100mks Recovered Final

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ACCIDENT INSURANCE- A LIFE SECURITY

Sydenham College Of Commerce and Economics Page 1


A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI

BY

ANITA SESMA

UNDER THE GUIDANCE OF

PROFESSOR SYED MUBASHAR HASAN

SEMESTERVI

B.COM (BANKING AND INSURANCE)

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

2011-2012


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INDEX

Contents

1.1 The need for personal accident insurance ............................................................................................ 15

Just look at these latest statistics from the forum for protecting road accidents (FPRA).......... 15

If a serious accident befalls you, then you may be unable to work for the rest of your life. You

may need money for income or adapting your home..................................................................... 16

1.2 Personal accident plans : Types of policy.................................................................................... 17

In the case of an insured event, the insurer pays out the following agreed insurance amounts

specified by the policy:...................................................................................................................... 18

When should plan benefits start? .................................................................................................. 19

When should plan benefits end?.................................................................................................... 19

1.5Typical exclusions and limitations......................................................................................................... 19

1.6 How much does it cost? ........................................................................................................................ 20

1.7 Life or Personal Accident?.................................................................................................................... 21

2 .Individual Personal Accident Insurance............................................................................................ 21

This type of insurance covers the following risks: ........................................................................... 21

PERSONAL ACCIDENT INSURANCEDETAILS & COMPARISON ............................................... 22

Is your life cover (with an accident rider) as comprehensive as a standalone personal accident insurance

policy?..................................................................................................................................................... 22

What is the difference between permanent total disablement & partial disablement? ........................... 23

3. Employee Collective Accident Insurance ............................................................................................... 23

This type of insurance policy covers all accidents: ............................................................................. 23

This type of insurance may cover the following risks: ........................................................................... 23

Under the MOTOR CAR insurance policy of TATA AIG, it takes care of the following:- ..................... 26

Private car insurance ................................................................................................................... 26

Two wheeler ............................................................................................................................... 26

Commercial vehicle ..................................................................................................................... 26

Second hand car .......................................................................................................................... 26

2.1 Private Car Insurance: ........................................................................................................................... 26

What does the Auto Secure Insurance cover?................................................................................ 26


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Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising out of

accident or on account of fire and allied perils is covered. ................................................................. 26

Get Added Protection from our 8 unique Add On covers............................................................. 27

1. Depreciation Reimbursement.................................................................................................. 27

This cover offers full claim without any deduction for depreciation on the value of parts replaced.The cover is available for vehicles up to 3 years old and operates for maximum 2 claims during the

policy period. ...................................................................................................................................... 27

2. Return to Invoice....................................................................................................................... 27

2.2 Two Wheeler Insurance ........................................................................................................................ 28

Key Features ........................................................................................................................................... 28

What are the unique benefits offered by Tata AIG?..................................................................... 29

3.3 Commercial Vehicle Insurance ........................................................................................................ 29

Key Features ........................................................................................................................................... 29

IV) OTHER TYPES OF ACCIDENT INSURANCE ................................................................................ 32

1. Business Travel Accident Insurance ................................................................................................... 32

2. Household Members Personal Accident Insurance............................................................................. 32

3. Personal Accident Insurance for Members of Sports Organizations .................................................. 32

4. Personal Accident Insurance for Members of Hunting and Fishing Organizations............................ 32

5. Personal Accident Insurance for Members of Volunteer Firefighters Organizations and Other

Lifesaving Teams .................................................................................................................................... 33

6. Personal Accident Insurance for Pilots, Cabin Crew Members and Passengers in Airplanes and Other

Aircraft.................................................................................................................................................... 33

7. Personal Accident Insurance for Members of Cultural Associations ................................................. 33

8. Personal Accident Insurance for Children, Pupils and Students .............................................. 33

9. Personal Accident Insurance for Students Staying Abroad ................................................................ 34

10. Personal Accident Insurance for Visitors and Audiences, Including Policyholder Liability............ 34

11. Personal Accident Insurance for Tourists and Holidaymakers, Including Policyholder Liability.... 34

Is Accident Insurance Different Than Health Insurance?.......................................................................................... 37

How They Pay ......................................................................................................................................... 37

What They Cover..................................................................................................................................... 37

Exclusions ............................................................................................................................................... 37

Cost......................................................................................................................................................... 38

Forum for Prevention of Road Accidents ............................................................................................... 39


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PREFACE

It gives me immense pleasure to work on the project topic

ACCIDENTAL INSURANCE-a life security. The project has been

prepared to fulfill the requirement of the university and in the process

gain valuable knowledge. It has enabled me to understand and gain

knowledge about different accidental policies under general insurance

and the insurance sector.

I decided to take this topic as I was keen to learn more about accidental

insurance, different accidental policies and the claims under it, and alsowhat steps does FPRA takes to reduce the number of accidents.

Mumbai ANITA SESMA

April 2012


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ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me thepossibility to complete this project.

I would like to thank Sydenham College of commerce and economics

and Mumbai University for giving me an opportunity to work on this

project.

I am indebted to my project guide Dr S.M. HASAN whose help,

suggestions and encouragement helped me during the making of thisproject.

You have been magnificently supportive; its been sheer joy working on

the topic ACCIDENTAL INSURANCE- a life security, without your

systematic approach this research would not have been possible.

I would like to thank my family and friends for supporting me to give

my best effort to the project.

I sincerely solicit the esteemed readers to offer their criticism and

suggestion for further improvement of the project.

ANITA SESMA


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DECLARATION

I, Miss anita sesma, student of T.Y.B.Com, Banking and Insurance,Semester VI, Roll No. 44 hereby declare that this Project Report entitled

ACCIDENTAL INSURANCE- A life securityis being submitted as

a partial fulfillment of the course, which is necessary requirement to

pass the Semester VI examination.

I further declare that the Report is the output of my personal researchand all the information contained here in is correct to the best of my

knowledge.

SIGNATURE OF THE STUDENT

Mumbai ANITA SESMA

APRIL, 2012


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INTRODUCTION TO INSURANCE SECTOR IN INDIA

The Insurance sector in India governed by Insurance Act, 1938, the Life InsuranceCorporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other relatedActs. With such a large population and the untapped market area of this populationInsurance happens to be a very big opportunity in India. Today it stands as a businessgrowing at the rate of 15-20 per cent annually. Together with banking services, it addsabout 7 per cent to the countrys GDP .In spite of all this growth the statistics of thepenetration of the insurance in the country is very poor. Nearly 80% of Indianpopulations are without Life insurance cover and the Health insurance.

