1. Basics of Insurance

2. Contents:- Life insurance General insurance Insurance market scenario
Emerging trends in insurance

3. Learning Insurance What Is Insurance
Insurance is concerned with protection of economic value of assets.Tangible assets are human beings, house, furniture, motor cycle etc.Intangible assets are liabilities

4. History of Insurance It started from Lloyd’s coffee house London
First policy issued in England in 1583
In India first policy issued in 1870

5. History of Insurance LIC of India formed in 1956 after
nationalization of life insurance
Business of 245 private insurance
companies
General insurance business of 107
insurance companies was
nationalized in 1972 & four public sector General Insurance Companies were formed

6. Classes of Insurance A. Life insurance B. General insurance
General insurance is further
classified:-
1.Fire insurance
2.Marine insurance
3.Miscellaneous insurance

7. Miscellaneous Insurances:-
1.Motor insurance
2.Mediclaim insurance
3.Householders insurance
4.Shopkeepers insurance
5.Engineering insurances
etc.

8. Principles of Insurance
Fundamental
Principles of Insurance
1.Insurable interest- Means financial interest 2.Utmost good faith- Greater duties of faith on proposer & insurer Indemnity- Actual compensation of loss not applicable in life policies

9. Fundamental Principles of Insurance
4.Subrogation-Transfer of rights of insured to insurer.Not applicable in life policies.
5.Contribution-Sharing of loss by all insurers.Not applicable in life policies.

10. Market Scenario before Irda Act 1999
Life insurance company
1. LIC of India
General insurance companies
1.National insurance company ltd
2.New India assurance company ltd
3.Oriental insurance company ltd
4.United India insurance company ltd

11. Market Scenario after Irda Act 1999
Stage of
Liberalization,
Privatization &
Globalization
(Competition between public sector & private sector)

12. Life Insurance Companies
1.Bajaj Allianz Life Insurance Company Ltd
2.Birla Sun Life Insurance Company Ltd
3.HDFC Standard Life Insurance Company Ltd
4.ICICI Prudential Life Insurance Company Ltd
5.ING Vysya Life Insurance Company Ltd
6.Max New York Life Insurance Company Ltd

13. Life Insurance Companies
7.Met Life India Insurance Company Ltd
8.Kotak Mahindra Old Mutual Life Insurance Company Ltd
9.SBI Life Insurance Company Ltd
10.Tata AIG Life Insurance Company Ltd
11.Reliance Life Insurance Company Ltd

14. Life Insurance Companies
12.Aviva Life Insurance Company Ltd
13.Sahara India Life Insurance
Company Ltd
14.Shriram Life Insurance Company
Ltd
15.Bharti Axa Life Insurance Company
16.Life Insurance Corporation Of
India

15. Life Insurance Companies
17.Future Generali India Life Insurance
Company Ltd.
18. IDBI Fortis Life Insurance Company
Ltd.
19.Canara HSBC Oriental Bank of
Commerce Life Insurance Company Ltd.

16. Life Insurance Companies
20.Aegon Religare Life Insurance
Company Limited.
21. DLF Pramerica Life Insurance Co. Ltd.
22. Star Union Dai-ichi Life Insurance Co.
Ltd.
23.India First Life Insurance Company Ltd.
24. Edelweiss Tokio Life Insurance Co. Ltd

17. General Insurance Companies
1.Bajaj Allianz General Insurance Company Ltd
2.Icici Lombard General Insurance Company Ltd
3.Iffco Tokio General Insurance Company Ltd
4.Reliance General Insurance Company Ltd
5.Royal Sundaram Alliance Insurance Company Ltd

18. General Insurance Companies
6.Tata AIG General Insurance Company Ltd
7.Cholamandalam Ms General Insurance Company Ltd
8.HDFC-ERGO General Insurance Company Ltd
9.Star Health & Allied Insurance Company Ltd

19. General Insurance Companies
10.Export Credit Guarantee Corporation Ltd
11.Agriculture Insurance
Company Of India Ltd
12.National Insurance Company
Ltd
13.New India Assurance Company

20. General Insurance Companies
14.Oriental Insurance Company
Ltd
15.United India Insurance Company
16. Apollo Munich Health Insurance Company Ltd

21. General Insurance Companies
17.Future Generali India Insurance Company
Ltd
18. Universal Sompo General Insurance Co.
Ltd. 
19.Shriram General Insurance Company Limited
20.Bharti AXA General Insurance Company ltd.
21.Raheja QBE General Insurance Company Limited
22.SBI General Insurance Company Ltd.
23.Max Bupa Health Insurance Company Ltd.
24.L & T General Insurance Company Ltd.

