family members along with the common health issues.The cost benefitratio of the insurance policy relies on many factors such as what is insured and what arethe benefits that come along with it.
y Hence while purchasing the policy one needs to keep a strict vigilance on the price of thepolicy and guaranteeing that the policy rationalizes the benefits included under it.
y Besides keeping a close eye on the advantages, the policyholder should also ensure thatthe promises made by various insurance firms are adhered by.
The different types of covers that people generally prefer are:
Pure Term Insurance: Pure Term Life Insurance offers insurance cover for life for certain
period of time. However, the cover offers no maturity advantages but on the demise of theassured, the total amount insured is completely forfeited to the next of the kin.
Endowment Policy: A life insurance agreement structured to forfeit the total amount after acertain maturity period or on the event of the assured demise is known as an endowment policy.The policy offers fiscal safety for a specified tenure. The purchaser forfeits sporadic premiumsfor a specific tenure and continues to stay protected for that particular tenure. If the policyholderstays alive till the conclusion of the tenure, he is entitled to receive the fund balance.
Unit Linked Insurance Plan (ULIP): ULIP offers life cover in which the policy cost differsfrom time to time depending on the price of the principal assets at the given point of time.
Money-back Policy: Money-back Policy is the alteration of endowment plan. The basicdifference lies in the maturity advantages that are forfeited by the bank at the end of endowmenttenures. Money back policies offer cyclic imbursements of partly continued existence benefitsduring the tenure of the cover.
Retirement Policy: A modification of endowment plan, the only disparity lies in the format of thepolicy both in terms of tax benefits and desired age of the applicant.
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When to buy an Insurance Policy
To choose an insurance policy directly depends on the applicant's age, profile of dependants,
family expenditure, current earnings and tax benefits. Here are few suggestions on when to buy
the right insurance plan:
Pure term Insurance: It is better to purchase the pure term insurance as early as possible, if you
have long-standing responsibilities like automobile loan or home loan. Buying this policy will
guarantee utmost financial protection to applicant's family after his demise, sans any extra
investments.
Retirement Policy: The right time to buy this policy is when the prospective applicant reaches
his early thirties. This plan forfeits the lump sum amount at the time of the retirement which youhave invested as yearly premiums.
Whole Life Plan: Purchase this policy if you desire to accrue finance for your family members
and provide monetary support in case of any unexpected event.
Endowment Plan: Buy the policy for your son or daughter when they have reached maximum
age of five in order to accumulate funds for a particular reason such as your infant's education or
your daughter's wedding.
Money-back Policy: If you desire to be given intermittent monetary payments to correspond
with different period of your life such as kid's primary education or for higher studies,
purchasing the Money-back Policy would be the right decision on your part.
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Insurance Policies for Small Business
Insurance Policies for Small Business playanactiverole incoveringthesuccess or failure ofa business
ventureundertaken onasmall scale. Small business insurance planshavegained importance inthe last
fewyearstriggered byan increase incutthroatcompetitionamong big organizationsandtheneed for
survival ofsmall businesses.
A small businesscan bedefinedasa venture or firm which functions ona low level of productionand
constitutes lessernumber ofshareholdersascomparedto its large businesscounterparts. Thus,these
small venturesare incapable ofattainingtheadvantages ofthemarketscaleandaretherefore
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safeguarded bytheirrespectivegovernments. A consistentcapital flow, frequentdevelopmentand
invention ofadvancedtechnologycanhelp inexpandingthe venture inasmartway besides
guaranteeingtheirmarket presence.
Small business insurance plansare vital instrumentswhich providemonetarysecurityto the ownerand
itsstakeholders buttheretirement planunderthis policyalso helps in providing long-ternretirement
benefitsto itsemployeesaswell.Insurance Policies for Small Business,hence,coverall unanticipated
mishaps,excluding few,whichcan beavailedatreasonably pricedrate of premium.
