1.2 Aims &Objectives: -
The study conducted by the researcher aimed to find out:
¨ To create an awareness about the Indian Insurance Industry.
¨ To find actual effectiveness of the industry in the comparison of world.
¨ To create awareness about the performance of Indian Insurance Companies.
¨ The strength and weakness of Life Insurance Product.
1.3 Significance of the study: -
Following is the significance felt by the researcher while doing this project.
To The Researcher: -
§ This study has provided the researcher a practical insight of various activities and functions of the Industry.
§ Through the study the researcher also developed in depth knowledge of the industry. The study enabled the researcher to gain the practical knowledge of the products of the different companies.
§ The study has given a chance to use the conceptual knowledge in actual environment and prepared the researcher to use the knowledge for her future endeavors.
§ The study is also significant to the researcher for practical fulfillment of the Master of Business Administration Degree.
1.4 Miscellaneous
§ The research can be used as a source of information for similar projects. The research can also be used for academic purpose in future.
1.5 Limitations of the study: -
¨ Some matters are not disclosed in the particular context.
¨ In secondary data, there is not complete information about the particular matter.
¨ The conclusion arrived at are based on vary less experience of researcher in this field.
RESEARCH METHODOLGY
Research Brief:
Keeping the objective of the study in the mind it was decided to collect some information form all insurance companies. This study aimed to get the information about the Indian insurance market. It was decided to find out the comparative position of Indian insurance industry with world.
Research Type:
This research is descriptive type research.
Universe:
Indian Insurance Companies.
Data Type:
This research is based on secondary data. Secondary data was collected from brochures; others related magazines and books, sites of IRDA and companies and IRDA’s Annual report 2004-05.
1.1 INTRODUCTION TO THE SUBJECT: -
Introduction
Indian is the largest democracy in the world having a population more then one billion. It is 5th largest in world in terms of purchasing power parity (PPP). India GDP growth rate is over 7 percent per year on average for the last decade and saving rate is around 26 % of GDP.
Through Indian’s economic development, it becomes the most lucrative insurance markets in the world. Before the year 1999 there were monopoly of state run Life Insurance Corporation of India (LIC) in life insurance sector and General Insurance Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of reform process and passing Insurance Regulatory Development Act (IRDA) through Indian Parliament in 1999, Indian Insurance was opened for private companies.
What is Insurance?
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed a sum called premiums, to pay the other party happening of a certain event.
Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance Companies collects premium to provide for this protection a loss is paid out of this premium collected from the insuring public. The insurance company acts as a trustee to the amount collected through premium.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilization’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
That of dying prematurely leaves a dependent family to fend for itself.
That of living till old age without visible means of support.
Insurance is generally classified in three main categories,
(i) Life Insurance,
(ii) Health Insurance and
(iii) General Insurance.
To get insurance an individual or an organization can approach to an insurance company directly, through Insurance Agent of the concerned company or through Intermediaries.
Why we need Insurance?
In life, losses are sometimes unavoidable. People may fall seriously sick or lose income or savings to pay off medical bills. Individuals or their relatives may come across untimely death, whatsoever the reason may be. Some nuisance creator may damage due to some heavenly act or the assets of people. No one knows in advance when a loss will occur or how serious that loss will be. The uncertainty surrounding potential losses is known as Risk. Insurance offers a way for people to replace risk with known costs-the costs of buying & maintaining insurance policies.
Insurance pools risks shared by many people, thereby, reducing the risk faced by a group. People pay to buy insurance coverage (protection from risk). In exchange, all policyholder (people who won insurance policies) receive a promise that the group of policyholders as represented by the insurance organization will pay when any policyholder experience any kind of loss.
Who can buy a Policy?
Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income and other relevant factors are considered by the Corporation.Insurance for woman
Prior to nationalization (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalization of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.
Medical and non-medical schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions.
With Profit and Without Profit Plansan insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.
FUNCTIONS OF INSURANCE
The functions of Insurance can be bifurcated into two parts: 1.PrimaryFunctions2.SecondaryFunctions3.OtherFunctions the primary functions of insurance includes the following: Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain. The secondary functions of insurance include the following: Prevention of Losses - Insurance caution individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of loss cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rates of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units, which have insured their assets including plant and machinery. The other functions of insurance include the following: Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover.
Important of Insurance: -
Insurance benefits society by allowing individuals to share the risks faced by many people. But it also serves many other important economic & societal functions. Insurance provides the capital that communities need to quickly rebuild & recover economically from natural disasters.
Insurance itself has become a significant economic force in most of the industrialized countries. Businessmen buy insurance to cover their employees against work-related injuries & health problems. They also insure their assets against any kind of ware n tear by natural forces & forcibly.
Insurance companies perform a type of monetary redistribution they collect premiums & eventually redistribute that money as payments. Depending on the type of insurance, redistribution can take place anywhere from a month to many decades. Because of this delay between collecting & paying out funds, insurance companies invest their funds to bring extra revenue.
Such investments help business & government finances their operations, & few profits from these investments support the operations of insurance companies. With these investment earnings, insurance companies can keep rates much lower than would otherwise be possible.
TYPES OF POLICY IN INDIA
LIFE INSURANCE POLICY
Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us.
Life insurance is not for the person who passes away, it for those who survive. It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies. Majors among them are:
Endowment Policy
Whole Life Policy
Term Life Policy
Money-back Policy
Joint Life Policy
Group Insurance Policy
Loan Cover Term Assurance Policy
Pension Plan or Annuities
Unit Linked Insurance Plan
Endowment Policy
An endowment policy covers risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy.
An endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection.
Therefore, it is more of an investment than a whole life policy. Endowment life insurance pays the face value of the policy either at the insured person death or at a certain age or after a number of years of premium payment. Endowment policy is an instrument of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death.
Group Insurance
Group insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives, weaker sections of society, etc. It also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.
Group insurance plans have low premiums. Such plans are particularly beneficial to those for whom other regular policies are a costlier proposition. Group insurance plans extend cover to large segments of the population including those who cannot afford individual insurance.
A number of group insurance schemes have been designed for various groups. These include employer-employee groups, associations of professionals (such as doctors, lawyers, chartered accountants etc.), and members of cooperative banks, welfare funds, credit societies and weaker sections of society.
Joint Life Insurance Policy
Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders, apart form covering risks like all life insurance policies.
But joint life policies are categorized separately as they cover two lives simultaneously.thus offering a unique advantage in some cases, notably, for a married couple or for partners in a business firm.
Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date. The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.
Loan Cover Term Assurance Policy
Loan cover term assurance policy is an insurance policy, which covers a home loan. Such a policy covers the individual's home loan amount in case of an eventuality. The cover on such a policy keeps reducing with the passage of time as individuals keep paying their EMIs (equated monthly installments) regularly, which reduces the loan amount
This plan provides a lump sum in case of death of the life assured during the term of the plan. The lump sum will be a decreasing percentage of the initial sum assured as per the policy schedule. Since this is a non-participating (without profits) pure risk cover plan, no benefits are payable on survival to the end of the term of the policy. Various insurance companies offering loan Cover Term Assurance Policy
HDFC Standard Life Insurance
Tata AIG
ING Vysya
LIC
Money Back Policy
Money back policy provides for periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive. They differ from endowment policy in the sense that in endowment policy survival benefits are payable only at the end of the endowment period.
An important feature of money back policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which may have already been paid as money-back components. The bonus is also calculated on the full sum assured.
Pension Plan
A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received
Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period. Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the payments during the annuitant's lifetime.
Term Life Insurance Policy
Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy.No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value.
Whole Life Insurance Policy
A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire life of the policyholder, therefore, such policies are known as whole life policies. A simple whole life policy requires the insurer to pay regular premiums throughout the life. In a whole life policy, the insured amount and the bonus is payable only to the nominee of the beneficiary upon the death of the policyholder.
There is no survival benefit as the policyholder is not entitled to any money during his / her own lifetime.
Unit linked Insurance Plans (ULIP)
Unit linked Insurance Plans (ULIP) is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.
ULIP provides multiple benefits to the consumer. The benefits include:
Life protection
Investment and Savings
Flexibility
Adjustable Life Cover
Investment Options
Transparency
Options to take additional cover against
Death due to accident
Disability
Critical Illness
Surgeries
Liquidity
Tax planning
GENERAL INSURANCE POLICY
General Insurance provides much-needed protection against unforeseen events such as accidents, illness, fire, burglary et al. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Almost everything that has a financial value in life and has a probability of getting lost, stolen or damaged, can be covered through General Insurance policy.
Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty and also one's liability towards others can be covered under general insurance policy. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.Major insurance policies that are covered under General Insurance are:1- Home Insurance2- Health Insurance3- Motor Insurance4- Travel Insurance
Home Insurance
Every man has a dream to own a house one-day. For an ordinary person it takes a whole lifetime of savings to build a house. And one cannot predict a natural calamity like earthquake. In recent times we have seen what havoc an earthquake or any other natural calamity such as floods, landslides and torrential rains can wreck. Hence home insurance is very important.
Home insurance policy also protects against other hazards like gas cylinder explosion, fire due to electric short circuit as well as man-made disaster like burglary.
