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Module 2

Insurance Services

Meaning

Insurance means promise of compensation for any potential future losses. Insurance provides

financial protection against a loss arising out of happening of an uncertain event.

Need and importance of insurance

y Insurance provides protection against risk of loss.

y It distributes risk of loss among large number of person

y The loss caused by the fire and other mishaps is compensated by the insurance

company.y Life insurance encourages people to save something out of their income

y Insurance companies collect huge amount as premium. These funds are invested in

industrial concerns and souse industrial development.

Essentials of insurance contacts

y Utmost good faith

y Insurable interest

y Principle of indemnity

y Principle of subrogationy Principle of contribution

y Mitigation of loss

y Causa proximal

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Player in life and non life insurance

Player in life insurance

y HDFC standard LIC limited

y Max new yark IC limited

y ICICI prudential LIC limited

y Om Kotak Mahindra LIC limited

y Birla Sun LIC limited

y Tata Aig LIC limited

y SBI LIC limited

y  ING vysya LIC limited

y Allianz Bajaj LIC limited

y MetLife India LIC limited

y AMP SANMAR assurance company limited

y Dabur CGU life insurance company private limited

Products of life insurance

y Whole life policy

y Endowment life policy

y Joint life policy

y Annuity policy

y Term assurance

y Children¶s deferred insurance

y Group insurance policy

y Partnership assurance

y Janata policy scheme

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Player in non life insurance

The general endurance corporation of India had four subsidiary companies, namely

y Oriental insurance company limitedy New India assurance company limited

y National insurance company limited

y United India insurance company limited

In addition, the following were also registered with the IRDA.

y Royal sundaram alliance insurance company limited

y Reliance general insurance company limited

y TATA AIG general insurance company limited

y Bajaj Allianz general insurance company limited

y ICICI Lombard general insurance company limited

Products of non life insurance

Fire insurance

y Valued Policy

y Average policy

y Specific policy

y Floating policyy Excess policy

y Blanket policy

y Comprehensive policy

y Consequential loss policy

Marine insurance

y Time policy

y Voyage policy

y Mixed policy

y Blanket policy

y Fleet policy

y Valued policy

y Risk appraisal and selection.

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Insurance regulatory and development authority (IRDA)

IRDA was established on 19th

April 2000, to protect of insurance policyholders and to regulate and

promote and ensure the ordinarily growth of the insurance industry.

Powers and functions

Registration

Protection

Code of conduct

Fees

Books of account

Funds investment

Supervicing

Margin of solvency

Rural insurance

Protection of the interest of the policyholders

Policy proposal documents in easily understandable language

Claims procedure in both life and non-life

Setting up of grievance re-dressal machinery

Speedy settlement of claims and policyholders servicing

Double insurance

Under this the same risk and the same subject matter is insured more than once with different insurer.

Re-insurance

An original insurer may transfer a part of his risk already insured by him to some other fellow insurer.