Insurance Coverage for Small Business :
y Business propertyy Travel undertaken for business purposey Debty Loanundertaken for business purposey
Expenditures incurredduring business operationsy Eemployee'scompensationy Surplusdebtsy Lifey Recruitment practicesdebt
Health insurance plans for Small Business
One ofthe vital aspects ofsmall business insurance plansarethehealth insuranceschemes forsmall
ventures provided bythe insurance firms forassistingahealthyworkforce inthe firm andsafeguarding
longterm medical expendituresmet bysmall businessduring its operations.Inanattemptto keep the
long-term medical expensesat bayand its impact ontherecruitment,health insurance plansunder
Small Business insurance policiescomeswith following benefits-
y Improved productivity oftheworkersy Advancedadministration ofhealthcareexpendituresy Reduction in levels of illnessesand injuries leadingto decrease inabsenteeism bytheworkers
Companies offering Insurance Policies for Small Business in
India
Small BusinessInsurance Policies inIndia isnotas popularas it is inthe USA,withmany banksand
financial firmsjoininghandsto move forward inthatdirection.Inthe past fewyears US Small Business
Administration (SBA) tookthe initiative ofentering into ajoint venturewithIndia'sMinistry of Small
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ScaleIndustry, inanattemptto boostthenation's inter-agencyallianceand locate prospects for
strategic partnerships betweenthe SBA andIndia'ssmall andmedium enterprises (SME). The pacthas
assistedIndiato expand its fiscal activities besidescreationemployment in boththenations.
y US Small Business Administration (SBA)The US Small Business Administration (SBA) provides itscustomersa Small Business
Administration Categoriesespecially for individualswho are prospective businessmen. The plan
incorporatesacatalogue for illustrating business initiatives,choosingtheappropriate legal
formatandassessing franchisee prospects. Thecategories for businessmen inthe firstyear of
their ventureandearly level categories forthose between1-5years of businessesarealso
offered bythe plan.Italso provides loans forsmall business byworkingasan insurer forsmall
businesses borrowing from conventional granter.
y Wells FargoAnother American firm whichhas itssub-division inIndiaand isa prominentsmall business
lender isWells Fargo. The financial firm provides banking,assuranceand investment
acknowledgement facilitiesto small ventures.
y Tata AIG General Insurance CompanyAmongtheIndiancompanies Tata AIGGeneral Insurance CompanyLimited providessmall
businessdisclosuresalongwithalternate insurance inthe form of Multiline Package Policy.It is
a pre-endorsed packagedscheme incorporatingassets, offense,casualty,employee income,
unanticipatedeventsandmedical,marineandmonetary products.Italso providestheservice of
acomputerized policyandconstitutes basicunderwriting policiesataffordablerate of
premiums.
Insurance policies for business
Business insurance protectsyouandyour business forclaims ofcoveragedueto negligentactivities or
failureto use optimum care. Howeveryoushouldgo in forthetype of business insurancewhichsuits
your businessthemost.Every businessrequiressomekind of investmentwhether big orsmall hence it
becomesabsolutelynecessaryto providesomekind ofa financial securityto your business. Burglaries
and fire brakoutsare verycommonthesedaysmaking business insuranceevenmore importantso that
even iftheworsthappenstomorrowyouknowyoustill havehope.
Types of Insurance policies for business
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CorporateInsurance: Bajaj Alliance's CorporateInsurance policy Office package protectsyouandyour
business from anyunfortunatehappeningthatmight occur inthecourse of business.. This policycovers
commercial propertyandcontentsagainst fireandallied perilsand burglary,covers breakdown of office
equipments likedesktopsand laptops,cash forhospitalization incasethe insured ishospitalizedand
also dailyallowanceto the familymembers ofthe insured. This policy istailormadejustrightto suitthe
needs ofa businessmanalso coveringhishospital expenses incase ofanaccident orailment.
CorporateInsurance's Corporate Cover: This policy is formulated for businessmen byICICILombard. This
policycoversthecorporate propertyagainst fire, lightning,storm,riots,cyclone,andterrorism. This
Corporate Policyalso coversanyequipments like laptopsandmobile phones ifdamage inthe office
premises,any loss ofcash intransit,any financial lossessuffereddueto fraudulentmeans, legal
liabilities fortheemployees ofthecompanyandalso covers forambulancechargers incase ofany
personal accidents.
