INSURANCE SECTOR

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AGENDA:

The actual agenda of the presentation is to

Study the given sector, Analyze the business requirements, Find the business rules, Draw ER Diagram and Normalized Relational Schema.

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INSURANCE:

Protection against loss for which you pay a certain sum periodically in exchange for a guarantee that you'll be compensated under stipulated conditions for any specified loss by fire, accident, death, etc

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HISTORY:

Insurance is probably one of the oldest human economic activities. Developed as a way of protecting merchants from unforeseen events (natural catastrophes, robberies, etc.). There is evidence of traders using insurance for risk management as early as the third millennium BCE (before the common era).

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Cont.,

1818 First life insurance company Oriental Life Insurance Company (in Calcutta). 1850 First general insurance Insurance Company (in Calcutta). company Tritan

Till 1956/1972 life and general insurance industry grown in terms of number of companies the volume of premium, investible resources, and so on.

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Cont.,

Currently there are 21 registered Life Insurers and 20 General Insurers. There are also various Insurers who provide specific insurance alone. The insurance was regulated through the Insurance Act, 1938.

Nowadays, insurance is one of the most complex areas of the financial sector, covering a wide range of risks for both personal and business activities.
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MAJOR TYPES OF INSURANCE:

Life Insurance:

Health. Life. Accidental death and dismemberment insurance

General Insurance:

Property. Automobile insurance. Crop insurance.

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LIFE INSURANCE:

It is a written contract between the insured and the insurer. That provides for the payment of the insured sum on the date of the maturity of the contract or on the unfortunate death of the insured, whichever occurs earlier

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GENERAL INSURANCE:

It is a non life insurance policies, including automobile and homeowners policies, provides payments depending on the loss from a particular financial events. General insurance typically comprises any insurance that is not determined to be life insurance.

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BUSINESS RULES:

A person cant be insured if he/she is over the age of 65-70 (based on the Insurance company). Single vehicle cant be insured twice. Drunken drive cant claim vehicle insurance. For payment of the suicide death, the period of the insurance must have crossed 365 days.

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NEED FOR INSURANCE:

The need for insurance arises out of the risks we all run in the course of living our daily lives. Insurance is a way of managing risks. Insurance is vital to good financial planning and security but you would need to assess your personal risk and long term commitments.

Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan.
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ADVANTAGES:

Providing Security Government Regulation Provide Saftey Risk Cover Mortage Redemption Tax Advantage Source for Collecting Funds Encourage Savings Planning for future needs Assured income through annuities Protection against rising health problem
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DISADVANTAGES:

It may be due to agents, when we work with an agent we have to pay commission to him, this may lead extra cost. If we cut the middlemen then we can save money then it can be paid as premium for insurance. Lack of consumer awareness Buying Life Insurance when you have no need Buying Complex Life Insurance Products Buying Expensive Insurance Product Usage of insurance as investment product Incompetent personnel and facilities in industry
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INSURANCE COMPANIES IN INDIA

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Bajaj Allianz Life Insurance Company Ltd. Birla Sun Life Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Life Insurance Corporation of India. Met Life India Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited. SBI Life Insurance Co. Ltd. Tata AIG Life Insurance Company Limited. Reliance Life Insurance Company Limited.
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BUSINESS REQUIREMENTS:

Every customer may have as many number of policies as he/she wishes. The customer may even have more than one life insurance on his name. Each customer may be facilitated by one or more agents. The customer may also hold a policy without the middleman(agent). Every agent facilitates n number of customers.

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TABLES:

Customer Details:
CName DOB AGE PhNo Address

Cus_Id

Agent Details:
DOB AGE PhNo Address

LicenseNo AName

Policy Details:
Name Term_Period Total_Premium Type

PolicyId

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PIT:
Policyid Cus_id Agent_id Policy_date Exp_date

Policy No

Payment Details:
Policyid Cus_id Premium_A mount Payment Date

Payment No

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Claim Details:
Claim_da Sanc_da Reaso Inc_dat Report_no te te n e Chq_no

Claim_i Policy_ d no

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