Life and Health Insurance: Concepts,

Significance, and Scope in India

Presented By :
Rohin Jain
Institute Of Management Nirma
University

Presented By :
Rohin Jain
Institute Of Management Nirma University
Table Of Contents

• Key Takeaways from the Sessions

• What is Insurance?
• Concept & Significance Of Life & Health Insurance
• Benefits of Life & Health Insurance
• Scope of Life & Health Insurance in India
• Evolving Landscape of Insurance in India
• Exploring Some Insurance Products Offering
• Concluding Remarks
Key Takeaways from the
Sessions
1 Financial Planning Integration
The sessions underscored the integration of
insurance within comprehensive financial planning
strategies, emphasizing the role of insurance in
protecting assets, ensuring long-term financial
security, and achieving financial goals.
3 Increasing Importance of Life Insurance
The sessions highlighted how life insurance plays a
crucial part in keeping your finances stable,
handling debts, and making sure your loved ones are
secure in the future. This is especially true in India,
with its diverse market.
2 Rising Need for Health Insurance
The sessions highlighted the escalating healthcare
costs and the increasing importance of health
insurance in providing financial protection against
medical emergencies and ensuring timely access to
quality healthcare.
4 Innovation in Insurance Products Design
and Distribution Channels
The sessions showcased innovative approaches to
insurance product design, distribution channels, and
customer engagement strategies, leveraging
technology and partnerships to offer tailored
solutions & enhance customer experiences.
What is Insurance ?

• Definition :
Insurance is a contract between an individual (the policyholder) and an
insurance company, where the insurer agrees to provide financial protection
against specified risks in exchange for premium payments.
• Purpose & Function :
Insurance helps individuals mitigate financial losses by spreading the risk
among a large pool of policyholders.
• Importance of Risk Management :
Insurance is a key tool in risk management, allowing individuals to protect
themselves and their assets from unexpected events.
Key Principles of Insurance

• Utmost Good Faith: Both the insurer and insured are bound by a duty of utmost good faith,
requiring honesty and full disclosure of relevant information.
• Insurable Interest: The insured must have a financial interest in the subject matter of the
insurance policy.
• Indemnity: Insurance aims to restore the insured to the same financial position they were in
before the loss occurred, without profiting from the claim.
• Subrogation: After paying a claim, the insurer may take legal action against a third party
responsible for the loss to recover their expenses.

• Sum Insured: Maximum amount of money that an insurance company is obligated to pay
out in the event of a covered loss or claim. It represents the agreed-upon value of the item or
risk being insured.
 The Need for
Insurance
• Protection against financial loss: Insurance
provides a safety net against unexpected events that
can result in significant financial loss, such as
accidents, illnesses, or natural disasters.

• Peace of mind and security: Having insurance

coverage offers peace of mind, knowing that you
and your loved ones are protected financially in
case of emergencies or unforeseen circumstances.

• Risk management: Insurance allows individuals

and businesses to manage risk by transferring the
financial burden of potential losses to an insurance
company, thus reducing the impact of adverse
events on their finances.
Concept & Significance Of Life
Insurance
Life insurance is a contractual agreement where an insurance company promises to pay a specified
sum of money to the beneficiary upon the death of the policyholder. This financial protection
safeguards the policyholder's loved ones from financial hardship in the event of their untimely
passing.

Significance of Life Insurance

• Life insurance plays a crucial role in providing financial security and
protecting loved ones in the event of the policyholder's untimely passing.
It ensures that their family's standard of living is maintained, outstanding
debts are paid, and future financial goals can still be achieved.

• By acting as a safety net, life insurance offers peace of mind and allows
individuals to focus on living their lives to the fullest, knowing that their
family's wellbeing is safeguarded.
Concept & Significance Of Health
Insurance
Health insurance is a financial product that helps individuals and families mitigate the high costs
associated with medical care. It provides coverage for a range of healthcare services, including
doctor visits, hospital stays, prescription medications, and even preventive care.

Significance of Health Insurance

• Health insurance is a vital safety net that protects individuals and families
from the crippling financial burden of unexpected medical expenses. It
ensures access to quality healthcare, allowing policyholders to focus on
their wellbeing without worrying about the costs of doctor visits,
hospitalizations, or life-saving treatments.

