Presentation on "Insurance Sector" Submitted By Madhavi Kulkarni Guided By Mr.Rajendra Chandorkar

Insurance 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 happening of a certain event. Insurance is a federal subject in India. Life and general insurance in India is still a nascent sector with huge potential for various global players.

History of Insurance Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. The oldest existing insurance company in India is National Insurance Company Ltd, which was founded in 1906 and is doing business even today. Insurance industry, earlier comprised of only two state insurer. Life Insurance Corporation of India (LIC) General Insurance Corporation of India (GIC).

Contd…. In the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private insurance companies to work in the market by depositing 100 crores rupees in the reserve of government and allowing FDI up to 26%. This has encouraged many overseas insurance companies, having a required amount in their reserve, to open their branch in our country.

Why Insurance? To provide security Old age pensions As an investment/ or saving mechanism As a collateral for loans For tax benefits

Functions of Insurance Primary Functions Provide protection Collective bearing of risk Provide Certainty Secondary Functions Provide prevention of losses Small capital to cover larger risk Contributes towards the developments of larger industries Other Functions Means of saving & investments Sources of earning foreign exchange Risk free trade

Why Insurance Sector is privatized? To give individual & corporate consumers a competitive environment that can deliver products & services in tune with their requirements. Industry to benefit from technology transfer & capital from global insurance players. India is a signatory to WTO committed to open insurance & banking.

5 ‘R’s of Insurance Risk Return Riders Rewards Value add Rebate

Insurance is Fortunate Many For Unfortunate few

Life Insurers: Public sector Life Insurance Corporation of India

Life Insurers: Private sector Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd HDFC Standard life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Met Life India Insurance Company Ltd. Max New York Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited

Contd…. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Shriram Life Insurance Co, Ltd. Sahara India Life Insurance Co, Ltd. Bharti AXA Life Insurance Company Ltd. Future Generali Life Insurance Company Ltd.

Contd…. And many more companies are in the Queue! IDBI Fortis Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd AEGON Religare Life Insurance Company Limited. DLF Pramerica Life Insurance Co. Ltd. Star Union Dai-ichi Life Insurance Comp. Ltd. And many more companies are in the Queue!

General Insurers: Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited

General Insurers: Private Sector Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokyo General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd.

Reinsurance Based on the same principle as insurance itself, reinsurance is a mechanism to provide for a further sharing of the risk so as to help insurance companies meet their obligations to policyholders. General Insurance Corporation of India is the Reinsurance Company in India.

Laws & Regulations Insurance Act, 1938 Life Insurance Corporation Act,1956 Insurance Regulatory Development Authority Act, 1999 Consumer Protection Act, 1986

Stages in Insurance sales List Suspects Prospects Contact Demo Objection Handling Closing Collecting Premium money

Thank You!!!