Shopkeepers Policy
Shopkeepers policy by New India Assurance Company Ltd
Shopkeepers policy by NewIndia Assurance CompanyLtd isa package policyspeciallydesigned for
shopkeepers. This policycomprises of 11 sectionswhichareas follows: SectionI- Building & Contents:
coverstheshop buildingunderany lossescaused by fire orallied perils, SectionII- Burglary &
Housebreaking,coversthecontents ofthe insuredshop againstrobberies, SectionIII-MoneyInsurance,
covers loss of money intransit,whilstcontained ina lockersafeandmoneycontainedwithcashier,
SectionIV- Pedal - Cycle,covers loss ordamagecausedto pedal cycle ofthe insured, SectionV- Plate
Glass,covers loss occurredto glass plates inthe insuredshop dueto accidental means, SectionVI- Neon
Sign/Glow Sign,covers loss ordamagecausedto neonglowsigns, SectionVII- Baggage,covers loss of
baggage ofthe insuredwhiletravellinganywhere inIndia, SectionVIII- Personal Accident,coversthe
insuredandhischildrenmentioned inthescheduleandaged between5- 70 againstanaccident or
injuries, SectionIX- FidelityGuarantee,coversthe loss occurreddueto any fraud ordishonesty
committed byanemployee, SectionX- PublicLiability,covers legal liability incase ofdeath or injuriesto
athird partyand Compensationto insured'semployeesunderWorkmen's Compensation Act or
CommonLaw. SectionXI-Loss of Profit, Covers loss of profitdueto interruption of businessconsequent
upon loss ordamagesustained by property insuredunder SectionI ofthe policydueto insured perils.
United India Assurance Company Ltd's Shopkeepers Policy
UnitedIndia Assurance CompanyLtd's Shopkeepers Policycovers protectionagainst loss/damageto the
buildingand itscontentswhichareMoney intransit, Pedal Cycles, PlateGlass,Neon Sign & Glowsign,
Baggagewhile ontravel and Accidental injurycausingdeath/disability.
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Top Life Insurance Policies
Life insurance iswhatthat protectsyour family inyourabsence.Life insurance policies provideacertain
amount of moneyto your family incasesomethinghappensto you. Thesecomeasagreat financialreliefduringthehour ofneeds. Thereareanumber of insurancecompanies inIndiathat offer life
insurance policiesto itscustomers. Thetop insurance policies inIndiaalso actas flexiblemoney-saving
scheme.
Thereareanumber of life insurance policiesavailable inIndia.Different policiescomewithdifferent
features. Thecoverageamountand policyterm also vary. Thereareseveral popular insurance
companiesthat offertop life insurance policies inIndia. Beforegoing forany life insurance policies,
compare various policies offered bythetop insurancecompanies.
List ofTop Insurance Polices
Thereareanumber of insurance policesavailable inIndia offered bythecompanies likeLIC, SBILife,
RelianceLife,Max New York, Bharti AXA, HDFC Standard,Metlifeetc. Some ofthetop insurance policies
inIndiacan be listedas below:
LIC
Product Name AnmolJeevan Regular Premium
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 25years
Minimum Entry Age 18 years
Maximum Entry Age 55years
Maximum Exit Age 65years
Premium FrequencyOptions Yearly/ Half-yearly
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Tata AIG-Raksha
Product Name Raksha
Coverage Amount Rs. 10,00,000
Minimum Policy Term 10 years
Maximum Policy Term 25years
Minimum Entry Age 18 years
Maximum Entry Age 50 years
Maximum Exit Age 59years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly/Monthly
SBILife- SBI Shield Annual Premium
Product Name SBI Shield - Annual Premium
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 25years
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Exit Age 60 years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly
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RelianceLife-Relaince Term Plan
Product Name Reliance Term Plan
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 30 years
Minimum Entry Age 21 years
Maximum Entry Age 60 years
Maximum Exit Age 65years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly
Max New York-Level Term Policy
Product Name Level Term Policy
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 42 years
Minimum Entry Age 18 years
Maximum Entry Age 55years
Maximum Exit Age 60 years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly/Monthly/ Single
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Bharti AXA - Secure Confident
Product Name Secure Confident
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 25years
Minimum Entry Age 18 years
Maximum Entry Age 55years
