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The Study Of Indian Insurance Sector
OBJECTIVE
There can be more than one aim of preparing this project. +ollowing are the objecti!es of
this project,
- To apprehend and predict the industry.
- To e(press the need of Insurance in busy is"/0ontented life of people.
- To "now the strength and wea"ness of !arious companies.
Insurance is the Subject )atter Of Solicitation 1
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HEAD START
Insurance may be described as a social de!ice to reduce or eliminate ris" of loss to life
and property. 2nder the plan of insurance a large number of people associate themsel!es
by sharing ris"s attached to indi!iduals. The ris"s which can be insured against include
fire the perils of sea death and accidents and burglary. Any ris" contingent upon these
may be insured against at a premium commensurate with the ris" in!ol!ed. Thus
collecti!e bearing of ris" is insurance.
%eople generally regard insurance as a scheme when and where you ha!e to lose a lot to
gain a little. 3e!ertheless insurance is still the most reliable tool an indi!idual can use to
plan for his future.
Throughout our li!ing e(istence we are faced by numerous ris"s / failing health
financial losses accidents and e!en fatalities. Insurance addresses all these uncertainties
on financial terms.
The insurance industry in particular has been subjected to numerous changes in the last
few decades since the need for insurance is more e!ident now than earlier. %eople4s
spending patterns are changing and more 5 more resources are needed for immediate
consumption. In fact it is recommended that you re!iew your needs and insurance
portfolio from time to time say e!ery 1/6 years.
Insurance is the Subject )atter Of Solicitation 6
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What exactly is insuance!
Insurance plays an important role in the business acti!ities as well as in the personal
li!es. Insurance can be e(plained with the following e(amples as mentioned below,
What will happen to a family7s finance if home will be destroyed by fire or earth8ua"e
etc? What would be the financial situation of the family and dependence if there is a
premature death of the main earner of the family? These e!ents occur somewhere
e!eryday or in fact e!ery minute all o!er the world. %ro!iding protection against such
ris"s is necessary and it is pro!ided by the insurance to indi!iduals families and
businessmen.
)odern life is full of ris"s and uncertainties. Human life is also subject to ris"s and
uncertainties. The same is the case with the goods raw materials and other types of
properties. is"s and uncertainties are more in the field of business therefore it is rightly
said 9ris" thy the name of business:. To o!ercome or to minimi;e the ris" there is the
insurance.
The term
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TH==TA0T/
9I3S2A30= IS A +O) O+ A 0O3TA0T O A#==)=3T 23@=
WHI0H O3= %AT A#==S TO %A I3 =T23 O+ 0O3SI@=ATIO3 A3
A#==@ A)O23T O+ )O3= TO A3OTH= %AT TO )AB= #OO@ TH=
'OSS @A)A#= O I3C2 @2= TO SO)= 230=TAI3 =D=3T I3 WHI0H
TH= I3S2=@ Ethe person which is insuredF HAS I3T==ST:
De"initi#ns$%
#eneral @efinition
In the words of Cohn )agee 9Insurance is a plan by which large number of people
associate themsel!es and transfer to the shoulders of all ris"s that attach to indi!iduals.:
+undamental @efinition
In the words of @.S. Hansell 9Insurance may be defined as a social de!ice pro!iding
financial compensation for the effects of misfortune the payment being made from the
accumulated contributions of all parties participating in the scheme.:
0ontractual @efinition
In the words of justice Tindall 9Insurance is a contract in which a sum of money is paid
to the assured as consideration of insurer7s incurring the ris" of paying a large sum upon
a gi!en contingency.:
Insurance is the Subject )atter Of Solicitation G
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,RI-CI,.ES O/ I-SURA-CE
I3S2A30= AS A SO0IA' S=02IT TOO' has gathered much significance today
along with safety and sa!ing which acts as the future pro!isions are the main aims of
insurance. Howe!er insurance is the special type of contract. It in!ol!es the following
principles,
1. UTMOST GOOD FAITH: - 2tmost good faith is one basic and primary
principle for insurance. It states that the insurance contract must be made in absolute
good faith on the part of both the parties. It means both the parties &insurer and insuredmust ha!e the faith on each other. +or this both the parties to the contract must disclose
all the facts relating to the subject matter of insurance. $ut it is more on the insured as he
is in possession of the subject matter to be insured. It is necessary to disclose all the
important material fact about the contract to each other in full and trustfully. This
principle is more important in life insurance because the information disclosed will affect
the judgment of an insurance company to accept or reject the proposal. This principle is
also applicable to general insurance.
2. INSURABLE INTEREST: - Insurable interest means the interest in the
e(istence of the subject matter and not in the destruction. The insured must ha!e
insurable interest in the life article and goods etcJ which are insured. It means the
relationship of the person who insures and the life or article insured. A person can assure
in his own life and e!ery part of it and can insure for any sum whatsoe!er as he li"es.
Similarly a wife has an insurable interest in her husband and !ice/!ersa. Howe!er mere
natural lo!e and affection is not sufficient to constitute an insurable interest. It must beshown that the person affecting an assurance on the life of another is so related to that
other person as to ha!e a claim for support. +O =.#., An owner has insurable interest in
his house and in his personal assets. A person has insurable interest in his own life 5
wife nears 5 dears.
Insurance is the Subject )atter Of Solicitation K
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0EY TERMS USED I- I-SURA-CE
1. INSURER OR ASSURER: -The person or the party who gi!es assurance
to the other party for getting compensation of the loss is "nown as insurer or
assurer.
2. INSURED OR ASSURED: -The person or party who get the assurance
from the insurer for the compensation of loss is "nown as insured or assured.
3. PROPOSAL [Appli!"i#$ %#&'(:-A proposal is a re8uest by a proposed
Nwho is interested in ta"ing policy against some loss or damage. The proposal
can be made in writing in the form of letter. The Insurance 0ompany issues a
printed proposal form to be filled in and signed by the proposed insured.
4. POLICY: - It is a document containing the contract. The policy is not a
contract but it is only an e!idence of the contract .The policy shows the terms and
conditions of the insurance contract which are binding on both insurer and
insured. The policy is a stamped and sealed document. It is a !aluable document
and by gi!ing the security of the policy the loan can be obtained from the ban" or
from the insurance company.
5. PREMIUM: -%remium is the amount which policyholder has to pay regularly
to insurance company according to the contract. If the premium is not paid
regularly the contract will come to an end the compensation will not be paid the
company is case of loss or damage. The amount of the premium depends up to
!arious factors li"e age ris" in!ol!ed and time period. %remiums paid on life
insurance are refundable whereas of general insurance are non/refundable.
Insurance is the Subject )atter Of Solicitation P
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6. CLAIM: -0laim is the demand made by the policy holder with the insurance
company to pay the compensation for the loss or damage to the property or goods
by specific reason. In case of life insurance claim can be made after the maturity
of the life policy or at the time of death whiche!er is earlier. In general insurancethe claim can be made only in the e!ent of loss.
7. DOUBLE INSURANCE: -@ouble insurance means ta"ing more than one
policy to co!er the same ris". Any interested person can insure his goods with
more than one company. $ut these are contracts if indemnity i.e. the insured will
get the amount of actual loss or the amount of policy whiche!er is less. He cannot
ma"e profits by ta"ing @ouble Insurance. In case of life Insurance @ouble
Insurance becomes beneficial because Insurable interest is not limited to any
specific amount as !al!e of human life cannot be measured. So a person can buy
number of policies if he can pay the premium. He or his nominees will get amount
of all the policies on maturity or death whiche!er is earlier.
8. RE-INSURANCE: -=/insurance is an agreement by which an Insurance
company agrees to accept a portion of the ris" already ta"en by another insurance
company. The original company may insure the goods at higher rate of premium
and may re/insure with some other company at a lower rate of premium.
Therefore =/insurance is a contract between two insurance companies.
Sometimes the insurance companies feel that it has underta"en a big ris" under
the policy which is beyond its capacity. Then the company can transfer a part of
ris" to another company by insuring the same subject matter. So when oneinsurance company insures with other insurance company the same subject matter
than it is called re/insurance
Insurance is the Subject )atter Of Solicitation *L
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/U-CTIO-S O/ I-SURA-CE
1. SPREADING OF RIS): -'ife and property of person are subject to a number
of uncertain ris"s. Thus the loss that a few may suffer is spread o!er to a number of
people who ha!e insured against the same ris". The premium paid by a large number of
persons are used to compensate the loss that a few may suffer i.e. insurance company
ne!er ta"es the ris"J it co!ers the ris" and immediately spreads the ris" among many
insured7s. $ecause the premiums for insurance are paid by large number of insured7s
whereas the loss is suffered by few insured7s. Thus from the premiums collected the
compensation are paid to the sufferers.