Home insurance policy available in the market covers broadly two things:
1. Building structure
Contents inside the home
1. Building Structure
I). The Fire and Special Perils Cover: - this is a comprehensive packaged cover that covers damage to the structure of home due to
¨ Fire
¨ Storm, tempest, flood & inundation
¨ Riot, strike & malicious damage
¨ Lightning
¨ Explosion & implosion
¨ Aircraft damage
¨ Damage due to impact by vehicles
¨ Subsidence, landslides and rockslides
¨ Bursting and/or overflowing of water tanks, apparatus and pipes
¨ Missile testing operation
¨ Leakage from automatic Sprinkler installations
¨ Bush fire
II) Earthquake Cover: Covers damages to the structure of your house due to earthquake
III) Terrorism Cover: Covers damage to the structure of your house due to acts of terrorism
A home insurance does not cover the market value of the home. The price of the home includes the cost of the land and the cost of constructing the building structure on this land and the land cannot be insured. The insurance cover is only for the cost of constructing the building. The sum insured is calculated by multiplying your home area by the construction rate per sq. feet.
2. Contents inside the Home: -
This cover is only for damages or loss of the contents inside the home -electronic and electrical goods, furniture and fixtures, clothing, jewelry and any other contents inside the home. The covers that can be taken for the contents are as follows:
¨ The Fire and Specials Perils Cover
¨ Earthquake Cover
¨ Burglary
¨ Loss / damage to contents due to burglary or an attempted burglary
¨ Loss of jewelry, gold ornaments, silver articles and precious stones kept under lock & key
All the contents are covered on the market value of the items. This means that if there is a loss, the claim would be paid on the value of purchasing a similar new item, minus depreciation.
Health Insurance
It is said that a healthy mind resides in a healthy body. Hence it is very important to stay healthy. These days life is very fast and stressful. No matter how much you care one can always fall ill.
Health treatment nowadays is very costly. More than the disease it is the cost of treatment that takes its toll. To get rid of health worries health / medical insurance is the answer. Health insurance policy not only covers expenses incurred during hospitalization but also during the pre as well as post hospitalization stages like money spent for conducting medical tests and buying medicines. The cover will be to the extent of the sum insured.
An added attraction of Med claim policies is the tax benefits, which they attract under Section 80D. The maximum amount of deduction available under this section is Rs 10,000. In case of senior citizens, the maximum limit is Rs 15,000.
Individuals also have the option of covering themselves for medical expenses by opting for the 'Critical Illness (CI)' rider available with life insurance policies. Life insurance companies have their own list of critical illnesses as defined by them. In case of a CI rider, on the occurrence of a 'critical illness' during the policy tenure, an amount as proposed in the policy will be paid out to the individual. This is irrespective of the expenses incurred by the individual on hospitalization, medicines and other such costs.
Health insurance companies are offering innovative products to their customers these days. The latest product in this line is 'cash less hospitalization'. Here individuals do not have to pay for their hospital bills in case of hospitalization; the insurance company settles the bill directly. But certain conditions like the hospital needs to have a tie-up with the insurance company, the documents need have to be met.
Motor Insurance
Legally, no motor vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory to get the vehicle insured.
Motor insurance policies cover against any loss or damage caused to the vehicle or its accessories due to the following natural and man made calamities.
Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made Calamities: Burglary, theft, riot, strike, malicious act, and accident by external means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air.Motor insurance provides compulsory personal accident cover for individual owners of the vehicle while driving. One can also opt for a personal accident cover for passengers and third party legal liability.
Third party legal liability protects against legal liability arising due to accidental damages. It includes any permanent injury / death of a person and damage caused to the property.
Travel Insurance
Travel and tourism is one of the most fast growing sectors around the world. With rise in standards of living, more and more people are embarking on journeys and exploring new places. Before going on a trip you need to address all your travel worries.
Travel insurance policy takes care of all your travel worries. It secures you and your loved ones in their sojourn abroad. Travel insurance plans offer host of benefits such as medical expenses, loss or delay of baggage or passport, personal accident, financial emergency assistance and hijack distress allowance.
Travel insurance plans cover expenses incurred due to delayed flight, cancellation of trip, and also take care of valued assets left at home.
INDIAN INSURANCE INDUSTRY
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.
Brief History of Insurance: -
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance Company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society.
Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that an actuary should certify the premium rate tables and periodical valuations of companies. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January 1956, that life insurance in India was nationalized. About 154 Indian insurance companies 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956. The Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of Re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its satellite sampark offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized thegeneral insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four company’s viz. the NationalInsurance Company Ltd., the New India Assurance Company Ltd., theOriental Insurance Company Ltd. and the United India Insurance CompanyLtd. GIC incorporated as a company.
Privatization in 1990s: -
As part of the wide-ranging economic reforms initiated in 1991, a committee headed by Mr. R. N. Malhotra examined the structure of the Insurance sector. The committee’s recommendation to open up the sector to private sector participation was implemented by the Government in 2000. The key element in the reform process was the participation of overseas insurance companies, through restricted to 26 percent of the capital.
With the Insurance Regulatory and Development Authority Act 1999 (IRDA) formally coming in to force, the insurance industry was opened up for private sector participation.
The main objective of setting up the IRDA was to project the interests of Policyholder and to regulate promote and ensured orderly development of the insurance industry.
Over four decades the industry has been a state monopoly. Till date the LIC has insured over 120 million individuals and has a vast sales network of over 7 lakh insurance agents. The industry is upsurge in consumer awareness, building immense and unavoidable pressure among the players.
India is a market of mainly small policies. The average annual life premium is less than the equivalent of $ 100 million. India is also marked by a very low insurance penetration rate. Although no authentic statistics is available, a rough estimate is that only 20 percent of the insurance populations are insured.
Insurance Industry in India at present
With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP.Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Act. Lift all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company, a proposal to increase this limit to 49% is pending with the government. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.
The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. This report "Indian Insurance Industry: New Avenues for Growth 2012", finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector companies and eight private insurers. According to estimates, private insurance companies collectively have a 10% share of the non-life insurance market.
Though the focus of this market research report is on the potential growth on the Indian Insurance Sector, it also talks about the market size, market segmentation, and key developments in the market after 1999. The report gives an instant overview of the Indian non-life insurance market, and covers fire, marine, and other non-life insurance. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. This report also provides company profiles of the major private insurance companies.
Companies
Aviva Life Insurance
Bajaj Allianz
Birla S un Life Insurance
HDFC Standard Life Insurance
ICICI Prudential
ING Vysya
Kotak Mahindra
LIC
Max New York Life Insurance
Metlife India Insurance
Reliance Life Insurance
SBI Life Insurance
Shriram Life Insurance
Tata AIG Life Insurance
Insurance billing software allows medical offices to automatically process insurance claim forms. It interacts with their scheduling software, accounting software and other office programs to simplify this process. Some services charge a fee (per provider) for submitting medical claims through clearinghouses, but offer free electronic submission. Other products leave you responsible for insurance claims submission.
This software can be purchased as a stand-alone product with a variety of service levels from claim printing only to complete claim processing with electronic submission capabilities. This software is also included as part of a medical software suite including patient scheduling, accounting, electronic medical records, contact management, and time management applications.
Individual premium collected by companies
The Life Insurance Industry underwrote Individual Single Premium of Rs.1006304.98 lakh during the period ended August 2006, of which the Private Insurers garnered Rs.78855.88 lakh and LIC garnered Rs.927449.10 lakh. The corresponding figures for the previous year were Rs.276989.74 lakh for the industry, with Private Insurers underwriting Rs.33180.53 lakh and LIC Rs.243809.21 lakh. The Individual Non-Single Premium underwritten during April-August, 2006 was Rs.1051634.72 lakh of which the Private Insurers underwrote Rs.367186.09 lakh and LIC Rs.684448.63 lakh. The corresponding figures for the previous year were Rs.496284.12 lakh, Rs.160225.63 lakh and Rs.336058.49 lakh respectively.
Group premium collected by companies
The industry underwrote Group Single Premium of Rs.266671.08 lakh of which the private insurers underwrote Rs.20448.23 lakh and LIC Rs.246222.85 lakh; the lives covered being 5982289, 340793 and 5641496 respectively. The corresponding numbers for the previous year were Rs.117911.79 lakh with private insurers underwriting Rs.9819.78 lakh and LIC Rs.108092.01 lakh; and the lives covered being 2546506, 293858 and 2252648 respectively. The Group Non-Single Premium underwritten during April-August, 2006 was Rs.31995.70 lakh, which was underwritten entirely by the private Insurers, covering 1607598 lives. The corresponding numbers for the previous year were Rs. 13244.74 lakh and covering 795816 lives.
Table No.-2.1
'First Year Premium collected by Life Insurers for the Period Ended August, 2006
S.No.
Insurer
Premium u /w (Rs. In Lakh)
August, o6
Up to August, o6
Up to August, o5
1.
Bajaj Allianz
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Single Premium
4540.84
15464.87
73.49
159.76
40794.76
58696.95
246.90
894.12
15694.37
26261.02
0.00
961.04
2.
ING Vysya
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
236.75
1385.41
0.00
119.45
1505.95
14451.40
203.41
346.20
2.38
4390.06
375.62
142.14
3.
Reliance Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
444.53
2520.84
39.18
64.80
5603.21
14856.43
753.27
319.95
2703.05
1121.51
60.69
244.29
4.
SBI Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
3035.98
4600.58
2126.26
358.45
10436.60
27924.09
7435.81
5092.46
1595.41
3901.24
6429.52
1289.46
5.
Tata AIG
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
21.06
3697.64
564.81
168.36
230.13
18432.54
2109.43
803.96
180.85
13302.77
693.06
874.39
6.
HDFC Standard
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
722.28
6416.99
789.79
359.59
4965.36
33747.22
3297.60
1793.46
4057.83
19801.77
1768.89
1356.57
7.