Maximum Exit Age 60 years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly/Monthly
HDFC Standard- Term AssuranceRegular Premium
Product Name Term Assurance Regular Premium
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 30 years
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Exit Age 65years
Premium FrequencyOptions Annual / Half Yearly/ Quarterly
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Metlife- SurakshaRegular Premium
Product Name Suraksha Regular Premium
Coverage Amount Rs. 10,00,000
Minimum Policy Term 5years
Maximum Policy Term 42 years
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Exit Age 65years
Premium FrequencyOptions Annual / Half-yearly/ Quarterly/Monthly
Here are some of the new insurance policies introduced by various companies in 2010 :
Cheapest Health Insurance Plan: Established in 1919 by Sir Dorab Tata New India Assuranceis the first fully Indian owned insurance company in India. Cheapest Health Insurance Plan isNew India Assurance's latest insurance policy of all times. The yearly premium could be as lowas Rs 1000 for a minimum assured sum of Rs 1, 00,000 for a person who is not more than 35years of age. A deliberate attempt is made to keep the price of the policy low by restricting thechoice of hospitals and covering certain major critical illnesses.
Medicash Plan, Wellness plan and Safety net plan: Max NewYork Life Insurance is one ofIndia's leading insurance companies. It has come up with certain new health insurance schemesto meet the needs and requirements of the people. Max New York Life Insurance offers
Medicash Plans, Wellness Plan and Safety Net Plan. The Medicash Plan involves payment of afixed sum of cash to the insured right from the time of hospitalization till one is released. Thewellness plan provide coverage to 38 critical illnesses like deafness, cancer and liver disease andthe Safety net plan is a health protection plan which provides coverage for the losses incurred bythe insured like accident, critical illness or death.
The Easy Health Plan: Apollo DKV Insurance Company Ltd has come up with an excellenthealth plan called Easy Health plan that is cost effective and has special variants for all the
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sections of society. This plan can be bought according to your pocket because it comes in threevariants Standard Exclusive and Premium. The cover ranges from Rs 1,00,000 to Rs 10,00,000according to the variant to select. The icing on the cake is that you pay just Rs 3 per day and getan annual insurance cover of Rs 1,00,000 under the Standard variant policy and smile your waythrough a healthier life. Easy Health plan could be got as early as the age of 5, and the cover is
valid for a period of one year.
Top Up and Super Top Up Medicare Policy: United India Insurance Company has launchedtwo new medical insurance policies known as Top Up and Super Top Up Policy. The good thingabout this policy is that even if you do not have a medical insurance policy you are eligible forthis policy. These two policies are not merely restricted to United India's customers but also tothose who have taken medical insurance cover with other insurance companies and also to theemployees who are covered under the employee reimbursement scheme. These two policies canadd up to 15 lakhs to the basic insurance cover at the payment of a meager premium the rates ofwhich are still awaited. Hence these two policies begin where other medical insurance policiesstop.
Young Star Super: This policy, introduced by HDFC Standard Life Insurance is a unit basedpolicy and is meant for the future planning of children. The minimum premium required to bepaid for this policy is Rs15, 000. Young Star Super policy holders have a choice in the matter ofthe sum assured it can range from 5-40 times of the premium paid along with 7 fund options. Thepolicy holder can also choose a double or triple benefit which means that in case of a doublebenefit if the insured dies the sum assured would be paid to the nominee while the companydirects 100% of the premium that is to be paid towards the policy. In the case of the latter 50% ofthe premium is paid to the nominee every year to maintain a regular inflow of cash. The policyholder is also entitled to a sum of Rs 12,500 as buffer addition in case of no withdrawals. Thosewho go in for a 10 year term policy will be eligible for 50% of the first years premium atmaturity and 100% of this amount for staying invested for longer term policies.
