Presentation on Insurence

8/8/2019 Presentation on Insurence

http://slidepdf.com/reader/full/presentation-on-insurence 1/19

PRESENTED BY:MAHANTESH, DEEPA, PRIYA, PANKAJ,

ABHAYANTH, KALLESHAPPA.



` Insurance = Collective bearing of Risk.` Insurance, whether lif e or non-lif e, pr ovides

people with a reasonable degree of security

and assurance that they will be pr otected in

the event of a calamity or f ailure of any sort.` Basic Human trait is to be averse to the idea

of risk taking.



` insurance is a form of risk management primarily

used to hedge against the risk of a

contingent, uncertain loss.

` Insurance is def ined as the equitable transf er of the risk of a loss, f r om one entity to another, in

exchange for payment



` A

s per the section 4 of IRD A

A

ct' 1999, Insurance Regulatory and Development Authority (IRD A, which was constituted by an act of par liament) specif y the composition of Authority.

` The Authority is a ten member team consisting of

(a) a Chairman;

(b) f ive whole-time members;(c) four part-time members,

(all appointed by the Government of India)



` Mission of IRD A as stated in the act is "to

pr otect the interests of the policyholders, toregulate, pr omote and ensure order ly

gr owth of the insurance industry and for

matters connected therewith or incidental

thereto."` In 2010, the Government of India ruled

that the Unit Linked Insurance

Plans (ULIPs) will be governed by IRD A,

and not the market regulator Securities and Exchange Board of India.



` Section 14 of IRD A Act, 1999 lays down the

duties, powers and f unctions of IRD A.

1. Subject to the pr ovisions of this Act and any other law for the time being in force, the

Authority shall have the duty to regulate,

pr omote and ensure order ly gr owth of the

insurance business and re-insurance business.



` Without pre judice to the generality of the

pr ovisions contained in sub-section (1), the powers and f unctions of the Authority shall

include, issue to the applicant a certif icate of

registration, renew, modif y, withdraw, suspend

or cancel such registration;` pr otection of the interests of the policy holders

in matters concerning assigning of policy,

nomination by policy holders, insurable

interest, settlement of insurance claim,

surrender value of policy and other terms and

conditions of contracts of insurance;



` IRD A consists of a Chairman and some permanent

as well as part time members. The regulations,

however, are enacted under the guidance of a

statutory advisory committee. The advisory

committee consists of following individuals and ex-off icio authorities:

` Chairman: Hari Narayana is the current Chairman of

IRD A.

` Full-time Members: Currently, they are Mr. K K

Srinivasan (Nonlif e Member), Sri G Prabhakara (Lif e

Member), Dr R Kannan(Member, Actuary) and Sri

R.K. Nair (Member, F & I). There is pr ovision for a

panel of other members and part time members.



` In insurance, the insurance policy is

a contract (generally a standard form contract)

between the insurer and the insured, known as

the policyholder, which determines

the claims which the insurer is legally required to pay. In exchange for payment, known as the

premium, the insurer pays for damages to the

insured which are caused by covered perils

under the policy language.



` Insurance contracts are generallyconsidered contracts of adhesion.

` Insurance contracts are unilateral.

` Insurance contracts are governed by the

principle of utmost good f aith which requiresboth parties of the insurance contact to deal in

good f aith.

Parts of an insurance contract

Declarations, Def initions, Insuring

agreement,

Exclusions, Conditions, Endorsements.



` The business of lif e insurance in India in its

existing form started in India in the year 1818

with the establishment of the Oriental Lif e

Insurance Company in Kolkata.` In 1914, the Government of India started

publishing returns of Insurance Companies in

India. The Indian Lif e Assurance Companies Act,

1912 was the f irst statutory measure to regulate lif e business being transacted in India



Milestone of Life Insurance in India1912:The Indian Lif e Assurance Companies Act enacted as the f irst statute to regulate the lif e

insurance business.` 1928:The Indian Insurance Companies Act enacted

to enable the government to collect statisticalinformation about both lif e and non-lif e insurance businesses.

` 1938:Ear lier legislation consolidated and amended toby the Insurance Act with the objective of pr otecting the interests of the insuring public.

` 1956:245 Indian and foreign insurers and pr ovident societies taken over by the central government and nationalized. LIC formed by an Act of Par liament, viz. LIC Act, 1956, with a capital contribution of Rs. 5cr ore f r om the Government of India



` Endowment Policy` Whole Lif e Policy

` Term Lif e Policy

` Money-back Policy

` Joint Lif e Policy` Gr oup Insurance Policy

` Loan Cover Term Assurance Policy

` Pension Plan or Annuities

` Unit Linked Insurance Plan



` Aviva Lif e Insurance

` Ba ja j Allianz` Bir la S un Lif e Insurance

` HDFC Standard Lif e Insurance` ICICI Prudential` ING Vysya

` Kotak Mahindra

` LIC` Max New York Lif e Insurance

` Metlif e India Insurance` Reliance Lif e Insurance` SBI Lif e Insurance` Shriram Lif e Insurance

` Tata AIG Lif e Insurance



` General Insurance pr ovides much-needed pr otection against unforeseen events such as

accidents, illness, f ire, burglary et al. Unlike Lif e

Insurance, General Insurance is not meant to

off er returns but is a pr otection against contingencies. Almost everything that has a

f inancial value in lif e and has a pr obability of

getting lost, stolen or damaged, can be covered

thr ough General Insurance policy.



` Health Insurance

` Motor Insurance

` Travel Insurance

` Home Insurance



` In 1907, the Indian Mercantile Insurance Ltd. was established and was the f irst company to

transact all classes of general insurance business.

` In 1957, General Insurance Council (GIC), a wing of the Insurance Association of India was established The General Insurance Councilf ramed a code of conduct for ensuring f air conduct and sound business practices acr oss Non-Lif e or General insurance sector.

` General Insurance Business

(Nationalization) Act in 1972, generalinsurance business was nationalized whichcame into eff ect f r om 1st January, 1973 .



` The IRD A opened up the Indian insurance

market in August 2000 by inviting application

for registration pr oposals. Foreign companies were allowed entry into Indian insurance

sector with an upper ceiling on ownership of

up to 26% participation.

`

Fr om 2000 onwards, IRD A

has f ramed various regulations for carrying on insurance

business to pr otection of Indian policyholders¶

interests including the registration of Lif e &

Non-Lif e (General) Insurance companies. Just

recently, the FDI (Foreign Direct Investment)

in Indian Insurance Companies has been

increased up to 50%.



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Presentation on Insurence