2. PROTECTION: -%rotection is the main function of insurance. 'ife insurance is a
protection to the dependents of the insured in case of premature death and if the insured
sur!i!es up to the maturity of the policy then the old age of the insured is protected.
Therefore insurance creates a sense of security in the life of an indi!idual and protection
against loss. The protection is always in terms of money i.e. financial protection.
3. INCREASES SA*INGS: -This function is performed only by life insurance. It
is creating the habit of sa!ing among the people because in life insurance it is compulsory
to pay the premiums regularly otherwise the contract becomes in!alid. Thus the sa!ings
goes on increasing year after year and insured gets the large amount on the maturity of
the policy by which he can e(ecute his future plans.
4. IT CREATES FUNDS FOR IN*ESTMENT: -Insurance companies collect
money by way of premium from large number of insured which becomes large sum and
this fund is made a!ailable for long term in!estment in industries companies and
go!ernment departments with the intention of de!elopment of the country. Insurance
companies also use the premiums collected for underwriting the shares and debentures of
joint stoc" companies. Thus insurance plays an important role in economic de!elopment
of the country.
Insurance is the Subject )atter Of Solicitation **
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-EED O/ I-SURA-CE
AQ Assets are insured because they are li"ely to be destroyed or made non/functional
through an accidental occurrence. Such possible occurrences are called perils. +ire
floods brea"downs lightning earth8ua"es etc are perils. The damage that these perils
may cause the asset is the ris" that the asset is e(posed to.
$Q The ris" only means that there is a possibility of loss or damage. It may or may not
happen. There has to be an uncertainty about the ris" .Insurance is done against the
contingency that it may happen. Insurance is rele!ant only if there are uncertainties. If
there is no uncertainty about the occurrence of an e!ent it cannot be insured against.
0Q conceptually the mechanism of insurance is !ery simple. %eople who are e(posed to
the same ris"s come together and agree that if any one of the
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that the income will normally cease the person concerned could ha!e made some other
arrangement to meet the continuing needs. $ut if it happens much earlier when the
alternate arrangements are not in place insurance is necessary to help those dependent on
the income.
=Q In the case of a human being he may ha!e made arrangements for his needs after his
retirement. These would ha!e been made on the basis of some e(pectations li"e he may
li!e for another *G years or that his children will loo" after him. If any of these
e(pectations do not become inade8uate and there could be difficulties. 'i!ing too long
can be as much a problem as dying too young. These are ris"s which need to be
safeguarded against. Insurance ta"es care.
+Q Insurance does not protect the asset. It does not pre!ent its loss due to the peril. The
peril cannot be a!oided through insurance. The peril can sometimes be a!oided through
better safety and damage control management. Insurance only tries to reduce the impact
of the ris" on the owner of the asset and those who depend on that asset. It compensates
may not be fully the losses. Only economic or financial losses can be compensated.
#Q The concept of insurance has been e(tended beyond the co!erage of tangible assets.
=(porters run the ris" of the importers in the other country defaulting as well as losses
due to sudden changes in currency e(change rates economic policies or political
disturbances. These ris"s are now insured. @octors run the ris" of being charged with
negligence and subse8uent liability for damages. The amounts in 8uestion can be fairly
large beyond the capacity of indi!iduals to bear. In some countries the !oice of a singer
or the legs of a dancer may be insured e!en though the ad!antage of spread may not be
a!ailable in these cases.
HQ Satisfaction of economic needs re8uires generation of income from some source. If
the property which is the source of such income is lost fully or partially permanently or
temporarily the income too would stop. The purpose of insurance is to safeguard against
Insurance is the Subject )atter Of Solicitation *6
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such misfortunes by ma"ing good the losses of the unfortunate few through the help of
the fortunate many who were e(posed to the same ris" but sa!ed from the misfortune.
Thus the essence of insurance is to share losses and substitute certainty by uncertainty.
Insurance is the Subject )atter Of Solicitation *>
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Insuance in In1ia
Insurance is a s.>LL billion business in India and yet its spread in the country is
relati!ely thin. Insurance as a concept has not been able to ma"e headway in India. Till
!ery recent past 'I0 enjoyed a monopoly in life insurance business while #I0 followed
suit in the general insurance business. There ha!e been !ery little options before the
consumer to decide the insurer.
Successful passages of the IA $ill ha!e cleared the way for pri!ate sector operators in
collaboration with their o!erseas partner. It is li"ely to bring in a more professional and
focused approach. )oreo!er the foreign players would bring sophisticated actuarial
techni8ues with them which would facilitate the insurer to effecti!ely price the product.
It is !ery important that trained mar"eting professionals who are able to communicate
specific features of the policy should sell the policy. In the ne(t millennium all these
acti!ities would play a crucial role in the o!erall de!elopment and maturity of the
insurance industry.
Insurance is the Subject )atter Of Solicitation *G
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SCO,E OR 0I-DS O/ I-SURA-CE
$roadly insurance may be classified into the following categories,
* 0lassification from business point of !iew
1 0lassification from ris" point of !iew
1. Cl!++i%i!"i#$ %' ,+i$++ p#i$" #% /i0
+rom the business point of !iew insurance may be the following types,
*. 'ife insurance.
1. #eneral insurance.
Insurance is the Subject )atter Of Solicitation
GENERAL LIFE
FIRE MARINE MISCELLANEOUS
*
INSURANCE
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2. Cl!++i%i!"i#$ %' &i+ p#i$" #% /i0
+rom ris" point of !iew insurance can be classified into four categories,
*. %ersonal insurance1. %roperty insurance
6. 'iability insurance
>. +idelity guarantee insurance
1. P&+#$!l i$+&!$
%ersonal insurance refers the loss to life by accident or sic"ness to indi!idual which is
co!ered by the policy. The insurer underta"es to pay the sum insured on the happening of
certain e!ent or on maturity of the period of insurance. The insurable sum is determined
at the time of affecting the policy and include life insurance accident insurance and
sic"ness insurance. 'ife insurance contains the element of in!estment and protection
while the accidental sic"ness or health insurance contains the element of indemnity
only.
2. Pp&" i$+&!$
0ontract of property insurance is a contract of indemnity. %roof by the assured of loss is
an essential element of property insurance. The policies of insurance against burglary
home brea"ing or theft etc. fall under this category. The assured is re8uired to protect the
insured property. After the loss has ta"en place the assured usually re8uired notifying the
police as to losses.
3. Li!,ili" i$+&!$
'iability insurance is the major field of #eneral insurance whereby the insurer promises
to pay the damage of property or to compensate the losses to a third party. The amount of
compensation is paid directly to third party. The fields of liability insurance include,
wor"men compensation insurance third party motor insurance professional indemnity
insurance. There may be !arious reasons for the arising of liability !i;. accident of a
Insurance is the Subject )atter Of Solicitation *K
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wor"er at the wor"place defecti!e goods e(plosion in the factory during the process of
production and formation of poisonous gas within the factory due to the uses of
chemicals and other such substances in the manufacturing process.
4. Fili" !&!$" i$+&!$
In this type of insurance the insurer underta"es to indemnify the assured Nemployer in
consideration of certain premium for losses arising out of fraud or embe;;lement on the
part of the employees. This "ind of insurance is fre8uently adopted as a precautionary
measure in cases where new and untrained employees are gi!en position of trust and
confidence.
Insurance is the Subject )atter Of Solicitation *M
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2E-ERA. I-SURA-CE
#eneral insurance business refers to fire marine and miscellaneous insurance business
whether carried on singly or in combination with one or more of them but does not
include capital redemption business and annuity certain business.
In India #eneral Insurance business started )arine Insurance started on the later part of
the *Kth century. $efore nationali;ation in *P>K we ha!e *>K insurance companies
foreign and Indian both. $ut during nationali;ation in *PK6 we ha!e *LK companies that
merge into four companies i.e. ta"en o!er by #o!ernment.
#eneral Insurance 0orporation of India N#I0 was set up in *PK6 as a holding company
with four subsidiary operating companies / 3ational Insurance co. 'td. 3ew India
Assurance 0o. 'td. 3ew India Assurance 0o. 'td. oriental Insurance co. 'td. and
2nited India Insurance 0o. 'td. with a clear cut mission as set out in the Act.
1. Fire insurance:-
+ire insurance is a form of general insurance pro!iding protection against ris" of loss due
to fire. It is a contract of indemnity. The insurance company underta"es to ma"e good the
loss arising due to fire. The claim should satisfy two conditions .+irstly there must be a
loss due to actual fire and secondly the fire should be accidental. i.e. it should not be
intentional. It is a contract of indemnity not against accident but against loss caused by
accident.