This is an indicator that growth potential for the insurance sector is immense in India.It was due to this immense growth that the regulations were introduced in theinsurance sector and in continuation Malhotra Committee was constituted by thegovernment in 1993 to examine the various aspects of the industry. The key elementof the reform process was Participation of overseas insurance companies with 26%capital. Creating a more efficient and competitive financial system suitable for therequirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

existence of LIC .since the liberalization of the industry the insurance industry has

never looked back and today stand as the one of the most competitive and exploring

industry in India. The entry of the private players and the increased use of the new

distribution are in the limelight today. The use of new distribution techniques and the

IT tools has increased the scope of the industry in the longer run


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HISTORY

Insurance has a long history in India. Life Insurance in its current form wasintroduced in 1818 when Oriental Life Insurance Company began its operations

in India. General Insurance was however a comparatively late entrant in 1850 whenTriton Insurance company set up its base in Kolkata. History of Insurance in India canbe broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c)Post Nationalization. Life Insurance was the first to be nationalized in 1956. LifeInsurance Corporation of India was formed by consolidating the operations of variousinsurance companies. General Insurance followed suit and was nationalized in 1973.General Insurance Corporation of India was set up as the controlling body with NewIndia, United India, National and Oriental as its subsidiaries. The process of openingup the insurance sector was initiated against the background of Economic Reformprocess which commenced from 1991. For this purpose Malhotra Committee was

formed during this year who submitted their report in 1994 and Insurance RegulatoryDevelopment Act (IRDA) was passed in 1999. Resultantly Indian Insurance wasopened for private companies and Private Insurance Company effectively startedoperations from 2001.

Table 1: milestones in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first statute toregulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the governmentto collect statistical information about both life and non-life insurancebusinesses

1938 Earlier legislation consolidated and amended to by the Insurance Actwith the objective of protecting the interests of the insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by thecentral government and nationalized. LIC formed by an Act ofParliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.


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Table 2: milestones in the general insurance business in IndiaYear Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transactall classes of general insurance business

1957 General Insurance Council, a wing of the Insurance Association of India,frames a code of conduct for ensuring fair conduct and sound businesspractices

1968 The Insurance Act amended to regulate investments and set minimumsolvency margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalization) Act, 1972 nationalizedthe general insurance business in India with effect from 1st January 1973.107 insurers amalgamated and grouped into four companies viz. theNational Insurance Company Ltd., the New India Assurance CompanyLtd., the Oriental Insurance Company Ltd. and the United IndiaInsurance Company Ltd. GIC incorporated as a company.

ACTS RELATING TO INSURANCE

The insurance sector went through a full circle of phases from being unregulated tocompletely regulated and then currently being partly deregulated. It is governed by anumber of acts.

The Insurance Act of 1938was the first legislation governing all forms of insurance toprovide strict state control over insurance business.

Life insurance in India was completely nationalized on January 19, 1956, through the

Life Insurance Corporation Act. All 245 insurance companies operating then in thecountry were merged into one entity, theLife Insurance Corporation of India.

The General Insurance Business Act of 1972 was enacted to nationalize the about 100general insurance companies then and subsequently merging them into fourcompanies. All the companies were amalgamated into National Insurance, New IndiaAssurance, Oriental Insurance and United India Insurance, which were headquarteredin each of the four metropolitan cities.

Until 1999, there were no private insurance companies in India. The government thenintroduced the Insurance Regulatory and Development Authority Act in 1999, thereby

de-regulating the insurance sector and allowing private companies. Furthermore,foreign investment was also allowed and capped at 26% holding in the Indianinsurance companies.

In 2006, the Actuaries Act was passed by parliament to give the profession statutorystatus on par with Chartered Accountants, Notaries, Cost & Works Accountants,Advocates, Architects and Company Secretaries.
http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India


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A minimum capital of US$80 million (Rs.400 Crore) is required by legislation to setup an insurance business.

PRESENT SCENARIO

India with about 200 million middle class household shows a huge untappedpotential for players in the insurance industry. Saturation of markets in manydeveloped economies has made the Indian market even more attractive for globalinsurance majors. The insurance sector in India has come to a position of very highpotential and competitiveness in the market. Indians, have always seen life insuranceas a tax saving device, are now suddenly turning to the private sector that areproviding them new products and variety for their choice.

Consumers remain the most important centre of the insurance sector. After the

entry of the foreign players the industry is seeing a lot of competition and thusimprovement of the customer service in the industry. Computerization of operationsand updating of technology has become imperative in the current scenario.

The insurance agents still remain the main source through which insuranceproducts are sold. The concept is very well established in the country like India butstill the increasing use of other sources is imperative. At present the distributionchannels that are available in the market are listed below.

Direct selling

Corporate agents

Group sellingBrokers and cooperative societies

Bancassurance

Customers are offered unbundled products with a variety of benefits as ridersfrom which they can choose. More customers are buying products and services basedon their true needs and not just traditional money back policies, which is notconsidered very appropriate for long-term protection and savings. There is lots ofsaving and investment plans in the market. However, there are still some key newproducts yet to be introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity for insuranceproducts. A research conducted exhibited that the rural consumers are willing to doleout anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurancethe awareness level for life insurance is the highest in rural India, but the consumersare also aware about motor, accidents and cattle insurance.


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Types of Insurance

Life Insurance

General InsuranceFire Insurance

Marine Insurance

Life insuranceis a contract between the policy owner and the insurer, where theinsurer agrees to pay a designated beneficiary sum of money upon the occurrence ofthe insured individual's or individuals' death or other event, such as terminal illness orcritical illness. In return, the policy owner agrees to pay stipulated amount at regularintervals or in lump sums.