ICICI Prudential
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
1822.73
17427.61
1578.64
2722.00
10130.86
111384.07
5630.79
15170.70
2343.53
52778.41
171.02
7172.52
8.
Birla Sun life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
170.31
3749.37
81.34
665.87
1194.52
21196.82
450.08
3449.69
435.47
14334.82
217.03
558.16
9.
Aviva
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
145.65
3845.51
38.05
378.17
1054.74
22073.77
120.07
1415.95
145.21
9423.96
57.58
113.25
10.
Kotak Mahindra Old Mutual
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
337.98
2771.20
71.20
552.38
1721.13
11050.51
200.87
1742.08
587.44
5502.93
46.17
246.54
11.
Max New York
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
14.23
4623.58
o.oo
16.36
35.70
24899.48
o.oo
143.20
63.60
11418.88
o.oo
58.00
12.
Met Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
38.84
1439.19
o.oo
90.07
196.82
6828.93
o.oo
730.16
197.62
2899.61
o.oo
228.38
13.
Sahara Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
84.10
30.12
o.oo
o.oo
557.52
159.81
o.oo
93.76
18.95
243.48
0.20
o.oo
14.
Shriram Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
416.03
443.65
o.oo
o.oo
428.57
1399.27
o.oo
o.oo
o.oo
o.oo
o.oo
o.oo
15.
Bharti Axa Life
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
o.oo
84.81
o.oo
o.oo
o.oo
84.81
o.oo
o.oo
o.oo
o.oo
o.oo
o.oo
16.
Private total
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
12031.32
68501.38
5362.76
5655.28
78855.88
367186.09
20448.23
31995.70
28025.70
165380.46
9819.78
13244.74
17.
LIC
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
155759.21
225435.86
74176.34
o.oo
927449.10
684448.63
246222.85
o.oo
243809.21
336058.49
108092.01
o.oo
18.
Grand Total
Individual Single Premium
Individual Non-Single Premium
Group Single Premium
Group Non-Single Premium
167790.53
293937.24
79539.10
5655.28
1006304.98
1051634.72
266671.08
31995.70
271834.91
501438.95
117911.79
13244.74
Table No.-2.2
Total premium collected by the companies in August 2006: -
S.N.o
Company Name
Total Premium
1.
Bajaj Allianz
21654
2.
ING Vysya
1740
3.
Reliance Life
3067
4.
SBI Life
10119
5.
Tata AIG
4450
6.
HDFC Standard Life
8286
7.
ICICI prudential
22542
8.
Birla Sun Life
4665
9.
Aviva Life
4406
10.
Kotak mahindra Old Mutual
3731
11.
Max New York
4654
12.
Met Life
1568
13.
Sahara Life
114
14.
Bharti Axa Life
859
15.
Private Total
91549
16.
LIC
455370
17.
Grand Total
546919
Market share of companies in August 2006
Figure-1
Business models
At present the new entrants are experimenting with different strategies to penetrate the market by developing multiple channels distribution models. It is however, recognized that for a long time to come agency domination will be a feature of this market. Other channels such as banks, dedicated distribution through alliances and e-trade will take time to make a sizeable impact. It is the general perception that life insurance will continue to be sold through face to face contract for quite a while.
Today after nearly fifty years, the insurance sector is a buyers market where their consumer has the choice to select from a variety of insurance products and services; some of the early movers adopted by private insurers can be discussed here:
Distribution modals
Ø Alliances with banks: Insurance is using branch networks to sell insurance product. This enables insurers to leverage on low distribution costs by using existing networks. Insurers are also targeting bank employees as par prospective customer and agents to market products.
Ø Non-bank Alliances: These are tie-ups with non-governmental organizations (NGOs) mainly to tap the rural markets. This would enable insurers to ensure IRDA compliance with respect to rural coverage.
Ø Retails financial service distribution: This involves the tie-ups with NBFCs to act as corporate agents, and also enabled insurers to cross sell with other financial services.
Ø Most new entrants are targeting the Indian middle segment estimated at over 250 million persons.
Ø High focus on direct selling: the preferred route is the agency network. The agency channels constitute 90-95 percent of the market.
With the entry of private insurers, the market is already seeing a wide array of products. Insurers today are not merely looking at basic life insurance solution, but offering products with a combination of benefits (riders) which could be bundled / customized to suit an individual’s needs. Insurance is also being promoted as a sound long term’s investment option. In terms of returns Insurance products today offer a competitive 10-12 percent. Besides returns when really increases the appeal of Insurance is the benefit of life protection from Insurance products along with health cover benefits. The tax benefits are also attractive.
While the plain individual insurance will remain popular, sales of new products such as single premium, unit-linked, retirement product, money back and annuity are set to rise. With parliament passing the Insurance Amendment Bill, non-profit products likely to become increasingly prevalent.
Key Challenges faced by Private Insurers
The key challenge, which all private insurers will face in the coming months, are in the areas of product innovation, managing investment, distribution, customer’s service and expense control. Some of these are briefly discussed here:
Life Insurance in India has traditionally been distributed through the agency channel. The limiting factor for private insurers will be the extensive and expensive distribution structure required for reaching through the segment.
Distribution will be a key determinant success for all Life Insurance companies. The new entrants cannot expect to match the extensive distribution network of LIC (of over 7 Lakh agents). Of these only a small proportion is meaningfully productive. Since there were no requirements relating to training and passing of examination. Both of which ares now required, requirement was in inexpensive and rather casual. The LIC did not mind even if a large part of its agency force remained inactive and/or unproductive. This is not the case now.
Agents have to be trained for 100 hours and they have to pass an examination. It is estimated that by the time the insurer licenses an agent. Because of this insurers cannot afford to have many non-productive and this will strengthen the market.
The alternative channels such as banks and other institutions are slowly emerging .It is to hope that a variety of channels will emerge in due course as result of liberalization of this sector.
Intermediaries and Direct Marketing: -
Though the agency channel will definitely remain as the dominant distribution channel, alternative channels like corporate agencies, brokers and bank assurance will play a meaningful role in distribution. Private insurers are also engaging in direct marketing to high net worth individuals through channels like work site marketing a relatively inexpensive and easy launch potential distribution channel.
New entrants will constantly explore avenues to increase the number of distribution channels through a variety of distribution patterns, given the customer profile.
Rural and Social Insurance: -
As per the IRDA regulation all insurers have an obligation to fulfill in the rural and social sectors. This obligation is expressed as a percentage of total policy sales in the rural sector and number of lives insured in the socially weaker sections of society to the total.
The rural obligation ate to sell specific percentage of policies to the rural sector 5 percent in first year, 7.5 percent in the second year and up to 15 percent in fifth year. In social sector, insurers are required to insure a specific of lives 5000 in first year, 7500 in second year and up to 20000 lives in fifth year and beyond in these areas, local partnerships established by private matter. Some of them have roped in the village or panchayat heads to comply with the rural obligation. Some private insurers have tied up with Non-Government Organizations (NGOs) to satisfy the social obligation.
It is expected that these rigorous requirements will help increase insurance penetration and provided the much-need insurance protection to the segments that constitute a large percentage of the population. In short, it is expected that insurance will gradually cease to be more urban phenomenon.
In this competitive scenario, a key difference in gaining a winning edge is the customer service provided by the insurers, be it, in terms of quality of advice given by the distribution channels (advisors, banks) or policy processing to settlement of claims. For the first time in four decades the customer is really the focus and companies are vying with one another to perform to very transparent and tight benchmarks of service.
It is significant that the IRDA has brought out regulation that prescribes service standards and parameters. These policyholders protection regulations are comprehensive they ensure transparency and accuracy, fix responsibility on insurance companies for several areas involving customer service etc. this piece of legislation is seen as a land mark in India,.
Role of Technology: -
In the present competitive environment technology will play a definite role in achieving a competitive edge. Technology will play an increasing role in aiding design and administering of insurance products as well as in building and maintaining long term customer relationship.
Future Opportunities: -
Opening up of the pensions sector:
Considerable discussion has taken place on this subject only some form of retirement benefits protects 11 percent of the working population. It is learnt that a detailed proposal is before the government to open up the pension sector. Providing coverage through a national pension scheme is challenging but it is necessary, particularly for the non-salaried or self employed workforce and those engaged in agricultural the Life Insurance Industry alive. Awareness has increased and it is being expected that the market will grow fast. In five years one will be looking at an annual premium income of Rs. 100,000 Crores in the Life Insurance Sectors Life Insurance will at long last attain its rightful place in the economy.
INSURANCE REGULATORY AND DEVELOPMENTAUTHORITY
On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1999. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and companies have joined with foreign partners.
In this economic reform process the Insurance Companies will boost the socioeconomic development process. The hue amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholders will get, better pricing of products from competitive insurance companies.
4. COMPOSITION OF AUTHORITY: - The Authority shall consist of the following members, namely: -
(a) A Chairperson;
(b) Not more than five whole-time members;
(c) Not more than four part-time members,
to be appointed by the Central Government from amongst persons of ability, integrity and standing who have knowledge or experience in life insurance, general insurance, actuarial science, finance, economics, law, accountancy, administration or any other discipline which would, in the opinion of the Central Government, be useful to the Authority:
Provided that the Central Government shall, while appointing the Chairperson and the whole-time members, ensure that at least one person each is a person having knowledge or experience in life insurance, general insurance or actuarial science, respectively.
