1. Welcome to Webinar on Insurance

2. Financial Services Banking Shares,Debentures,Bonds Mutual Funds
Commodities
Derivatives
Insurance

3. Difference between Insurance and other Financial Services
Protection against risk or hazard
Securing an amount or estate for your family
Tax concessions
Social Security
Provide funds for the development of nation

4. Insurance is a contract whereby a certain sum of money is paid on the happening of a contingent event
It is sharing of financial losses of a few out of the contribution of many who are exposed to the same loss
It is spreading the loss of an individual over group of individuals

5. Need for Insurance Protection of property Coverage against liability
Savings with tax benefits
Capital formation for the country
Life is full of uncertain events
Creation of Employment

6. What is Insurance
Insurance is a contract whereby the insurer agrees to pay the insured a certain sum of money on the happening of a contingent event
It is a method of sharing the financial losses of a few from a common fund formed out of many
It is a contract of utmost good faith

7. Types of Insurance Life Insurance Health Insurance Pension
Group Insurance

8. Types of Insurance Non Life Insurance Marine Insurance Fire Insurance
Auto Insurance
Others

9. (Types of Insurance) Marine Insurance Location Risks Handling Risks
Operational Risks
Risk of Human Element
Act of God

10. (Types of Insurance) Actual Ignition
Fire Insurance
Actual Ignition
Damage of the property which was not in fire
Under accidental circumstances

11. (Types of Insurance) Auto Insurance
Unlimited liability towards third party injury
Unlimited liability towards the passengers of vehicle
Damage to the vehicle and its accessories
Employees using the vehicle of the owner under Workmen compensation

12. Life Insurance Principles
Insurable Interest
Utmost Good faith
Moral Hazard
Warranty
Indemnity
Subrogation

13. Concepts of Life Insurance
Insurer
Insured
Proposal
Policy
Premium
Evidence (Policy Document)

14. Concepts of Life Insurance
Sum Assured
Proximate Loss
Human Life Value
Annuity
Present value

15. Concepts of Life Insurance
Calculation of Human Life Value
A person aged 30 has Annual salary 2lacs
His personal expenses annually is 1lac
He give for the family 1lac
His earning span is 30 years, so the family requires 30lacs(this is over a period of 30years)
Human Life value= *1-(1/(1+i)^30)/i
I=present bank rate of interest so at 8% it will be 1lac* =

16. Underwriting First Line Underwriter Proposal - Name and Address - Age
- Object of Insurance
- Family History
- Personal History
- Declaration and Witness

17. Underwriting Non Medical General -Basic Education, cap on limits of SA
Non Medical Special
- Employees of reputed companies
Professionals
Medical & Special Reports
Financial Underwriting
Acceptance & Communication

18. Nomination
Appointee
Policy Document
Clauses
Green Channel or Across the Counter
Cooling off
Minor & Women Lives

19. Claims What is a Claim Types of Claim - Survival Benefit
- Maturity Claim
- Death Claim
- Annuity Claim
- Disability Claim

20. Claim Payment of Full Sum Assured
Payment of Sum Assured in Installments
Payment of Double Sum Assured
Payment of partial Sum Assured
Payment of Annuity for a specified period
Payment of Annuity for a specified period and capital on the happening of contingent event

21. Claims Claimant Form Evidence of Burial Medical Attendant Report
Police inquest report
Claim investigation report
Policy Document or indemnity

22. Plans Term Assurance Whole Life policies Endowment Policies
Money Back Policies
Children policies
Marriage/Educational Policies
Annuity Plans

23. Premium What is Premium Mode of Premium - Single - Yearly
- Half Yearly
- Quarterly
- Monthly

24. Premiums Factors Affecting Premiums - Mortality - Interest - Expenses
- Profits
Types of Premiums
Basic
AB Premiums,Rider Premiums,

25. Premiums Mortatlity Table Out of 1lac persons age30 1st year 2nd year
3rd year
4th year
1956
1999
Mortality1999
326
117
.00117
343
355
120
.00120
370
125
.00125

26. (Premiums)
Person Aged 30 wants take a term assurance of Rs. 1lacs for 1 year
Premium= Sum Assured * Mortality Rate for 1 year from the table
Premium=100000* =Rs.117(1999)
Premium=100000* =Rs.326(1956)

27. Premiums
Person aged 30 wants to take a term assurance of Rs for 4 year
Premium for 1st year= * =117
2nd year * =117
3rd year * =120
4th year * =125
Uniform premium=( )/4=120

28. Premiums
In the same example if it is made endowment that is Rs will be death cover for 4 years and 1lac will be paid on maturity at the end of 4 years
Term Assurance Premium for 4 years=120
Endowment premium = /4 = 25000
Total premium to be paid =25120

29. Premiums Calculation with interest @6% the above example
Term Assurance premium=120
Endowment premium = 25000/(1.06)^1
= 25000/(1.06)^2
= 25000/(1.06)^3
= 25000/(1.06)^4
Total Endowment premium =21658
Net Premium=

30. Premiums Expenses loading in premium First year premium
Renewal premium
Premium Related expenses
Policy Related expenses

31. Premiums Expenses Loading We arrived at the premium rate for a person
Aged 30 for 1lac endowment as 21778
Cost of premium expenses=5%
Loading of expense =21778/0.95=22924
Cost of premium including expenses of premium=22924

32. Premiums Cost of expenses per policy
Average expenses per policy=Total Administrative cost/No of policies issued
Suppose policies issued and administrative cost =40000
Average cost per policy=200000/40000=5

33. Premiums
Calculation of loading for the example of person aged 30 Sum Assured 1lac for 5 years endowment
Premium with interest = 21778
Premium expense is 5%
Administrative expense
per policy is Rs. 5
Premium+Interest+expense=( )/0.95=21929

34. Servicing Concepts Days of Grace
Paid up Value: Sum Assured*No of years premium paid/Total premium payable
Surrender Value
Loans
Revival
Assignment

35. Bonus What is Bonus Why it arises Types of Bonus - Reversionary Bonus
- Guaranteed Additions
- Loyalty Bonus
- Compounded Guarantee Additions
- Cash Bonus

36. Insurance Intermediary
Agents
Brokers
Consultants
Surveyors
Corporate Agents

37. Your Voluntary Contribution
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Branch Code : 0574
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