General Insurance
Content
General insurance
Introduction The aim and objective of insurance is to protect the owner from financial losses that he suffers for the risks that he has taken. The basis of insurance is sharing of losses of a few amongst many. Insurance provides financial stability and security to both individuals and organizations by this distribution of losses of a few among many by building up a fund over a period of time. General insurance in India is a Rs 30,000-cr business in terms of annual premium. It grew by a healthy 16 per cent annually during the past five years. The growth was led by motor insurance and health insurance, which grew by 16 per cent and 37 per cent, respectively, on an annual basis. Growth has been driven both by the increase in the value of underlying assets with rising GDP and personal incomes, as well as, by the increasing penetration across categories. Assocham president Sajjan Jindal says, "One of the biggest constraints facing the general insurance business is the lack of reach beyond the cities. While life insurance players are struggling with the quality of insurance advisors, general insurance players face difficulty in getting intermediaries to distribute their products. The average ticket size and the commission rates are extremely low (compared to life insurance)." "While the average ticket size of a life insurance product is around Rs 20,000, the average ticket size for a general insurance policy is lower at around Rs 5,000. Further, with commission rates for general insurance being at around 10-15 per cent, compared to life insurance which is around 35-40 per cent (in the first year), intermediaries do not prefer to distribute general insurance products," he adds.
Providers
The Insurance market comprises the insurers, the buyers, and the intermediaries who mediate between the two parties and are rewarded for their efforts by the insurer. The insurance market in India hitherto consisted of the General Insurance Corporation of India (GIC) and its four subsidiaries namely: National Insurance Co. Ltd. with Head Office in Kolkata. United India Insurance Co. Ltd. with Head Office in Chennai. The New India Assurance Co. Ltd. with Head Office in Mumbai. The Oriental Insurance Co. Ltd. with Head Office in New Delhi
INSURANCE COMPANIES OPERATING IN INDIA LIFE INSURERS PUBLIC SECTOR 1. Life Insurance Corporation of India (LIC) PRIVATE SECTOR
1. Bajaj
Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co.Ltd. (ICICI PRU) 5. ING Vysa Life Insurance Co.Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co.Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE) 10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. Reliance Life Insurance Co. Ltd. 12. Aviva Life Insurance Co. Ltd. (AVIVA) 13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 14. Shriram Life Insurance Co. Ltd.
15. Bharti AXA Life Insurance Company Ltd. 16. Future Generali India Life Insurance Company Limited 17. IDBI Fortis Life Insurance Company Ltd. 18. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 19. AEGON Religare Life Insurance Company 20. DLF Pramerica Life Insurance Co. Ltd. NON–LIFE INSURERS PUBLIC SECTOR 1. The New India Assurance Co. Ltd 2. National Insurance Co. Ltd. 3. The Oriental Insurance Co. Ltd. 4. United India Insurance Co. Ltd. 5. Export Credit Guarantee Corporation Ltd. 6. Agriculture Insurance Company of India (AIC) PRIVATE SECTOR 1. Bajaj Allianz General Insurance Co. Ltd. (BAJAJ ALLIANZ) 2. ICICI Lombard General Insurance Co. Ltd. (ICICI LOMBARD) 3. IFFCO Tokio General Insurance Co. Ltd. (IFFCO TOKIO) 4. Reliance General Insurance Co. LTD. (RELIANCE) 5. Royal Sundaram Alliance Insurance Co. Ltd. (ROYAL SANDARAM) 6. TATA AIG General Insurance Co. Ltd. (TATA AIG) 7. Cholamandalam MS General Insurance Co. Ltd. (CHOLAMANDALAM) 8. HDFC ERGO General Insurance Co. Ltd. (HDFC CHUBB) 9. Star Health and Allied Insurance Company Limited 10. Apollo DKV Insurance Company Limited 11. Future Generali India Insurance Company Limited 12. Universal Sompo General Insurance Company Ltd. 13. Shriram General Insurance Company Ltd. 14. Bharti AXA General Insurance Company Ltd.
Buyers
The buyers in the insurance market are the general public, traders, exporters, importers, industrial and commercial organizations, clubs, associations, hospitals, schools, etc. The intermediaries are the agents, and now-a-days new channels include brokers, corporate agents and financial institutions like banks (Bancassurance), micro-finance institutions etc. All the intermediaries are to be duly licensed by the Insurance Regulatory and Development Authority (IRDA).
Insurance Intermediaries
Insurance companies sell their products mainly through the following: i. Agents (who are the representatives of the Insurer) ii. Independent Intermediaries (who are the representatives of the Buyer) iii. Direct Sales including through ‘online’ and ‘Referrals’.
These are the common types of general insurance:
Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money. Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.
Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist.
Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, sometimes bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have auto insurance while on road in your vehicles. If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level. Whether or not you want or need auto insurance mostly depends on the type of automobile you own. If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.
Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.
Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases
Name: Mayuri Jadav Roll No. : 1144 Sub. : MFS MBA (Sem. -III)
Introduction The aim and objective of insurance is to protect the owner from financial losses that he suffers for the risks that he has taken. The basis of insurance is sharing of losses of a few amongst many. Insurance provides financial stability and security to both individuals and organizations by this distribution of losses of a few among many by building up a fund over a period of time. General insurance in India is a Rs 30,000-cr business in terms of annual premium. It grew by a healthy 16 per cent annually during the past five years. The growth was led by motor insurance and health insurance, which grew by 16 per cent and 37 per cent, respectively, on an annual basis. Growth has been driven both by the increase in the value of underlying assets with rising GDP and personal incomes, as well as, by the increasing penetration across categories. Assocham president Sajjan Jindal says, "One of the biggest constraints facing the general insurance business is the lack of reach beyond the cities. While life insurance players are struggling with the quality of insurance advisors, general insurance players face difficulty in getting intermediaries to distribute their products. The average ticket size and the commission rates are extremely low (compared to life insurance)." "While the average ticket size of a life insurance product is around Rs 20,000, the average ticket size for a general insurance policy is lower at around Rs 5,000. Further, with commission rates for general insurance being at around 10-15 per cent, compared to life insurance which is around 35-40 per cent (in the first year), intermediaries do not prefer to distribute general insurance products," he adds.
Providers
The Insurance market comprises the insurers, the buyers, and the intermediaries who mediate between the two parties and are rewarded for their efforts by the insurer. The insurance market in India hitherto consisted of the General Insurance Corporation of India (GIC) and its four subsidiaries namely: National Insurance Co. Ltd. with Head Office in Kolkata. United India Insurance Co. Ltd. with Head Office in Chennai. The New India Assurance Co. Ltd. with Head Office in Mumbai. The Oriental Insurance Co. Ltd. with Head Office in New Delhi
INSURANCE COMPANIES OPERATING IN INDIA LIFE INSURERS PUBLIC SECTOR 1. Life Insurance Corporation of India (LIC) PRIVATE SECTOR
1. Bajaj
Allianz Life Insurance Co. Ltd. 2. Birla Sun Life Insurance Co. Ltd. (BSLI) 3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE) 4. ICICI Prudential Life Insurance Co.Ltd. (ICICI PRU) 5. ING Vysa Life Insurance Co.Ltd. (ING VYSYA) 6. Max New York Life Insurance Co. Ltd. (MNYL) 7. MetLife India Insurance Co.Ltd. (METLIFE) 8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 9. SBI Life Insurance Co. Ltd. (SBI LIFE) 10. TATA AIG Life Insurance Co. Ltd. (TATA AIG) 11. Reliance Life Insurance Co. Ltd. 12. Aviva Life Insurance Co. Ltd. (AVIVA) 13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE) 14. Shriram Life Insurance Co. Ltd.
15. Bharti AXA Life Insurance Company Ltd. 16. Future Generali India Life Insurance Company Limited 17. IDBI Fortis Life Insurance Company Ltd. 18. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. 19. AEGON Religare Life Insurance Company 20. DLF Pramerica Life Insurance Co. Ltd. NON–LIFE INSURERS PUBLIC SECTOR 1. The New India Assurance Co. Ltd 2. National Insurance Co. Ltd. 3. The Oriental Insurance Co. Ltd. 4. United India Insurance Co. Ltd. 5. Export Credit Guarantee Corporation Ltd. 6. Agriculture Insurance Company of India (AIC) PRIVATE SECTOR 1. Bajaj Allianz General Insurance Co. Ltd. (BAJAJ ALLIANZ) 2. ICICI Lombard General Insurance Co. Ltd. (ICICI LOMBARD) 3. IFFCO Tokio General Insurance Co. Ltd. (IFFCO TOKIO) 4. Reliance General Insurance Co. LTD. (RELIANCE) 5. Royal Sundaram Alliance Insurance Co. Ltd. (ROYAL SANDARAM) 6. TATA AIG General Insurance Co. Ltd. (TATA AIG) 7. Cholamandalam MS General Insurance Co. Ltd. (CHOLAMANDALAM) 8. HDFC ERGO General Insurance Co. Ltd. (HDFC CHUBB) 9. Star Health and Allied Insurance Company Limited 10. Apollo DKV Insurance Company Limited 11. Future Generali India Insurance Company Limited 12. Universal Sompo General Insurance Company Ltd. 13. Shriram General Insurance Company Ltd. 14. Bharti AXA General Insurance Company Ltd.
Buyers
The buyers in the insurance market are the general public, traders, exporters, importers, industrial and commercial organizations, clubs, associations, hospitals, schools, etc. The intermediaries are the agents, and now-a-days new channels include brokers, corporate agents and financial institutions like banks (Bancassurance), micro-finance institutions etc. All the intermediaries are to be duly licensed by the Insurance Regulatory and Development Authority (IRDA).
Insurance Intermediaries
Insurance companies sell their products mainly through the following: i. Agents (who are the representatives of the Insurer) ii. Independent Intermediaries (who are the representatives of the Buyer) iii. Direct Sales including through ‘online’ and ‘Referrals’.
These are the common types of general insurance:
Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money. Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.
Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist.
Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, sometimes bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have auto insurance while on road in your vehicles. If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level. Whether or not you want or need auto insurance mostly depends on the type of automobile you own. If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.
Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.
Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases
Name: Mayuri Jadav Roll No. : 1144 Sub. : MFS MBA (Sem. -III)