Duties, Powers & Function: -
Section 14 of IRDA Act, 1999 lays down the duty powers & functions of IRDA.
· Subject to the provisions of the Act, & any other law for the time being in force the authority shall have the duty to regulate promote & ensure orderly growth of the insurance business & re-insurance business.
· Without prejudice to the generality of the provisions contained in sub-section (1) the powers & functions of the authority shall include. Issue to the applicant a certificate of registration, renew, and modify. Withdraw suspend or cancel such registration.
1. Protecting of the interest of the policyholder' insurable interest, settlement of insurance claim surrender value of policy & other terms & conditions of contract of insurance.
2. Specifying requisite qualification code of conduct & practical training or intermediary or insurance intermediaries & agents.
3. Specifying the conduct for surveyors & loss assessors.
4. Promoting efficiency in the conduct of insurance business.
5. Promoting & regulating organizations connected with the insurance & re-insurance business;
6. Levying fees & other charges for carrying out the purpose of this Act;
7. Calling for information form, undertaking inspection of, conducting enquiries & investigations including audit of the insurers, intermediaries, insurance intermediaries & other organizations connected with the insurance business;
8. Control & regulations of the rates, advantages, terms & conditions that may be offered by insurer in respect of general insurance business not so controlled & regulated by the Tariff Advisory Committee under the section 64U of the Insurance Act, 1938 (4 of 1938);
9. Specifying the firm & manner in which books of account shall be maintained & statement of accounts shall be rendered by insurers & other insurance intermediaries;
10. Regulating investments of funds by insurance companies;
11. Regulating maintenance of margin of solvency;
12. Adjudication’s of disputes between insurers & intermediaries or insurance intermediaries;
13. Supervising the functioning of the Tariff Advisory Committee;
14. Specifying the percentage of percentage of premium income of the insurer to finance schemes for promoting & regulating professional organizations referred to in clause (f);
15. Specifying the percentage of life insurance business & general insurance business to be undertaken by the insurer in the rural or social sector.
17. Exercising such other powers as may be prescribed
Life Insurance is a contract for payment of a sum of money to the person assured (no nominee) on the happening of the event insured against. The contract provides for the payment of premium periodically to the Insurance Company by the assured. The contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier.
By the year 1956, 154 Indian insurance, 16-non -Indian insurance and 75 provident societies were carrying on Life Insurance business in India. On 1st September 1956 all the Insurance Companies were nationalized. On September 1956, Indian Parliament passed LIC Act and the state run life Insurance Corporation of India (LIC) has held the monopoly in countries life insurance sector.
In the year 1999, the Insurance Regulatory Development Act (IRDA) was passed in Indian Parliament. By this act a door was open for private companies with foreign equity Life Insurance. By this act an Indian promoter can invest either wholly in an insurance venture or team up with a foreign insurer, with a cap of 26 percent of equity for a foreign partner.
INSURANCE COMPANIES IN INDIA
Before insurance sector was opened to the private sector Life Insurance Corporation (LIC) was the only insurance company in India. After the opening up of Insurance sector in India there has been a glut of insurance companies in India. These companies have come up with innovative and flexible insurance policies to cater to varying needs of the individual. Opening up of the Insurance sector has also forced the Lic to tighten up its belt and deliver better service. All in all it has been a bonanza for the consumer.
Major Life insurance Companies in India are:
Aviva Life Insurance
Bajaj Allianz
Birla S un Life Insurance
HDFC Standard Life Insurance
ICICI Prudential
ING Vysya
Kotak Mahindra
LIC
Max New York Life Insurance
Metlife India Insurance
Reliance Life Insurance
SBI Life Insurance
Shriram Life Insurance
Tata AIG Life Insurance
Aviva life insurance, India
Aviva Life Insurance Company India Pvt. Ltd. is a joint venture between Aviva of UK and Dabur, one of India's leading producers of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.
Founded in 1884, Dabur is one of India's oldest and largest groups of companies with consolidated annual turnover in excess of Rs 1,899 crores. A professionally managed company, it is the country's leading producer of traditional healthcare products.
Aviva is UK's largest and the world's sixth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world.
Aviva pioneered the concept of Bank Assurance in India. Currently, Aviva has Bank Assurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, and 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank in Sikkim.Aviva has 40 Branches in India (including rural branches) supporting its distribution network. Through its Bank Assurance partner locations, Aviva products are available in 378 towns and cities across India.
Bajaj Allianz
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- Allianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest two and three wheeler manufacturers in the world.
Bajaj Allianz Life Insurance: -
¨ No.1 Private Life Insurance Company in India for 2005-06
¨ Growth rate of 216%for financial year 2005-2006
¨ Over 15,00,000 satisfied customers
¨ A countrywide network of 700+ offices
¨ Assets under management Rs. 3,324 cr.
¨ Shareholder capital base of Rs. 500 cr.
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer
¨ Financial strength and stability to support the Insurance Business.
¨ A strong brand-equity.
¨ A good market reputation as a world-class organization.
¨ An extensive distribution network.
¨ Adequate experience of running a large organization.
Bajaj Group: -
Bajaj Auto Ltd, the Flagship Company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
¨ One of the largest 2 & 3 wheeler manufacturer in the world
¨ 21 million vehicles on the roads across the globe
¨ Managing funds of over Rs 4000 cr.
¨ Bajaj Auto finance one of the largest auto finance cos. in India
¨ Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
¨ It has joined hands with Allianz to provide the Indian consumers with a distinct option in Terms of life insurance products.
Allianz Group: -
Allianz Group is one of the world’ leading insurer and financial services provider Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of
¨ Property and Casualty Insurance,
¨ Life and Health Insurance,
¨ Asset Management and Banking.
ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE: -
¨ Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.
¨ 3rd largest Assets under Management (AUM) & largest amongst Insurance cos. –AUM of Rs.51, 96,959 cr.
¨ 12th largest corporation in the world
¨ 49.8 % of global business from Life Insurance
¨ Established in 1890, 110 yrs of Insurance expertise
¨ 70 countries, 173,750 employees worldwide
Birla Sun Life Insurance
Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. The Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 12 billion conglomerate, with a market capitalization of US$ 20 billion, an extraordinary force of 88,000 employees belonging to over 20 different nationalities anchors it. Over 23 per cent of its revenues flow from its operations across the world. The Group's products and services offer distinctive customer solutions. Its 74 state-of-the-art manufacturing units and sectoral services span India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany and Hungary.A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Among these are viscose staple fibber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services.
Sun Life Assurance, Sun Life Financial primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services organizations in the world. The Group has presence in several countries such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda.
HDFC Standard Life Insurance
HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest housing finance institution and Standard Life Assurance Company, Europe's largest mutual life company. It was the first life insurance Company to be granted a certificate of registration by the IRDA on The 23rd of October 2000.
Standard Life, UK was founded in 1825 and has experience of over 180 years. The company is rated as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2).
HDFC Standard Life's cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far the company has covered over 11,00,000 individuals and has declared 5th consecutive bonus in as many years for its 'with profit' policyholders.
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance Company in the UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. ING Vysya Life Insurance
ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years.
ING Vysya Life Insurance Company Private Limited entered the private life insurance industry inIndia in September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities) across the country and over 2300 employees. Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking.
Old Mutual was established more than 150 years ago and offers a diverse range of financial services in South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization and has its headquarters in London. Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956.
LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore.
In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and number of policies stands at 77% and 81%, respectively.
Max New York Life Insurance
Max New York Life Insurance Company Limited is a joint venture between Max India Limited, a multi-business corporate, and New York Life International, a global expert in life insurance.
New York Life is a Fortune 100 company that has over 160 years of experience in the life insurance business. Max India Limited is a multi-business corporate dealing in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses.
Max New York Life Insurance started its operations in India in 2000. It is the first life insurance Company in India to be awarded the IS0 9001:2000 certifications. Max New York offers customized products tailored to suit individual's needs. With its various Products and Riders, there are more than 400 product combinations to choose from. Today, Max New York Life Insurance has a network of 57 offices spread over 37 cities all over India.
MetLife India Insurance
MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.
Met Life Group has presence in America and Asia and has an experience of over 137 years in providing financial services. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001.
Reliance Life Insurance
Reliance Life Insurance Company limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio.
AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more than 900 employees.
SBI Life Insurance
SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 crore and a paid up capital of Rs 350 crores.
State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860.
Shriram Life Insurance
Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based Shriram Group and the South African insurance major Sanlam.
The company launched its operations in India in December 2005. Shriram Life has set a target of achieving a premium income of Rs 110 crore during the first year of operations. While focussing largely on the strong network of over 65,000 agents and distribution network of more than 550 branches, Shriram Life is also contemplating bank assurance alliances with couple of banks.
Tata AIG Life Insurance
Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association
American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.
COMPARISION WITH WORLD
Industry Growth: -
With a large population and untapped market, insurance happens to be a big opportunity in India. The insurance business is growing at an annual rate of 21.9 per cent. Together with banking services, it accounts for about 7.1 percent to the country’s GDP. However, insurance penetration in the country is poor. Insurance penetration or premium volume as a share of a country’s GDP, for the year 2004-05 is at 2.53 per cent for Life insurance and 0.65 per cent for Non-life insurance. The level of penetration tends to rise as income increases, particularly in life insurance. India with about 200 million middle class households shows a potential for insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector was opened up for private participation four years ago and the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fair number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well with recognized foreign players across the globe. The Indian Insurance market accounts only for 0.59 per cent of USD 2,627 billion global insurance market. Consumer awareness has improved. Competition has brought more products and better customer servicing. It has had a positive impact on the economy in terms of income generation and employment growth.
i) Life Insurance
The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2004-05 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 per cent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 percent growth over 2003-04.