AegonReligare Pension Plan:AegonReligare life Insurance has introduced a Pension plancalled AegonReligare Pension Plan. The plan provides assistance in the form of a pension topolicy holders to take care of their daily expenses after retirement. In the Pension Plan the policyholders have the option of paying the same premium over the term of the policy or evenincreasing the premium by 5 - 8 % every year according to the rise in their income. This planwas formulated after a research carried out by the company the report of which said that therewere many consumers who were concerned about life after retirement but did not know howlong and how much to save. Hence AegonReligare stepped forward and formulated a policywhich one can fall back on after retirement.
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Insurance in India
From Wikipedia,the freeencyclopedia
Jump to: navigation,search
Insurance is a federal subject in India. The insurance sector has gone through a number ofphases and changes. Since 1999, when the government opened up the insurance sector byallowing private companies to solicit insurance and also allowing foreign direct investment of upto 26%, the insurance sector has been a booming market. However, the largest life-insurancecompany in India is still owned by the government.
Contents
[hide]
y1History
y 2Industrystructureo 2.1Specialisation
y 3Actsy 4Authoritiesy 5Seealsoy 6Referencesy 7External links
[edit]History
Insurance in India has its history dating back until 1818, when Oriental Life Insurance Companywas started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) andIndians with higher premiums being charged for the latter. In 1870, Bombay Mutual LifeAssurance Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded. In the year 1912,the Life Insurance Companies Act and the Provident Fund Act were passed to regulate theinsurance business. The Life Insurance Companies Act, 1912 made it necessary that thepremium-rate tables and periodical valuations of companies should be certified by an actuary.
However, the disparity still existed as discrimination between Indian and foreign companies. Theoldest existing insurance company in India is the National Insurance Company Ltd., which wasfounded in 1906. It is in business. Before that, the industry consisted of only two state insurers:Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General InsuranceCorporation of India, GIC). GIC had four subsidiary companies.
With effect from December 2000, these subsidiaries have been de-linked from the parentcompany and were set up as independent insurance companies: Oriental Insurance Company
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Limited,New India Assurance Company Limited,National Insurance Company Limited andUnited India Insurance Company Limited.
[edit]Industry structure
Currently, a $41 billion industry, India is the world's fifth largest life insurance market andgrowing at a rapid pace of 32-34% annually as perLife Insurance Councilstudies.
Currently, in India only two million people (0.2 % of the total population of 1 billion) arecovered under Mediclaim, whereas in developed nations like USA about 75 % of the totalpopulation are covered under some insurance scheme. With more and more private companies inthe sector, the situation may change soon.
[edit]Specialisation
ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is limited by
legislation but enjoy special powers.
[edit]Acts
The insurance sector went through a full circle of phases from being unregulated to completelyregulated and then currently being partly deregulated. It is governed by a number of acts.
The Insurance Act of 1938[1] was the first legislation governing all forms of insurance to providestrict state control over insurance business.
Life insurance in India was completely nationalized on January 19, 1956, through the LifeInsurance Corporation Act. All 245 insurance companies operating then in the country weremerged into one entity, the Life Insurance Corporation of India.[2]
The General Insurance Business Act of 1972 was enacted to nationalise the about 100 generalinsurance companies then and subsequently merging them into four companies. All thecompanies were amalgamated into National Insurance, New India Assurance, Oriental Insuranceand United India Insurance, which were headquartered in each of the four metropolitan cities.[3]
Until 1999, there were not any private insurance companies in India. The government thenintroduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-
regulating the insurance sector and allowing private companies. Furthermore, foreign investmentwas also allowed and capped at 26% holding in the Indian insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession statutory status onpar with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architectsand Company Secretaries.
[edit]Authorities
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The industry recognises examinations conducted by IAI (for actuaries), III (for agents, brokersand third-party administrators) and IIISLA (for surveyors and loss assessors). TAC is the soledata repository for the non-life industry.
IBAI gives voice for brokers while GI Council and LI Council are platforms for insurers.
AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to theemployees of the insurers.