Insurance other than LifeInsurance falls under the category of General Insurance.General Insurance comprises of insurance of property against fire, burglary etc, andpersonal insurance such asAccident and Health Insurance, and liability insurancewhich covers legal liabilities. There are also other covers such as Errors andOmissions insurance for professionals, credit insurance etc. The non-life companiesalso offer policies covering machinery against breakdown, there are policies thatcover the hull of ships and so on. A Marine Cargo policy covers goods in transitincluding by sea, air and road. Further, insurance of motor vehicles against damagesand theft forms a major chunk of non-life insurance business.

fire insurance policy involves an insurance company agreeing to pay a certain

amount equivalent to the estimated loss caused by fire to the insured, within the time

specified in the contract. The indemnity is subject to change depending upon the

policy. One should confirm with the insurer about the types of risks covered, since

one cannot insure the property against all types of risks of fire.

Marine insurance covers the loss or damage of ships, cargo, terminals, and anytransport or cargo by which property is transferred, acquired, or held between the

points of origin and final destination.

Cargo insurancediscussed hereis a sub-branch of marine insurance, thoughMarine also includes Onshore and Offshore exposed property (container terminals,ports, oil platforms, pipelines); Hull; Marine Casualty; and Marine Liability.
http://en.wikipedia.org/wiki/Oil_platformhttp://en.wikipedia.org/wiki/Oil_platform


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INTRODUCTION TO ACCIDENTAL INSURANCE

Accident insurance is a form ofinsurance policy which offers a payout when people

experience injury or death due to an accident. This type of insurance does not usuallycover negligence, acts of God, or natural disasters, and the policy may includerestrictions such as caps on total payouts or restrictions on payouts for activitiesdeemed risky. Many insurance companies sell accident insurance, which can bepurchased as a standalone policy or bundled in to an existing insurance policy.Like other forms of insurance, buying accident insurance is, in a sense, a bet. Theconsumer pays the insurance company a premium hoping that an accident will notoccur, and the insurance company writes a policy hoping that it will not have to payout. Accident insurance can be a good idea for people who lack health care coverage,ensuring that they will be able to access medical treatment after an accident, or for

people with families who suspect that their family members could suffer financially ifthey died. By purchasing accident insurance, people can provide themselves withmore financial security.

WHAT TO ENQUIRE FOR??

When shopping for accident insurance, people should ask about premiums and whattypes of accidents and events are covered. Some insurance companies cover more

than others, and some are notorious for viewing all claims with deep suspicion,delaying payments until they are satisfied that a customer really does meet the termsfor a payout. Forpeople who need money to deal with immediate expenses, this can bea problem.

Accident insurance policies have payouts which vary, depending on the severity of theinjuries. Some include very specific language about amounts which will be paid out inthe event of losing particular extremities, for example. The payout is designed tocover medical care along with pain and suffering, and if an accident causespermanentdisability, the payment may be structured to provide funds for the accident victim to

live on. In the event of a death, the benefits are paid out to the listed beneficiary on thepolicy.
http://www.wisegeek.com/what-is-an-insurance-policy.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-a-permanent-disability.htmhttp://www.wisegeek.com/what-is-an-insurance-policy.htm


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Accidental Policies: Some policies cover onlyaccidents and not illness. As you might suspect,policies like this are very specific about what isconsidered an accident.It is extremely important to

understand what the insurance company defines asan accident. Generally, an accident to the healthinsurance industry is considered as unforeseenand unintended. Remember that when discussingaccidents in any policy that includes an accidentalprovision, it is important to define what an accidentis a not just accident specific policy.

Procedure for accidental policy:

1) Proposal:

The person who wants to get the accidental insurance gives a proposal form toinsurance company after filling it. The information regarding the insured (His name,address and age etc.) is written in the proposal form. If a person wants to get insurancefor his motorcar, the particulars of car, model and engine etc are recorded ormentioned in the proposal form.

2) Scrutinizing:The insurance company scrutinizes the information provided in proposal form (e.g.)

age of customer, his medical report and birth certificate etc. if the insurance is of a carthe insurance company can demand the necessary documents like registration booketc to confirm the insurable interest.

3) Acceptance:If the insurance company is satisfied with the information and documents provided bythe customer, it accepts the proposal of insurance. The customer pays the firstinstallment of insurance premium to make the contractor insurance valid.

4) issuance of policy

After receiving the insurance premium form the insured, the insurance companyissues the insurance policy to the customers.


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KINDS OF ACCIDENTAL INSURANCE

(i)Accidental insurance for person.

(ii)Accidental insurance for vehicles.

(iii)Accidental insurance for a property

(I) ACCIDENTAL INSURANCE FOR PERSON.

If you are a breadwinner, an accident can create serious financial problems for yourfamily. It can ruin the comfort and security you work so hard to provide them. Just

think of it, which will help them settle the financial commitments in your absence orin case of your disability to earn any more, temporarily or permanently? You need tobe prepared. Arm yourself with personal accidentinsurance.Accident insurance

provides a cash cover to a policyholder when s/he suffers injuries as a result of an

accident. While insurance helps a policyholder pay off hospital and medical bills incase of accident injuries, it provides cash benefits to family members if thepolicyholder dies in the accident. This insurance, applicable 24 hours a day, 365 daysa year, is also commonly referred to aspersonal accident insurance.

Accident benefits are most commonly paid for people are:-

* Accidental loss of life (also called accidental death)* Accidental loss of limb or sight (dismemberment)* Loss of time and/or income* Hospital expenses* Surgical expenses* Medical expenses like visits to the doctor.

The person who received the death benefit is called the beneficiary. The policy owner(or holder) has the right and responsibility of naming beneficiaries. Usually there

is primary beneficiary however the policyholder can assign second and even a thirdbeneficiary. The primary beneficiary is the first person in line to receive the benefit inthe event of the death of the policyholder. They can also name a second beneficiarywho would receive the benefit in the event the primary beneficiary dies before theinsured. Some policies can include a third beneficiary who would be in line after thefirst two. Although, some policies allow you to divide (by percentage) between thebeneficiaries.


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There is much more to be learned about accidental death policies, but I would like tomention one important component before we move on. An accidental death may notbe instant. A person can die as a result of accidental injury months after the accident

occurrence. Read your policy carefully because most stipulate that the accidentaldeath benefit will only be paid if death occurs within 90 days of the accident.