TABLE 3
________________________________________________________________________
PREMIUM UNDERWRITTEN BY LIFE INSURERS
________________________________________________________________________
(Rs. lakh)
Insurer 2003-04 2004-05
First year premium including
Single premium
LIC* 1734761.74 2065306.36
(6.34) (19.05)
Private Sector 244070.58 556457.34
(152.74) (127.99)
Total 1978832.32 2621763.70
(14.68) (32.49)
Renewal Premium
LIC 4618580.96 5447422.62
(19.47) (17.95)
Private Sector 67962.05 216293.48
(343.12) (218.26)
Total 4686543.01 5663716.10
(20.75) (20.85)
Total Premium
LIC 6353342.70 7512728.98
(15.63) (18.25)
Private Sector 312032.63 772750.82
(178.83) (147.65)
Total 6665375.33 8285479.80
(18.91) (24.31)
________________________________________________________________________
Note: Figures in brackets indicate the growth (in per cent)
* includes the investment component under unit linked products
The life insurance industry underwrote first year premium (inclusive of single premium) of Rs.26217.64 during 2004-05 as against Rs.19788.32 crore in 2003-04. The industry clocked a growth of 32.49 per cent driven by a significant jump in unit linked business. Interestingly, the growth in the first year premium (other than single premium) came on the policies issued by the private insurers with a growth rate of 106.46 per cent as against a negative growth exhibited by LIC at 1.25 per cent. As against this, the private insurers and
LIC reported single premium growth of 239.46 per cent and 62.32 per cent, respectively. The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favorable growth in total premium both for LIC (18.25 per cent) and to the new insurers (147.65 per cent) in 2004-05. The higher growth for the new insurers is to be viewed in the context of a low base in 2003-04. However, the new insurers have improved their market share from 4.68 in 2003-04 to 9.33 in 2004-05.
TABLE 4
_______________________________________________________________________
MARKET SHARE OF LIFE INSURERS
_______________________________________________________________________
(In per cent)
Insurer 2003-04 2004-05
First year premium including
Single premium
LIC 87.67 78.78
Private Sector 12.33 21.22
Total 100.00 100.00
Renewal Premium
LIC 98.55 96.18
Private Sector 1.45 3.82
Total 100.00 100.00
Total Premium
LIC 95.32 90.67
Private Sector 4.68 9.33
Total 100.00 100.00
________________________________________________________________________
Segregation of the first year premium underwritten during 2004-05 indicates that Life, Annuity, Pension and Health contributed 77.27; 6.7; 15.55 and 0.47 per cent respectively to the first year premium. As against this, 81.68; 8.62; 8.97 and 0.72 per cent was respectively underwritten in the above segments in 2003-04. There is a slow but clear shift towards pension business. New policies underwritten by the industry were 262.11 lakh during 2004-05 showing a decline of 8.44 per cent against 2003-04. Prior to this, in the year 2003-04, the number of new policies underwritten had increased to 286.27 lakh as against 253.70 lakh in 2002-03, exhibiting an increase of 12.83 per cent. While the private insurers exhibited a growth of 34.62 per cent, LIC showed a negative growth of 11.09 percent. The market share of the private insurers and LIC, in terms of policies underwritten, was 8.52 per cent and 91.48 per cent as against 5.79 per cent and 94.21 percent respectively in 2003-04.
The increase in the renewal premium is a good measure of the quality of the business underwritten by the insurers. It reflects the increase in their persistency ratio and enables insurers to bring down overall cost of doing business. The renewal premium underwritten by the private insurers during 2004-05 reflects that some of the insurers have shown a healthy growth. The average for the private insurers, examined in the context of the renewal premium to the first year premium underwritten (excluding single premium), shows an increase to 68.67 as against 61.56 in 2003-04 and a mere 32.88 in 2002-03. Analysis of the first year premium in terms of linked and non-linked premium reflects that linked products continued to rule the roost in 2004-05. LIC, the public sector insurer, too underwrote significant business in this line.
While premium underwritten under the linked categories grew by 422.19 percent, the non-linked premium was almost static with growth of just 0.028 per cent. The linked and non linked business accounted for 32.54 per cent and 67.46 per cent respectively in the year 2004-05, as against 8.46 and 91.54 per cent in 2003-04. The non-linked and linked new business premium underwritten by LIC in 2004-05 was 78.31 per cent and 21.69 percent as against 97.70 per cent and 2.29 per cent in 2003-04. In case of private insurers the percentages were 28.72 and 71.28 in 2004-05 as against 50.18 and 49.82 per cent respectively in the previous year. The data clearly reflects LIC’s decision to drive its premium growth on the strength of unit linked products. The Group business has also witnessed some churning as the market has become more competitive. This has been true for the term business also. Today Group products are offered by all the life insurers.
Innovations in the products
With the demographic changes and changing life styles, the demand for insurance cover has also evolved taking into consideration the needs of prospective policyholder for packaged products. There have been innovations in the types of products developed by the insurers, which are relevant to the people of different age groups, and suit their requirements. Continued innovations in product development has resulted in a wide range of flexible products to meet the requirements for cover at different stages of life – today a variety of products are available ranging from traditional to Unit linked providing protection towards child, endowment, capital guarantee, pension and group solutions.
A number of new products have been introduced in the life segment with guaranteed additions, which were subsequently withdrawn/toned down; single premium mode has been popularized; unit linked products; and add–on/riders including accidental death; dismemberment, critical illness, fixed term assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products have been popularized with features of endowment, money back, whole life, single premium, regular premium, rebate in premium for higher sum assured, premium mode rebate, etc., together with riders to the base products.
ii) Non-life insurers
The non-life insurers underwrote a premium of Rs.10140.94 crore during the first half of the current financial year recording a growth of 15.44 per cent over Rs. 8784.77 crore underwritten in the same period of last year. The eight non-life insurers in the private sector underwrote a premium of Rs.2688.49 crore as against Rs.1681.80 crore in the corresponding period of the previous year, recording a growth of 59.86 per cent. The public sector non-life insurers including ECGC underwrote a premium of Rs.7452.44 crore, which was lower by 1.03 percent (Rs.7529.91 crore). The market share of the public insurers, and the private players was 73.49 and 26.51 percent respectively. ECGC underwrote credit insurance of Rs.274.08 crore as against Rs.240.87 crore in the previous year, a growth of 13.78 per cent. While the segment-wise break-up for public sector insurers is not available, the segment-wise performance of non-life private insurers during the six months is assessed.
The premium underwritten by the eight insurers in the Fire, Marine and Miscellaneous segments was Rs.760.27 crore, Rs.172.90 crore and Rs.1755.32 crore recording a growth of 46 per cent, 57 percent and 67 per cent, respectively over the corresponding period of the previous year. Premium underwritten by the private sector insurers in these segments during April-September, 2004 was Rs.519.47 crore, Rs.110.42 crore and Rs.1051.90 crore respectively. In terms of number of policies, the private insurers underwrote 1.67 lakh, 1.22 lakh and39.83 lakh policies in the Fire, Marine and Miscellaneous segments reporting a growth of 38.02, 90 and 95.76 per cent respectively. The policies underwritten in the corresponding period of the previous year were 1.21 lakh, 0.64 lakh and 20.09 lakh respectively. The growth in terms of policies underwritten by the private insurers was 92.43 per cent over the six-month period in 2004-05.
APPRAISAL OF INSURANCE MARKET
The insurance sector was opened up in the year 1999 facilitating the entry of private players into the industry. With an annual growth rate of 24.31 per cent and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. According to CSO, the insurance and banking services’ contribution to the country’s GDP is 7.1 per cent out of which the gross premium collection forms a significant part. Life insurance penetration in India was less than 1 per cent till 1990-91. During the ‘90s, it was between 1 and 2 per cent and from 2001 it was over 2 per cent. In 2003-04 it was 2.4 per cent. The impetus for increase is due to the active role played by IRDA in licensing private players and taking positive steps in increasing the insurance awareness among the people. Besides, the insurance companies in general and private insurance companies in particular, are reaching to so far untapped potential in rural areas with aggressive campaign by offering suitable products.
The penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate immense growth potential of the insurance sector. The hike in FDI limit to 49 per cent was proposed by the Government last year. This has not been operationalised as legislative changes are required for such hike. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Life insurance is viewed as a tax saving device.
People are now turning to the private sectors that are providing them with new products and variety for their choice. With the registration of Sahara Life Insurance Company Ltd., the number of companies operating in the life insurance industry has increased to fourteen. The new entrant commenced underwriting life premium during the financial year 2004-05, although to a comparatively slow start. Sahara Life is the first life insurance Company in the private sector, which has set up operations in the country without participation of a foreign joint venture partner. The company issued 10,195 policies with total premium income of Rs.1.74 crore. There are currently fourteen life and fourteen non-life insurance companies, out of non-life insurance companies, two are specialized Insurance companies viz. Agricultural Insurance Company, which handles Crop Insurance business and Export Credit Guarantee Corporation which only transacts Export Credit Insurance.
