includes a detailed presentation on insurance sector

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2. Acknowledgement
 We would like to thank our faculties for their
constant support when ever needed for making
presentation.
 And this project would not have been possible
with out support of our friends and group
members
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3. Insurance
 Insurance is actually a contract between 2
parties whereby one party called insurer
undertakes in exchange for a fixed sum called
premium to pay the other party happening of a
certain event.
 Insurance is a federal subject in India.
 Life and general insurance in India is still a
nascent sector with huge potential for various
global players.
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4. History of Insurance
 Insurance in India has its history dating back till 1818,
when Oriental Life Insurance Company was started
by Europeans in Kolkata to cater to the needs of
European community.
 The oldest existing insurance company in India is
National Insurance Company Ltd, which was
founded in 1906 and is doing business even today.
 Insurance industry, earlier comprised of only two state
insurer.
 Life Insurance Corporation of India (LIC)
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 General Insurance Corporation of India (GIC).

5. Contd….
 In the recent years when the Govt. of India in
1999 opened up the insurance sector by
allowing private insurance companies to work
in the market by depositing 100 crores rupees
in the reserve of government and allowing FDI
up to 26%.
 This has encouraged many overseas
insurance companies, having a required
amount in their reserve, to open their branch
in our country.
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6. Why Insurance?
 To provide security
 Old age pensions
 As an investment/ or saving mechanism
 As a collateral for loans
 For tax benefits
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7. Functions of Insurance
• Provide protection
• Collective bearing of risk
Primary
Functions • Provide Certainty
• Provide prevention of losses
• Small capital to cover larger risk
Secondary
Functions • Contributes towards the developments of larger industries
• Means of saving & investments
• Sources of earning foreign exchange
Other
Functions • Risk free trade
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8. Why Insurance Sector is
privatized?
 To give individual & corporate consumers a
competitive environment that can deliver products
& services in tune with their requirements.
 Industry to benefit from technology transfer &
capital from global insurance players.
 India is a signatory to WTO committed to open
insurance & banking.
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9. 5 ‘R’s of Insurance
Risk
Return
Riders
Rewards Value add
Rebate
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10. Insurance
is
Fortunate Many
For
Unfortunate
few
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11. Classification chart
Insurance
General
Life
Insurance
Insurance
Health Motor Marine Fire
Insurance Insurance Insurance Insurance
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12. General Insurance
General insurance is basically an insurance
policy that protects you against losses and
damages other than those covered by life
insurance.
Types :-
Motor Insurance
Fire Insurance
Health Insurance
Marine Insurance
Life Insurance
It is an insurance coverage that pays out a certain
amount of money
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to the insured or their specified beneficiaries upon a

13. General Insurers: Public
Sector
Public Sector
 National Insurance Company Limited
 New India Assurance Company Limited
 Oriental Insurance Company Limited
 United India Insurance Company Limited
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14. General Insurers: Private
Sector
 Bajaj Allianz General Insurance Co. Limited
 ICICI Lombard General Insurance Co. Ltd.
 IFFCO-Tokyo General Insurance Co. Ltd.
 Reliance General Insurance Co. Limited
 Royal Sundaram Alliance Insurance Co. Ltd.
 TATA AIG General Insurance Co. Limited
 Cholamandalam General Insurance Co. Ltd.
 Export Credit Guarantee Corporation
 HDFC Chubb General Insurance Co. Ltd.
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16. Chart showing segment wise share
in GENERAL INSURANCE business
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17. Life Insurers: Market Share
 Life Insurance Corporation of India
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18. Life Insurers: Private sector
 Bajaj Allianz Life Insurance Company Limited
 Birla Sun Life Insurance Co. Ltd
 HDFC Standard life Insurance Co. Ltd
 ICICI Prudential Life Insurance Co. Ltd.
 ING Vysya Life Insurance Company Ltd.
 Met Life India Insurance Company Ltd.
 Max New York Life Insurance Co. Ltd
 Tata AIG Life Insurance Company Limited , etc…
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19. Chart showing policy
comparison
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20. Comparison of a public & private
companies .
This shows us that still in our economy in the sector
of insurance , public company i.e. LIC a major
player is still huge in terms of premium collection .
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21. Need for Insurance Planning
"Insurance is not for the person who passes
away, it’s for those who survive”
• Insurance Planning is concerned with ensuring
adequate coverage against insurable risks
• Insurance enables us to live our lives to the
fullest, without worrying about the financial impact
of events that could hamper it.
• A major reason why you need insurance is to
ensure that you are not forced to close if you are
exposed to a claim
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22. Reinsurance
 Based on the same principle as insurance itself,
reinsurance is a mechanism to provide for a
further sharing of the risk so as to help insurance
companies meet their obligations to
policyholders.
 General Insurance Corporation of India is the
Reinsurance Company in India.
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23. "Huge scope for insurance
market"
 “There is enough opportunity, but the way has to
be discovered. It’s not that it is impossible. Only
Insurance companies have to bring their brains
together and find out the way. But, the message
has to be sent to customers that these companies
are not to cheat them, but deliver.
 Increasing health and self awareness.
 As now FDI investment limit has gone up to 49%
from 26% earlier , hence better growth in terms of
investment.
 It has become a good source of investment for
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some people.

24. Laws & Regulations
 Insurance Act, 1938
 Life Insurance Corporation Act,1956
 Insurance Regulatory Development Authority Act,
1999
 Consumer Protection Act, 1986
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25. Exemption under IT Act
 Life Insurance Premiums: Any amount that you pay
towards life insurance premium for yourself, your spouse or your
children can also be included in Section 80C deduction. If you
are paying premium for more than one insurance policy, all the
premiums can be included. It is not necessary to have the
insurance policy from Life Insurance Corporation (LIC) – even
insurance bought from private players can be considered here.
 ULIP: Policyholder is allowed to claim income tax benefits
against his Ulip premium payments by way of both deduction
and exemption. He can deduct from his taxable income, to a total
of Rs 1 lakh in certain instances, under Section 80C of the
Income Tax Act. Policyholders can also seek exemption from
gross income under Section 10 (10) D for any sum received from
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insurance policy as maturity proceeds; death benefits are

26. Role in Economy
 According to IRDA, the insurance sector
constitutes around 4.5 per cent to the GDP.
 Last year, the total premium collected was at Rs
2.83 lakh crore.
 Better percentage of GDP contribution is
expected in future , due to high opportunities in
the sector.
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27. Stages in Insurance sales
 List
 Suspects
 Prospects
 Contact
 Demo
 Objection Handling
 Closing
 Collecting Premium money
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28. Bibliography
 IRDA website and its report.
 indianfinance.com
 Statistical data collected from IRDA report.
 Images from clipart.com
 insuranceinfo.com
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