It is becoming !ery common in fire insurance policies to insert a condition called the
a!erage clause. This calls upon the insured to bear a portion of the loss himself. The main
object of this clause is to chec" under/insurance and to encourage full insurance. It
Insurance is the Subject )atter Of Solicitation *P
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stresses upon the property/owner for the need of ha!ing his property accurately !alued
before insurance.
The rate of premium !aries to the degree of ha;ard or ris" in!ol!ed.
History of Fire Insurance
+ire insurance has its origin in #ermany where it was introduced in municipalities for
pro!iding compensation to owners of the property in return for an annual contribution
based on the rent of those premises. The fire insurance in its present form started after the
most disastrous fire in human history "nown as the 4#reat +ire4 in 'ondon which had
destroyed se!eral buildings. It drew the attention of the public and the first fire insurance
commercially transacted in *K. The Industrial e!olution N*K1L/*MGL ga!e much
impetus to fire insurance. The 3ineteenth century mar"ed the de!elopment of fire
insurance.
2. Marine Insurance
)arine insurance is the oldest form of insurance. )arine insurance is a contract under
which the insurance company agrees to pay the compensation against the loss if it arises
due to marine perils of. )arine perils also "nown as perils of the seas means the perils
conse8uent on or incidental to the na!igation of the sea or the perils of the seas such as
fire war perils pirates ro!ers thie!es captures Cettisons barratry and any other perils
which are either of the li"e "ind or may be designed by the policy It is a type of general
insurance which co!ers the ris" generally up to one year on which the premium is paid
once that also in ad!ance.
)arine insurance is di!ided into three types namelyJ cargo insurance hull insurance and
freight insurance.
Insurance is the Subject )atter Of Solicitation 1L
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There are different types of marine policies "nown by different names according to the
manner of their e(ecution or the ris" they co!er. They are, Doyage policy time policy
mi(ed policy !alued policy un!alued policy floating policy.
History of Marine Insurance
The oldest and the earliest records of marine policy relates to a )editerranean !oyage in
*6>K. In the year *>LL a boo" written by a merchant of +lorence indicates premium
rates charged for the shipments by sea from 'ondon to %isa. )arine Insurance spread
from Italy to trading routes in other countries of =urope. 'ater on in the year *GG
%hilip II made marine insurance regulations for Spain and in *G6 for Antwerp NAmerica
insured three ships on a !oyage from Hawaii to 0entral America.
In *GKG during the reign of Rueen =li;abeth * open the 0hamber of Assurance in theoyal =(change for the registration of marine parcels. +ollowing this an proceed of
parliament was passed in *L* to deal with disputes relating to marine insurance. @uring
the period *K1L/*M1> the two 0harted companies !i;. 'ondon Assurance and oyal
=(change Assurance enjoyed dominant position in the field of marine insurance. With
the introduction of steamship and growth of international trade speciali;ed marine
ser!ices were introduced. +ollowing this the 'loyd7s Association founded in *P1 and
originated from coffeehouse run by =dward 'loyd became the major center of marine
insurance.
Insurance is the Subject )atter Of Solicitation 1*
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3. Miscellaneous insurance
The process of fast de!elopment in the society ga!e rise to a number of ris"s or ha;ards.
To pro!ide security against such ha;ards many other types of insurance also ha!e been
de!eloped. The important among them are,
Ni Dehicle insurance on buses truc"s motorcycles etc.
Nii %ersonal accident insurance Nby paying an annual premium of s. *1/ %olicy worth
s. *1LLL/ can be insured.
Niii $urglary insurance / Nagainst theft dacoity etc.
Ni! 'egal liability insurance Ninsurance whereby the assured is liable to pay the damages
to property or to compensate the loss of personal injury or death. This is in the form of
fidelity guarantee insurance auto mobile insurance and machines etc.
N! 0rop insurance Ncrops are insured against losses due to hea!y rain and floods
cyclone draughts crop diseases etc.
N!i 0attle insurance / Ninsurance for indemnity against the loss of castles from !arious
"inds of diseases In addition to the abo!e insurance policies are a!ailable against crime
medical insurance bulloc" cart insurance jewelry insurance cycle ric"shaw insurance
radio/T.D. insurance etc.
Insurance is the Subject )atter Of Solicitation 11
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The #)eall scenai# in the
insuance +a3et in In1ia a"tenati#nali4ati#n
#I0 and its subsidiaries function through a !ast country / wide networ" of around >*LL
offices spread across the length and breadth of the country #I0 has ta"en the benefit of
insurance to almost e!ery district across hilly terrain and often inaccessible areas of the
country. The customer/ interface is made easy through a networ" of agents de!elopment
officers and employees at $ranch @i!isional and egional offices as well as at the
corporate le!el.
The #I0 and its subsidiaries ha!e a wor"force of appro(imately MLLL in *PK6 tainted at
!arious le!els through in house training institutions. 3ow the total number of employeeswent up. The industry has also promoted the 3ational Insurance Academy N3IA which
is the premier training institute in insurance catering not only to Indian nationals but also
to select foreign nationals. The industry issues around 16 million documents and settles 1
million claims e!ery year. 0ountrywide computeri;ation in the recently past has made the
tas" of policy / holder4s ser!icing easier and rapid. At the same time profitable lines and
premium components increases and we became a in!estment company.
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Whee 1#es In1ian Insuance
sect# stan1 c#+*ae1 t#
Intenati#nal Insuance Sect#!
Technologically Indian insurance sector is 8uite comparable with the international
sector. The !ast resources of s"illed and technical manpower huge mar"et potentialityand technical "now/how / all are comparable with the international mar"et. $ut lac"ing
in the process of computeri;ation and in pricing Npremium rate are also seen. In product
India has demand in less because lac" of awareness for ade8uate insurance co!er with
insuring public. India7s mar"eting strategies are not !ery modern. $ut India is trying to
rectify both these NTechnology and )ar"eting areas.
What are the problems faced by Indian
Insurance Sector today
The main problems are/
'ac" of awareness for insurance needs.
'ac" of penetration due to inade8uate mar"etingdeli!ery system.
Total computeri;ation still in the process of implementation.
Insurance is the Subject )atter Of Solicitation 1>
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Sophisticated co!ers do not ha!e ade8uate demands because of general attitude to
insurance in India.
Insurance is the Subject )atter Of Solicitation 1G
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R#le #" 2eneal Insuance
In1usty in the 2#5th #"
Ec#n#+y #" the C#unty
The #eneral Insurance Industry has an en!iable trac" record among public sector units. It
has a consistent profit and di!idend paying record accompanied by a steady growth in its
financial resources. Through in!estments in the #o!ernment sector and socially/ oriented
sectors the Industry has contributed immensely to the nation4s de!elopment. The industry
is recogni;ed as one of the largest financial Institutions in the country. The !entures
initiated by the industry in the areas of )utual +und Housing +inance ha!e done
e(ceedingly well in recent years.
To protect the country4s foreign e(change reser!es the reinsurance arrangement are so
organi;ed that ma(imum retention is made possible within the country while at the same
time protecting interests of the policy holders. The #I07S inwards reinsurance wing
called the SWI+T ma(imi;es the foreign e(change balance by acting as an international
insurer accepting ris"s from all o!er the globe.
Insurance is the Subject )atter Of Solicitation 1
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2IC6S Intenati#nal #*eati#n
#I04S international operations span o!er 6* countries around the globe. The reinsurance
e(pertise built o!er a long period has made the Indian Insurance Industry a globally
ac"nowledged reinsurer of repute #I04S ris" management s"ill has been bac"ed by
specialists with a !ast insurance e(perience. Thus the technical and underwriting s"ills
ha!e been ac"nowledged in the international mar"et. The corporation operates in *K
countries through branches and agencies whereas in another *> countries it has
subsidiaries and associate companies. The #I0 has a subsidiary company "nown as
India International %!t. 'td.4 operating in Singapore and a joint/!enture company
Benindia Insurance co. 'td. in Benya.
Insurance is the Subject )atter Of Solicitation 1K
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2E-ERA. I-SURA-CE
COR,ORATIO-
!he "e# India $ssurance %ompany &td.
The 3ew India can claim to be the largest non/life insurer not only in India but also in the
whole Afro/Asia region e(cluding Capan. The 3ew India was incorporated on 16rd
October *P*P. There was hardly any Indian insurance company of significance till that
time. Sir @orab Tata is the +ounder 0hairman of the company.
