Introduction of Life Insurance

Life insurance is designed to protect life and to product family against financial
uncertainties that may result due to unfortunate demise or illness. It can also view as a
comprehensive financial instrument, as a part of the financial planning offering savings &
investment facilities along with cover against financial loss. By choosing the right policy
as per the needs. i.e. customized solutions, you will be able to plan for a secure future for
yourself and your loved ones.

We all have different financial needs and objectives. But life insurance plays a
fundamental role in most of our plans for financial security. That's because of the variety
of life insurance plans available and the many ways they can be customized to meet
unique needs at different periods of your life.

Insurance Industry

The business of insurance started with marine business. Traders, who used to
gather in the Lloyds coffee house in London, agreed to share the losses to their goods
while being carried by ships. The losses used to occur because of pirates who robbed on
the high seas or because of bad weather spoiling the goods or sinking the ship. The first
insurance policy was issued in 1583 in England. In India, insurance began in 1870 with
life insurance being transacted by an English company, the European and the Albert. The
first Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed
in 1870. This was followed by the Oriental Life Assurance Co. in 1874, the Bharat in
1896 and the Empire of India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in
Madras, the Bombay life in Bombay, the National in Calcutta, the New India in Bombay,
the Jupiter in Bombay and the Lakshmi in New Delhi. These were all Indian companies,
started as a result of the swadeshi movement in the early 1900s. By the year 1956, when
the life insurance was nationalized and the Life Insurance Corporation of India (LIC) was
formed on 1st September 1956, there were 170 companies and 75 provident fund societies
transacting life insurance business in India. After the amendments to the relevant laws in
1999, the L.I.C. did not have the exclusive privilege of doing life insurance business in
India. By 31.3.2002, eleven new insurers had been registered and has begun to transact
life insurance business in India.

Need of Insurance

Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns,
lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we
say that the asset is exposed to that risk. Perils are the events. Risks are the
consequential losses or damages. The risk to an owner of a building, because of the peril
of an earthquake, may be a few lakhs or a few crores of rupees, depending on the cost of
the building and the contents in it.
 The risk only means that there is a possibility of loss or damage. The damage
may or may not happen. Insurance is done against the contingency that it may happen.
There has to be an uncertainty about the risk. Insurance is relevant only if there are
uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be
insured against. In the case of a human being, death is certain, but the time of death is
uncertain. In the case of a person who is terminally ill, the time of death is not certain,
though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril.
The peril cannot be avoided through insurance. The peril can sometimes be avoided,
through better safety and damage control management. Insurance only tries to reduce the
impact of the risk on the owner of the asset and those who depend on that asset. It only
compensates the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial,

insurance may not be possible. Examples of non-economic losses are love and affection
of parents, leadership of managers, sentimental attachments to family heirlooms, innovate
and creative abilities, etc.

With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs 450 billion. Together with banking
services, it adds about 7 per cent to the countrys GDP. Gross premium collection is
nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of
GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subject to weak social security and pension systems
with hardly any old age income security. This itself is an indicator that growth potential
for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.

Insurance is a federal subject in India. There are two legislations that govern the
sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India
has come a full circle from being an open competitive market to nationalization and back
to a liberalized market again. Tracing the developments in the Indian insurance sector
reveals the 360-degree turn witnessed over a period of almost two centuries.

Indian Insurance Industry: Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large number of
people associate themselves by sharing risk, attached to individual.
The risk, which can be insured against include fire, the peril of sea, death, incident, &
burglary. Any risk contingent upon these may be insured against at a premium
Home Insurance:

Your home is an investment of a lifetime, but protecting that investment need not
cost lot of time or money! Bharti AXA Home Insurance protects your house and valuable
contents against fire, burglary and other perils. Just declare the value of your assets to get
home insurance starting at Rs. 250 per year.
To accommodate your home insurance needs, we have tailored 2 levels of cover
exclusive to online purchase.

Basic Insurance Cover

Fire insurance for building/structure
Fire insurance for contents

Basic Cover + Burglary Insurance Cover

All the above benefits
Burglary insurance covering
o Fitting and fixtures
o Personal content

Add-on Covers

To stay completely protected why not add Bharti AXA's range of optional cover to your
home insurance policy.
Jewellery and valuable cover - Includes jewellery (gold and silver) and
valuables (camera, watches, etc.) against fire, burglary, theft, waylaying,
snatching, and natural calamities
Domestic appliances cover - Includes domestic appliances (refrigerator,
washing machine, etc.) against fire, burglary (excluding theft), natural
calamities and breakdown
Terrorism cover - Includes your building and content against any damages or
losses caused due to any acts of terrorism

Inclusions

Our Home insurance includes:

1. Cover against fire and allied perils for
o Building, fixtures & fitting, and renovation
2. Cover against fire, allied perils and burglary for
o Home contents, valuable, appliances and jewellery
o Newly purchased contents up to 10% of the sum insured
3. Cover against loss or damage of household goods in transit within
India
Exclusions:

Our Home Insurance excludes:

1. Loss or Damage to insured property caused by war or war like

operations

2. Wilful act or negligence of the insured

3. Cracking, scratching or breakage of lens in respect of articles of brittle

and fragile nature

4. Please refer our policy wordings for more details.

Claim Process:

Register a claim by contacting our 24 hours helpline on 080-49123900 or email us

at claims@bharti-axagi.co.in. Please intimate the help desk as soon as the claim occurs,
so that we can provide you quick service.
While registering the claim, please provide the following information:
1. Name of insured
2. Policy number
3. Contact details
4. Date & time of loss
5. Location of loss
6. Nature & extent of loss

Claim form, death/disability certificate, admission/discharge summary are the basic

documents required for claim settlement.
Depending upon the coverage opted for, benefit under the policy will be calculated and
the claim will be settled within 10 days of receipt of all documents.