1.1 The need for personal accident insuranceAccidents can happen to anyone at any time. You are a very lucky person if youmanage to go through life without having an accident. Road crash, house fire, assault,workplace accident or a simple trip. These are common. The headline stories of fires,murder and terrorism are not common. It is the everyday workplace, home and roadaccidents that claim most victims.

The main thing with accidents is that they are random and can happen to anyone

anytime anywhere. Most accidents are minor, but others can be more serious. In theblink of an eye, your life could be changed forever. Accidents happen every day,everywhere.

Just look at these latest statistics from the forum for protecting road accidents

(FPRA)

Accidents on the roads

During 2004 there were 280,840 casualties on Indian Roads .

That includes 3221 killed and 31,330 seriously injured.

Accidents at home Surprisingly, your home is one of the most dangerous places you can be. Home injuries send an incredible 2.8 million people to hospital Accident and

Emergency units, with an unknown number going to GPs for less seriousaccidents.

Every day, ten people die and 8000 people seek medical treatment as a result ofhome and garden accidents in the INDIA.

Most common accidents are falls from height, choking, poisoning, burns and

scalds.

Accidents at work

You are also at risk at work.


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In 2005 around 2 million people were hurt at work and required treatment at ahospital casualty department. In 2005 over 200 people died, and over 350,000were seriously injured. Many had to take weeks off work

Accidents involving children

The saddest figure is the annual toll of child deaths from accident, including260 road casualties

Every year, 3 million children suffered injuries which require attendance at theA&E department of a hospital. A million are injured in and around schools,recreational areas, and sports facilities and so on -and 2 million in and aroundthe home.

If a serious accident befalls you, then you may be unable to work for the rest of

your life. You may need money for income or adapting your home.

You have a one in seven chance of being off work for 6 months due to illnessor accident, during your working life.

Thankfully, medical advances and better remedial care mean that more peoplecan return to work and normal life.

You may expect the state to support you. You may get a small amount ofbenefit, but may have to go through unpleasant interviews, medical tests and areview of your finances. Sadly, with many fraudulent claimants, the state treatseveryone claiming benefit with great suspicion, guilty until proven innocent.

If you are a specialist tradesperson, or professional, a serious injury may mean

that you can work, but not in the profession or type of occupation you wereused to. Politicians may dislike the blunt truth, but in the modern world, thestate expects you to take any form of work on offer. They may even force youto go on training programmes, before they decide whether or not to give you ahandout.

By law, an employer must pay most employees statutory sick pay for up to 28weeks. This will almost certainly be a lot less than your full earnings. Few payfor longer. If it is obvious you can never return to work, they may stop payingand terminate your employment. Not all employers pay willingly.


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1.2 Personal accident plans : Types of policy

The insurance industry can confuse customers and itself with the titles it gives to typesof policy within the wider definition of personal accident Insurance.

There is a thin dividing line between personal accident and income protectionpolicies. Simple personal accident policies only pay a cash sum following an accident

where you are injured Simple income protection policies pay when you are off work following an

accident Where they merge is when an income protection policy also includes illness,

and a personal accident policy includes sickness and/ or pays monthly benefitsrather than a cash sum.

1.3 Types of Personal Accident Insurance Policies

* Individual:

This policy can be taken by any individual. The benefits usually enclose partners and

children. Since several activities are excluded from this policy, it is not as useful for

people who love adventurous sports, like mountaineering and rock climbing.

* Children:

The purpose of this policy is to provide financial help to parents if they are unable towork or if they incur expenses as a result of an accident.

* Group:

Companies to cover employees for expenses related to accidents use this policy.

* Self-employed:

Since self-employed individuals are not eligible for employee benefits, they are

worse off when injured in an accident.

* Team:

Through a team accident insurance policy, organizers can seek cover for all the

members of a sports team.* Professional:

This policy is specifically for self employed professionals, such as a sports person,

actor, lawyer or doctor, who have special requirements.

* Over 50:

This policy targets people over 50 years of age, as accidents can cause more grievous

injuries to them.


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* Travel accidents:

This policy offers benefits in case the policyholder meets with an accident while

traveling.

There are varied accident insurance policies to suit different needs. One should

understand and choose the policy with utmost care.

This type of insurance is available for persons from 14 to 75 years of age.

In the case of an insured event, the insurer pays out the following agreed

insurance amounts specified by the policy:

the insured amount in the case of death if the accident resulted in the death of the

policyholder, or the insured amount in the case of disability if the accident resultedin total disability of the policyholder

a percentage of the insured amount in the case of disability corresponding to the

percentage of partial disability, if the accident resulted in partial disability of the

policyholder

if the total disability percentage is over 50%, each portion of the percentage over

50% is recognized as a double amount

daily compensation if the accident resulted in the policyholder's temporary

incapacity for work or performing their regular professional activities

compensation of healthcare costs if the accident resulted in the policyholder

requiring medical attention and thus incurred healthcare expenses

other contractual obligations pursuant to the Special Conditions and Insurance

Terms and Conditions

1.4 BENEFITS OF PERSONAL ACCIDENT POLICY

A simple personal accident policy pays a set cash sum on death.

On other benefits, there may be a cash sum, a monthly income or a mixture of the two.Monthly income is limited to a set number of months.

Most also include a cash sum for Total Permanent Disablement. This is where youare not going to get better.Then there are frequently specific items where you get payment for injuries whichresult in


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Total loss of speech, hearing or sight Total loss of or use of a hand or foot

Less frequent are specific higher benefits for catastrophes which result in quadriplegiaor paraplegia.

Some policies go into great detail about the different benefits for each type of accidentsuch as fracture or dislocation.Also common is Temporary Total Disablement. This is where you are seriously hurtbut will get better.Other benefits may include Hospital Cash for every night you are in hospital.

It is quite common for benefits to be double, treble or quadrupled for serious problemssuch as travel accident, accidental death, disappearance or exposure.