The go!ernment of India too" o!er the management of the company along with that of all
other non/life insurers in the country. 3ew India was subse8uently reconstituted ta"ing
o!er 16 companies under the Scheme of )erger following the nationali;ation of #eneral
Insurance $usiness in *PK6.
"ational Insurance %ompany &td.
Since incorporation in the year *PL 3ational Insurance 0ompany has been carrying out
general insurance business under pri!ate management until *PK1 the year of its
nationalisation. In the same year 11 foreign and ** Indian Insurance 0ompanies were
amalgamated with 3ational Insurance 0ompany 'imited as a subsidiary company of
#eneral Insurance 0orporation of India.
Insurance is the Subject )atter Of Solicitation 1M
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Head8uartered in 0alcutta it has an organisational networ" of o!er P> offices with
around 1LLKK trained wor"forces. The company also has operations in Hong Bong and
3epal and ran"s among the top global business insurers.
!he 'riental Insurance %ompany &td.
The Oriental Insurance 0ompany 'td. NOI0' is one of the four general Insurance
companies in India under the aegis of the #eneral Insurance 0orporation N#I0 of India.
It is one of the oldest Insurance companies and was established in the year *P>K. The0ompany head8uartered in 3ew @elhi transacts all "inds of general insurance business
ranging from !ery big projects to small rural insurance co!ers.
The 0ompany has 1* egional Offices 6** @i!isional Offices and 6G $ranch offices. It
speciali;es in de!ising special co!ers for large projects li"e %ower %lants %etro/
chemical Steel %lants and chemical plants.
The %remium Income of the 0ompany has gone up to s. 1*.GG 0rores in *PPP/1LLL
from s. *PP.MM 0rores for the pre!ious year registering a reasonable growth of around
*L. 'i"ewise In!estment Income has increased to s. 6K.G6 0rores from s. 6>*.11
0rores. On the other hand 0apital and eser!e +unds of the 0ompany showed an
increase of *L.1 i.e. s. *.>6 0rores bringing the total to s. *K66.M 0rores.
Insurance is the Subject )atter Of Solicitation 1P
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(nited India Insurance %ompany &td.
2nited India / one of the four subsidiaries of #eneral Insurance 0orporation with its
head8uarters at 0hennai is the second largest Insurer by si;e of premium and mar"et
share of the entire #eneral Insurance business transacted throughout India under the
stewardship of )r. B 3 $handari.
The company7s major thrust areas are +ire )arine )otor and miscellaneous. To reali;e
the corporate objecti!e of carrying the message of insurance to the masses 2nited India
has countrywide presence through **16 offices.
This !ast networ" includes 1* regional offices 6*6 di!isional offices and KMP branch
offices. Ser!ice to its large clientele is done through 6M1L officers 61KG de!elopment
officers **KKK super!isory and clerical staff and 1P6 subordinate staff.
Insurance is the Subject )atter Of Solicitation 6L
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-EW E-TRA-TS I- THE BUSI-ESS
Tata AI# #eneral Insurance 0ompany 'td and Tata AI# 'ife Insurance 0ompany 'td.
Ncollecti!ely UTata AI#U are joint !enture companies between the Tata group India4s
most trusted industrial house and American International #roup Inc. NAI# the leading
2. S. based international insurance and financial ser!ices organi;ation.
$oth promoters ha!e a deep and abiding interest in India4s insurance sector. %rior to
nationali;ation the Tatas pioneered pri!ate insurance in India when Sir @orab Tata set up
3ew India Assurance in *P*P. $y *PK6 when #eneral Insurance was nationali;ed the
Tata company had a global presence with G o!erseas offices. AI# too has always
considered the Indian insurance sector to be of significance. The AI# companies entered
India in *P>G and had offices in se!eral Indian cities prior to nationali;ation.
Insurance is the Subject )atter Of Solicitation 6*
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AI# is the leading 2.S. / based international insurance and financial ser!ices
organi;ation and the largest underwriter of commercial and industrial insurance in the
2nited States. Its member companies write a wide range of commercial personal and life
insurance products through a !ariety of distribution channels in appro(imately *6L
countries and jurisdictions throughout the world. AI#4s global businesses also include
financial ser!ices and asset management including aircraft leasing financial products
trading and mar"et ma"ing consumer finance institutional retail and direct in!estment
fund asset management real estate in!estment management and retirement sa!ings
products. American International #roup Inc.4s common stoc" is listed on the 3ew or"
Stoc" =(change as well as the stoc" e(changes in 'ondon %aris Swit;erland and
To"yo.
Today AI#4s operations e(tend across *6L countries and jurisdictions throughout the
world. AI# is ran"ed VM in +orbes 1LLL Usuper *LLU ran"ing of all 2S corporations. AI#
is ran"ed VM in +ortune GLL ran"ing of top 2S corporations and ran"ed V* in the
property and casualty business.
The Tata #roup is the most respected industrial conglomerate in India with re!enues of
more than 2S M billion. The #roup has long been a mar"et leader in steel commercial
!ehicles electric power generation in the pri!ate sector and computer software. In recent
times it has promoted se!eral new !entures in high growth areas of the economy such as
financial ser!ices telecommunications information technology auto components oil
field ser!ices and process management systems. The #roup has had a long association
with India4s insurance sector ha!ing been the largest insurance company in India prior to
the nationali;ation of insurance.
Insurance is the Subject )atter Of Solicitation 61
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$ajaj Allian; #eneral Insurance 0ompany 'imited is a joint !enture between $ajaj Auto
'imited and Allian; A# of #ermany. $oth enjoy a reputation of e(pertise stability and
strength. Incorporated on *Pth September 1LLL $ajaj Allian; #eneral Insurance
0ompany recei!ed the Insurance egulatory and @e!elopment Authority NI@A
certificate of egistration N6 on )ay 1nd 1LL* to conduct #eneral Insurance business
Nincluding Health Insurance business in India. The 0ompany has an authori;ed and paid
up capital of s **L crores
Allianz
O!er the past century Allian; has become one of the world4s leading insurance
companies. The #roup4s multilocal structure guarantees its worldwide presence while
pro!iding the highest possible le!el of ser!ice appropriate to the mar"et in each country.
$ajaj Allian; intends to offer the majority of products a!ailable in India and
internationally.
The 0ompany currently offers the following products,
Tariff %roducts
+ire Insurance
Insurance is the Subject )atter Of Solicitation 66
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0onse8uential 'oss N+ire Insurance
Industrial All is"
)otor Nincludes pri!ate cars two wheelers and commercial !ehicles
Wor"men7s 0ompensation
=ngineering Nincludes 0ontractors %lant and )achinery =lectronic e8uipment
)achinery 'oss of %rofits )achinery $oiler =(plosion )achinery $rea"down
@eterioration of stoc"
3on/Tariff products
%ersonal Accident
$urglary
)oney
%late #lass
%ublic 'iability
House Holders
Shop"eepers Ncoming shortly
O!erseas Tra!el Ncoming shortly
is" )anagement Ser!ices
They also offer a gamut of ris" management ser!ices that include,
is" Analysis
is" #rading 5 is" 0ontrol
Ha;ard and Operability Studies
Safety Audit
Insurance is the Subject )atter Of Solicitation 6>
http://www.bajajallianz.co.in/fire_consq.htmhttp://www.bajajallianz.co.in/fire_consq.htmhttp://www.bajajallianz.co.in/industrial_allrisk.htmhttp://www.bajajallianz.co.in/motor.htmhttp://www.bajajallianz.co.in/workmen's_comp.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/personal_accident.htmhttp://www.bajajallianz.co.in/burglary.htmhttp://www.bajajallianz.co.in/money.htmhttp://www.bajajallianz.co.in/plate_glass.htmhttp://www.bajajallianz.co.in/public_liability.htmhttp://www.bajajallianz.co.in/house.htmhttp://www.bajajallianz.co.in/fire_consq.htmhttp://www.bajajallianz.co.in/industrial_allrisk.htmhttp://www.bajajallianz.co.in/motor.htmhttp://www.bajajallianz.co.in/workmen's_comp.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/engineering.htmhttp://www.bajajallianz.co.in/personal_accident.htmhttp://www.bajajallianz.co.in/burglary.htmhttp://www.bajajallianz.co.in/money.htmhttp://www.bajajallianz.co.in/plate_glass.htmhttp://www.bajajallianz.co.in/public_liability.htmhttp://www.bajajallianz.co.in/house.htm8/13/2019 Final2 Insurance
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@isaster )anagement %lanning
is" )anagement Training
@e!elopment and )onitoring of is" )anagement programmes
Accident In!estigations
Insurance portfolio analysis
.I/E I-SURA-CE
'ife insurance may be defined as a contract in which the insurer in consideration of a
certain premium either in a lump sum or by other periodical payments agrees to pay to
the assured or to the person for whose benefit the policy is ta"en the assured sum of
money on the happening of a specified e!ent contingent on the human life.
