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SMT. CHANDIBAI HIMATHMAL

MANSUKHANI COLLEGE

DHRUV 10

CREATING VALUES THROUGH TRUECONVERGENCE

DHRUV 10

CREATING VALUES THROUGH TRUECONVERGENCE

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THE CONTEMPRORARY ISSUES

IN INSURANCE SECTOR.X

PRESENTED BY

F.Y.B.C.B.I

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GROUP MEMBERS

SHIKSHA CHAWLA

RITU AILANI KANCHAN VALECHA

HEMA GOLANI

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OBJECTIVES:

Holding of Money.

Attractive Saving Plans.

Attractive Returns.

Trustworthy to Customers.

Spreading of Insurance in Rural and Urban

Areas.

Plans and Policies. Efficient Services.

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TYPES OF INSURANCE

GENERALINSURANCE

MARINEINSURANCE

FIREINSURANCE

HEALTHINSURANCE

LIFE

INSURANCE

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LIFE INSURANCE:

Life insurance business has been

established in India since 1818. Life insurance

covers the risk that exist in ones life. These risk

may be risk of accidental death, risk of death

due to illness or natural death. The death is

certain but the timing of death is uncertain.

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GENERAL INSURANCE:

General Insurance is often referred to as

the non-life insurance. General Insurance covers

all aspects of loss in case of objects and one

which does not fall under life insurance and is

particularly done for property loss in any naturalhazards, theft, burglary, accidents etc.

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MARINE INSURANCE:

It is a contract of indemnity in which the

underwriter agrees to compensate the measuredagainst specified perils in consideration of certain

premium. The purpose of marine cargo insurance is

to indemnify losses caused by incidental events

during sea transport due to sinking of the vessel oroutbreak of fire which lead to total loss, incursion of

sea water into the holds of the ship.

FIRE INSURANCE:

Fire insurance is governed by a TariffAdvisory Committee(TAC). The property that can

be covered under fire insurance includes Building,

Machinery, Instruments, Raw material, etc

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HEALTH INSURANCE:

Health and Medical insurance is a recentorigin in India. In India the introduction of the

new famous policy mediclaim has made a huge

difference to an ordinary citizens usage of

insurance for medical cover purpose.

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INSURANCE COMPANIES IN INDIA

Life Insurance General Insurance

Life Insurance Corporation of

India.General Insurance Corporation

of India.

1. Oriental Insurance Company

Ltd.

2. New India Assurance

Company Ltd.

3. National Insurance Company

Ltd.

4. United India Insurance

Company Ltd.

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CONTEMPORARY ISSUES:

GIC as Reinsurer-

It has been decided, in principle, to approve

General Insurance Corporation (GIC) as the Indian

reinsurer. It will be mandatory for all the insurancecompanies, private and nationalized, to cede a

prescribed percentage of their policy premium to

GIC as re-insurer.

Delinking of GIC:Delinking of GIC from its subsidiaries has

been approved in principle this is required under

IRDA Act, 1999 as GIC as an re-insurer cannot

underwrite direct insurance business.

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Change in paid up capital:-

The paid-up equity of the nationalizedinsurance companies is being increased from

existing Rs. 40 crore to Rs. 100 crore as per the

requirement under IRDA Act, 1999.

Measures taken by Government:

The Government is taking all necessary

measures to strengthen public sector companies.

The measures include grant of greater autonomy, upgradation of technology, organizational

restructuring, development of human resources

through training etc.

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Investment in Venture Capital:

The IRDA's green signal to Insurance companies

for investments in venture capital funds would providea boost in growth pertaining to the infrastructure

segment. The Insurance companies would be allowed

to invest about 5% of the total investment.

FDI Norms:As per the current FDI norms, foreign

participation in an Indian insurance company is

restricted to 26.0% of its equity / ordinary share

capital. Foreign direct investment (FDI) cap in privatesector to 49 per cent from 26 per cent. This is so due

the smooth functioning of business depends on the

trust and confidence reposed by the customers in the

solvency of the financial institutions.