Insurance Sector.pptx

7/29/2019 Insurance Sector.pptx

1/16

INSURANCESECTOR AND

OVERVIEW OFIRDA

ROHIT JINDAL11238 MBA 3rd SEM.


2/16

Meaning :

Insurance is a co-operative device whichspreads , the loss caused by a particular risk to

some persons, over a number of persons who

are exposed to, same or similar risk and who

agree to insure against that risk.


3/16

Functional Definition :Insurance may be defined as a social device

whereby a large group of individuals, through asystem of equitable contributions, may reduce oreliminate measurable risk of economic losscommon to all members of the group.

Features :It is a co-operative device

It spreads the risk over a large number of personswho are insured against the risk

It provides security to the insured


4/16

ContractualDefinition: Insurance is a contract in which a sum of money is

paid to the assured in consideration of insurersincurring the risk of paying a large sum upon agiven contingency.

Features :

It is a contractWhere by insurer assumes the risk of insured

Promises to pay a specified amount

On the happening of a specific event

In consideration of the premium paid by theinsured


5/16

Principles Of Insurance-

Basic Principles:

Principle of Co-operation

Principle of Probability

Legal Principles:Principles of Utmost good faith

Principles of Insurable Interest

Principle of Indemnity

Principle of Proximate cause

Principle of Subrogation

Principle of Contribution


6/16

Kinds of Insurance:

Life Insurance:-

A form of insurance on the life of a person. If theperson dies then the insurance policy pays out a sum

of money to the policyholder (such as a person'sfamily).

Insurance providing for the payment of a stipulatedamount to a designated beneficiary upon the death of

the insured.


7/16

General Insurance:

All other types of insurance are called general

insurance or non-life insurance.Types:-

Marine Insurance

Fire Insurance

Liability Insurance Social Insurance

Other InsurancesDouble Insurance

ReinsuranceOver insurance

Under insurance


8/16

Malhotra committee

In the beginning of the 1990s govt. of India, in the

light of the developments in the rest of the world decidedto globalize the Indian economy. A committee under the

chairmanship of MR. R.N. Malhotra former governor

RBI was set up for the insurance sector. These committee

submitted the report in January 1994. on the basis of

these report , the govt. of India passed insurance

regulatory and development authority bill,1999. The bill

aims to promote privatization in insurance sector.


9/16

Rationale for Privatization of LifeInsurance :

Size of the Market

Enough for All companies

Low Penetration Ratio

Growth in Economy & Insurance BusinessGood Prospects for Rural & Social Sector

Funds for Development of Economy

The Regulatory Framework

More Products RequiredEmployment Generation


10/16

FEATURES OFPRIVATEISATION SCHEME

ENTRY OF PRIVATE SECTOR

ENTRY OF FOREIGN INVESTOR

INSURANCE REGULATORY AUTHORITY

CONTROLLER OF INSURANCE

SHARE CAPITAL

RURAL AND WEAKER SACTION


11/16

Life insurance corporationLIC was established on sep. 1,1956, under an act

passed by the parliament with capital of Rs 5(cr.). It

was established with following objectives:- Spread life insurance much more widely in rural

areas.

Maximize mobilization of peoples saving

Conduct business with good faith Meet the various life insurance need of the

community that would arise in changingenvironment.

Promote amongst all agents and employees of thecorporation a sense of pride and job satisfactionthrough achieving corporate objectives.


12/16

Social responsibilities of lic

Financial assistance in the progress of ruralelectrification scheme in the country

Advance loan for water supply and seweragedisposal for rural and urban areas.

The corporation has been investing more than 75%of its annual accretions in social oriented sectors.Its help to improve the quality of life of the peoplethrough better basis amenities.

Financial assistance for expansion of powerproject and development of sugar corporation.


13/16

Organization set up of lic

AUTHORITY

RESPONSIBIL

ITY

AS ON 31-03-2003


14/16

Life Insurance:-

LIC of India

HDFC Standard Life Insurance Co. Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.Birla Sun Life Insurance Co. Ltd.

Reliance Life Insurance Co. Ltd.

Tata AIG Life Insurance Co. Ltd.

SBI Life Insurance Co. Ltd.


15/16

General Insurance:-

New India Assurance Co. Ltd.

United India Assurance Co. Ltd.

National Insurance Co. Ltd.

Oriental Insurance Co. Ltd.Royal Sundaram Alliance Insurance Ltd.

Reliance General Insurance Co. Ltd.

Allianz Bajaj General Insurance


16/16

Regulator of insurance

Before , the insurance act 1938 regulate the insurance

sector. In 1993 govt. of India realize for changes in the act due to

nationalized so they appointed a committee under thechairmanship of former Governor of RBI, Sh. R.N.

MALHOTRA. These committee submitted the report inJanuary 1994. in 1999 the report become an act known asINSURANCE REGULATORY AND DEVELOPMENTAUTHORITY ACT 1999.

The act has the power to direct, advice, caution,

investigate, search, authorize, register, and liquidate theinsurance companies.

Insurance Sector.pptx

Documents

Transcript of Insurance Sector.pptx