PRESENTED BY:GYAN HANS

Welcome to the presentation on

What is insurance?

The definition of insurance can be made from two points

Functional definition Contractual definition

Functional definition Insurance is a co-operative device to

spread the loss caused by a particular risk over a number of persons who are expressed to it and who agree to insure themselves against the risk.

Contractual definition

In the words of Justice Tindall

“Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.”

Life insurance

Life is a written contract between the policy holder 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.

Introduction

Life insurance in its modern form came to India from England in the year 1818.

Oriental life insurance co. started by Europeans in Calcutta was the first life insurance company on Indian soil.

Life insurance corporation of India (LIC) was formed in 1 Sep 1956 by an Act of parliament ,LIC Act,1956.

Some facts of LIC

LIC had monopoly till the date 90’s because there is no private sector in insurance.

1993- The govt: set up committee under the chairmanship of R.N malhotra former governor of RBI,to propose recommendations for reforms in the insurance sector.

1999- Following the recommendations of the malhotra committee report,the

Contd….

Insurance Regulatory and Development Authority(IRDA) was constituted as an autonomous body to regulate and develop the insurance industry.

2000- The IRDA was incorporated as a statutory body.

After LPG The enforcement of new economic

reforms in 1991 coupled with the formation of Insurance Regulatory and Development Authority(IRDA) Act of 2000 (which started issuing licenses to private life insurers)has diluted the monopolistic attitude commanded by LIC.

29 insurance co’s operating in Indian market.

Wide coverage

Corporate office at Mumbai 8 zonal office 109 divisional offices 2048 branch offices 100,21,449 agents Owned by government Largest insurance co. in India

vision

“ A trans nationally competitive financial conglomerate of significance to societies and pride of India.”

Mission

“Ensure and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”

Subsidiaries of LIC

LIC Mauritius LIC Nepal (Ltd) LIC Lanka (Ltd) LIC United Kingdom LIC Fiji LIC international B.S.C (C), Bahrain

Functions of LIC Economy

Conduct business with utmost economy and with the full realization that the money belongs to the policy holders.

Meeting growing needs

Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Trustees

act as a trustees of insured public and invest the funds to their best advantage.

Rural development

spread life insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover at a reasonable cost.

Deployment of funds

Deployment of funds to the best of advantage of the investors as well as the community as whole, keeping in view national priorities and obligations of attractive return.

To transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interest of the corporation.

To advance or lend money upon the security of any movable or immovable property.

To acquire, hold and dispose of any property for the purpose of its business.

To borrow or raise any money in such manner and upon such security as the corporation may think fit.

Provide protection against risk, accident and uncertainity.

Participating in nation building. Investment for upgrading quality of life (road transport, drinking water and irrigation)

Benefits

Safeguard the policy holder family against an untimely death and provides for a secured income.

It is a source of income during old age. It helps in meeting certain periodical

needs, either for a child’s education or marriage.

It bring tax benefits under Sec 80 c of Income tax act.

Principles of LIC

Caring and courtesy Initiative and innovations Transparency Good returns Participation and relationship Trustworthiness and reliability

Our culture

Adaptability Commitment Discipline Empowerment Excellence Agility collaboration

Major competitors

LIC products and plans

Awards (2010-2011)

THANK YOU