Numbers of registered insurers in India; -
Type of business
Public sector
Private sector
Total
Life Insurance
General Insurance
Re insurance
1
6
1
13
8
0
14
14
1
Total
8
21
29
Capital requirement and foreign participation
The improvement in FDI flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI and for encouraging infusion of new technologies and management practices. The decision to hike sect oral caps on FDI in telecom from 49 per cent to 74 per cent and in air transport services from 40 per cent to 49 per cent buoyed investors’ interest in these sectors. The Government’s proposal to increase the FDI cap in the insurance sector from the present 26 per cent to 49 per cent has raised expectations among the international insurance companies. India has a favorable market which is growing fast.
_____________________________________________________________________________
EQUITY SHARE CAPITAL OF INSURANCE COMPANIES
_____________________________________________________________________________
(Rs. Crore)
Name of the insurer 2003-04 2004-05 Foreign Indian FDI (%) Promoter Promoter
Life Insurers
HDFC Standard 255.50 320.00 47.52 272.48 14.90
ICICI-Prudential 675.00 925.00 240.50 684.50 26.00
Max New York 346.08 466.08 121.18 344.90 26.00
Kotak Mahindra 151.26 211.76 55.06 156.70 26.00
Birla Sun Life 290.00 350.00 91.00 259.00 26.00
TATA-AIG 231.00 321.00 83.46 237.54 26.00
SBI Life 175.00 350.00 91.00 259.00 26.00
ING Vysya 245.00 325.00 84.50 240.50 26.00
Met life India 160.00 235.00 61.10 173.90 26.00
Bajaj Allianz 150.07 150.07 39.02 111.05 26.00
AMP Sanmar 160.00 217.10 56.45 160.65 26.00
AVIVA 242.80 319.80 83.15 236.65 26.00
Sahara India 157.00 157.00 0.00 157.00 0.00
Sub Total 3238.71 4347.81 1053.93 3293.88 -
L I C 5.00 5.00 - 5.00 -
Total (Life) 3243.71 4352.81 ` 1053.93 3298.88 -
Non-life insurers
Royal Sundaram Alliance130.00 130.00 33.80 96.20 26.00
Reliance General 102.00 102.00 0.00 102.00 0.00
Bajaj Allianz General 110.00 110.00 28.60 81.40 26.00
IFFCO-TOKIO General 100.00 100.00 26.00 74.00 26.00
TATA AIG General 125.00 125.00 32.50 92.50 26.00
ICICI Lombard General 220.00 220.00 57.20 162.80 26.00
HDFC Chubb General 120.00 120.00 31.20 88.80 26.00
Cholamandalam MS 141.96 141.96 36.91 105.05 26.00
Sub Total 1048.96 1048.96 246.21 802.75 -
United India Insurance 100.00 100.00 - 100.00 -
The New India Assur. 100.00 150.00 - 150.00 -
The Oriental Insurance 100.00 100.00 - 100.00 -
National Insurance 100.00 100.00 - 100.00 -
Sub-Total 400.00 450.00 - 450.00 -
Total (Non-life) 1448.96 1498.96 246.21 1252.75 -
E. C. G. Corporation 500.00 600.00 - 600.00 -
A. I. C. of India 200.00 200.00 - 200.00 -
G I C 215.00 215.00 - 215.00 -
GRAND TOTAL 5607.67 6866.77 1300.14 5566.63 -
World Insurance Scenario
In 2004 insurers succeeded in combining revenue growth with higher profitability and a stronger capital base than in the previous two years. Investment banks and rating agencies acknowledged these developments and positively changed their outlook on the insurance industry. Year 2004 featured several changes in the overall insurance framework. Total world premium in nominal terms remained at the same level as in 2003 and increased by 2.3 per cent in real terms in 2004. Life and non-life business showed opposite trends. While growth gained momentum in life segment, the non-life segment showed otherwise. India is getting increasingly integrated with the world economy and has large and growing market potential, developed infrastructure, sophisticated financial sector, stable polity and strong economic outlook. These features make India as an attractive destination. In 2004, regional shares in the global premium volume shifted slightly. Regional differences in economic growth and tax regulations were important drivers of such differences. Europe gained 1.9 percentage points through life insurance, while North America and Asia lost 1.8 per cent and 0.5 percent respectively mainly due to sluggish demand for life insurance in the US and Japan, the dominating markets in those regions. As integrated risk management approach has gained ground within large corporate, this may result in a less cyclical captive market.
________________________________________________________________
INTERNATIONAL COMPARISON OF INSURANCE PENETRATION*
_____________________________________________________________________________
Continent/Country 2002** 2003* * 2004**
Total Life Non-Life Total Life Non-Life Total Life Non-Life
North America 9.39 4.48 4.90 9.40 4.25 5.15 9.17 4.12 5.05
United States 9.58 4.60 4.98 9.61 4.38 5.23 9.36 4.22 5.14
Canada 6.69 2.81 3.88 6.82 2.63 4.19 7.02 2.97 4.05
L.America&Caribbean 2.39 0.92 1.47 2.45 0.94 1.51 2.47 1.01 1.46
Bahamas 8.81 4.84 3.97 7.98 4.38 3.60 N/A N/A N/A
Barbados 8.86 2.78 6.08 11.29 3.87 7.42 N/A N/A N/A
Trinidad and Tobago 5.02 3.42 1.60 5.11 3.49 1.63 7.85 5.77 2.08
Chile 4.04 2.53 1.52 4.09 2.61 1.47 3.93 2.55 1.38
Jamaica 5.57 2.35 3.22 5.56 2.35 3.21 5.00 1.88 3.11
Panama 3.34 1.17 2.17 3.64 1.19 2.45 3.07 1.12 1.96
Honduras 2.81 0.72 2.09 N/A N/A N/A N/A N/A N/A
Argentina 2.35 0.73 1.61 2.54 0.72 1.82 2.68 0.88 1.80
Colombia 2.62 0.68 1.94 2.56 0.70 1.86 2.51 0.69 1.82
Venezuela 2.06 0.06 2.00 2.89 0.09 2.80 2.55 0.08 2.47
Dominican Republic 2.42 0.20 2.22 2.43 0.20 2.23 2.05 0.18 1.86
Brazil 2.79 1.05 1.74 2.96 1.28 1.68 2.98 1.36 1.63
Costa Rica 2.03 0.08 1.95 1.88 0.17 1.72 1.87 0.15 1.72
Uruguay 2.45 0.54 1.91 2.16 0.48 1.68 N/A N/A N/A
El Salvador 2.28 0.67 1.61 2.35 0.70 1.66 2.28 0.68 1.60
Mexico 2.01 0.94 1.07 1.80 0.70 1.10 1.86 0.79 1.06
Ecuador 1.54 0.18 1.37 1.72 0.17 1.54 1.68 0.20 1.48
Peru 1.19 0.41 0.78 1.44 0.60 0.83 1.31 0.59 0.72
Guatemala 1.15 0.20 0.96 1.12 0.20 0.92 1.09 0.17 0.92
Europe 8.06 4.83 3.22 7.98 4.64 3.35 7.89 4.68 3.20
United Kingdom 14.75 10.19 4.56 13.37 8.62 4.75 12.60 8.92 3.68
Switzerland 13.36 8.41 4.95 12.74 7.72 5.02 11.75 6.73 5.02
Netherlands 9.51 4.98 4.52 9.77 4.93 4.84 10.10 5.43 4.67
Ireland 8.55 5.42 3.14 9.59 6.04 3.55 8.97 5.74 3.23
Finland 8.98 6.98 2.00 8.69 6.81 1.88 8.77 6.89 1.88
France 8.58 5.61 2.97 9.15 5.99 3.15 9.52 6.38 3.14
Belgium 8.42 5.57 2.86 9.77 6.81 2.96 9.62 6.73 2.89
Sweden 6.62 4.55 2.07 6.97 4.74 2.23 6.96 4.56 2.39
Denmark 7.52 4.84 2.68 7.92 5.18 2.74 8.07 5.15 2.92
Germany 6.76 3.06 3.70 6.99 3.17 3.82 6.97 3.11 3.86
Italy 6.97 4.39 2.58 7.45 4.82 2.63 7.60 4.86 2.74
Spain 6.77 3.65 3.12 5.58 2.38 3.20 5.63 2.38 3.25
Austria 5.84 2.61 3.23 5.89 2.59 3.30 5.95 2.63 3.32
Portugal 6.60 3.46 3.14 7.31 4.14 3.17 7.85 4.66 3.19
Slovenia 5.05 1.15 3.91 5.23 1.25 3.98 5.61 1.65 3.96
Cyprus 4.57 2.39 2.18 4.57 2.29 2.28 4.39 2.31 2.08
Norway 4.53 2.57 1.96 4.89 2.79 2.10 5.20 3.14 2.06
Malta 4.66 2.14 2.52 5.04 2.52 2.52 5.61 2.84 2.78
Czech Republic 3.99 1.50 2.49 4.48 1.72 2.76 4.15 1.63 2.53
Luxembourg 4.02 1.75 2.28 4.49 2.09 2.40 3.64 1.43 2.21
