WEALTH MANAGEMENT

GENERAL INSURANCE
 GENERAL INSURANCE
 General insurance was introduced in India by the
British consequent on growth of sea-faring trade.
 British and other foreign insurance companies thro
their agencies in India transacted this business.
 General insurance sector in India dates back to
1850, when Tritron Insurance company for general
insurance was incorporated.
 In 1968, the Insurance Act, 1938 was amended to
regulate investments and set minimum solvency
margin and the Tariff Advisory Committee set up.
 General Insurance business was nationalized w.e.f
1.1.1973 by the General Insurance Business
(Nationalisation) Act 1972.
 GENERAL INSURANCE
 Every asset has a value and the business of
general insurance is related to the protection
of economic value of assets.
 Assets would have been created through the
efforts of owner, which can be in the form of
building, vehicles, machinery and other
tangible properties.
 Since tangible property has a physical shape
and consistency, it is subject to many risks
ranging from fire, allied perils to theft and
robbery
 INSURANCE BROKERAGE
HOUSES
 Worldover insurance brokerage houses are large,
sometimes even larger than the insurance companies
themselves. They provide reinsurance to insurance
companies. In many markets, brokers provide non-life
insurance as well as group life and group mortgage
insurance.
 In countries like Japan, the broker is not empowered to
conclude contracts, accept representations, and to receive
insurance premiums. In such cases minimum capital
requirements and solvency margins are not needed.
In general an insurance broker would provide the following
services:
 Pre sales and after sales service to the customers.
 Provisions of relevant information to the underwriters to
assess the risk and decide the premium.
 Design covers that meet the client requirements.
 Recommend risk improvement and loss minimisation
measures
 Provide risk management and insurance education
 Collection of Premiums
GENERAL INSURANCE TYPES
 Property Insurance:  The home is most valued
possession. The policy is designed to cover the various risks
under a single policy. It provides protection for property and
interest of the insured and family.

Health Insurance:  It provides cover, which takes care of
medical expenses following hospitalization from sudden
illness or accident.

Personal Accident Insurance:  This insurance policy
provides compensation for loss of life or injury (partial or
permanent) caused by an accident. This includes
reimbursement of cost of treatment and the use of hospital
facilities for the treatment.
 GENERAL INSURANCE TYPES
 Travel Insurance:  The policy covers the insured against various
eventualities while traveling abroad. It covers the insured against
personal accident, medical expenses and repatriation, loss of checked
baggage, passport etc.

Liability Insurance:  This policy indemnifies the Directors or Officers
or other professionals against loss arising from claims made against
them by reason of any wrongful Act in their Official capacity.

Motor Insurance:  Motor Vehicles Act states that every motor
vehicle plying on the road has to be insured, with at least Liability only
policy. There are two types of policy one covering the act of liability,
while other covers insurers all liability and damage caused to one's
vehicles.

Since a single policy cannot meet all the insurance objectives, one
should have a portfolio of policies covering all the needs

Business Performance
 HEALTH INSURANCE
 Today to treat an illness comes at a high price. Medical
treatment is now recognized with high cost treatment that runs
on the lines of international standards. If you had to choose a
hospital to treat an illness/disease of your loved one, you
would surely choose the one that is the best.
 If you have a Mediclaim, you need not worry with the finances.
 In foreign countries, health insurance is mandatory but such is
not the case in India.
 The percentage of population that is medically insured is still
quite low.
 A policy is however made obtainable for all age groups; even to
an infant of 3 months and extends to a person who is 75 years
of age.
 Some insurance companies offer health insurance for the entire
family.
 MEDICLAIM
 A mediclaim policy is a health insurance
product that provides for reimbursement of
expenses incurred for hospitalization for
certain injury, illnesses or/and diseases.
 A mediclaim policy covers not only the
expenses incurred during hospitalisation but
also the pre and post-hospitalisation
expenses but they are subject to conditions
that you need to be completely aware of
before getting into it.
 MEDICLAIM
Suitability
 Any one in the age group of 5 to 80 years can take the
policy. Children in the age below the age of 5 years can also
be covered from the age of 3 months onwards provided one
or both of the parents are covered concurrently. Higher
limits are permitted if the policy is in renewal for the
preceding three years. Suitable for persons of any
nationality but treatment should be availed of within the
country and the claim is paid in Indian currency
Salient Features
 Provides cover, which takes care of medical expenses
following hospitalization from sudden illness or accident
 Cover extends to pre-hospitalisation and post-hospitalisation
for periods of 30 days and 60 days respectively
 Domiciliary hospitalisation is also covered
 MEDICLAIM
 Benefits
 Reimbursement of medical expenses
 Discount in insurance premium is allowed on family package,
cumulative bonus and health check. In case of family package
cover, a single member can avail of the entire policy limits
 Pre-existing diseases not covered
 The premium paid by a cheque upto a maximum of Rs.10,000
is totally exempt from income tax
 Domiciliary hospitalisation
 The term means that a patient can be treated at home when
he is not in a fit condition to be moved to the hospital or
where there is no accommodation in the specialist hospital
provided,
 The treatment was for a period not less than 3 days
 The sub limits of sum insured towards domiciliary
hospitalisation are furnished in the sum insured and
premium schedules
 MEDICLAIM
 Exclusions
 The facility is not available if any illness is
contracted within 30 days from the commencement
of risk except in case of an accident
 Any pre-existing diseases
 Treatment for cataracts, benign prostatic
Hypertrophy, Hydrocele, Congenital internal
diseases, Fistula in anus, Piles, Sinusitis and related
disorders for 1st year of policy
 All the expenses incurred in respect of any
treatment relating to pregnancy or childbirth
 AIDS or conditions of similar kind
 Directly or indirectly connected with war or nuclear
waste
THIRD PARTY ADMINISTRATORS