A contract of life insurance as in other forms of insurance re8uires that the assured must
ha!e at the time of the contract an insurable interest in his life upon which the insurance
is effected. In a contract of life insurance unli"e other insurance interest has only to be
pro!ed at the date of the contract and not necessarily present at the time when the policy
falls due.
History of life insurance
The early de!elopments of life insurance were closely lin"ed with that of marine
insurance. The first insurers of life were the marine insurance underwriters who started
issuing life insurance policies on the life of master and crew of the ship and the
merchants. The early insurance contracts too" the nature of policies for a short period
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only. The underwriters issued annuities and pension for a fi(ed period or for life to
pro!ide relief to widows on the death of their husbands. The first life insurance policy
was issued on *MthCune *GM6 on the life of William #ibbons for a period of *1 months.
It was in the eighteenth century societies began to be formed for issuing life insurance
policies. Among such societies the Amicable Society N*KLG The =8uitable 'ife
Assurance Society N*K1 the West )inister Society N*KP1 were the important societies.
The premium rates were !aried in !iew of reputation and the health condition of the
insured. @uring the early years of nineteenth century a large number of life insurance
companies were formed in India. Some of these companies preferred to amalgamate their
business with other companies and a good number failed to function effecti!ely. In order
to stabili;e and strengthen the insurance business 'ife insurance 0ompanies ActJ *P16
was passed and later amended it in *P> *PGM and *PK.
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O)e)ie5
With largest number of life insurance policies in force in the world Insurance happens to
be a mega opportunity in India. It7s a business growing at the rate of *G/1L per cent
annually and presently is of the order of s >GL billion. Together with ban"ing ser!ices
it adds about K per cent to the country7s #@%. #ross premium collection is nearly 1 per
cent of #@% and funds a!ailable with 'I0 for in!estments are M per cent of #@%.
et nearly ML per cent of Indian population is without life insurance co!er health
insurance and non/life insurance continue to be below international standards. And this
part of the population is also subject to wea" social security and pension systems with
hardly any old age income security. This is an indicator that growth potential for the
insurance sector is immense.
A well/de!eloped and e!ol!ed insurance sector is needed for economic de!elopment as it
pro!ides long term funds for infrastructure de!elopment and at the same time strengthens
the ris" ta"ing ability. It is estimated that o!er the ne(t ten years India would re8uire
in!estments of the order of one trillion 2S dollar. The Insurance sector to some e(tent
can enable in!estments in infrastructure de!elopment to sustain economic growth of the
country.
Insurance is the Subject )atter Of Solicitation 6K
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With a large capital outlay and long gestation periods infrastructure projects are fraught
with a multitude of ris"s throughout the de!elopment construction and operation stages.
These include ris"s associated with project implementation including geological ris"s
maintenance commercial and political ris"s. Without co!ering these ris"s the financial
institutions are not willing to commit funds to the sector especially because the financing
of most pri!ate projects is on a limited or non/ recourse basis.
Insurance companies not only pro!ide ris" co!er to infrastructure projects they also
contribute long/term funds. In fact insurance companies are an ideal source of long term
debt and e8uity for infrastructure projects. With long term liability they get a good asset/
liability match by in!esting their funds in such projects.
I@A regulations re8uire insurance companies to in!est not less than *G percent of their
funds in infrastructure and social sectors. International Insurance companies also in!est
their funds in such projects.
Insurance is a federal subject in India. There are two legislations that go!ern the sector/
The Insurance Act/ *P6M and the I@A Act/ *PPP.
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.I/E I-SURA-CE I- I-DIA
The $ritish companies started life insurance business in India by issuing policies
e(clusi!ely on the li!es of =uropean soldiers and ci!ilians. They sometimes issued
policies on the li!es of Indian7s by charging e(tra. @ifferent insurance companies li"e
$ombay Insurance 0ompany 'T@. N*KP6 and Oriental 'ife Assurance 0ompany N*M*M
was formed to issue life assurance policies in India. #radually the first Indian 0ompany
named as $ombay )utual 'ife Insurance Society 'td. was formed in @ec. *MKL. $y
*PK* the total numbers of companies wor"ing in India were *G out of which K were
Indian and the remaining were $ritish companies.
@uring the period from *MKL to *PLL a large number of Indian companies were formed
under the Indian 0ompanies Act *M. The business was confined to few communities
and occupations only. @uring the period from *PLL to *P*1 the insurance business
attracted attention among middle class people. As a result #o!ernment of India passed
the Insurance Act on the model of $ritish Assurance Act. @uring the period from *P*1/
*P6L the insurance business witnessed a set bac".
After se!eral changes ha!e been made for the period from *P6L to *P6M the #o!ernment
of India passed Insurance Act *P6M. The act still applies to all "inds of insurance
business by instituting necessary amendments from time to time.
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,esent Scenai#
The #o!ernment of India liberali;ed the insurance sector in )arch 1LLL with the passage
of the Insurance egulatory and @e!elopment Authority NI@A $ill lifting all entry
restrictions for pri!ate players and allowing foreign players to enter the mar"et with some
limits on direct foreign ownership. 2nder the current guidelines there is a 1 percent
e8uity cap for foreign partners in an insurance company. There is a proposal to increase
this limit to >P percent. %remium rates of most general insurance policies come under the
pur!iew of the go!ernment appointed Tariff Ad!isory 0ommittee.
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.i"e Insuance Vs Othe ty*es #"
In)est+ents
)ost in!estment options ma"e your money wor" harder but there are no substitutes to
life insurance. $ecause only a life insurance policy gi!es you both / ris" co!er against
your life as well as returns on your money in!ested.
'ife insurance allows long tem sa!ings to be made in a relati!ely painless manner
because of the low and con!enient in!estments made through premiums. )oreo!er it
encourages 4forced thrift4 which means the insured is made to pay premiums and sa!e
money which heshe may not do in the regular course of life.
Should you re8uire loans say for building a house it can be easily obtained against a life
insurance policy. Amongst the most "nown benefits of 'ife Insurance is the sa!ings on
your income ta(es.
'ife insurance cannot be compared with any other form of in!estment as life insurance
gi!es you a life long benefit and returns on your money when it is most re8uired.
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Insurance premiums are lin"ed to age of the life insured and the earlier you buy the
lower are the premium re8uirements. $esides the money stays in!ested for a longer time
and thereby ma(imi;ing your returns through the power of rupee compounding.
So a life insurance policy is an ideal tool to gain security and ensure sa!ings. )ost
importantly it pro!ides you with that uni8ue sense of security and peace of mind that no
other form of in!estment pro!ides.
The 'ife Insurance 0orporation N'I0 was established about >> years ago with a !iew to
pro!ide an insurance co!er against !arious ris"s in life. A monolith then the corporation
enjoyed a monopoly status and became synonymous with life insurance.
Its main asset is its staff strength of *.1> la"h employees and 1L>M branches and o!er
si(/la"h agency force.
'I0 has hundred di!isional offices and has established e(tensi!e training facilities at all
le!els. At the ape( is the )anagement @e!elopment Institute se!en Xonal Training
0entres and 6G Sales Training 0entres.
At the industry le!el along with the #o!ernment and the #I0 it has helped establish the
3ational Insurance Academy. It presently transacts indi!idual life insurance businesses
group insurance businesses social security schemes and pensions grants housing loans
through its subsidiaryJ and mar"ets sa!ings and in!estment products through its mutual
fund. It pays off about s LLL crores annually to G. million policyholders.
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'b)ecti*es of &I%
Spread 'ife Insurance much more widely and in particular to the rural areas and
to the socially and economically bac"ward classes with a !iew to reaching all
insurable persons in the country and pro!iding them ade8uate financial co!er against
death at a reasonable cost.
)a(imi;e mobili;ation of people4s sa!ings by ma"ing insurance/lin"ed sa!ings
ade8uately attracti!e.
$ear in mind in the in!estment of funds the primary obligation to its
policyholders whose money it holds in trust without losing sight of the interest of the
community as a wholeJ the funds to be deployed to the best ad!antage of the in!estors as
well as the community as a whole "eeping in !iew national priorities and obligations of
attracti!e return.
0onduct business with utmost economy and with the full reali;ation that the
moneys belong to the policyholders.
Act as trustees of the insured public in their indi!idual and collecti!e capacities.
)eet the !arious life insurance needs of the community that would arise in the
changing social and economic en!ironment.