When should plan benefits start?Some policies pay as soon as you have an accident. But this tends to be for minorinjuries only. They usually make you wait and wait.Some will only pay after a set number of weeks. This is most common when thebenefit is shown as income rather than a cash sum.Insurers often wait for weeks or months before paying out for serious accidents, asthey do not know for a while if an injury is permanent or temporary

When should plan benefits end?Personal accident policies are short-term contracts. They are designed to giveimmediate help, not to provide an income for life.Cash benefits are sometimes paid very quickly, but where disability is permanent, youmay have to wait months or even years, until insurers know whether or not theproblem is temporary or permanent.For monthly or weekly income benefits they may pay out for 3/6/ 9 or 12 months. A24-month period is rare, and longer terms rarer still.Policies often have age limits beyond which cover is reduced or removed.

1.5Typical exclusions and limitations

This first main exclusion is not usually listed in insurance policies as insurers think itobvious. Ifyou have an accident, you can only claim if you have a physical injury.

The policy will not pay for a car, property, and animals, damaged or lost. A policywill not pay for inconvenience, lost work, injured pride or anything else like that.


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There are common exclusions on most personal accident plans, including

Disability due to, or caused by HIV/AIDS Normal pregnancy and childbirth War Self-inflicted injury- including actual or attempted suicide Criminal acts Misuse of alcohol or drugs Failure to follow medical advice Taking part in any dangerous or hazardous work, activity, sport or hobby Driving with more alcohol than is allowed by law Motorcycling Engaging in military duty.

1.6 How much does it cost?

The cost of a personal accident insurance plan depends on:--

Width of cover How much you want to receive. If any benefits are income rather than cash, for how long the benefit is paid Extra options bought

Then there are factors personal to you, which affect the price of personal accidentinsurance Age- premiums can rise with age Sex - women tend to pay more Occupation; a manual job will be more of a risk than an office or shop worker Activitywhat activities you do Health history ;of you, and sometimes of your family too How many people are covered

Not all insurers have the same views on the above factors.


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1.7 Life or Personal Accident?

Some Personal Accident plans only cover accidental death. Life policies tend to payon any type of death. Personal accident plans are much cheaper than Life ones, but farmore restrictive.

When looking at a Death only Personal Accident plan, look beyond the insurer sales

pitch. They may not tell you that in an accident you have a many more times chance

of being injured than killed.

2 .Individual Personal Accident Insurance

The policyholder (a natural entity) takes out an individual i.e. personal accidentinsurance policy in their name. This type of insurance is always purchased for a

specifically named individual. If the same policyholder would like to insure morepeople, each individual person will be issued theirown insurance policy.

This type of insurance covers the following

risks:

death caused by accident

permanent disability

healthcare costs

An individual may agree an extra premium for additional cover of specific risks

[taking part in car and motorcycle races, operation of airplanes and other types of

aircraft, etc.] and various sports risks.


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PERSONAL ACCIDENT INSURANCEDETAILS &

COMPARISON

Is your life cover (with an accident rider) as comprehensive as a standalone

personal accident insurance policy?

A life insurance provides you and your family cover in case of the policy holder's

death (due to accident/ illness or other reasons) or total permanent disablement. Ahealth insurance policy covers your medical expenses due to an illness, accident, etc.

A personal accident policy on the other hand, protects individuals and their families

not only in the event of accidental death (which life insurance already does), but also

covers total permanent disablement, partial permanent disablement & temporary total

disablement due to an accident.


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What is the difference between permanent total disablement & partial

disablement?

Permanent total disablement implies a loss so severe that it permanently impares your

earning capabilities. Permanent total disablement includes loss of sight of both eyes,

severance of two limbs, or loss of sight of one eye and loss of one limb.

Partial permanent disablement includes permanent loss of one or more of the

following : An arm at the shoulder joint, An arm above the elbow joint, An arm

beneath the elbow joint, A hand at the wrist, A thumb, An index finger, Any other

finger, A leg above the mid-thigh, A leg up to mid-thigh, A leg up to beneath the

knee, A leg up to mid-calf, A foot at the ankle, A large toe, Any other toe, An eye,Hearing loss in one ear, Hearing loss on both ears, Sense of smell, Sense of taste.

Total temporary disablement implies loss of ability to earn while you have met with

an accident and are recovering from it.

3. Employee Collective Accident Insurance

This type of insurance policy covers all accidents:

occurring in the course of performing regular professional activities

Occurring in the course of performing regular professional activities and

outside regular professional activities [0-24h].

This type of insurance may cover the following risks:

death caused by accident death caused by illness

permanent disability

healthcare costs


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Individuals may be insured regardless of their health condition, age and general workability, except for those totally incapable of work, who is excluded from theinsurance.

This insurance policy does not cover employees who, at the time of entering thecontract, submit a written statement that they do not wish to be insured.

If a collective insurance policy is concluded without the individual names of

employees, the insurance policy covers all of policyholder's permanent and temporary

employees.

Various insurance amounts may be negotiated, depending on the risk category foreach individual employee [policyholder].

A collective insurance contract for employees may include the policyholders' familymembers, provided that the agreed policy also covers risks occurring outside regular

professional activities [0-24h]


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II. ACCIDENTAL INSURANCE FOR VEHICLES

Vehicles insuring are the act of the insuring your Vehicles from damages,

accidents, and hijacks, in the result of influence of different risks. In order to

insure your car, you have to receive Vehicles accident insurance.

According to your Vehicles accident insurance, you insure your Vehicles from

the following cases: road traffic accident, fire, spontaneous combustion,

disaster, illegal action of third person (at this point car jack is also included).

The whole list of cases, which your Vehicles accident insurance covers, you

can find in your Vehicles accident insurance treaty.

The majority of drivers do not consider vehicles accident insurance to be a

necessary thing to take care of, however, in a case of vehicles accident or ifsome other accident occasion happens, they do not know what to do and where

to get money in order to repair their favorite vehicles without which they

cannot imagine their life. And what happens if you are not only going to

damage your own vehicles, but also considered guilty in the car accident?

You know if you are that one to be guilty in the vehicles accident, you are that

one to repair the car, which you have damaged. And what about your own car?

Is your financial position good enough to afford the repairing of several carsat

one and the same time? However, of course, if you havean accident insurance,

you are not going to be worried by all the above-mentioned expenses, as

accident insurance company in which you have got your car accident

insurances that one to cope with all the expenses by giving you car accident

insurance cover.

That is why if you do not want to find yourself in such an unpleasant

situation concerning car accident or some other occasion, which may damage

your car, obtain car accident insurance and be sure that if something happens

you will be able to handle all the expenses.