• By sharing the risk among a pool of policyholders, health insurance

provides peace of mind and financial security, empowering individuals to
make informed decisions about their healthcare without fear of bankruptcy
or financial ruin.
 Benefits of Life & Health
Insurance

By combining life and health insurance, individuals can achieve a more comprehensive financial protection plan,
ensuring their loved ones are cared for and their medical needs are covered, even in the face of unexpected life
events.
Scope of Life Insurance in
India
Life Insurance industry in India has witnessed steady growth
• India has one of the highest life insurance densities in the in recent years, with the total number of policies increasing
world, with 88% of insured individuals having some form from 375 million in 2020 to an estimated 420 million by 2022.
of life insurance coverage. This expansion reflects the growing awareness and demand for
financial protection among Indian consumers.
• Life insurance provides financial protection to families by
paying out a lump sum amount in case of the unfortunate
demise of the insured person.
• Popular life insurance plans include term insurance, whole
life insurance, endowment plans, unit-linked insurance
plans (ULIPs), and retirement plans.
• Key life insurers in India are Life Insurance Corporation of
India (LIC), HDFC Life, ICICI Prudential Life, SBI Life,
and Max Life, among others.
• The Indian life insurance market is projected to grow at a
CAGR of around 7% over the next five years, driven by
rising income levels and increasing awareness.
Scope of Health Insurance
in India
Health insurance industry in India has experienced remarkable
• Health insurance is gaining traction in India, with growth in recent years, with the number of policyholders rising
increasing awareness about the rising costs of medical from 500 million in 2020 to an estimated 600 million by 2022.
treatments and hospitalizations. This expansion reflects the increasing awareness and demand for
comprehensive healthcare coverage among the Indian population.
• Health insurance policies provide coverage for expenses
related to hospitalization, day-care procedures, pre-existing
diseases, ambulance charges, and domiciliary treatments.
• Popular health insurance products include individual health
plans, family floater plans, critical illness plans, and senior
citizen health plans.

All Figures in Crores

• Major health insurers in India include companies like Star
Health, ICICI Lombard, HDFC Ergo, Bajaj Allianz, and
Max Bupa, among others.
• The Indian health insurance market is expected to grow at a
CAGR of around 20% in the next few years, driven by
factors like increasing disposable incomes, tax benefits,
and the rising prevalence of lifestyle diseases.
Evolving Landscape of
Insurance in India

Rising Awareness Prevalent Chronic Government Digital

Diseases Initiatives Transformation

There is an increasing The prevalence of The Indian government The growth of online
awareness among the chronic illnesses and has introduced various insurance platforms
Indian population the associated high policies and programs has simplified the
about the benefits of medical costs have to enhance the process of acquiring
insurance, driving the enhanced the need for penetration of and managing
growth and adoption of comprehensive health insurance, particularly insurance policies,
these financial insurance coverage. in rural and catering to the evolving
products. underserved urban consumer preferences.
areas.
 Exploring Some Insurance
Products Offering
The Tata AIA Sampoorna
Raksha Supreme plan offers
a range of features,
including AYUSH benefits,
restore benefits, and
comprehensive coverage
options to cater to diverse
customer needs.
The Medicare provides a
diverse portfolio of health
insurance products, ranging
from basic hospitalization
coverage to global medical
plans, catering to a wide
spectrum of consumer
preferences.
Insurance companies are
increasingly focusing on
customized insurance
products that address the
unique needs of different
demographic ensuring a
more personalized approach
to insurance planning.
Concluding
Remarks
• In conclusion, life and health insurance are essential financial tools
that provide invaluable protection, security, and peace of mind. The
insights gained till now have highlighted the growing necessity for
comprehensive insurance coverage and the diverse range of products
available in the Indian market.
• By understanding the fundamental concepts, benefits, and the evolving landscape of insurance, individuals and
professionals can make informed decisions to safeguard their financial well-being and that of their loved ones.

• Encouragement to prioritize understanding and obtaining adequate life and health insurance coverage. “As we
navigate our financial journey, remember to prioritize our protection and peace of mind through appropriate life
and health insurance coverage.”
Rohin Jain
+91-9587368754
rohinjain08@gmail.com