Slovakia 3.38 1.46 1.92 3.38 1.38 2.00 3.61 1.46 2.15
Iceland 3.30 0.29 3.01 3.23 0.29 2.94 3.01 0.29 2.72
Poland 2.96 1.04 1.92 3.02 1.12 1.91 3.07 1.17 1.90
Russia 2.77 0.96 1.81 3.25 1.12 2.13 2.83 0.61 2.21
Croatia 3.16 0.65 2.51 3.25 0.72 2.53 3.20 0.76 2.44
Hungary 2.88 1.18 1.70 3.01 1.20 1.80 2.83 1.15 1.67
Yugoslavia N/A N/A N/A N/A N/A N/A N/A N/A N/A
Greece 2.05 0.94 1.11 2.10 0.93 1.17 2.10 0.93 1.17
Bulgaria 1.90 0.44 1.47 1.90 0.21 1.69 1.92 0.26 1.65
Ukraine 2.01 0.01 2.00 3.54 0.03 3.52 4.82 0.05 4.77
Turkey 1.31 0.24 1.07 1.35 0.24 1.12 1.54 0.29 1.25
Romania 1.09 0.27 0.81 1.45 0.34 1.11 1.51 0.35 1.15
Serbia and Montenegro 2.24 0.03 2.22 2.25 0.08 2.17 2.20 0.16 2.04
Latvia 1.91 0.08 1.83 2.06 0.09 1.97 N/A N/A N/A
Lithuania 1.46 0.28 1.19 1.51 0.40 1.11 1.48 0.38 1.10
Asia 7.61 5.81 1.80 7.51 5.74 1.77 7.37 5.58 1.79
South Korea 11.61 8.23 3.38 9.63 6.77 2.86 9.52 6.75 2.77
Japan 10.86 8.64 2.22 10.81 8.61 2.20 10.51 8.26 2.25
Tiwan 10.16 7.35 2.81 11.31 8.28 3.02 14.13 11.06 3.07
Hong Kong 6.65 5.20 1.45 7.88 6.38 1.50 9.27 7.88 1.39
Israel 6.28 2.94 3.34 6.54 2.90 3.65 6.16 2.76 3.40
Malaysia 4.91 2.94 1.97 5.35 3.29 2.05 5.40 3.52 1.88
Singapore 4.91 3.48 1.43 7.59 6.09 1.50 7.50 6.02 1.48
Thailand 3.24 2.09 1.15 3.45 2.25 1.19 3.52 1.94 1.58
India 3.26 2.59 0.67 2.88 2.26 0.62 3.17 2.53 0.65
Lebanon 2.78 0.56 2.22 2.91 0.78 2.13 3.06 0.95 2.10
PR China 2.98 2.03 0.96 3.33 2.30 1.03 3.26 2.21 1.05
Bahrain 2.08 0.46 1.62 N/A N/A N/A N/A N/A N/A
Jordan 2.23 0.28 1.95 2.22 0.28 1.94 2.67 0.31 2.36
Phillipines 1.48 0.87 0.61 1.48 0.87 0.61 1.49 0.91 0.59
UAE 1.28 0.30 0.98 1.12 0.26 0.86 1.65 0.28 1.37
Sri Lanka 1.30 0.55 0.74 1.30 0.55 0.74 1.37 0.60 0.77
Indonesia 1.49 0.66 0.83 1.49 0.66 0.83 1.31 0.63 0.68
Oman 1.01 0.18 0.83 1.24 0.17 1.06 1.28 0.18 1.10
Vietnam 1.45 0.87 0.57 1.45 0.87 0.57 2.02 1.35 0.68
Iran 1.16 0.11 1.04 1.16 0.09 1.07 1.15 0.09 1.06
Kuwait 0.95 0.23 0.72 0.92 0.23 0.69 0.93 0.22 0.70
Pakistan 0.62 0.24 0.39 0.62 0.24 0.39 0.71 0.28 0.43
Saudia Arabia 0.48 0.02 0.46 0.47 0.02 0.45 0.48 0.02 0.46
Bangladesh 0.46 0.29 0.18 0.57 0.37 0.20 0.57 0.37 0.20
Africa 4.45 3.28 1.17 4.09 2.93 1.16 4.89 3.41 1.48
South Africa 18.78 15.92 2.86 15.88 12.96 2.92 14.38 11.43 2.95
Mauritius 4.32 2.62 1.70 4.59 2.78 1.81 4.61 2.78 1.83
Zimbabwe 4.08 2.35 1.73 4.17 2.40 1.77 N/A N/A N/A
Morocco 3.00 0.99 2.01 2.85 0.80 2.05 2.70 0.64 2.06
Kenya 3.09 0.81 2.28 2.98 0.78 2.20 2.81 0.82 1.99
Ivory Coast 1.38 0.45 0.93 N/A N/A N/A N/A N/A N/A
Tunisia 1.80 0.15 1.65 1.82 0.16 1.66 2.01 0.16 1.86
Nigeria 0.62 0.11 0.51 0.77 0.14 0.63 0.94 0.17 0.76
Egypt 0.59 0.18 0.41 0.68 0.22 0.47 0.79 0.27 0.52
Algeria 0.65 0.03 0.63 0.64 0.02 0.61 0.58 0.03 0.55
Oceania 8.05 4.48 3.57 7.70 3.99 3.71 7.65 3.75 3.90
Australia 8.48 5.02 3.46 7.99 4.42 3.57 8.02 4.17 3.85
New Zealand 6.19 1.41 4.78 6.23 1.39 4.83 5.74 1.32 4.42
World 8.14 4.76 3.38 8.06 4.59 3.48 7.99 4.55 3.43
________________________________________________________________________________________________
* Insurance penetration is measured as ratio (in Per Cent) of premium to GDP
** Data relates to Calendar years
______________________________________________________________________________________
INTERNATIONAL COMPARISON OF INSURANCE DENSITY*
________________________________________________________________________
Continent/Country 2002** 2003** 2004**
Total Life NonLife Total Life NonLife Total Life NonLife
North America 3275.0 1563.8 1711.2 3464.3 1565.7 1898.6 3601.1 1617.2 1984.0
United States 3461.6 1662.6 1799.0 3637.7 1657.5 1980.2 3755.1 1692.5 2062.6
Canada 1563.2 657.3 905.8 1871.8 722.9 1148.9 2188.7 926.1 1262.6
L. Ame. & carib. 75.5 29.1 46.4 78.3 30.0 48.2 90.9 37.2 53.7
Bahamas 1248.6 685.5 563.1 1274.1 699.5 574.6 N/A N/A N/A
Barbados 820.2 257.0 563.2 1064.1 364.6 699.6 N/A N/A N/A
Trinidad and Tobago 381.6 260.3 121.4 383.9 261.8 122.1 659.3 484.5 174.8
Chile 165.6 103.5 62.1 216.3 138.3 78.0 253.1 164.5 88.6
Jamaica 171.1 72.3 98.8 155.1 65.6 89.5 161.6 60.8 100.7
Panama 127.3 44.6 82.7 129.7 42.4 87.3 139.3 50.6 88.7
Honduras 28.2 7.2 21.0 N/A N/A N/A N/A N/A N/A
Argentina 62.9 19.7 43.2 85.9 24.2 61.7 105.1 34.5 70.6
Colombia 48.3 12.5 35.8 45.1 12.4 32.7 51.9 14.3 37.6
Venezuela 81.3 2.5 78.8 84.5 2.5 82.0 101.1 3.1 98.0
Dominican Republic 60.4 4.9 55.5 45.7 3.7 42.0 41.3 3.7 37.6
Brazil 72.2 27.2 45.0 82.6 35.8 46.8 101.1 45.9 55.2
Costa Rica 86.7 3.3 83.4 79.1 7.0 72.0 85.7 6.8 78.8
Uruguay 80.8 17.8 63.0 69.9 15.4 54.5 N/A N/A N/A
El Salvador 49.7 14.5 35.2 52.7 15.6 37.1 52.7 15.8 36.9
Mexico 126.7 59.2 67.5 106.5 41.3 65.3 117.8 50.2 67.6
Ecuador 23.7 2.7 21.0 34.4 3.5 30.9 37.1 4.5 32.6
Peru 25.3 8.7 16.6 32.1 13.5 18.7 32.1 14.5 17.5
Guatemala 21.6 3.7 17.9 22.0 3.9 18.1 23.0 3.5 19.5
Europe 1034.4 620.4 414.0 1251.8 726.9 524.9 1427.9 848.1 579.8
United Kingdom 3879.1 2679.4 1199.7 4058.5 2617.1 1441.4 4508.4 3190.4 1318.0
Switzerland 4922.4 3099.7 1822.6 5660.3 3431.8 2228.5 5716.4 3275.1 2441.2
Netherlands 2472.4 1296.1 1176.3 3094.0 1561.7 1532.4 3599.6 1936.5 1663.1
Ireland 2703.0 1712.2 990.7 3669.5 2312.5 1356.9 4091.2 2617.4 1473.8
Finland 2272.1 1765.3 506.8 2714.5 2126.8 587.7 3134.1 2461.0 673.1
France 2064.2 1349.5 714.7 2698.3 1767.9 930.5 3207.9 2150.2 1057.7
Belgium 2002.9 1323.6 679.3 2875.7 2004.8 870.9 3275.6 2291.2 984.4
Sweden 1792.7 1232.2 560.5 2357.9 1602.3 755.6 2690.0 1764.3 925.7
Denmark 2448.3 1574.9 873.4 3116.0 2037.5 1078.5 3620.4 2310.5 1309.9
Germany 1627.7 736.7 891.1 2051.2 930.4 1120.8 2286.6 1021.3 1265.3
Italy 1435.4 904.9 530.5 1913.1 1238.3 674.8 2217.9 1417.2 800.7
Spain 1091.5 588.0 503.5 1146.1 488.6 657.5 1355.2 571.9 783.3
Austria 1452.1 648.7 803.4 1846.8 811.0 1035.7 2159.7 955.3 1204.4
Portugal 799.4 418.6 380.8 1079.6 611.4 468.2 1293.5 768.1 525.4
Slovenia 557.0 126.4 430.6 725.8 173.6 552.1 919.6 270.0 649.5
Cyprus 603.9 315.8 288.1 765.4 383.0 382.3 861.5 453.3 408.2
Norway 1939.0 1101.0 830.8 2321.3 1322.5 998.8 2842.2 1714.4 1127.8
Malta 457.7 210.3 247.4 589.2 294.7 294.5 728.6 368.2 360.4
Czech Republic 272.6 102.6 170.0 363.4 139.4 224.0 430.5 168.6 261.9
Luxembourg 1934.3 840.0 1094.3 2496.0 1161.1 1335.0 2562.9 1007.1 1555.8
Slovakia 148.8 64.3 84.5 210.6 85.8 124.8 276.0 111.8 164.2
Iceland 978.7 87.0 891.7 1205.6 108.1 1097.5 1310.2 126.9 1183.3
Poland 144.5 50.7 93.8 162.2 59.9 102.3 192.7 73.3 119.4
Russia 66.6 23.1 43.5 98.2 33.9 64.3 114.4 24.8 89.6
Croatia 160.7 33.2 127.5 207.9 46.3 161.6 247.9 58.7 189.2
Hungary 186.9 76.7 110.2 247.8 99.1 148.7 287.3 117.3 170.0
Yugoslavia N/A N/A N/A N/A N/A N/A N/A N/A N/A
Greece 253.1 116.0 137.2 342.8 152.1 190.7 402.1 177.9 224.1
Bulgaria 43.1 9.9 33.1 49.2 5.5 43.7 59.4 8.2 51.2
Ukraine 17.1 0.1 17.0 35.4 0.3 35.1 60.9 0.6 60.3
Turkey 35.0 6.5 28.5 47.7 8.4 39.3 64.5 12.0 52.6
Romania 22.3 5.6 16.7 35.8 8.4 27.3 48.2 11.3 36.9