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In!ol!e all people wor"ing in the 0orporation to the best of their capability in
furthering the interests of the insured public by pro!iding efficient ser!ice with
courtesy.
%romote amongst all agents and employees of the 0orporation a sense of
participation pride and job satisfaction through discharge of their duties with
dedication towards achie!ement of 0orporate Objecti!e.
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I0I0I %rudential 'ife Insurance is a joint !enture between the I0I0I #roup and
%rudential plc of the 2B. I0I0I started off its operations in *PGG with pro!iding finance
for industrial de!elopment and since then it has di!ersified into housing finance
consumer finance mutual funds to being a Dirtual 2ni!ersal $an" and its latest !enture
'ife Insurance.
I0I0I %rudential 'ife Insurance 0ompany 'imited was incorporated on Culy 1L 1LLL.
The authori;ed and paid up capital of the 0ompany is s. *GLL )illion. The 0ompany is
a joint !enture of I0I0I NK> and prudential plc 2B N1.
The 0ompany was granted 0ertificate of egistration for carrying out 'ife Insurance
business by the Insurance egulatory and @e!elopment Authority on 3o!ember 1>
1LLL. It commenced commercial operations on @ecember *P 1LLL becoming one of the
first few pri!ate sector players to enter the liberali;ed arena.
The 0ompany is now operational in )umbai 3ew @elhi %une 0hennai Bol"ata
$angalore and 0handigarh.
@uring this short period till )arch 6* 1LL* the 0ompany has issued 6MK polices
translating into a %remium Income s. GP.K )illion and a sum assured of o!er s.*LLL
)illion.
The company recogni;es that the dri!ing force for gaining sustainable competiti!e
ad!antage in this business is superior customer e(perience and in!estment behind the
brand. The 0ompany aims to achie!e this by stri!ing to pro!ide world/class ser!ice
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le!els through constant inno!ation in products distribution channels and technology
based deli!ery. The 0ompany has already ta"en significant steps to achie!e this goal.
Sponsors
I0I0I 'td was established in *PGG by the World $an" the #o!ernment of India and the
Indian Industry to promote industrial de!elopment of India by pro!iding project and
corporate finance to Indian industry.
Since inception I0I0I has grown from a de!elopment ban" to a financial conglomerate
and has become one of the largest public financial institutions in India. I0I0I has
financed all major sectors of the economy co!ering M>M companies and *MG*
projects. In the fiscal year 1LLL/1LL* I0I0I had disbursed a total of s 6*P.G billion.
I0I0I has now de!eloped a whole range of acti!ities to become a 2ni!ersal $an".
I0I0I is listed on the Indian Stoc" =(changes and on the 3ew or" Stoc" =(change
N3S=. On September 11 *PPP it became the first Indian company to be listed on the
3S= Nsymbol, I0 and I0.@. This has been followed by the listing of I0I0I $an" on
3S= Nsymbol, I$3 on )arch 1M 1LLL.
+rudential plc
%rudential plc was founded in *M>M. Since then it has grown to become one of the largest
pro!iders of a wide range of sa!ings products for the indi!idual including life insurance
pensions annuities unit trusts and personal ban"ing. It has a presence in o!er *G
countries and caters to the financial needs of o!er *L million customers. It manages
assets of o!er 2S 1GP billion Nupees ** 6PLL crores appro(. as of @ecember 6*
*PPP. %rudential plc. has had its presence in Asia for the past KG years catering to o!er *
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million customers across ** Asian countries.
%rudential is the largest life insurance company in the 2nited Bingdom NSource, S5%4s
2B 'ife +inancial @igest *PPM. Asia has always been an important region for
%rudential and it has had a presence in Asia for o!er KG years. In fact %rudential4s first
o!erseas operation was in India way bac" in *P16 to establish 'ife and #eneral $ranch
agencies.
In the 2S %rudential owns Cac"son 3ational 'ife one of the leading life insurance
companies. %rudential controls appro(imately > of all the listed shares on the second
largest stoc" e(change in the world the 'ondon Stoc" =(change ma"ing it one of the
largest institutional in!estors in the 2B. %rudential is focused on the internet generation
and is one of the first financial ser!ice organisations to use the internet on a fully
integrated basis.
In October *PPM %rudential launched a UbranchlessU ban" based on the Internet.
2nusually titled as 9egg,: The ban" has in a short span of its e(istence become a leading
ban"ing ser!ice pro!ider in the 2B. Infect in the first si( months of its e(istence it
garnered o!er Y G billion N2S M billion in deposits from o!er GLLLLL customers.
@e!elopment of superior products and ser!ices that offer !alue for money and security
while producing superior financial returns enables %rudential to ma(imi;e the !alue of its
shareholder4s in!estment and to establish lasting relationships with customers and policy
holders.
I0I0I and %rudential came together in *PP6 to pro!ide mutual fund products in India and
today are the largest pri!ate sector mutual fund company in India. The two companies
bring together two of the strongest financial ser!ice brands in Asia "nown for their
professionalism e(cellent 8uality of ser!ice and long term commitment to the public.
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)a( 3ew or" 'ife Insurance 0ompany 'imited is a joint !enture that has been formed
by the coming together of two large forces / )a( India 'imited a multi/business
corporate together with 3ew or" 'ife International Inc. a global leader who is long
e(perienced in that uni8ue business called life insurance.
Speciali;ing solely in the business of life insurance )a( 3ew or" 'ife is a company
that is transparent and financially responsible to its customers. Our gamut of
fle(ible products are dri!en by a set of professionally/trained agents who don4t
just sell insurance but rather listen and offer you solutions to meet your
specific need. This is because we are highly customer/sensiti;ed a fact that is
all the more reflected through our focused fle(ible!alue/added ser!ices.
SPONSORS
Ma, India
)a( India 'imited is a multi/business corporation that has business interests in telecom
ser!ices bul" pharmaceuticals electronic components and specialty products. it is also
the ser!ice/oriented businesses of healthcare life insurance and information technology.
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"e# or &ife
3ew or" 'ife has grown to be a +ortune *LL company and an e(pert in life insurance. It
was the first insurance company to offer cash di!idends to policy owners. In *MP> 3ew
or" 'ife pioneered the then unheard/of concept of insuring women at the same rate as
men. Thereafter it continued to introduce a series of firsts / a disability benefit clause in
*P1L unemployment insurance in *PP1 and complete customer care on the Web in *PPM.
Today 3ew or" 'ife has o!er 2S billion in assets under management and o!er 6LLLL
agents and employees worldwide. The October 1LLL +ortune Sur!ey named 3ew or"
'ife amongst the top three most admired life and health insurance companies worldwide.With o!er 6 million policyholders 3ew or" 'ife is a leading pro!ider of insurance in a
host of countries worldwide.
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H@+0 Standard 'ife Insurance H@+0 Standard 'ife Insurance 0ompany is a joint
!enture between India4s largest housing finance pro!ider H@+0 and =urope4s largest
mutual life assurance company / The Standard 'ife Assurance 0ompany N2. B.
H@+0 Standard 'ife Insurance 0ompany 'imited is the +irst %ri!ate Sector 'ife
Insurance 0ompany to be granted a license.
!he +artnership
H@+0 and Standard 'ife first came together for a possible joint !enture to enter the 'ife
Insurance mar"et in Canuary *PPG. It was clear from the outset that both companies
shared similar !alues and beliefs and a strong relationship 8uic"ly formed. In October
*PPG the companies signed a 6/year joint !enture agreement.
Around this time Standard 'ife purchased a G sta"e in H@+0 further strengthening the
relationship.
The ne(t three years were filled with uncertainty due to changes in go!ernment and
ongoing delays in getting the I@A NInsurance egulatory and @e!elopment authority
Act passed in parliament. @espite this both companies remained firmly committed to the
!enture.
In October *PPM the joint !enture agreement was renewed and additional resource made
a!ailable. Around this time Standard 'ife purchased 1 of Infrastructure @e!elopment
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+inance 0ompany 'td. NI@+0. Standard 'ife also started to use the ser!ices of the
H@+0 Treasury department to ad!ise them upon their in!estments in India.
Towards the end of *PPP the opening of the mar"et loo"ed !ery promising and both
companies agreed the time was right to mo!e the operation to the ne(t le!el. Therefore
in Canuary 1LLL an e(pert team from the 2B joined a hand pic"ed team from H@+0 to
form the core project team based in )umbai.
Around this time Standard 'ife purchased a further G sta"e in H@+0 and a G sta"e in
H@+0 $an".
In a further de!elopment Standard 'ife agreed to participate in the Asset )anagement
0ompany promoted by H@+0 to enter the mutual fund mar"et. The )utual +und was
launched on 1Lth Culy 1LLL.