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CASE STUDY:

Under the MOTOR CAR insurance policy of TATA AIG, it takes care of thefollowing:-

Private car insurance Two wheeler Commercial vehicle Second hand car

2.1 Private Car Insurance:

Your car is not only a high value asset but also a highly valued possession. Therefore,

it becomes crucial to insure your valuable possession. In todays times you need acomprehensive policy that not only covers you against the mandatory third party

liability but also against the losses caused due to fire, theft, explosion, burglary, riots,

strikes, earthquakes, flood, cyclones, accidents, malicious acts and terrorist activities.

Auto Secure, value added car insurance from Tata AIG, has been designed to give you

the extra assurance and peace of mind. Thats not all, through our 8 unique add on

covers, you can enhance your standard car insurance policy.

Key features

Free pick-up of car!* Direct settlement facility at special garages!* Upto 6-month accident-repair warranty Quality spares and materials, guaranteed! Claim settlement in 7 days! Enhanced protection though 8 unique add on covers.

What does the Auto Secure Insurance cover?

Loss or Damage to your Vehicle: Any partial or total loss to your vehiclearising out of accident or on account of fire and allied perils is covered.

Third Party Legal Liability: Covers Third party property damage and Thirdparty Bodily injury.

No deduction on count of Salvage value


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Green Channel Settlement: Green Channel Settlement is another first in themotor insurance industry. This innovation promises to make accident claimsand repairs easier than never before! You get value added propositionsthrough our accredited garages

Green Channel Settlement: Green Channel Settlement is another first in themotor insurance industry. This innovation promises to make accident claimsand repairs easier than never before! You get value added propositionsthrough our accredited garages

Enhanced protection though 8 unique add on covers.

Get Added Protection from our 8 unique Add On covers

1. Depreciation Reimbursement

This cover offers full claim without any deduction for depreciation on the valueof parts replaced. The cover is available for vehicles up to 3 years old andoperates for maximum 2 claims during the policy period.

2. Return to InvoiceThis cover pays the difference between the claim amount receivable under thepolicy and the purchase price of vehicle as per invoice in case the vehicle is

declared a Total Loss or a Constructive Total Loss.

In case the same vehicle make and model is available at a lower price than the

purchase price, then the lower price will be considered for arriving at thedifferential amount.

The cover also pays first time registration charges and road tax on the insuredvehicle. Cover is available for vehicles up to 3 years old.

3. Daily AllowanceThis cover pays a fixed sum towards hiring a transport while the vehicle isunder repair for a valid claim and the repair time is more than 3 days.

a.

The cover will be valid for maximum 10 days and in case of Total Loss /Theft claims, validity will be up to 15 days.

b. Period of Daily Allowance may extend beyond the policy perioddepending upon the date of loss.


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4. No Claim Bonus ProtectionNormally in case of a claim, the No Claim Bonus (NCB) component of your

car insurance policy gets impacted. However under this cover, the existing NCBcan be retained. Such retention of NCB will be applicable in case of certainclaims if the bonus accumulated is 25% or more and there is no claim in the

preceding 2 years. NCB Protection is available only if vehicle is renewed withTata AIG.

5. Repair of Glass, Fiber, Plastic and Rubber PartsUnder this cover the No Claim Bonus will not be impacted if repair rather

than replacement is opted for damage to only Glass, Fibre, Plastic and Rubberparts provided no other claim for damage to the vehicle is preferred during thepolicy period. This cover is free.

6. Key ReplacementThis cover pays the cost to replace vehicle keys if lost or stolen, plus the cost oflocks if the vehicle is broken into.

7. Emergency Transport and Hotel Expenses8. Loss of Personal Belongings.

2.2 Two Wheeler Insurance

Your two-wheeler (motorcycle or scooter) is perfect for your needs for quick mobility

and convenience. But steering it around in todays times is also risky. Tata AIG offers

you a comprehensive insurance cover, which not only covers you for the liability

arising out of the Third party but covers you against the loss or damage to your own

two-wheeler.

Key Features

1. Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising

out of accident or on account of fire and allied perils in covered.2. Third Party Legal Liability: Covers Third party property damage and Third

party Bodily injury.3. Discount (NCB) for claim free experience4. Predefined depreciation for the parts needing replacement on account of

accident.


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What are the unique benefits offered by Tata AIG?

Additional benefits unique to Tata AIG are:

No deduction on count of Salvage value Direct Payment facility at garages (in limited locations) Faster Claim Settlement 24 X 7 Contact centre for lodging claims and all queries

3.3 Commercial Vehicle Insurance

Your vehicle is most critical to your business. Any damage to it can be a huge loss to

you. In todays times of uncertainties, you need a comprehensive insurance cover

which not only covers you for the liability arising out of the Third party but covers

you against the loss or damage to your vehicle. That is the offer from Tata AIGs

Commercial Vehicle Insurance.

Key Features

1. Coverage for Partial Loss & total loss arising out of accident, Fire & allied perils,burglary & theft, riots and strikes, damage in transit by air, rail, road and sea.

2. Discount (NCB) for claim free experience.

3. Predefined depreciation for the parts needing replacement on account of accident.4. Third Party Legal Liability: Covers Third party property damage and Third party

Bodily injury.


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III) ACCIDENTAL INSURANCE OF PROPERTY :

Property insurance provides protection against risks to property, such as fire, theft or

weather damage. This includes specialized forms of insurance such as fire insurance,

flood insurance, earthquake insurance, home insurance, inland marine insurance orboiler insurance.

SOME TYPES OF PROPERTY INSURANCE

1) Builders risk insurance:

it insures against the risk of physical loss or damage to property during

construction. Builder's risk insurance is typically written on an "all risk" basis

covering damage due to any cause (including the negligence of the insured) not

otherwise expressly excluded. Builder's risk insurance is coverage that protects aperson's or organizations insurable interest in materials, fixtures and/or

equipment being used in the construction or renovation of building or structure

should those items sustain physical loss or damage from a covered cause.