In addition, there are a dozen Ombudsman offices to address client grievances.
y List of insurancecompanies inIndiaIRDA controls all the Insurance business in India. They are setting structure and boundaries forthe insurance companies to act upon. Starting from licensing to approving the products, IRDAdirects the companies in India. They also protect customer interests in the country.
y InsuranceInstitute ofIndia
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Insurers to face tough pre-IPO norms
Submitted by Keshav Seth on Mon, 09/20/2010 - 08:27.
y Insurance Sectory IPO Watchy TNM
y IRDAWhile the consumer sentiment is getting better by the day and expansion isslated to happen across industries but the Insurance Regulatory DevelopmentAuthority (IRDA) has recently said that it is in the process to introducestringent disclosure norms for firms that plan to list on the stock market.
It is to be mentioned here that IRDA is a regulator for the Insurance industry
and it is expected that the regulator will make it mandatory for an insurancecompany to disclose financial statements of the last five years before it filesfor an initial public offer (IPO).
y Add new comment
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y Read moreULIPs to charge for fund switching
Submitted by Harish Dhawan on Wed, 09/15/2010 - 18:30.
y Insurance Sectory Featuredy TNMy IRDAy India
The new regulations of IRDA have been introduced. It will dealwith the new unit-linked plans.
It has also been informed that some of the life insurance companies
have also stared levying fund for the purpose of the charges inswitching for new issue of ULIPs under their arm. As per the newregulations, the insurance companies of the country have revisedthe charge fees and it will vary from Rs 50-250. This will becharged on every switch made by customers.
y Add new commenty Read more
LIC Hits 1 Cr Policies Mark
Submitted by Harish Dhawan on Sat, 08/28/2010 - 09:16.
y Company Newsy Insurance Sectory Featuredy TNMy LIC
yIndia
For the existing fiscal year (2010-11), Life Insurance Corporation ofIndia (LIC) has surpassed the one crore individual policies mark.
An official declaration said with the First Premium Income worth Rs15,917 crores recorded during the two weeks ended August 14.
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The best performance of the India's biggest life insurer durin the current financial year
The corporation's performance in the current financial year has augmented its market shareduring in first year premium to 71.33% from 64.86% as on March 31.
y Add new commenty Read more
Reliance Life AUM crosses Rs 15,000 cr
Submitted by Harish Dhawan on Wed, 08/25/2010 - 18:10.
y Company Newsy Insurance Sectory Featuredy TNMy Reliance Life Insurancey India
The Reliance life Insurance company owned and run by Anil Ambaniasserts to have overgrown the 15000 crore line in the Assets UnderManagement and also anticipates with great confidence to make ittwofold by the close of this financial year.
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New health plan from AegonReligare
Submitted by Harish Dhawan on Thu, 08/19/2010 - 18:08.
y Company Updatesy Insurance Sectory Featuredy TNMy AegonReligarey India
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AegonReligare Life Insurance (ALRI) has proposed a new planinvolving fixed benefit health insurance. This plan was launched inChennai on Wednesday, and it offers the benefits and advantages ofcoverage of every surgery, payment guaranteed for claims and cashlessfacility in more than 3,000 hospitals.
The guaranteed payment facility that this fixed-benefit plan providesshould have a vital role as it will do away with the surprise element from
claims.
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HDFC Standard Life sees 63% rise in premium collection
Submitted by Harish Dhawan on Tue, 08/17/2010 - 16:56.
y Company Updatesy Insurance Sectory Featuredy TNMy HDFC Standard Life
y IndiaHDFC Standard Life has seen a 63 per cent jump in its revenue throughpremium collection to be at rupees 692.7 crore for the first quarter ofthis fiscal.
One of the leading private life insurance provider, HDFC had seenrevenue from new business to the tune of rupees 424.9 crore and wasable to increase it with the usage of techniques to lower operatingexpenses as well have a steady rise in conservation ration.
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IRDA imposes Rs. 10 lakh fine on SBI Life
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Submitted by Harish Dhawan on Mon, 08/09/2010 - 11:26.
y Insurance Sectory Featuredy TNM
The IRDA or the Insurance Regulatory and Development Authority hasintroduced a fine of Rs. 10 lakh on the leading life insurer SBI Life fordeparting from the main point of the offer document in one of its schemes.
The imposition of this fine has been made under Section 102 of the InsuranceAct, according to the IRDA.
The insurer SBI Life is being obliged to pay an amount of Rs. 10 lakhs withinone month, or 30 days from the day the order has been received.