Incorporation of H@+0 Standard 'ife Insurance 0ompany 'imited
The company was incorporated on *>th August 1LLL under the name of H@+0 Standard
'ife Insurance 0ompany 'imited.
The company7s ambition from as far bac" as October *PPG was to be the first pri!ate
company to re/enter the life insurance mar"et in India. On the 16rd of October 1LLL this
ambition was reali;ed when H@+0 Standard 'ife was the only life company to be
granted a certificate of registration.
H@+0 are the main shareholders in H@+0 Standard 'ife with M*.> while Standard
'ife owns *M.. #i!en Standard 'ife4s e(isting in!estment in the H@+0 #roup this is
the ma(imum in!estment allowed under current regulations.
H@+0 and Standard 'ife ha!e a long and close relationship built upon shared !alues and
trust. The ambition of H@+0 Standard 'ife is to mirror the success of the parent
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companies and be the yardstic" by which all other insurance companies in India are
measured.
Forei/n +artner: Standard &ife0 (
Standard 'ife 2B founded in *M1G has been at the forefront of the 2B insurance
industry for *KG years by combining sound financial judgment with integrity and
reliability. It is the 'argest )utual 'ife company in =urope and has total assets of s. G
GLLLL crore.
It is one of the !ery few insurance companies in the world to ha!e recei!ed 4AAA4 rating
from two of the leading international credit rating agencies )oody4s and Standard 5
%oor4s. Standard 'ife was recently !oted 40ompany of the @ecade4 in 2.B. by the
Independent $ro"ers called I+As.
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$irla Sun 'ife Insurance is the coming together of the Aditya $irla group and Sun 'ife
+inancial of 0anada to enter the Indian insurance sector. The Aditya $irla #roup a
multinational conglomerate has o!er KG business units in India and o!erseas with
operations in 0anada 2SA 2B Thailand Indonesia %hilippines )alaysia and =gypt to
name a few.
Is has its presence in o!er *6L countries and jurisdictions around the world.
Insurance is not about something going wrong. It4s often about things going right. One of
the wonders of human nature is that we ne!er belie!e anything can actually go wrong.
Surely life has its share of ifs. At $irla Sun 'ife howe!er we belie!e it has its e8ually
pleasant share of buts as well.
$irla Sun 'ife stands committed to helping you reali;e those happy moments which
ma"e a life. $e it li!ing the same lifestyle in your post retirement days or pro!iding a
secure future for your lo!ed ones in case something happens to you.
Here the Aditya $irla #roup contributes its "nowledge of the Indian mar"et and Sun 'ife
+inancial contributes global e(pertise in the areas of protection and wealth management.
The cornerstones of the partnership are respect for each other integrity and customer
focus. The joint !enture companies are engaged in the acti!ities of life insurance asset
management retail distribution and stoc" bro"ing.
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Financial Marets
As far as the +inancial )ar"ets are concerned no matter where the news happens how it
happens and why it happens you will hear it first. $ecause $irla Sun 'ife belie!es that
you ha!e a right to "now. And uphold your right to "nowledge. $ecause ci!ili;ations
thri!e and prosper on "nowledge and the world re!ol!es on information. So ne(t time
you want to hear the What How When Where and Why just come to the +inancial
)ar"et. And all you ha!e to do is clic".
Forei/n +artner
Sun 'ife Assurance Sun 'ife +inancials primary insurance business has e(cellent
ratings with the world4s top rating agencies. With assets under management as on
September 6L 1LLL totaling more than 0@3 billion it ran"s amongst the largest
international financial ser!ices organi;ations in the world.
Today the Sun 'ife +inancial #roup of companies and partners are represented globally
in 0anada the 2nited States the %hilippines Capan Indonesia India and $ermuda.
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S$I 'ife Insurance 0o. 'td. is a joint !enture between State $an" of Indiaand 0ardiff
S.A. of +rance. We are a registered life insurance company.
S$I is a household name and it stands as the last word for financial strength and security
in the country.
S$I4s illustrious bac"ground dates bac" to the year *ML when it started business as a
presidency ban" "nown as $an" of $engal. O!er the long journey it has learnt to
combine the best of ban"ing practices handed down from the imperial management with
the more dynamic ways of doing ban"ing in the modern India.
It has grown as a responsible giant in the ban"ing field o!er the years. Today it has a
branch networ" of o!er PLLL branches an aggregate deposit base of nearly s*PM1*
crore N2S>G*1*mm and a total balance sheet si;e of s.1*GL> crore N2SGPPGL mm.
Together with its K Associate $an"s S$I commands about 6L of the mar"et share in
ban"ing.
S$I is the strongest and most profitable ban" in the country. It has a tangible net worth of
s.*1*> crore N2S1KM>mm as at )arch 1LLL and it earned a pre/ta( profit of
s.1LG* crore N2S>KL mm for the fiscal ending that date.
0ardiff is a wholly owned subsidiary of $3% %aribas which is one of the top *L ban"s in
the world and the third largest in =urope. $3% is one of the oldest foreign ban"s with a
presence in India dating bac" to *ML. It has P branches in major metros in the country.
0ardiff came into being in *PK6. It has grown o!er the years into a !ibrant insurance
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company speciali;ing in personal lines such as long/term sa!ings protection products
and creditor insurance. 0ardiff had a premium income of o!er 2S > billion in *PPP and
more than 2S 16 billion of funds under its management.
0ardiff has been speciali;ing in the art of selling insurance products through commercial
ban"s in +rance and 16 other countries.
+rance is the mother of banc assurance in the world. O!er G of life insurance business
is done through ban"s and financial institutions4 counters in +rance and the trend is
rapidly catching up in other countries.
It operates joint !entures in de!eloped as well as de!eloping countries such as $ra;il
0hile and the 0;ech epublic.
S$I 'ife Insurance 0ompany 'td is registered as a life insurance company with the
Insurance egulator. The 0ompany4s authori;ed capital is s.1GL crore and the paid/up
capital at present is s.*1G crore.
S$I owns K> of the total e8uity and 0ardiff the balance 1.
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=stablished in *PMG as Bota" 0apital )anagement +inance promoted by 2day Bota" the
company has come a long way since its entry into corporate finance. It has dabbled in
leasing auto finance hire purchase in!estment ban"ing consumer finance bro"ing etc.
The company got its name Bota" )ahindra as industrialists Harish )ahindra and Anand
)ahindra pic"ed a sta"e in the company. Bota" )ahindra is today one of India4s leading
+inancial Institutions.
'ld Mutual
Old )utual plc is an international financial ser!ices group based in 'ondon with
e(panding operations in life assurance asset management ban"ing and general
insurance. Old )utual is listed on the 'ondon Stoc" =(change Nwhere it is included on
the +TS= *LL Inde( and also on the South African 3amibian )alawi and Ximbabwe
stoc" e(changes. It has *G years of e(perience in the life insurance business.
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At I3# Dysya 'ife the one thing that is hold in the highest esteem is human life itself.
This simple philosophy endows it with a degree of sensiti!ity and dedication that it feel
ma"es it that much more special to the customers. As a premier pro!ider of insurance
products and ser!ices they belie!e that they ha!e a significant role to play in society.
I3# DSA 'ife Insurance is a joint !enture between three pioneers in their own right &
I3# #roup. The Dysya $an" and #) #roup.
I" roup
O!er the last *GL years I3# #roup has grown to become one of the largest life
insurance organisations in the world . Today it touches the li!es of o!er GL million people
across G countries. It offers a range of financial ser!ices including insurance. pensions
ban"ing and asset management. In the year 1LLL total assets of the group stood at o!er
I3 1M>1LLL crores .
I3# #roup has wide and deep e(perience in setting up companies in new mar"ets which
re8uire substantial in!estments underlining I3#7s long term commitment. In the last 1L
years I3# #roup has established successful life insurance companies in *G countries
contributing to the de!elopment of insurance ser!ices in these countries .
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!he ysya 4an
It is one of India7s premier pri!ate sector ban"s with a heritage of o!er KL years. With *.G
million customers >ML outlets and LLL employees it is "nown for its inno!ati!e ban"ing
ser!ices and for pioneering se!eral products and ser!ices.
The Dysya $an" has a long/standing relationship with its customers and deep
understanding of the Indian mar"et.
M5 roup
It has a solid trac" record of o!er two decades of growth and has wide ranging interests in
fields such as power generation infrastructure manufacturing software and ban"ing.
#) group has an e(cellent reputation of being able to successfully de!elop !entures
from scratch.
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Tata AI# 'ife Insurance 0ompany 'td and Tata AI# #eneral Insurance 0ompany 'td.