 Third Party Administrators (TPAs) are the

middlemen in the chain of integrated delivery
systems that bring all the components of
health care delivery - such as physicians,
hospitals, clinics, home health, long-term
care facilities and pharmacies - into a single
entity.
 They will provide quality health care and
services at affordable costs, which hitherto
was unheard of. The role of TPAs will
particularly be beneficial to those sections of
society for whom quality healthcare has
always remained a dream.
 TPA - ADVANTAGES

 Affordable Cost:
This new breed is expected to bring about a total transformation in
healthcare management with affordable costs and improved quality
healthcare. It will also be bringing about a change in the mindset of
the masses regarding the concept of managed and preventive
healthcare.
 Improved Quality:
Such a system encourages appropriate treatment, discourages
over-treatment, encourages preventive care, and attempts to
promote cost containment and quality health care delivery.
 Cashless System:
The entry of TPAs means the arrival of a cashless system of
payment for healthcare services. The policyholders would receive
every healthcare facility required depending on their needs and
high medical costs will not be a deterrent.
 ROLE OF TPAs
As per the regulations worked out by
Insurance Regulatory Development Authority
(IRDA) a clubbed fee would be charged from
the insurer, who will also be the sole bearer of
the financial risk. Each TPA would need to
have and maintain assets worth at least Rs 25
lakh. This may be doubled later to avoid
frivolous players entering the market. TPAs will
also need to take insurance policies for at least
Rs 1 crore to cover their own business risks.
There are a number of TPAs functioning in
different parts of the country, but these at
present cater solely to corporate clients.
 PERSONAL ACCIDENT INSURANCE

 A Personal Accident policy provides insurance cover against the

following perils with an option available with the insured to take
cover for either or all of the risks:
 Transportation related accident (rail, road, sea & air)
 Accidental fall due to slipping/ collision
 Accidental burn injuries, drowning, poisoning
 Snake bite, dog bite, frost bite
 Injuries sustained in a or during any other sporting event
playground
 Accidental injuries sustained while undertaking trekking,
mountaineering or any adventure sports
 Accidental injuries sustained in the construction sites, offices.
 The policy provides for a table comprising 6 classes of benefits
categorized under three heads that are death, permanent
disablement and temporary disablement. An individual has the
option of taking cover for either of the following combination of
benefits:
 Death Only
 Death & Permanent Disablement
 Death, Permanent Disablement & Temporary Total
Disablement
 Death & Permanent Total Disablement
 The Capital sum insured represents the maximum
amount of monetary benefit the insured can have under
the policy. The sum insured is fixed on the basis of
certain criteria
 Benefit no.1 only: Maximum 120 months salary/ income
of the insured.
 Benefit no.1 to 6: Maximum 60 months salary/ income of
the insured.
 The percentages of benefits for the permanent
disablement of various parts of the body have been fixed
based on the utility of that particular part of the body.
 "Temporary Disablement" means the
period for which the insured is unable to
attend to his normal duties and is confined to
bed on a medical practitioner's advice as a
direct result of accidental injuries sustained
on account of physical, violent means.
 Compensation Payable
 Compensation is payable to the extent of 1
percent of the capital sum insured subject to
a maximum of Rs.5000/- per week up to a
maximum period of 104 weeks or the capital
sum insured whichever is less.
 CRITICAL ILLNESS

 Under a Critical Illness policy, the amount of insurance has to be

selected by the client. It is at 4 levels – Rs.5 lakhs, Rs.10 lakhs, Rs.20
lakhs and Rs.25 lakhs.

