Insura nce a nd ri sk

ma nagement
S u b m i t t e d b y-
Pa l a kp r e e t ( 4 1 2 2 )
Pava n i ( 4 1 2 3 )
Class – bba sem 5

Submit ted to-

M r s . P o o n a m a ry a
A s s i s t a n t p ro f e s s o r
D e p a rt m e n t o f b u s i n e s s a d m i n i s t r a t i o n
G ov e rnment col l ege f or g irl s, ludhiana
Life
life
life
life
insurance
c o r p o r at i o n
c o r p o r at i o n
c o r p o r at i o n
Topics cove red -
❑ Meaning
❑ P r i vat e l i f e i n s u r a n c e
❑ Lic of india
❑ Aims of lic
❑ L i c o rg a n i s at i o n a l s t ru c t u r e
❑ A d va n tag e s o f l i f e i n s u r a n c e
❑ I m p o rt a n t f u n c t i o n s
❑ Ro l e o f l i c i n I n d i a n e c o n o m y
❑ I r da g u i deli nes f o r i n ve stment
of f unds
❑ Types
❑ W i d e n e t w o r k p ro g r e s s
❑ T r a ining f acilities

3
 m e an in g
Life insurance is defined as a legally binding contract between
a policyholder and an insurer in which the insurance company
provides financial protection to the policyholder and pays a
death benefit to the nominee when the insured dies. For a life
insurance policy to remain in force, the policyholder must pay
regular premiums over the period of time or pay a single
premium upfront.

In a nutshell, all the benefits of a life insurance policy are tied

to the payment of premiums, which is why one should opt for
a premium that can be easily serviced. A life insurance policy
works only if the policyholder has paid all premiums regularly.
Private l if e in suran ce
ope ratin g in india
Date of Year of Registered Office located in
Sr no. Insurers Foreign Partners RegnNo. Registration Operation (City/State)
1 HDFC Standard Life Insurance Co. Ltd. Standard Life (Mauritius Holdings), 2006 Ltd. 101 23.10.2000 2000-01 Mumbai (Maharashtra)
2 Max Life Insurance Co. Ltd. Mitsui Sumitomo Insurance co.Ltd, Japan 104 15.11.2000 2000-01 Mumbai (Maharashtra)
3 ICICI-Prudential Life Insurance Co. Ltd. Prudential Corporation Holdings Ltd , UK 105 24.11.2000 2000-01 Mumbai (Maharashtra)
4 OM Kotak Life Insurance Co. Ltd. Old Mutual Plc,, South Africa 107 10.01.2001 2001-02 Mumbai (Maharashtra)
5 Birla Sun Life Insurance Co. Ltd. Sun Life Financial (India) Insurance Investment Inc, Canada 109 31.01.2001 2000-01 Mumbai (Maharashtra)
6 Tata-AIG Life Insurance Co. Ltd. American International Assurance Co.(Bermuda Ltd.) 110 12.02.2001 2000-01 Mumbai (Maharashtra)
7 SBI Life Insurance Co. Ltd. BNP Paribas Cardif, France 111 29.03.2001 2001-02 Mumbai (Maharashtra)
8 ING Vysya Life Insurance Co. Ltd. ING Insurance International B.V., Netherlands 114 02.08.2001 2001-02 Bangalore (Karnataka)
9 Bajaj Allianz Life Insurance Co. Ltd. Allianz, SE Germany 116 03.08.2001 2001-02 Pune (Maharashtra)
10 Metlife India Insurance Co. Ltd. Metlife International Holdings Inc, USA 117 06.08.2001 2001-02 Bangalore (Karnataka)
11 Reliance Life Insurance Co. Ltd. Nippon Life Insurance Co.Ltd. Japan. 121 03.01.2002 2001-02 Mumbai (Maharashtra)
12 AVIVA India Life Insurance Co.Ltd Aviva International Holdings Ltd., UK 122 14.05.2002 2002-03 Gurgaon (Haryana)
13 Sahara Life Insurance Co. Ltd. --- 127 06.02.2004 2004-05 Lucknow (Uttar Pradesh)
14 Shriram Life Insurance Co. Ltd. ---- 128 17.11.2005 2005-06 Hyderabad (Andhra Pradesh)
15 Bharti AXA Life Insurance Co. Ltd. AXA India Holdings, France 130 14.07.2006 2006-07 Mumbai (Maharashtra)
Future Generali India Life Insurance Company Participatie Maatschapij Graafsschap Holland NV, Netherlands
16 Ltd. (“Generali”) 133 04.09.2007 2007-08 Mumbai (Maharashtra)
17 IDBI Federal Life Insurance Company Ltd. Aegis Insurance International NV. Netherlands 135 19.12.2007 2007-08 Mumbai (Maharashtra)
Canara HSBC OBC Life Insurance Company
18 Ltd. HSBC Insurance (Asia Pacific) Holdings Ltd. 136 08.05.2008 2008-09 Gurgaon (Haryana)
19 Aegon Religare Life Insurance Company Ltd. Aegon India Holdings BV, Netherlands 138 27.06.2008 2008-09 Mumbai (Maharashtra)
20 DLF Pramerica Life Insurance Co. Ltd. Prudential International Insurance Holdings Ltd. USA 140 27.06.2008 2008-09 Gurgaon (Haryana)
21 Star Union Dai-Ichi Life Insurance Co. Ltd. Dai-Ichi Life Insurance Co Ltd. Japan 142 26.12.2008 2008-09 Mumbai (Maharashtra)
22 IndiaFirst Life Insurance Co. Ltd. Legal & General Middle East Ltd. 143 05.11.2009 2009-10 Mumbai (Maharashtra)
23 Edelweiss Tokio Life Insurance Company Ltd. Tokio Marine & Nichido Fire Insurance Co.Ltd. Japan 147 10.05.2011 2011-12 Mumbai (Maharashtra)
Lic of