22. Market Intermediaries
Who procure the
insurance business:-
Agents
Corporate agents
Insurance brokers
Banks (Bancassurance)

23. Other market Intermediaries
Surveyors
Who assess the loss in Non-Life Insurance Claims
TPA ( Third Party Administrators)
Who provide the claim settlement service in health insurance policies

24. Basic Life Insurance Policies
Term assurance policy
Provides death cover only
during policy period
Premium is low
No refund of premium
Sum assured paid on death

25. Whole Life Policy Death cover only Period is not specified
Premium is low & paid
during life time
No refund of premium
Sum assured paid on death

26. Endowment Assurance Plan
Covers death & survival
benefits
Sum assured paid on death
or on maturity of policy
Period of policy at the option
of proposer
Most common plan

27. Money Back Policy Available for different periods
Covers death & survival benefits
Lump sum paid periodically
Full sum assured paid on death

28. Unit Linked Insurance Policies (ULIP)
Each premium split into units and risk
premium for life cover
Units are priced as per current
market value
Sum assured & current value of units paid on death as per policy condition
Current value of units paid on maturity

29. Annuity (Pension) Plans
These are pension plans
Immediate annuity or deferred annuity starts at specified age periodically
Single premium paid for immediate annuity
Premium in installments paid
for deferred annuity
Life cover simultaneously

30. Important aspects of Life Insurance Policies
Policies available with bonus or without bonus
Death due to accidents can be covered for additional S.A.
Policies available exclusively for women & children
Additional cover for major diseases available
Guaranteed bonus policies available

31. Important aspects of Life Insurance Policies
Policies available for limited period premium payment & risk for longer policy period
Premium can be paid in monthly, quarterly, half yearly, yearly installments

32. Important aspects of Life Insurance Policies
Loans are available on policies
Lapsed policies can be revived
Policy can be surrendered after three years
Nomination & assignment can be done

33. General Insurance Policies
Fire policies
Marine policies
Motor vehicle policies
Personal line policies
Health insurances
Liability insurances
Rural insurance policies
Engineering insurances

34. Fire Policies Standard fire policy-
Common policy for buildings, shops,offices, Industrial & manufacturing risks

35. FIRE POLICIES-SPECIAL POLICIES
Industrial & Manufacturing
clients
Floater policy
Declaration policy
Floater declaration policy
Reinstatement value policy
Industrial all risk policy
Consequential loss policy

36. Marine Policy Marine Hull Policy Marine Cargo Policy
Policy insures physical loss or damage to the goods in transit by road, rail, air, water caused due to accidents, fire etc.
Marine Hull Policy
Policy insures marine ships,steamers etc.

37. Special Marine Cargo Policies
For business, industries,
importers and exporters
Annual policy
Special declaration policy
Open cover
Open policy

38. Motor Vehicle Policies
Liability only motor policy
Mandatory motor vehicle policy
Package motor policy
Motor policy additionally insures loss and damage of the motor vehicle due to theft and accidents along with third party risk is called a package motor policy.

39. Personal Line Insurances
House holders policy
Shop keepers policy
Personal accident policy
Group personal accident policy
Fidelity guarantee policy

40. Health Insurance Medi claim policy Overseas medi claim policy
Videsh yatra mitra policy
Corporate frequent travelers policy
Employment & study policy
Group medi claim policy
Cancer policy

41. Liability Insurances Compulsory public liability policy
Products liability policy
Professional indemnity policy
Lift (third party) policy
Director’s liability policy
Employer’s liability policy

42. Rural Insurance Policies
Cattle policy
Poultry policy
Agricultural pump set
policy
Crop insurance

43. Engineering Insurances
Machinery Breakdown Insurance
Loss of Profits (Machinery
Breakdown) Insurance
Electronic Equipment Insurance
Erection All Risk Insurance (EAR)
Storage cum Erection Insurance
(SCE)

44. Engineering Insurances
Contractors All Risk Insurance (CAR)
Contractors Plant and Machinery Insurance (CPM)
Boiler and Pressure Plant Insurance
Loss of Profits (Boiler Explosion) Insurance
Deterioration of Stocks Insurance.