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LIC plans to invest Rs. 2 lakh crore in FY11
Submitted by Harish Dhawan on Sat, 08/07/2010 - 09:51.
y Insurance Sectory Featuredy TNM
y LICThe state-owned insurance agency, Life Insurance Corporation ofIndia (LIC) is thinking of investing Rs. 2 lakh crore across the assetclasses in Financial Year-11, a rise from the Rs 1,92,000 crore of theprevious fiscal. The premium collection that has been aimed for thefiscal is Rs. 2,01,000crore.
LIC has invested Rs. 39,000 crore in the first quarter of the currentfinancial year, out of which Rs. 10,000 crore was allotted to equities.
LIC has also planned to issue infrastructure bonds worth Rs. 5,000 crore for this fiscal but notimeline has yet been decided.
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LIC Declares Surplus OfRs 23,478 Cr For 2009-10
Submitted by Harish Dhawan on Sat, 08/07/2010 - 06:40.
y Company Newsy Insurance Sectory Featuredy LIC
Life Insurance Corporation (LIC) declared a surplus of Rs 23,478 crorefor the last financial year announcing a record dividend of 1029 crore to
the central administration.
Mr. T. S. Vijayan, LIC Chairman, said that the entire premium for the lastfiscal surged by 18.32% at 1,85,985crore as against 1,57,186 crore.
Mr. Vijayan stated that Life Insurance Corporation (LIC) would investapproximately Rs 2 lakh crore in the local equity and bond markets in the
existing fiscal.
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LIC to invest Rs.2 trillion in markets
Submitted by Keshav Seth on Fri, 08/06/2010 - 14:49.
y Company Updatesy
Insurance Sectory Featuredy TNMy LICy India
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India's biggest life insurance company which is also state-owned hassaid that it will be making a total investment of Rs. 2 trillion into theIndian equity and bond markets.
The announcement was made by the Chairman of LIC, TS Vijayan. He
said that the total investment will be directed by the kind of premiumcollection that it is able to make.
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BSLI posts its maiden profit in June quarter
Submitted by Harish Dhawan on Wed, 08/04/2010 - 15:14.
y Company Resultsy Insurance Sectory Featuredy TNMy Birla Sun Lifey India
New generation life insurer Birla Sun Life Insurance (BSLI) has
announced its first quarter financial results for the fiscal year 2010-11.Birla Sun Life Insurance is the joint venture between the Indian Inc.Aditya Birla Group and Sun Life Financial Inc. of Canada.
According to the insurance firm, it has registered its maiden profit in theJune quarter of the current fiscal. Birla Sun Life Insurance (BSLI) hasposted a net profit of Rs 9 crore for the quarter that ended in 30th June,2010 and this has been its first ever net profit show since its inception.
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Aetna raises its 2010 profit forecast
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Submitted by Harish Dhawan on Wed, 07/28/2010 - 20:50.
y Company Resultsy Insurance Sectory Featuredy
TNMy Aetnay United States
US's third largest insurance company, Aetna Inc has increased itprofit forecasts for the year 2010. This is the second time that theinsurer changed its forecasts following a season where the costs werereduced because of the milder-than-expected flu season and improvedcoordination between the doctors.
These factors in a combined effect reduced the total healthcare costs.
The Connecticut-based company also said that its operating earningsare expected to reach between $3-3.05 per share. This is higher than the $2.75-2.85 per shareprediction that was made in April.
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IRDA drafting new norms
Submitted by Harish Dhawan on Tue, 07/20/2010 - 19:16.
y Insurance Sectory Featuredy TNMy IRDA
y IndiaInsurance Regulatory and Development Authority now wishes anabsolute repair of the regulation overriding the insurance agents. As ofnow the insurance watchdogs seems to urge for a modification in rulesin order that the insurance is vended as long-term products.
Insurance agents shall now be bordered by fresh rules which are placedby the insurance regulator IRDA. However the thought behind the set of
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laws is to motivate the investors to remain invested for the long-term.
The rules are targeted at curtailing the yield rate and the number of policies that may slip.
