BY: NAINA GUPTA BBA SEM.

What is insurance?
The definition of insurance can be made from two points: Functional definition. Contractual definition.

Functional Definition
Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against the risk.

Contractual Definition
In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency.

TYPE OF INSURANCE

INSURANCE
LIFE GENERAL INSURANCE INSURANCE

LIFE INSURANCE
Life insurance is a written contract between the insured and the insurer, that provides for the payment of the insured sum on the date of the maturity of the contract or on the unfortunate death of the insured, whichever occurs earlier.

GENERAL INSURANCE
General insurance or non-life

insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance.

TYPES OF GENERAL INSURANCE

Health insurance

Business insurance
Automobile insurance Fire insurance

Health Insurance
Just like one looks to safeguard ones wealth, these policies ensure guarding the insurer's health against any calamities that may cause long term harm to ones life and even hamper ones earning ability for a lifetime. Some examples of this type of policy are mediclaim policy, personal accident, group accident, traffic accident, etc.

Business Insurance
Risks of loss of profits/business, goods, plant and machinery are most profound in case of business. Under this head they cover the most widely used policies that cover a business from any loss of the above kind. Some of these policies are burglary insurance, shopkeepers insurance, key-man insurance, marine insurance, public liability insurance, workmen compensation insurance, air transit insurance, fidelity guarantee insurance etc.

Automobile Insurance
Auto Policy is required to be taken to cover the risks that arise to the owner, vehicle and third party. This includes the Compulsory Vehicle Policy (In India, by the Motor Vehicles Act, every car owner is required to covered against Act risks) and the Comprehensive Vehicle Policy.

Fire Insurance
This policy is required to be taken to prevent any loss of profits/property from incidental fire. Eg: fire insurance and fire consequential loss policy.

HISTORY OF INSURANCE IN INDIA

Phase
Phase I a. Life Insurance

Period
1818 to 1956 (about 138 yrs) 1850 to 1972 (about 122 yrs) 1956 to 2000 (about 44 yrs) 1972 to 2000 (about 28 yrs)

Industry
Many (245) private sector companies only, competitive market. Many (107) private sector companies only, competitive market. Nationalization, public sector or State monopoly, only one company. Nationalization, public sector monopoly, only one company with its four subsidiaries. Opened to the entry of private domestic and foreign companies, mixed sector of public and private sector units, oligopoly of public sector companies (14 life insurance and 12 general insurance companies)

b. General Insurance Phase II a.Life Insurance

b.General Insurance

Phase III Life Insurance and General Insurance

After 2000

Life Insurance Corporation of India (LIC) was formed in September 1956 by an Act of Parliament, LIC Act 1956 with a contribution of Rs. 50 million.

Presently the LIC has a network of seven zones; 100 divisions and 2,048 branches, personnel exceed seven lakhs employees and over six lakhs agents.

INVESTMENT POLICY OF LIC

Working of insurance

MAJOR PLAYERS

PRIVATE SECTOR COMPANIES

-Several leading private sector companies have entered in the field

of insurance sector, both in life and non-life insurance. -There are several MNCs, in Joint Venture with Indian private sector firms, have started operations in a big way.
Private Players in the Life Insurance Business HDFC Standard Life Max New York Life ICICI Prudential Life Om Kotak Mahindra Birla Sunlife Tata AIG SBI Life

ING Vysya

MARKET SHARE

CONCLUSION
Growth of Indian economy

is an investment driven growth Opens a wide variety of investment avenues Companies help to gain knowledge of products and services Achieve a better standard for near future life