india
Aims of lic
• To assure full protection to the policy
holders
• To encourage and mobilize public savings
• Effective utilization of those savings in
different forms of investment for national
and economic development
• To create liquidity position in public
• To motivate saving habits among the
public
• Provisions for old age and tax concession
 Life
HEAD OFFICE
insurance
Chairman c o r p o r at i o n
-
Board of Directors
o rg a n i z at i o n
Directors and General Managers s t ru c t u r e
Deputy (or Assistant) General Manager

ZONAL OFFICE

Secretary Chief Departmental Regional Managers

Audit Accountants Zonal Managers Inspection
 DIVISIONAL OFFICE Life
Department Divisional Managers insurance
Deputy or Assistant Managers
c o r p o r at i o n
Administration officers
-
Accountant
o rg a n i z at i o n
BRANCH OFFICE
s t ru c t u r e
Sub-offices

Development Centres

Branch Managers

Asst. Administration Officers

Chief Accountants

Assistants
 Advan tages of lif e
in surance
1. It insures absolute protection against the risk of death.
2. Insurance encourages compulsory savings.
3. Life Insurance facilitates easy settlement and the beneficiaries fully
protected from creditors.
4. Policy holders of life insurance are eligible to get tax exemptions from
Income Tax.
5. It facilitates easy marketability and suitability for quick borrowing through
commercial loan (or) housing loan or surrenders the policy for a cash sum.
6. It involves all the people working in the Corporation to the best of their
capacity in furthering the interest of the insured public by providing
efficient services.
Im portan t f un ction s

Mobilizing Better social Services

Absolute Issuing policy Employment
Underwriting Protects insurance utilization of oriented related to
security documents opportunities
business resources investment registration
Role of l ic in national
e con omy
Investment
Underwriting
Disbursing loans
Subscribing to debentures and bonds
Socially oriented
shareholding
control
Mutual funds
Boosting industrial growth
Claims and settlement
 Irda guid e lin es f or
in ve stm e n t of f un ds
As per IRDA Regulations, life insurer shall invest and at all times keep
invested his controlled fund in :
1. Central Government Securities – Not less than 20%
2. State Government Securities or other approved securities –
(including (1) above) – Not less than 50%
3. Infrastructure and social sector – Not less than 15%
4. Balance Investments can be made as per Prudential and Exposure,
Norms, subject to other than approved investments not exceeding
15, of the fund.
 (1)Government Securities
(a) General Government Securities
(b) State Government Securities

T
(2)Industrial Securities (Public Sectors and Private Sectors)
(a) Investments in Shares

y (b) Investments in Debentures

(3)Mortgages or Investments in real estates

p (a) Mortgage of buildings

(b) Mortgage of Land
e (4) Investments in the form of granting loam to
policyholders
s (5) Investments in housing sectors
(6) Investments in other assets
(a)Investment in plant and machinery
(b) Investment in machinery
 Wid e n e twork
progre ss
Since 1956, LIC has worked towards spreading life insurance product to the society.
In the process it has built a wide network across the length and breadth of the
country, consisting of 2048 branches 100 divisional offices, 7 Zonal offices and
Corporate office. The number of new policies sold each year grew from 14.62 lakhs
in 1961 to 1.79 crores in 2001, of which 55.10 percent in rural. The rural share of
1961 was 36.53 percent. Similarly the annual premium and income rose from 88.65
crores in 1957 to 27,859 crores in 2000. The life funds 456.04 asset of the
Corporation also grew from 410 crores to 154044 crores and 456.04 crores to
160936 crores, respectively since 1957 . Investment which was deployed 329.74
crores in 1957 rose to 144954 crores in 2000, all of which wo in nation building
activities.
 Train in g facilities
LIC has a well established training infrastructure to eater to the training
needs of employees consisting of a management development centre for
senior officials, seven zonal training centres for supervisors, line
managers and for top salesman and for computer based training for all
the employees.

There are also 25 sales training centres to provide training to other sales
force. These centres are located in various zones. Training needs are
analysed and a training profile to employees is kept at the offices;
training modules have been standardized. In addition of imparting
training to the work force consisting of over 1.24 lakhs employees and
officers, LIC has concrete programme of training its sales force of over six
lakhs agents.
Thank
you