Serbia and Montenegro 33.0 0.4 32.6 40.8 1.4 39.4 44.7 3.2 41.5
Latvia 68.5 2.9 65.6 90.1 4.0 86.1 N/A N/A N/A
Lithuania 57.9 10.9 47.0 76.6 20.1 56.4 95.7 24.6 71.1
Asia 167.8 128.1 39.7 183.4 140.1 43.3 194.3 147.2 47.1
South Korea 1159.8 821.9 337.8 1243.0 873.6 369.4 1419.3 1006.8 412.5
Japan 3498.6 2783.9 714.7 3770.9 3002.9 768.0 3874.8 3044.0 830.8
Tiwan 1279.2 925.1 354.1 1433.3 1050.1 383.2 1909.0 1494.6 414.4
Hong Kong 1583.0 1237.9 345.2 1832.6 1483.9 348.7 2217.2 1884.3 332.9
Israel 981.1 459.3 521.8 1040.6 460.8 579.8 1043.4 467.4 576.0
Malaysia 198.0 118.7 79.3 227.0 139.8 87.2 256.5 167.3 89.3
Singapore 1030.7 730.1 300.6 1620.5 1300.2 320.3 1849.3 1483.9 365.5
Thailand 65.2 42.1 23.1 79.6 52.0 27.6 92.1 50.8 41.4
India 14.7 11.7 3.0 16.4 12.9 3.5 19.7 15.7 4.0
Lebanon 116.1 23.2 92.9 115.6 31.0 84.7 126.7 39.6 87.2
PR China 28.7 19.5 9.2 36.3 25.1 11.2 40.2 27.3 12.9
Bahrain 295.2 65.3 229.9 N/A N/A N/A N/A N/A N/A
Jordan 40.1 5.1 35.1 41.4 5.2 36.2 52.1 6.0 46.2
Phillipines 14.7 8.7 6.1 14.6 8.6 6.0 15.6 9.4 6.1
UAE 317.0 74.0 243.1 310.7 72.5 238.2 350.2 59.7 290.6
Sri Lanka 10.6 4.5 6.1 12.5 5.3 7.1 14.1 6.2 7.9
Indonesia 11.9 5.2 6.6 14.5 6.4 8.1 15.5 7.5 8.1
Oman 84.0 14.8 69.3 99.0 13.8 85.2 103.1 14.2 88.9
Vietnam 6.3 3.8 2.5 6.7 4.1 2.7 11.0 7.3 3.7
Iran 15.7 1.5 14.1 22.3 1.7 20.5 27.9 2.3 25.7
Kuwait 154.1 36.8 117.3 148.0 36.9 111.1 161.2 39.1 122.2
Pakistan 2.7 1.0 1.7 2.9 1.1 1.8 3.7 1.5 2.2
Saudia Arabia 41.6 1.7 39.9 41.2 1.7 39.5 51.4 2.1 49.3
Bangladesh 1.6 1.0 0.6 2.1 1.4 0.7 2.3 1.5 0.8
Africa 29.2 21.5 7.7 36.4 26.1 10.3 43.4 30.3 13.1
South Africa 425.3 360.5 64.8 583.9 476.5 107.4 686.5 545.5 141.0
Mauritius 171.0 103.7 67.4 196.5 119.1 77.4 220.8 133.1 87.7
Zimbabwe 13.5 7.8 5.7 37.2 21.4 15.8 N/A N/A N/A
Morocco 37.0 12.2 24.8 42.8 12.0 30.8 44.9 10.6 34.3
Kenya 11.6 3.0 8.5 12.9 3.4 9.5 12.6 3.7 8.9
Ivory Coast 9.7 3.2 6.5 N/A N/A N/A N/A N/A N/A
Tunisia 38.8 3.2 35.5 45.9 4.0 42.0 55.3 4.3 51.0
Nigeria 2.5 0.5 2.1 3.0 0.6 2.5 4.0 0.7 3.3
Egypt 7.8 2.4 5.4 8.4 2.7 5.7 8.9 3.1 5.8
Algeria 11.7 0.5 11.2 12.5 0.5 12.0 14.8 0.8 14.0
Oceania 1201.8 668.7 533.1 1449.3 750.7 698.5 1736.9 851.0 885.9
Australia 1705.9 1010.4 695.6 2041.4 1129.3 912.1 2471.4 1285.1 1186.3
New Zealand 926.2 211.1 715.1 1215.1 272.0 943.1 1382.2 318.0 1064.2
World 422.9 247.3 175.6 469.6 267.1 202.5 511.5 291.5 220.0
* Insurance density is measured as ratio (in Per Cent) of premium to total population
** Data relates to Calendar years
CONCLUSION
Sustainable growth in the insurance industry is possible in an environment which values and promotes financial stability, increased management capability and total public accountability. . The IRDA has issued many regulations in the business conduct of the insurance companies so as to promote growth of insurance business in India without disturbing the financial stability. The growth was observed not only in the number of insurance companies but also in the premium collected. A similar increase was also observed in the insurance penetration. Considering the improvements, it is now time to consolidate and review some of the regulations with the changing scenario of global integration, high growth in domestic products caused by increased contribution from the services sector, interest of FIIs in the Indian markets and the operations of financial conglomerates. The IRDA regulatory role now is being turned towards watching market practices and a strong supervisory. The IRDA believes in putting in regulations only after an open and transparent practice of prior consultation with stakeholders
For any industry to grew it is necessary that there should be many innovative products available to the consumers which are affordable by the consumer at appropriate prices suitable to their needs. The IRDA are able to bring such a competition among the insurance companies operating in India. As of now there are many products that are available which are tailor-made to different segments of the population. These innovations to some extent have brought in shifts in the market share between the public sector and private sector companies. The stability and robustness of the insurance industry depends not only on the selection of sound players to enter the market but also in ensuring that they remain financially sound throughout their operations. As the Authority is committed to safeguarding the policyholders’ interest, the Authority has put in place stringent solvency requirements.
Agency force should be properly equipped as in future the insurance products will no longer be simple but more complex. The agents therefore should be able to understand the complexity to assess the requirement of the populace and then only advice on the appropriate policy which suits to the needs of the population. IRDA is in close contact with the Insurance Institute of India for streamlining the examination system as instances have been noticed where the sanctity of the examination process was sought to be compromised by a few interested parties.
Another area of concern is the low penetration of health insurance in India. The concerted efforts by the IRDA in constituting Working Group on Health Insurance to look into various issues regarding improving the health insurance in India together with collection of data for underwriting purposes and tracing the claim histories are yielding results
Subscribe to:
Post Comments (Atom)
1 comment:
ICICI Lombard provides a completely new look to the Mediclaim concept. Health Insurance known as Mediclaim offers protection in case of unexpected medical emergencies. In case of a sudden illness or accident, the health insurance policy takes care of the hospitalization, medical and other costs incurred.
They offer a range of innovative policies to choose from. Each plan offers something unique in addition to the usual mediclaim policies to suit your specific needs includes Health Advantage Plus Insurance, Family Floater Plan and Personal Accident Insurance
Travel Insurance is an online initiative of ICICI Lombard GIC to ensure that you have a smooth travel experience. And thus, they assist you with valuable information and tools for planning your travel while you are traveling to ensuring a smooth journey and a hassle free trip.
Motor insurance is a comprehensive policy that not only covers you for unfortunate accidents against third party liability but also against damage to your vehicle, accidental injury and much more includes Car Insurance and Two Wheeler Insurance.
Home insurance is imperative that secure your home from natural and man-made catastrophes. Home Insurance Plan ensures you peace of mind by protecting the structure and the contents of your home. The policy covers the losses to the structure and contents of your home due to any natural and man made calamities.
Post a Comment