 Under Critical Illness insurance if the client is financially well off then he
can go for a higher level of insurance. If his annual earnings are less
then he cannot opt for a higher level of benefits.
 Basically, the level of benefits depends upon the earning capacity of the
person.
 If the client is an income tax payer and his annual income is worth a
minimum of Rs.2 lakhs, he can opt for Critical Illness insurance.
 As long as the policyholder was not suffering from any of the illnesses,
the pre-existing illness exclusion applies to the Critical Illness policy also.

 
 For how long can a Critical Illness policy be issued ?
Under Critical Illness insurance, a policy can be issued only for one
year and has to be renewed every year. And it is on the insurance
company's discretion if they wish to renew the policy or not
 What are the criteria for deciding on the best health cover?
 Choosing a health cover for yourself must be done after careful
analysis of your needs. In case you need a wide cover as also Income
tax benefits the mediclaim policy with a family package cover could be
a suitable option for you. You may also decide on the major ailments
policy with annual, five and ten year cover options offering you a
reasonable amount of premium savings.
 Those going for a wide coverage as also long term cover about five or
ten years can opt for the term hospitalisation policy. This gives
benefits that are not available under the normal mediclaim policy.
Another convenience this policy offers is the non-requirement of every
year renewal of the policy. If you plan to go for a less costlier health
cover with tax benefit and limited coverage you could choose the Jan
Arogya cover. For those closer to retirement age the long-term
retirement benefit plan would be the ideal cover.
 Need for Automobile
Insurance
 Your vehicle may be your long cherished 'Palace on
wheels' or one that can barely be called a four-
wheeler but the very fact that it has to ply on rough
and tough Indian roads, should be reason enough to
insure it.
Footpaths:
 As footpaths are encroached by hawkers,
pedestrians have a tough time dodging between
vehicles to reach the other end of the road.
Drunken driving:
 Though drunken driving is a punishable offence the
penalty has hardly proved to be a deterrent.
 Reckless Driving:
 Majority of the youngsters drive recklessly caring little for the law,
causing serious accidents resulting in loss of life or limb.
Theft:
 Cases of stolen cars are on the rise.
Fire:
 Other than these there is also a danger of fire or theft of your vehicle.
 Vehicle insurance under such unsafe conditions is a must not only to
cover risks towards yourself and your own vehicle but also to cover the
financial liability that may arise from an accident in which the other party
is injured.
 Consider the exorbitant cost of repairs that you would have to pay to the
other party in case of an accident.
 Besides if the accident involves hospitalisation too, the expenses can go
through the roof.
 It would be a great burden if all these costs had to be borne by you. But
if your vehicle is insured the insurance company can be of great help. It
can indemnify you against such losses and the financial liability that
would have been solely on you is taken over by your insurance company.
 Types of Motor Policies
 The All India Motor Tariff governs motor business in India.
According to the Tariff, two types of Policy Forms are used by
all classes of vehicles. They are Form A and Form B. 
Form A, or what is commonly known as Act Policy, covers Act
Liability which is a compulsory requirement of the Motor
Vehicles Act. No vehicle can be used without this minimum
insurance cover. Use without such insurance is a penal offence.
The following liabilities can be covered in this policy 
 Unlimited liability towards Third Party bodily injury
 Liability towards Third Party Property Damage to the extent of
Rs.6000/- only
 Unlimited liability towards bodily injury of passengers of the
vehicle 
 Liability towards employees of the owner of the vehicle while
traveling in or using it, against bodily injury, to the extent
required under the Workmen's Compensation Act
 Form B, or what is commonly known as Comprehensive Policy,
is an optional cover which takes care of the following additional
losses and liabilities 
 Loss or damage to the vehicle and its accessories and extra
fittings, protection and removal costs, and towing disabled
vehicles (only for commercial vehicles)
 Liability towards Third Party Property Damage, in excess of
Rs.6000/-
 Liability towards employees under Common Law and Fatal
Accidents Act, over and above the liability under Workmen's
Compensation Act 
 Personal Accident Benefits for the owner, passengers and
employees
 The above losses or liabilities can be separately covered in
conjunction with the liabilities covered under the Act Policy, by
taking a Comprehensive Policy, paying additional premium. 
 Risks Covered by a
Comprehensive Policy
 Although the Act Policy Form is identical for different classes of
vehicles, the Comprehensive Policy Form is not. For Private
cars and Motor Cycles, there are two Sections in the
Comprehensive Policy. Section I concerns loss or damage to
the vehicle and covers the risks like
 Fire, Explosion, Self-Ignition and Lightning
 Burglary, Housebreaking and Theft
 Riot, Strike, Malicious and Terrorism Damage
 Earthquake
 Flood, Typhoon, Hurricane, Storm, Tempest, Inundation,
Cyclone, Hailstorm
 Accidental External Means
 Transit by road, rail, inland waterway, lift, elevator or air
 For motor cycles and commercial vehicles, the risk of Frost
Damage is also covered. From the above coverage, for all
classes of vehicles, the risks of Riot, Strike, Malicious and
Terrorism Damage, Earthquake and Flood and Storm; can be
opted out of with a consequent discount in premium.
In addition to these, cover is also available for Protection and
Removal Costs and Authorisation of Repairs.
If a motor vehicle is disabled as a result of loss or damage due
to the perils mentioned above, the insurance company bears
the reasonable cost of protection and removal to the nearest
repairer and the cost of redelivery to the owner/insured subject
to a maximum limit, in respect of any one accident. The limits
for various classes of vehicles are as follows:
 Motor cycles/ Scooters: Rs.300
 Private Car & Taxies: Rs.1500
 Other Commercial Vehicles: Rs.2500
 The owner/insured is also allowed to authorise repair expenses
up to Rs.500/- per accident.
Section II covers the Liabilities towards Third Parties, i.e.
liabilities of bodily injuries and property damage.
For Commercial Vehicles, however, an additional Section III
covers the vehicle while it is being used for the purpose of
Towing Disabled Vehicles. This Section covers Third Party
Liabilities that the insured vehicle or the one being towed may
incur as a result of an accident. This is provided the towed
vehicle is not towed for reward/remuneration. Further, the
insurance company is also not liable for damages to the towed
vehicle or any property being conveyed thereby.
 TRAVEL INSURANCE
 Travel insurance is insurance that is intended to
cover financial and other losses incurred while
travelling, either within one's own country, or
internationally.
 Travel insurance can usually be arranged at the time
of booking of a trip to cover exactly the duration of
that trip or a more extensive, continuous insurance
can be purchased from (most often) insurance
companies or banks, which covers all travelling during
the period for which the insurance was obtained.
 The most common risks that are covered by travel
insurance are:
 Cancellation
 Curtailment
 Delayed departure
 Loss, theft or damage to personal possessions and
money (including travel documents)
 Delayed baggage (and emergency replacement of
essential items)
 Medical expenses
 Emergency evacuation/repatriation
 Overseas funeral expenses
 Accidental death, injury or disablement benefit
 Legal assistance
 HOME INSURANCE

