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HISTORY
Insurance in India has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community.
The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer
1912: The Indian Life Assurance Companies Act came into force for regulating the life insurance business. 1928: The Indian Insurance Companies Act was enacted for enabling the government to collect statistical information on both life and non-life insurance businesses. 1938: The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5 crore and that too from the Government of India.
Covering larger risks with small capital Insurance assuages the businessmen from security investments. This is done by paying small amount of premium against larger risks and dubiety. Helps in the development of larger industries Insurance provides an opportunity to develop to those larger industries which have more risks in their setting up.
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Risk Free trade Insurance boosts exports insurance, making foreign trade risk free with the help of different types of policies under marine insurance cover.
Insurance provides indemnity, or reimbursement, in the event of an unanticipated loss or disaster. There are different types of insurance policies under the sun cover almost anything that one might think of. There are loads of companies who are providing such customized insurance policies.
The Life Insurance Corporation (LIC) posted a 50 per cent growth in new premium collection in the first nine months of the 2010 fiscal, increasing its market share to 65 per cent from 56 per cent a year ago.
LICs new premium collection touched US$ 9.58 billion in the AprilDecember 2009 period while the combined business of the 22 private insurers grew to US$ 5.07 billion from the previous year, as per data collated by the Insurance Regulatory and Development Authority (IRDA).
Overall the industry grew at 29 per cent in the April-December period of the fiscal year 2010.
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The FDI limit in the insurance space for foreign players is capped at 26 per centpermissible under the automatic route subject to a licence from the official regulator, IRDAbut the government is planning to raise it to 49 per cent and a bill to give effect to the proposal is pending in the Rajya Sabha. IRDA has stipulated that the mandatory ceding by every general insurer in the country to the national reinsurer General Insurance Corporation (GIC), would continue to remain at 10 per cent as under current regulations. IRDA has also allowed insurance companies to offer 'Health plus Life Combi Product', a policy that would provide life cover along with health insurance to subscribers.
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IRDA was set up by the parliament in 1999. The section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority specify the composition of Authority The Authority is a ten-member team consisting of a. Chairman; b. five whole-time members; c. four part-time members, All these positions are appointed by the Government of India IRDA - Duties, Powers and Functions :Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
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The Indian insurance industry churns out large volume of jobs every year. This industry is so vast that you would find attractive opportunities in the fields of general insurance, health insurance, finance insurance, travel insurance, online insurance and not to forget the life insurance. However, some of the specific areas of expertise in this industry include:
Agent and Broker: Insurance agents/ brokers are the people who give product advice to the clients in order to sell company's product. Customer Service Agent: the person in-charge of this post needs to interact with the customer on daily basis in the agency to update policy as well as coverage details. Claims Adjuster: the office holder needs to ascertain the range of damage in case of accidents and see if the insurance policy can cover it. He/ she make way for settlement between the insurance company and its customers.
Actuary: this is one of the very crucial insurance jobs. The person in-charge of this office needs to analyze the risks involved in creating the insurance policies in the areas of business, property or life & death of the person. To find a job in this area, the aspirant needs to be Mathematics, Econometrics, Statistics or Computer Science graduate. MBAs in finance can also apply for the post.
Risk Manager: the person needs to spot the risk and suggest the ways to tackle such risks. Service Representatives: this profile demands an individual to act as a medium between the insurance companies and agents. Loss Control Specialist: the office holder needs to look into safety measures so that accidents at the workplace which can lead to financial losses can be avoided. Underwriter: the office holder needs to determine the applicant's chances of risks and whether the policy chosen by him/ her meets the insurance standard. 18