2) Crop insurance:Farmers use crop insurance to reduce or manage various risks associated with

growing crops. Such risks include crop loss or damage caused by weather, hail,drought, frost damage, insects, or disease, for instance

Earthquake insurance:Is a form of property insurance that pays the policyholder in the event of anearthquake that causes damage to the property. Most ordinary homeownersinsurance policies do not cover earthquake damage. Most earthquake insurancepolicies feature a high deductible. Rates depend on location and the probabilityof an earthquake, as well as the construction of the home.

Flood insurance:

It protects against property loss due to flooding.. In response to this, the federal

government created the National Flood Insurance Program which serves as theinsurer of last resort.


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Home insurance:It also commonly called hazard insurance or homeowners insurance (oftenabbreviated in the real estate industry as HOI), is the type of property insurancethat covers private homes.

Landlord insurance:It covers residential and commercial properties, which are rented to others.Most homeowner's insurance covers only owner-occupied homes.

Natural disaster insurance:It covers specified expenses after a natural disaster renders the policyholder'shome uninhabitable. Periodic payments are made directly to the insured until thehome is rebuilt or specified time period has elapsed

Terrorism insurance:It provides protection against any loss or damage caused by terrorist activities.

Volcano insurance:It is an insurance that covers volcano damage.


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IV) OTHER TYPES OF ACCIDENT INSURANCE

1. Business Travel Accident Insurance

This type of insurance covers employees during business travel based on the travelexpense records.

The insurance covers the employee from the moment of departure from his home or

workplace and is valid until the moment of his return to his home or workplace.

2. Household Members Personal Accident Insurance

This type of insurance covers all members of the household: spouses, children and other

members of the household, as individually named in the policy or in an enclosed list.

Insurance is available for all members of the household, from birth to 70 years of age.

3. Personal Accident Insurance for Members of Sports OrganizationsThe insurance may include:

insurance for members of sports organizations - amateur or professional sports

competitors

insurance for participants in sports races and competitions

compensation of medical expenses for foreign participants in sports competitions

4. Personal Accident Insurance for Members of Hunting and Fishing

Organizations

Insurance for hunting or fishing activities may be purchased for individuals or groups.


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5. Personal Accident Insurance for Members of Volunteer Firefighters

Organizations and Other Lifesaving TeamsThe insurance is available as group insurance for all members of volunteer firefighters

organizations and other lifesaving teams.

6. Personal Accident Insurance for Pilots, Cabin Crew Members and Passengers

in Airplanes and Other AircraftInsurance is available for:

professional and sport pilots

military pilots passengers

7. Personal Accident Insurance for Members of Cultural AssociationsThis insurance is available for:

professional members of cultural associations

amateur members of cultural associations

8. Personal Accident Insurance for Children, Pupils and StudentsThis insurance is available for:

children

pupils and students


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9. Personal Accident Insurance for Students Staying Abroad

This type of insurance is available for individuals and groups, for university and other higher

education students, who travel abroad for work experience through authorized legal entities.

Before a policy is issued, students must submit a certificate stating that they are travelling

abroad exclusively for the purposes of work experience.

10. Personal Accident Insurance for Visitors and Audiences, Including

Policyholder Liability

This type of insurance covers accidents which may occur to audience members in

performance halls, in the premises designated for ticket holders, regardless whether the

injured person is a ticket holder or not, or on the premises around sports grounds or anotherplace where a performance or sport event is being held, if such a place is designated for

spectators.

The insurance also covers those types of accidents which may occur to the visitor while

queuing to purchase a ticket at a designated place.

The visitor insurance policy may also include a policyholder liability cover for physicaldamage or loss of property incurred by the insured visitor up to the amount specified in the

policy.

11. Personal Accident Insurance for Tourists and Holidaymakers, Including

Policyholder Liability

This insurance policy covers holidaymakers and tourists who go on group excursions to

particular places organized by the policyholder specified in the policy.The insurance covers all accidents which may occur to the holidaymaker while waiting for

the excursion at a designated place, and immediately upon return from the excursion, until

the moment of departure from the place designated for the dissolution of the tourist group.

The tourists and holidaymakers insurance may also include a policyholder liability cover for

physical damage or loss of property incurred by an insured tourist or holidaymaker up to the

amount specified in the policy.


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WHY PREFER ACCIDENT INSURANCE THAN A TERM PLAN??

Example:

Ajay was one of the best employees of his company based in Bangalore. He boughta term plan as soon as he realized the important of securing his life. He also boughthealth coverage to secure his wealth (not health). He had recently bought a homethrough loan and he was also investing for his 2 kids future. Ajay was the only oneearning in his family which also had his mother as dependent on him.

It was the last working day of the week just before Diwali holidays and he had torush home early that day. He was as attentive while driving as he was always, but

he forgot that accident happens not because you are careless , but because othercan be damn careless While Ajay was taking a u-turn another car slammed intohis car which was coming with a lot of speed.

It was a serious accident and what Ajay never imagined happened. Both of hishands were non functional after the accident. Being a senior programmer in hiscompany, he knew that his future is lost now. This one incident changed him life .While his income stopped, his expenses at house , EMI etc had to still continue.His term plan could not pay him because he was not dead. His health insurance

plancovered the expenses for hospitalization, but only covered for a basic amountin case there was a temporary disablement. But Ajay case was not covered in anyof his existing insurance policies. At this point of time, if Ajay had a AccidentInsurance Policy, it might have helped him a lot
http://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.htmlhttp://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.htmlhttp://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.htmlhttp://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.htmlhttp://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.htmlhttp://www.jagoinvestor.com/2011/11/health-insurance-is-wealth-insurance.html


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Is Accident Insurance Different Than Health Insurance?

How They Pay

A primary difference between health insurance and accident insurance is the method

by which they pay out when a claim is filed. With accident insurance, you pay

premiums each month and if you have an accident, you call your agent and file a

claim. The insurance company quickly evaluates the claim and if it is found to be

valid, you are issued a check for a predetermined amount of money.

Health insurance, on the other hand, typically provides ongoing payments paid

directly to various health providers in the event you have a covered accident or illness.

What They Cover

Health insurance is generally more broad-based than accident insurance. It covers

most situations in which you would see a health care provider. Examples of situations

covered by health insurance include illness, injury due to accidents, prenatal care, and

in some cases, mental health coverage.