 It is imperative that you 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.
 Policy Coverage


You can choose to buy insurance for only the
building (structure) of your home, or only the
contents (belongings) or both.
The policy covers the losses to the structure and
contents of your home due to any natural and man
made calamities.
The calamities covered are:
- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
 Lightning
- Storm, cyclone, tempest, tornado,
hurricane, flood & inundation
- Damage due to impact by vehicles
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler
installations
- Aircraft damage
- Bursting and/or overflowing of water tanks,
apparatus and pipes
 Burglary cover (only for contents):
The contents of your home are also covered against
loss due to burglary or an attempted burglary. It also
covers loss of jewellery, silver articles and precious
stones kept under lock and key, up to 25% of the
total content sum insured or Rs. 1 Lac, whichever is
lower.
Additional expenses of rent for alternative
accommodation – If you are forced to shift into an
alternative accommodation because your home is
destroyed or damaged by any insured peril, the policy
will cover you against the additional rent.
 The maximum coverage is up to Rs. 1,00,000 for up
to 6 months. The cover is available only if you are  
     insuring the structure of your home
 Policy Exclusions

 Willful destruction of property. Loss,

damage and destruction caused by war,
wear and tear, atmospheric conditions etc.
 Losses if your home has been unoccupied
for more than 30 days.
 Cash, bullion, painting, works of art and
antiques.
 Loss to the structure and / or contents of
your home due to acts of terrorism.
Thank U