Ncollecti!ely UTata AI#U are joint !enture companies between the Tata group India4s
most trusted industrial house and American International #roup Inc. NAI# the leading
2. S. based international insurance and financial ser!ices organi;ation.
The Tata #roup is the most respected industrial conglomerate in India with re!enues of
more than 2S M billion. The #roup has long been a mar"et leader in steel commercial
!ehicles electric power generation in the pri!ate sector and computer software. In recent
times it has promoted se!eral new !entures in high growth areas of the economy such as
financial ser!ices telecommunications information technology auto components oil
field ser!ices and process management systems. The #roup has had a long association
with India4s insurance sector ha!ing been the largest insurance company in India prior to
the nationali;ation of insurance.
AI#4s 'ife Insurance operations comprise of the most e(tensi!e worldwide networ" of
any life insurer. AI#4s global businesses include financial ser!ices and asset
management including aircraft leasing financial products trading and mar"et ma"ing
consumer finance institutional retail and direct in!estment fund asset management real
estate in!estment management and retirement sa!ings products.
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With o!er *6K years of e(perience the )et'ife companies ser!e millions of customers in
the Americas and Asia with one goal in mind & to build financial freedom for e!eryone.
The )et'ife companies are a leader in group benefits that ser!e MM of the top one
hundred +OT23= GLLZ[ companies and pro!ide benefits to 6K million employees and
family members through its plans sponsors in the 2.S. The )et'ife companies are also
ran"ed V* in group life and V* in commercial dental in the 2.S. The )et'ife companies
are the number one life insurer in the 2.S. with appro(imately 2S 1.M trillion of life
insurance in force.
In India )et'ife was incorporated in 1LL* and aims to differentiate itself through
customi;ed need based selling simple and inno!ati!e products and technology/bac"ed
ser!ice e(perience to tread its path to build financial freedom for e!eryone.
all through leadership in pro!iding financial ad!ice and building long/term relationships
through inno!ati!e protection accumulation and retirement products robust underwriting
processes and creating world/class customer ser!ice e(perience for our customers.
We want to pro!ide customers in India with world/class solutions for financial security
and in the process add significant !alue to our shareholders associates and society.
%orporate partners
As the !ital channel for )et'ife7s products we ha!e chosen some e(emplary ban"s and
financial institutions. These will ser!e as the interface between our customers and us to
aid us understand the uni8ue needs and aspirations of e!ery Indian. And update our
products with features that form the cornerstones of financial freedom.
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56) B!$
The C5B $an" 'td. incorporated on October *st *P6M commenced its business on Culy>th *P6P. The ban" now has a networ" of >>L branches spread o!er the length and
breadth of the country. A significant contributing factor for this fast growth is the solid
founding principles that are dedicated to the cause of transforming the $an" not only as a
financial heart but also the social heart of the community.
The C5B $an" is the first state owned ban" of the country and G6 of e8uity is held by
the #o!t. of C5B. The ban" has a consistent trac" record of growth and profitability. It
has a uni8ue distinction of being ban"er to the C5B State #o!t. and has also been
appointed by $I as its agency in C5B responsible for carrying general ban"ing business
of the 0entral #o!t. and collection of ta(es pertaining to the 0entral $oard of @irect
Ta(es.
D7!$!l!+7'i B!$
The @hanala"shmi $an" 'imited N@'$ head8uartered at Thrissur in Berala was started
se!en decades bac" at a time when ban"ing was less "nown to the people. In a high
literate state of Berala the ban" grew in strength o!er the years. And today it has *G6
branches spread o!er Berala Tamil 3adu Barnata"a Andhra )aharashtra #ujarat
West $engal NBol"ata and 3ew @elhi.
The ban" has ambitious plans for growth in branches total business and profits.
All the *G6 branches are classified as 3I branches and are computeri;ed and in the
process of implementing Wide Area 3etwor" AT)4s Any $ranch $an"ing and 0ash
)anagement Ser!ices Teleban"ing and Internet $an"ing.
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)!&$!"!! B!$
The Barnata"a $an" 'td. a premier pri!ate sector ban" of the country was incorporated
on +ebruary *Mth *P1> at )angalore a coastal town in South Banara a district of
Barnata"a state which has attained renown as the 0radle of Indian $an"ing.
Today it is one of the leading pri!ate sector ban"s in the country "nown for its steady
and disciplined growth and cordial customer ser!ice. The $an" has a strong national
presence through a widespread networ" of 6GM branches. The ban" has 16L branches
whollypartially computeri;ed as of now.
%lans are underway to put in place additional products to enhance customer satisfaction
and to increase income stream with the help of upgraded technology. The ban" has
already put in place an elaborate ris" monitoring and asset liability management system.
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A Coint !enture combining A)%4s life Insurance e(pertise and Sanmar4s Indian $usiness
=(pertise. A)% Sanmar offers a comprehensi!e range of 'ife Insurance %roducts that
will enhance your sa!ings and pro!ide financial security to people who need your
support. A)% is a leading international financial ser!ices group with o!er *GL years
with core business in Insurance Asset )anagement and +inancial %lanning.
Sanmar #roup
The Sanmar #roup is a leading industrial group in South India and one of the top
corporations in the country that helped pioneer industriali;ation in India for o!er si(
decades. $oth A)% and Sanmar are deeply committed to this 'ife Insurance joint
!enture and to create a long/term relationship with the customer.
A)%
A)% is a leading wealth management company. The company operates primarily
in Australia and 3ew Xealand and is a wealth manager with more than AKP
billion in assets under management.
Its core businesses include:
retirement sa!ings and income
in!estments
financial planning
insurance
ban"ing
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A!i!a %lc is 2B7s largest and the world7s si(th largest insurance #roup. It is one of the
leading pro!iders of life and pensions products to =urope and has substantial businesses
elsewhere around the world. With a history dating bac" to *P A!i!a has a 6L million/
customer base worldwide. It has more than \1K6 billion of assets under management.
In India A!i!a has a long history dating bac" to *M6>. At the time of nationalisation it
was the largest foreign insurer in India in terms of the compensation paid by the
#o!ernment of India. A!i!a was also the first foreign insurance company in India to set
up its representati!e office in *PPG.
In India A!i!a has a joint !enture with @abur one of India4s oldest and largest #roup of
companies. A professionally managed company @abur is the country4s leading producer
of traditional healthcare products.
In accordance with the go!ernment regulations A!i!a holds a 1 per cent sta"e in the
joint !enture and the @abur group holds the balance K> per cent share.
With a strong sales force of o!er GLLL +inancial %lanning Ad!isers N+%As A!i!a has
initiated an inno!ati!e and differentiated sales approach to the business. Through the
9+inancial Health 0hec": N+H0 A!i!a7s sales force has been able to establish its
credibility in the mar"et. The +H0 is a free ser!ice administered by the +%As for a need/
based analysis of the customer7s long/term sa!ings and insurance needs. @epending on
the life stage and earnings of the customer the +H0 assesses and recommends the right
insurance product for them.
A!i!a pioneered the concept of $ancassurance in India and has le!eraged its global
e(pertise in $ancassurance successfully in India. 0urrently A!i!a has $ancassurance tie/
ups with A$3 Amro $an" American =(press $an" 0anara $an" The 'a"shmi Dilas
$an" 'td. and %unjab 5 Sind $an".
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%ostal 'ife Insurance is **K years young. It was started in *MM> as a welfare measure for
the employees of %osts 5 Telegraphs @epartment under #o!ernment of India dispatch
3o. 1PP dated *M/*L/*MM1 to the Secretary of State. @ue to popularity of its schemes
!arious departments of 0entral and State #o!ernments were e(tended its benefits. 3ow
%ostal 'ife Insurance is open for employees of all 0entral and State #o!ernment
@epartments 3ationali;ed $an"s %ublic Sector 2nderta"ings +inancial Institutions
'ocal $odies li"e )unicipalities and Xila %arisads =ducational Institutions aided by the
#o!ernment etc
5ural +ostal &ife InsuranceOn 1>th )arch *PPG the benefits of %ostal 'ife Insurance were e(tended to rural
populace of the country under the banner of ural %ostal 'ife Insurance. In all the States
or %ostal 0ircles there is an administrati!e and operational unit in the office of
0hief %ostmaster #eneral. The %'I operation in the concerned state is loo"ed after by
@i!isional )anager N%'I assisted by @eputy @i!isional )anager and Assistant
@i!isional )anagers. Similarly in ural %ostal 'ife Insurance its operations are
loo"ed after by %ostmaster #eneral assisted by Assistant @i!isional )anager. It has *M>
@e!elopment Officers and 6G +ield Officer