Professional Documents
Culture Documents
General Insurance in India
General Insurance in India
General Insurance in India
is INSURANCE
main function
Benefits
Insured: The person known as the policyholder, a person with insurance coverage. Insurer: A company licensed to transact the business of insurance and issue insurance policies. Policy: It's the written contract between an insurance company and its insured. It defines what the company agrees to cover for what period of time and describes the obligations and responsibilities of the insured.
Premium: It's the amount of money a policyholder pays for insurance protection. Claim: It's the notice to the insurance company that under the terms of a policy, a loss maybe covered. Indemnity: An insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.
Agent: A licensed person or organization who sells insurance and represents the insurance company to the policyholder. Broker: An organization or person paid by the policyholder to look for insurance on their behalf. Deductible: It's the amount of the loss, which the insured is responsible to pay before the insurance company pays the benefits. Expiration Date: This is the date on which the policy ends.
Limit:
It's the maximum amount paid by the insurance company under the terms of a policy.
Underwriting:
The process of classifying applicants for insurance by identifying characteristics such as age, gender, health, occupation and hobbies.
Types of Insurance
provides
compensation for damage or destruction of a home from disasters such as flood and earthquakes, that require additional coverage.
Cover
the cost of medical treatments coverage for individuals to protect them against dental costs.
Marine
insurance was being practiced in India from the beginning of 19th century insurance followed in 1825 at Madras
Fire
First
Need
to control insurance business was felt by the British government which introduced the Insurance Act in 1938.
General Insurance business was being done by 106 companies including LIC (GI) In 1972 GI Nationalisation act was passed allowing the formation of GIC as the holding company and with 4 subsidiaries The objective of nationalisation was to spread insurance to nook and corner of the country and to utilise peoples money for the peoples good thus uplifting the socio economic condition of the country
Following
globalisation moves Malhotra committee had been formed to look into the methods of liberalisation of insurance
Later
on the bill in the modified form as IRDA bill was introduced in 1999 and the IRDA act was passed. independent statutory authority as Regulator for insurance business came into existence in 1999
An
Direct
selling agents
Corporate
Group
Brokers
Banc
assurance
Insurance is an Rs.400 billion business in India, and together with banking services adds about 7% to Indias GDP. has been growing by 15 - 20% per annum.
It
India
also has the highest number of life insurance policies in force in the world, and total investible funds with the LIC are almost 8% of GDP.
REGISTERED INSURERS IN INDIA Type of business Life Insurance General Insurance Re-insurance Total Public Sector 1 6 1 8 Private Sector 21 15 0 36 Total 22 21 1 44
Insurer Public
Apr-Jun 2008 Apr-Jun 2009 9600458 8887123 (8.52) (-7.43) Private 4971011 5318470 (27.93) (6.99) Total 14571469 14205593 (14.44) (-2.51) Note: Figure in brackets indicates the growth (in per cent) over previous year.
Geographical restriction: None for new players Equity restriction: Foreign promoter can hold up to 26 per cent of the equity Source: * Swiss Re, (figures pertain to calendar year 2008) Rest of the figures for the financial year 2008-09