Accident insurance only goes into effect in the event of an accident. Examples ofwhat accident insurance covers include falling down the stairs, cutting oneself while

cooking, losing a limb in a farm machine and accidentally falling through a plate glass

window. Illnesses are not covered under accident insurance; however, accident injury

care is typically covered under health insurance.

Exclusions

The two types of insurance differ in many of their exclusionary policies, in that healthinsurance generally has more exclusion.

An accident policy usually includes a rider excluding coverage if you are injuredwhile you are committing a crime, take part in extremely high risk behavior in whicha reasonable person would not take part in or commit suicide. Suicide exclusions aresometimes limited to the first two years of the policy.


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Health insurance policies usually exclude all of the same things accident policiesexclude but if state law allows, also exclude pre-existing health conditions. Pre-existing conditions mean you had the disorder or issue before signing on to the policy.

Heart disease, diabetes, cancer, pregnancy and other physical problems are examplesof pre-existing conditions.

Cost

Health insurance is almost always more expensive than accident coverage becausehealth insurance covers so much more.

With accident insurance you get a onetime, pre-determined payout following a

qualifying event.

Health insurance, though it may have a lifetime cap, usually pays out over time andcovers illness as well as accidents. Lifetime caps on many policies are between $1million and $5 million. The risk is much higher to the insurance company; therefore,they charge more for your coverage.


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Forum for Prevention of Road

Accidents

Forum for Prevention of Road Accidents (FPRA) iscommitted to encourage and motivate experiential learningfrom home to educational curricula in a partnership modeto diffuse the importance of early intervention in developing positive attitudes andbehaviors for life; enabling all road users while particularly the children and youthto become successful learners, confident individuals, effective contributors andresponsible citizens on road safety.

Vision

The vision is to serve the society by ensuring a fast, safe, efficient, accessible,convenient and affordable inter-modal transportation system that meets the vitalnational interests and enhances the quality of life of people today and into thefuture. To ensure safest roads and learned users, we intend to explore mostplausible and adaptable road safety tactics through quality data collection, thededicated application of problem solving, partnership building, enforcement andeducation of strategies, and evaluation of our programs.

Our objectives are:

To identify and develop road safety programs to increase knowledge, awarenessand skill amongst the Indian road users.

To promote changing attitudes and behaviors of drivers contributing to makingIndian roads safer and reducing road trauma.

To prevent death and injury on the roads througheducation of all road users and campaigning forGovernance improvements to road safety.

To promote a positive attitude of law enforcementofficials and infuse a sense of courtesy and safetyawareness among road users.

To monitor relevant road statistics both locally andinternationally on an ongoing basis in order to effectimprovements.


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To promote advocacy on specific road safety issues in influencing, informing andassisting decision and or policy formulation.

To rise awareness about road traffic injuries, their grave consequences andenormous costs to the society.

Forum for Prevention of Road Accidents (FPRA) is now developing road safetyprogrammes to increase knowledge, awareness and skills amongst all types of roadusers. Besides education, it also promote advocacy on some particular issues ininfluencing, informing and assisting decision and policy makers. Presently we arepromoting Make Helmets Mandatory campaign for young two-wheeler riders inIndia.

PROJECTS BY FPRA

1) National road safety week2) Make helmet mandatory campaign

3) World day of remembrance for road traffic victims

4) Pappu zebra road sense campaign kicks off in Orissa

5) Decade of action for road safety launched in Cuttack


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Eight districts of the State, representing one-fourth of the total number of districts,account for 45 per cent of road accidents and fatalities, statistics show.

Going by the data of road accidents and persons killed in the State during 2010 and2011 (up to October), those eight districtsChennai, Coimbatore, Kancheepuram,Madurai, Salem, Tirupur, Vellore and Villupuramwitnessed 29,855 accidents in2010 and 25,710 accidents in 2011 against the State's total number of accidents of


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64,996 and 55,592. The persons killed in the accidents in those districts were 7088and 5949 against the total figures of 15,409 and 13,119.

Sadly, five of those districtsChennai, Vellore, Villupuram, Salem and Coimbatorehad retained their slots as those with the high rate of accidents since 2006, the year

regarded in the Road Safety Policy as the base year.

According to a document prepared by the Transport Department for the State RoadSafety Council meeting that took place a few days ago, Chennai, between 2006 and2010, registered nearly a 62 per cent increase in the number of accidents; Salem 29per cent; Vellore 25 per cent and Villupuram 11.7 per cent. Kancheepuram, despitebeing one of the districts with a high degree of accidents, had shown a decline in therate between 2006 and 2010, the document stated.

Road safety is not a priority subject for the police authorities, who tend to give more

importance to crime. The traffic expert also emphasizes that while analyzing roadaccident data and taking remedial measures, the authorities should work out anaccident risk index for each district in the State.

The index would have two componentsthe ratio between accidents and humanpopulation and another between accidents and the motor vehicle population. Bothshould be combined to arrive at the index. A similar index can be worked out for fatalaccidents alone.


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FUTURE OF INSURANCE INDUSTRY

According to a study done by FICCI and the Boston Consulting Group, Indiasinsurance industry is expected to touch USD 400 billion mark by 2020.

India's insurance industry is expected to touch the USD 400 billion mark by 2020,with scope for further penetration, but the sector players need to adopt a customercentric operating model, a study has said.

At present, the insurance industry comprising 23 life and 24 non-life companies isvalued at over USD 66 billion.

Besides, there has been a massive increase in the number of people covered. In lifeinsurance, the number of policies in force has increased from about 20 million in 2001to about 230 million in 2010, a nearly 12-fold increase, the study said.

The other big increase in coverage is in the health insurance space. The number oflives covered through health insurance has increased from just 2 million in 2001 tonearly 55 million in 2010, a nearly 25-fold increase, it added.

"This progress has been aided by the dramatic shift in the availability of productsincluding better term, ULIPs, whole life, maximum NAV (net asset value) guarantee,auto assistance and disease management," the study said.

BCG India Partner and Director Alpesh Shah, however, said the industry has come along way over the past decade, but the big challenge with the industry is profitability.

"Private life insurers have accumulated losses of over Rs 16,000 crore till March2010. Similarly, the non-life industry has cumulative underwriting losses of nearly Rs30,000 crore," he said.

Documents

100mks Recovered Final