45. Insurance Law The Insurance Act 1938 (amended)
Insurance Regulatory & Development Authority Act 1999

46. IRDA
Insurance Regulatory & Development Authority is the controlling and regulatory apex body in the country for insurance sector and its chairman and members are appointed by Government of India. IRDA’s HQ is located at Hyderabad

47. Insurance Regulations (Regulations issued by IRDA)
IRDA Actuarial Report and Abstract 2000
IRDA Registration of Indian Insurance Companies 2000
IRDA Insurance Advertisement and Disclosure 2000
IRDA The IRDA (Meetings) 2000
IRDA Investments (Life and General) 2000
IRDA Statements of Accounts 2000

48. Insurance Regulations (Regulations issued by IRDA)
IRDA The Insurance Advisory Committee (Meetings) Regulations, 2000
IRDA Assets, Liabilities, and Solvency Margin of Insurers Regulations, 2000
IRDA Obligations of Insurers to Rural Social Sectors Regulations, 2000
IRDA Licensing of Insurance Agents Regulations, 2000
IRDA Appointed Actuary 2000

49. Insurance Regulations (Regulations issued by IRDA)
IRDA General Insurance - Reinsurance Regulations, 2000
IRDA The IRDA (Staff) 2000
IRDA Surveyors and Loss Assessors 2000
IRDA Reinsurance –Life 2000
IRDA Revised Investment Regulations in April 2001

50. Insurance Regulations
Irda (third party administrators) regulations 2001
Irda (protection of policyholder’s interest ) regulations, 2002
Irda ( licencing of corporate agents) regulations 2002

51. Insurance Regulations
Irda (manner of receipt of premium) regulation 2002
Irda (licencing of brokers) regulation 2002
Irda (micro-insurance) regulations, 2005
IRDA (Treatment of Discontinued Linked Insurance Policies) Regulations, 2010
IRDA (Sharing of Database for Distribution of Insurance Products) Regulations, 2010

52. IRDA Guidelines on Corporate Governance for the Insurance Sector
IRDA vide letter no. IRDA/F&A/CIR/025/ dated has issued detailed guidelines to all insurers on corporate governance for the insurance sector for compliance with effect from and an Amendment No.1 has been issued vide letter no.IRDA/F&I/CIR/F&A/014/01/2010 dated

53. Growth of Insurance Business
Life Insurance Premium was Rs.400 crores in First year life premium of increased from Rs crores to Rs crores in with % growth.
General Insurance Premium was Rs.200 crores in 1972.In it increased to Rs crores from Rs of with % growth.

54. Growth of Insurance Business
Further in Health insurance increased to Rs crores with % growth, Agriculture insurance increased to Rs crores with 29 % growth, Credit insurance increased to Rs crores with 8.84 % growth.

55. Emerging Trends
Detariffing in General Insurance from leading to greater price war & new products in future
Banks entering insurance market through joint ventures with foreign finance majors

56. Emerging Trends Increasing Role of Insurance Brokers Bancassurance
Corporate Agency
IT intervention & uses

57. Emerging Trends Greater Job Opportunities For thousands of Insurance
Managers, IT Professionals
For lacs of Insurance Advisors
For Insurance Professionals
For Risk Managers
For Underwriters
For claim Settlements

58. Emerging Trends Increasing No. of Insurance companies & Intermediaries
Increasing Awareness about Insurance
Growth in GDP
Increasing No. of Middle Class

59. Emerging Trends Vast No. of uninsured population Underinsurance
Untapped potential for General Insurance

60. Emerging Trends Increasing awareness about Health Insurance
Increasing awareness about Personal Line Insurance like House, Shop, Personal Accident
Market flooded with new insurance products