General Insurance
General Insurance
General Insurance
Chapter 1:History ..2 -Insurance Business -Indias Insurance Business Chapter 2: Insurance sector reforms4 Chapter 3: IRDA .5 -History -Powers, Duties & Functions Chapter 4: Non Life Insurance companies. 8 Chapter 5: General Insurance Products .9
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fails to pay, the amount is realized from the security taken at the time of enrolment from the underwriter. Lloyds as a corporation is never liable on any policy. Lloyds brokers bring business to the market. The risks placed with underwriters originate from clients and other brokers and intermediaries all over the world. Together, the syndicates underwriting at Lloyd's form one of the world's largest commercial insurers and a leading reinsurer. History of Indias Insurance Business We find the term Yogakshemam Bahamayam in our ancient texts. This suggests that a form of "community insurance" was prevalent around 1000 BC and practised by the Aryans. In modern times, Triton Insurance Co. Ltd. was the first general insurance company to be established in India in 1850. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and nonIndian lives. The Oriental Assurance Company was established in 1880. Thereafter, many players emerged. By 1956, there were around 240 private life insurers and more than 100 general insurers. The Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalised the industry in two phases in 1956 (life) and in 1972 (non-life). The government brought together life insurers under one nationalised monopoly corporation and LIC was born. The general insurance business remained in the private sector till 1972. Then, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. They were subsidiaries of the General Insurance Company (GIC).
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Chapter 2 Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. Financial sector reforms were initiated and it was felt that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. Some of the recommendations of the Malhotra committee included:
Government stake in the insurance Companies to be brought down 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. The Insurance Act should be changed. An Insurance Regulatory body should be set up. InvestmentsMandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company
Customer Service LIC should pay interest on delays in payments beyond 30 days Computerisation of operations and updating of technology to be carried out in the insurance industry.
The committee emphasized that it was essential that the sector was open to competition to improve the customer services and increase the coverage of the insurance industry. However, enough precaution should be exercised to prevent failure of the new entrants .Hence a minimum capital requirement of Rs.100 crores was stipulated. To provide greater autonomy to insurance companies and enable them to act as independent companies, it proposed setting up an independent regulatory body.
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Chapter 3 The Insurance Regulatory and Development Authority (IRDA) Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. IRDA has been framing regulations and registering the private sector insurance companies. It launched of the IRDA online service for issue and renewal of licenses to agents. So far, there are 13 life insurance companies and 14 general insurance companies. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Committee.
Powers, Duties & Functions of IRDA The IRDA Act, 1999 lays down the duties, powers and functions of IRDA. The Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. The powers and functions of the Authority shall include, (a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection 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; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) specifying the code of conduct for surveyors and loss assessors; (e) promoting efficiency in the conduct of insurance business; (f) promoting and regulating professional organisations connected with the insurance and re-insurance business; (g) levying fees and other charges ; (h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business; (i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee (j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) regulating investment of funds by insurance companies; (l) regulating maintenance of margin of solvency;
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Sanjay Nene, Officer on Special Duty, Insurance Regulatory and Development Authority, Parisrama Bhavanam. 5-9-58/B, Basheerbagh: 500 004 Phone: 040- 55820964, 55787938 Ext: 131 E-mail: mailto:sanjay.nene@irdaonline
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Bajaj Allianz General Insurance Company Limited http://www.bajajallianz.com ICICI Lombard General Insurance Company Limited http://www.icicilombard.com IFFCO Tokio General Insurance Company Limited http://itgi.co.in National Insurance Company Limited. http://www.nationalinsuranceindia.com New India Assurance Company Limited http://www.niacl.com/ The Oriental Insurance Company Limited http://orientalinsurance.nic.in/ Reliance General Insurance Company Limited Royal Sundaram Alliance Insurance Company Limited http://www.royalsundaramalliance.com United India Insurance Company Limited http://www.uiic.co.in/ Tata AIG Life Insurance Company Limited http://www.tata-aig.com Cholamandalam General Insurance Company Limited http://www.cholainsurance.com HDFC-Chubb General Insurance Company Limited http://www.hdfcchubb.com Export Credit Guarantee Corporation Limited https://www.ecgcindia.com Agriculture Insurance Company of India Limited http://www.aicofindia.org
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Agricultural Insurance
Employee
Speciality
Motor
Accident
Property
Travel
Health
Corporate Policies
A. B. C. D. E. Speciality Office Employee Property Contingency
A. Speciality: These are the policies catered to meet special needs or needs of specific industries. Some of them are
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Port Liabilities Film Insurance, Credit Insurance, Event Insurance Jewellers Block Policy Bankers Indemnity Policy Shopkeepers Policy Marine Cargo Policy Multi Peril Policy for L.P.G. Dealers
B. Employee policies Various policies available for employer to take care of employees or to meet legal obligations.
Group Personal Accident Group critical illness Group Travel Workmen's Compensation Keyman Insurance Overseas Travel insurance
C.Policies for Office /manufacturing units For protection of business , industrial units from contingencies
Fidelity Guarantee Insurance Policy Special Contingency Policy Plate Glass Insurance Neon Sign Insurance Fire Policy Burglary Policy Machinery Breakdown Policy Electronics Equipment Policy Consequential Loss Policy Contractors All Risk Policy Advanced Loss of Profit / Delay in Startup Policy Contractor Plant and Machinery Policy Mega Package Policies Marine cum Erection / Storage cum Erection Policy
D. Health Insurance Group Personal Accident Policy Mediclaim Policy Overseas Mediclaim Insurance- Business &Holiday Overseas Mediclaim Insurance- Frequent Corporate travelers
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Home Insurance There is a wide range of policies and packages available. They cover more than youre your home and its contents. Some of the perils covered are: Fire Explosion / Implosion Burglary Riot, Strike, Malicious Damage cover Damages due to Impact by rail / road vehicle or animal Bursting and / or overflowing of water tanks, apparatus and pipes Missile Testing operations Leakage from Automatic Sprinkler Installations Lightning Loss caused by Storm, Cyclone, Hurricane, Tornado, Flood and Inundation Destruction by subsidence of part of the site on which the property stands or landslide Bush Fire
Earthquakes and Terrorism are usually provided as add-ons due to the increase in frequency. The other perils included in some feature rich policies are: Rent for alternative accommodation Loan repayment for home/car Public liability Baggage Insurance Home Appliances cover Personal Accident Loss of cash in transit
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Tata AIGs policy Home Secure Supreme is a comprehensive policy for home insurers. Travel Insurance There are various policies which cover International travel, domestic train travel, students overseas travel, travel to specific countries. Bajaj Allianz has a unique plan Shubh Yatra which insures the home against burglary during travel. Auto Insurance Policies They cover:
Repair / replacement of the parts of the vehicle Payment for the market value of the vehicle in case of a total loss, provided that the loss occurs due to an accident, theft, earthquake, flood, riot, strike and malicious acts. It covers the legal liability of insured towards third party personal injury and property damage arising out of an accident involving the insured vehicle.
Health Insurance Policies Health Insurance Policies may provide cover for:
expensive medical care including pre & post hospitalisation expenses. provide a daily allowance for each day of hospitalization. Protection against the major life threatening illness like Cancer, Heart Attack, Paralysis, Kidney failure, Stroke, etc accidental death permanent disability hospital confinement allowance
Bajaj Allianz has a health insurance plan called Personal Guard which provides childrens education bonus.
Other Insurance Policies Baggage Insurance Mobile Phone Insurance Executive Travel Insurance Directors and officers Liability insurance Professional Indemnity Insurance
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