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American International Group Inc. accepts to $725m
Submitted by Amanda Lysak on Mon, 07/19/2010 - 09:01.
y Company Updatesy Insurance Sectory Featuredy TNMy AIG
Records have shown that U. S.-based American International GroupInc. has reached a $725 million settlement in a securities lawsuitalleging insurance bid-rigging.
The Wall Street Journal has reported that AIG must pay $175 millionwithin 10 days of winning preliminary approval of a federal judge in
New York and $550 million later.
The long-running civil lawsuit, filed by a group of Ohio pension funds, accused the insurer oftrying to inflate its stock price and of accounting fraud that artificially boosted its insurancereserves.
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AIG to pay 725 million dollars for fraud payout
Submitted by Harish Dhawan on Mon, 07/19/2010 - 07:09.
y Company Updates
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y Insurance Sectory Featuredy TNMy AIG
The US-based insurance firm AIG is going to pay 725 million dollarsto end the fraud case running against the firm for a long time. Thiswill be one of the biggest settlements in the history of US.
The allegations against AIG include its involvement in manipulationof stock price, fraud with the accounting and anti competitive behavior in the time period of1999 to 2005. Because of these frauds the investors lost their millions of funds.
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HDFC Standard Life to inject Rs.350 crore in business
Submitted by Harish Dhawan on Wed, 07/14/2010 - 20:59.
y Insurance Sectory Featuredy TNMy HDFC Standard Life
y IndiaOn Wednesday, the promoters of HDFC Standard Life- HDFC andStandard Life of UK said that they are going to invest in between Rs.300-350 crore into the business during the current financial year.
Said, VibhaPadalkar, Chief Financial Officer, HDFC Standard Life, "Wewill need more capital to fund new business growth. We have alsoincreased back-ended charge products in our portfolio."
The life insurance player was formed by the JV between the abovementioned parties and is now the fifth largest insurance player in the private sector side.
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y Read moreMedical claim policies to stop cashless service
Submitted by Harish Dhawan on Sat, 07/10/2010 - 20:31.
y Insurance Sectory Featuredy TNMy Healthy India
One of the main reasons because of which people used to go formedical insurance is going to end very soon. The medical claimpolicies that promised to give cashless facilities are going to end itnow.
These facilities, in particular, are not going to cover hospitals likeApollo, Fortis, Ganga Ram, Max or Medicity in Delhi, NCR and inmetros like Mumbai, Bangalore and Chennai.
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Reliance Life Insurance Surpasses 6 Mln Policy Mark In
Less Than 5 Years
Submitted by Harish Dhawan on Sat, 07/10/2010 - 06:28.
y Company Updatesy Insurance Sectory Reliance
y FeaturedReliance Life Insurance, a part of Anil DhirubhaiAmbani Group,announced that it has surpassed the six million policy mark in less than 5years.
The company, which is a part of Reliance Capital, hopes to attain anoverall premium of Rs 20,000 crore by the next two years.
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INGLife To Invest Rs 240 Crore On Expansion In 2010-11
Submitted by Harish Dhawan on Sat, 07/03/2010 - 09:04.
y Company Updatesy Insurance Sectory Featuredy INGy India
The Netherlands-based financial behemoth ING Life India declared thatit has decided to make an investment of Rs 240 crore on its growth duringthe existing fiscal year.
ING Insurance chief operation officer Tom McInerney stated, "Theadditional capital will be utilised to expand our distribution network,improve productivity and efficiencies."
With the newest infusion, the cumulative or total capital invested sinceING Vysya Life Insurance Company Ltd started functioning in the Indian market in the year
2001 will be Rs 1,467 crore.
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Resolution buys UK business of AXA for 2.75 billion
Submitted by Harish Dhawan on Fri, 06/25/2010 - 11:02.
y Company Updatesy Insurance Sectory Featuredy TNMy AXA
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y United KingdomResolution Ltd, an insurance buyout vehicle in UK, announced that ithas agreed to acquire some of French insurer AXA SA's U. K. lifeoperations for around 2.75 billion. Resolution said that it took this
move as a logical next step in its strategy to double its market share inthe U. K. life and pensions market.